38-748. Employer payment for ineligible persons; definitions
A. If an employer pays contributions on behalf of any person who is not eligible by statute for ASRS membership and either ASRS or a court determines that ASRS is legally obligated to provide that person with any benefit or credit under this article or article 2.1 of this chapter, the employer shall pay to ASRS any unfunded liability resulting from the provision of benefits or credit to the person.
B. If the employer does not remit full payment of the unfunded liability pursuant to subsection A of this section within ninety days after being notified by ASRS of the amount due, the unpaid amount accrues interest until the amount is paid in full.
C. Credited service ceases to accrue as of the date that ASRS or a court first determines that ASRS is legally obligated to provide any benefit or credit to the person.
D. If the amount in the person's ASRS account is greater than the present value of the benefit or credit, ASRS shall retain the entire account and shall not be required to refund, credit or offset any excess against future contributions.
E. This section applies to an employer that employs, either directly or indirectly, a person who performs services for a third-party organization and that does not have a written representation by ASRS of the person's eligibility.
F. For the purposes of this section:
1. " Amount in the person's ASRS account" means two times the person's retirement contributions made pursuant to section 38-736:
(a) Plus:
(i) Interest on the person's retirement contributions made pursuant to section 38-736.
(ii) Any contributions made for the purchase of service credits pursuant to section 38-742, 38-743, 38-744 or 38-745.
(iii) Interest on the amount contributed for the purchase of service credits pursuant to section 38-742, 38-743, 38-744 or 38-745.
(b) Minus any amounts paid by ASRS pursuant to this article or article 2.1 of this chapter.
2. " Interest" means the interest rate assumption that is approved by ASRS for actuarial equivalency.
3. " Unfunded liability" means the amount, if any, that the present value of the person's benefit or credit, using the actuarial assumptions approved by ASRS, exceeds the amount in the person's ASRS account calculated as of the date that ASRS or a court first determines that ASRS is legally obligated to provide any benefit or credit to the person.
Section: Previous 38-741 38-742 38-743 38-744 38-745 38-746 38-747 38-748 38-749 38-750 38-751 38-755 38-756 38-757 38-758 NextLast modified: October 13, 2016