(1) Each person becoming a member of the system on or after March 1, 2026, shall have, in addition to the defined benefit plan under this article, a defined contribution plan meeting the requirements of Section 401(a) of the Internal Revenue Code. A portion of the employee’s contributions shall be deposited into the employee’s defined contribution account, as provided in Section 25-11-123, and in addition, the employer may elect to contribute an amount up to the maximum pretax amount allowable under federal law for plans under Section 401(a) of the Internal Revenue Code. Members shall be vested immediately in the defined contribution plan.
(2) (a) Pursuant to Section 401(a) of the Internal Revenue Code, the board may establish a defined contribution, qualified plan under which a portion of the employee’s mandatory contributions shall be deposited and which meets all requirements under federal and state law. To the extent state law conflicts with federal law, federal law shall govern the plan document to maintain the federal tax qualified status. The board, in its fiduciary capacity, may seek approval from the Internal Revenue Service.(b) The administration of the defined contribution plan shall be under the direction of the system. The defined contribution plan shall be operated in accordance with the guidelines established by the Internal Revenue Service for Section 401(a) plans as reflected in the plan document, as may be modified from time to time by the board of trustees, and including optional variable employer contributions and a process for hardship withdrawals by members. Payroll reductions shall be made, in each instance, by the appropriate payroll officer. The administrator of the defined contribution plan may contract with a private corporation or institution for providing consolidated billing and other administrative services if deemed necessary by the administrator.(c) The board of trustees may assess the employer an amount, out of the employer’s contribution rate under Section 25-11-123, up to two-tenths percent (0.2%) of the participant’s total earned compensation as defined in Section 25-11-103 to provide for the administrative expenses of operating the defined contribution plan, including, but not limited to, the services of auditors, consultants, money managers and third-party administrators.
(a) Pursuant to Section 401(a) of the Internal Revenue Code, the board may establish a defined contribution, qualified plan under which a portion of the employee’s mandatory contributions shall be deposited and which meets all requirements under federal and state law. To the extent state law conflicts with federal law, federal law shall govern the plan document to maintain the federal tax qualified status. The board, in its fiduciary capacity, may seek approval from the Internal Revenue Service.
(b) The administration of the defined contribution plan shall be under the direction of the system. The defined contribution plan shall be operated in accordance with the guidelines established by the Internal Revenue Service for Section 401(a) plans as reflected in the plan document, as may be modified from time to time by the board of trustees, and including optional variable employer contributions and a process for hardship withdrawals by members. Payroll reductions shall be made, in each instance, by the appropriate payroll officer. The administrator of the defined contribution plan may contract with a private corporation or institution for providing consolidated billing and other administrative services if deemed necessary by the administrator.
(c) The board of trustees may assess the employer an amount, out of the employer’s contribution rate under Section 25-11-123, up to two-tenths percent (0.2%) of the participant’s total earned compensation as defined in Section 25-11-103 to provide for the administrative expenses of operating the defined contribution plan, including, but not limited to, the services of auditors, consultants, money managers and third-party administrators.
(3) Each participating member shall direct the investment of the individual’s accumulated employer and employee contributions and earnings to one or more investment choices within available categories of investment provided by the board. The board shall provide an investment menu of investment options. In establishing the investment options, the board shall:(a) Include predetermined investment portfolio options constructed to reflect different risk profiles that automatically reallocate and rebalance contributions as a participating member ages; and(b) Allow a participating member to construct an investment portfolio using some or all of the investment options.
(a) Include predetermined investment portfolio options constructed to reflect different risk profiles that automatically reallocate and rebalance contributions as a participating member ages; and
(b) Allow a participating member to construct an investment portfolio using some or all of the investment options.