2012 Session

Budget Amendments - HB30 (Committee Approved)

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Local Option to Adjust 5% Employee Contribution Policy (language only)

Item 468 #2h

Item 468 #2h

Central Appropriations
Central Appropriations

Page 355, strike lines 26 through 29, and insert:
"K.  Each county, city, town, local public school board, or other local employer who has elected to pay an equivalent amount in lieu of the member contributions required of an employee who is not a person who becomes a member on or after July 1, 2010, may require such employee to pay member contributions on a salary reduction basis in accordance with  § 414(h) of the Internal Revenue Code up to the amount of the five percent of the employee's creditable compensation."

(This amendment gives localities and school boards that are paying the 5% employee contribution on behalf of their Plan 1 employees the option of requiring their employees to pay a portion or all of the 5% employee contribution.)