49-11-601 - Payment of employer contributions -- Penalties for failure to comply -- Adjustments to be made.
49-11-601. Payment of employer contributions -- Penalties for failure to comply --Adjustments to be made.
(1) The employer contributions, fees, premium taxes, contribution adjustments, and otherrequired payments shall be paid to the office by the participating employer as determined by theexecutive director.
(2) A participating employer that fails to withhold the amount of any membercontributions, as soon as administratively possible, shall also pay the member contributions tothe office out of its own funds.
(3) Except as limited by Subsections (6) and (7), if a participating employer does notmake the contributions required by this title within 60 days of the end of the pay period, theparticipating employer is liable to the office as provided in Section 49-11-604 for:
(a) delinquent contributions;
(b) interest on the delinquent contributions as calculated under Section 49-11-503; and
(c) a 12% per annum penalty on delinquent contributions.
(4) The executive director may waive all or any part of the interest, penalties, expenses,and fees if the executive director finds there were extenuating circumstances surrounding theparticipating employer's failure to comply with this section.
(5) Contributions made in error will be refunded to the participating employer or memberthat made the contributions.
(6) (a) An employer described in Subsections 49-13-202(2)(c) or (d) that paid retirementbenefits to an employee or retiree that were not required by this title may offer the retirementbenefits paid to the employee as a substantial substitute to service credit and retirement benefitsthat may have been earned by the employee under this title.
(b) An employee who received retirement benefits under Subsection (6)(a) may sign anaffidavit that:
(i) acknowledges the substantial substitute received by the employee under Subsection(6)(a); and
(ii) irrevocably relinquishes service credit and retirement benefits that may have accruedto the employee under this title effective from the employee's date of employment with theemployer described in Subsection (6)(a) to the date of the employer's election under Section49-13-202.
(c) Nothing in this section shall be construed to diminish an employer's right to recoverpast retirement benefits other than Social Security, paid to an employee or retiree, in error orunder mistaken belief that the employer was not a participating employer.
(7) If the employer files with the office an irrevocable written relinquishment of servicecredit signed by the member or retiree:
(a) the office shall proportionally reduce any delinquent contributions, penalties, fees, orinterest assessed against a participating employer in connection with a member or retireedescribed in Subsection (6)(a); and
(b) the system has no liability to the employee for benefits relinquished under Subsection(6)(b).
Amended by Chapter 280, 2010 General Session