Public Officers and Employees

Retirement System – Contributions and Benefits

SECTION 36-10-1.1

§ 36-10-1.1. Department payment of member contributions.

(a) Each department, pursuant to the provisions of § 414(h)(2) of the United States Internal Revenue Code, 26 U.S.C. § 414(h)(2), shall pick up and pay the contributions which would be payable by the employees as members under §§ 36-10-1, 8-3-16, 8-8-10.1, 8-8.2-7, 28-30-18.1, and 42-28-22.1. The contributions so picked up shall be treated as employer contributions in determining tax treatment under the United States Internal Revenue Code; and shall not be included as gross income of the employee until such time as they are distributed. Employee contributions which are picked up pursuant to this section shall be treated and identified as member contributions for all purposes of the retirement system except as specifically provided to the contrary in this section.

(b) Member contributions picked up by a department shall be paid from the same source of funds used for the payment of compensation to a member. A deduction shall be made from a member's compensation equal to the amount of his or her contributions picked up by his or her departmental employer. This deduction, however, shall not reduce his or her compensation for purposes of computing benefits under the applicable retirement system. Picked up contributions shall be transmitted to the retirement system in accordance with the provisions of § 36-10-1.

History of Section.
(P.L. 1983, ch. 137, § 1; P.L. 1989, ch. 494, § 12.)