19-20-609. Employer's supplemental contribution -- actuarially determined adjustments.
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19-20-609 . Employer's supplemental contribution -- actuarially determined adjustments.
(a)Subject to subsections (1)(b) through (1)(d), each employer shall contribute to the retirement system a supplemental amount equal to the percentage specified in subsection (1)(b) of total earned compensation of each member employed during the whole or part of the preceding payroll period.
(b)For fiscal years beginning after June 30, 2024, the percentage of compensation to be contributed under subsection (1)(a) is 2%. For fiscal years beginning after June 30, 2027, there is a 0.1% increase each fiscal year through the fiscal year ending June 30, 2047. For fiscal years beginning after June 30, 2047, the percentage of compensation to be contributed under subsection (1)(a) is 4%.
(c)The board may decrease the employer's supplemental contribution if:
(i)the average funded ratio of the system based on the last three actuarial valuations is equal to or greater than 90%;
(ii)the period necessary to amortize all liabilities of the system based on the most recent annual actuarial valuation is less than 15 years; and
(iii)the guaranteed annual benefit adjustment has been increased to the maximum allowed under 19-20-719 .
(d)Following one or more decreases in the supplemental contribution rate pursuant to subsection (1)(c), the board may increase the supplemental contribution to a rate not to exceed 1% if:
(i)the average funded ratio of the system based on the last three annual actuarial valuations is equal to or less than 80%; and
(ii)the period necessary to amortize all liabilities of the system based on the most recent annual actuarial valuation is greater than 20 years.
(2)After the board has actuarially determined the need to impose, increase, or decrease a supplemental contribution rate under this section, the imposition, increase, or decrease is effective on the first day of July following the board's determination.