Section 21-312 - Member contributions - In general.
§ 21-312. Member contributions - In general.
(a) Rate of compensation deemed to continue through pay period.- To determine the earnable compensation of a member in a payroll period, the Board of Trustees may deem that the rate of annual compensation payable to the member on the first day of the payroll period continues throughout the payroll period.
(b) Less than full pay period.- The Board of Trustees may omit member contributions for a period less than a full payroll period for an individual who was not a member on the first day of the payroll period.
(c) Modification of member contribution by Board of Trustees.- To facilitate the making of member contributions, the Board of Trustees may modify the member contribution required of any member by an amount not exceeding 0.1% of the annual earnable compensation on the basis of which the member contribution is to be made.
(d) Contributions required.-
(1) The member contributions provided for under this Division II shall be made notwithstanding any resulting reduction in the actual compensation received below the minimum compensation provided for by law for a member.
(2) Each member is deemed to agree to make the member contributions required by this Division II and to have received full compensation.
(3) Except for the benefits provided under this Division II, payment of compensation less any member contribution is a complete discharge of all claims for services rendered by an employee during the time covered by the payment.
(e) Effect of failure to make contributions.- If a member does not make the member contributions required by this Division II, on retirement, the member's retirement allowance shall be reduced by the actuarial equivalent of the missed accumulated contributions, including regular interest on those contributions at the statutory rate earned on member contributions in the member's system, compounded annually.
[An. Code 1957, art. 73B, § 1-302; 1994, ch. 6, § 2; 2006, ch. 618, § 1.]