Any county, municipality, or other political subdivision (local government) or group of local governments is currently authorized to establish and maintain a plan or system of retirement benefits for its elected or appointed officers and its employees. A local government or group of local governments that adopts a retirement plan or system is required to maintain an association for the purchase, establishment, or procurement of a retirement plan (association). Currently, any employer may withdraw from its participation in and contributions to any such association upon adoption of a resolution by the local government's governing body and upon approval by at least 65% of all active members employed by the employer who are participating in the association.
The bill creates an additional withdrawal provision that allows a board of county commissioners, after an association has been provided an opportunity to present information to the board of county commissioners regarding the advantages or disadvantages of withdrawal from the association, to initiate the withdrawal of current employees who are peace officers from its participation in and contributions to a defined contribution plan offered by an association for the purpose of joining a retirement plan offered by the fire and police pension association. For such a withdrawal, the approval requirement to withdraw is 65% of all current employees who are peace officers proposed to be withdrawn from participation in a defined contribution plan offered by the association and who participate in the vote to withdraw from the association.
If the withdrawal from the defined contribution plan offered by an association is approved, a current employee who is a peace officer is required to notify the association and the board of county commissioners whether he or she will remain in the defined contribution plan or become part of the defined benefit plan administered by the fire and police pension association. If a current employee who is a peace officer does not provide such notice, the current employee will remain in the defined contribution plan.
A board of county commissioners may use the new withdrawal provision once every 4 years. A board of county commissioners may also use the existing withdrawal provision to initiate the withdrawal of current employees who are peace officers from its participation in a defined contribution plan.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)