Withdraw Peace Officers Local Government Retirement Plan

County, municipal, and political subdivision officers' and employees' retirement systems - employer withdrawal from system - current employees who are peace officers. For a local government that has adopted a plan or system of retirement benefits for its elected or appointed officers and for its employees and that maintains an association for the purchase, establishment, or procurement of a retirement plan or system (association), a new mechanism for certain employers to withdraw from its participation in the association is created. The board of county commissioners may, 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, 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withdrawal, the approval requirement to withdraw is 55% of all current employees who are peace officers proposed to be withdrawn from participation in a defined contribution plan offered by the association.

If the withdrawal from the defined contribution plan offered by an association is approved, a current employee who is a peace officer may elect to remain an active member of the defined contribution plan. A current employee who is 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 peace officer who is hired on or after the effective date of the retirement plan offered by the fire and police pension association will be enrolled in the retirement plan offered by the fire and police pension association.

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 this bill as enacted.)