Currently, an employer who covers employees under the federal "Social Security Act" whose duties are directly involved with the provision of law enforcement or fire protection (employer) may elect coverage under the social security supplemental plan established by the fire and police pension association (association). Under the social security supplemental plan, employees have reduced benefits and employees and employers have reduced contribution rates.
The bill authorizes the board of the association to allow an employer that is eligible to participate in the social security supplemental plan to alternatively elect to participate in one or more of the defined benefit plans administered by the association, with full benefits and unreduced contribution rates.
An employer that elects to affiliate with the association to participate in a defined benefit plan is required to make the election through the governing board of the local government or county. An application for coverage by the association is required to be approved by at least 65% of all active members employed by the employer who vote in the election proposing coverage.
The board of the association is authorized to adopt rules to allow an employee of the affiliating employer to elect to remain in a predecessor plan and not have coverage by the association. All active employees at the time of affiliation with the association, with the exception of employees who elect to remain in a predecessor plan, and all employees who are hired after affiliation will become participants in the association and such participation cannot be revoked.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)