(2) If the service retirement date occurs before his member’s sixtyfifth birthday, the service retirement allowance is member’s computed as in item (1) but is reduced by fivetwelfths of one percent for each month, prorated for periods less than a month, by which his retirement date precedes the first day of the month coincident with or next following his sixtyfifth birthday. Section 912440. (A) The assumed annual rate of return on retirement system investments in the plan must be established by the Public Employee Benefit Authority (PEBA) but may not be more than six percent. (B) If the rate of return on the plan is above six percent in any year, the employer and employee equally must share the excess gain less expenses. Similarly, if the rate of return is less than six percent in any year, the employer and employee equally must share in the loss plus expenses. Section 912450. (A) PEBA shall ensure that the plan is one hundred percent funded at its inception and require any future unfunded liabilities to be amortized over short, tenyear or less dollar schedules. (B) If the funded ratio of the plan is below ninetyfive percent for two consecutive years or ninetypercent for one year, a new member may not elect to enroll in the plan until the funded ratio is above ninetyfive percent. A new employee shall enroll in the Defined Contribution Primary Retirement Plan established pursuant to Chapter 20, Title 9 and may elect to enroll in the Optional SharedRisk Defined Benefit Plan after the funded ratio is above ninetyfive percent. Section 912460. Nothing in this article may be construed to alter or amend the employer contribution rate schedule established pursuant to Section 911085. Section 912470. If not in conflict with this article, Class Four members under this chapter have the same rights and privileges of a Class Three member.” SECTION 2. Section 9110 of the 1976 Code is amended by adding an appropriately numbered item to read: Four an employee member of the “( ) ‘Class member’ means system with an effective date of membership after June 30, 2019.”
(2) If the member’s service retirement date occurs before his sixtyfifth birthday, the member’s service retirement allowance is computed as in item (1) but is reduced by fivetwelfths of one percent for each month, prorated for periods less than a month, by which his retirement date precedes the first day of the month coincident with or next following his sixtyfifth birthday. Section 912440. (A) The assumed annual rate of return on retirement system investments in the plan must be established by the Public Employee Benefit Authority (PEBA) but may not be more than six percent. (B) If the rate of return on the plan is above six percent in any year, the employer and employee equally must share the excess gain less expenses. Similarly, if the rate of return is less than six percent in any year, the employer and employee equally must share in the loss plus expenses. Section 912450. (A) PEBA shall ensure that the plan is one hundred percent funded at its inception and require any future unfunded liabilities to be amortized over short, tenyear or less dollar schedules. (B) If the funded ratio of the plan is below ninetyfive percent for two consecutive years or ninetypercent for one year, a new member may not elect to enroll in the plan until the funded ratio is above ninetyfive percent. A new employee shall enroll in the Defined Contribution Primary Retirement Plan established pursuant to Chapter 20, Title 9 and may elect to enroll in the Optional SharedRisk Defined Benefit Plan after the funded ratio is above ninetyfive percent. Section 912460. Nothing in this article may be construed to alter or amend the employer contribution rate schedule established pursuant to Section 911085. Section 912470. If not in conflict with this article, Class Four members under this chapter have the same rights and privileges of a Class Three member.” SECTION 2. Section 9110 of the 1976 Code is amended by adding an appropriately numbered item to read: “( ) ‘Class Four member’ means an employee member of the system with an effective date of membership after June 30, 2019.”
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