19-3-2117. Allocation of contributions and forfeitures.

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19-3-2117 . Allocation of contributions and forfeitures.

(1)The member contributions made under 19-3-315 and additional contributions paid by the member for the purchase of service must be allocated to the plan member's retirement account.

(2)Subject to subsections

(3)and (4), of the employer contributions under 19-3-316 received:

(a)an amount equal to:

(i)4.19% of compensation must be allocated to the member's retirement account;

(ii)2.37% of compensation must be allocated to the defined benefit plan as the plan choice rate;

(iii)0.04% of compensation must be allocated to the education fund as provided in 19-3-112 (1)(b); and

(iv)0.3% of compensation must be allocated to the long-term disability plan trust fund established pursuant to 19-3-2141 ;

(b)on July 1, 2009, continuing until the additional employer contributions terminate pursuant to 19-3-316 (4)(b), the percentage specified in subsection

(3)of this section of compensation must be allocated to the defined benefit plan to eliminate the plan choice rate unfunded actuarial liability;

(c)on July 1, 2013, and continuing until June 30, 2015, an amount equal to 1% of compensation must be allocated to the defined benefit plan unfunded liabilities; and

(d)on July 1, 2015, and continuing until the plan choice rate unfunded actuarial liability in the defined benefit plan is fully paid, an amount equal to 1% of compensation must be allocated to the defined benefit plan as part of the plan choice rate. Effective the first full pay period in the month following the board's verification that the plan choice rate unfunded actuarial liability is paid off, the amount equal to 1% of compensation must be allocated to the member's retirement account until the additional employer contributions terminate pursuant to 19-3-316 (4)(b).

(3)The percentage of compensation to be contributed under subsection (2)(b) is 0.27% for fiscal year 2014 and increases by 0.1% each fiscal year through fiscal year 2024. For fiscal years beginning after June 30, 2024, the percentage of compensation to be contributed under subsection (2)(b) is 1.27%.

(4)Effective the first full pay period in the month following the board's verification that the plan choice rate unfunded actuarial liability is paid off, the 2.37% of compensation in subsection (2)(a)(ii) and the percentage of compensation in subsection (3), if any, must be allocated to the member's retirement account.

(5)Forfeitures of employer contributions and investment income on the employer contributions may not be used to increase a member's retirement account. The board shall allocate the forfeitures under 19-3-2116 to meet the plan's administrative expenses, including startup expenses.