Section 14C. Notwithstanding the provisions of section fourteen, each governmental employer included in subsection (i) of section one which elects, or if it does not otherwise elect shall be deemed to have elected, to pay contributions under the provisions of this section shall make contributions for a period encompassing not less than two complete calendar years. Contributions shall be made on total wages. All contributions paid by rated governmental employers shall be pooled and available to pay any benefits required under this chapter. The accounts hereinafter established and maintained are book accounts for the calculation of contributions to be paid by each employer subject to this section.

(a) To elect to become a rated governmental employer, such employer shall file with the commissioner a written notice of such election within the thirty day period immediately following the date on which determination of subjectivity to this chapter is issued.

(b) To elect to become a rated governmental employer, if a governmental employer of this state has previously elected otherwise, such employer shall file with the commissioner a written notice of such election within the thirty day period immediately preceding January first of any calendar year.

(c) Any rated governmental employer shall continue to be liable as a rated governmental employer, until such employer files with the commissioner a written notice of election to terminate its status as a rated governmental employer, which notice shall be filed prior to January first of the calendar year for which such termination shall first be effected.

(d) No rated governmental employer shall be eligible for a rate computed under subsection (h) of this section until there have been twenty-one consecutive calendar months immediately preceding the computation date as defined in paragraph (3) of subsection (a) of section fourteen throughout which benefits could have been charged against such employer's account. Provided that for calendar year nineteen hundred and eighty, fifteen consecutive calendar months immediately preceding the computation date shall be used.

(e) Each employer who has not been subject to this act for a sufficient period of time to have its rate computed under this subsection shall make quarterly payments at a calendar year rate expressed as a percentage of total wages and such rate shall be the same for all rated governmental employers not eligible for a computed rate.

(1) For calendar years nineteen hundred and seventy-eight and nineteen hundred and seventy-nine, the contribution rate for all rated governmental employers shall be one per cent of the total wages paid during the calendar quarter for which payment is due, except that the rate for the first quarter of nineteen hundred and seventy-eight shall be zero.

(2) For calendar year nineteen hundred and eighty, and subsequent years the rate for rated governmental employers not eligible for a computed rate will be equal to the average cost of all rated governmental employers as determined in paragraph (1) of subsection (h) of this section, but not less than one per cent.

(f) The commissioner shall establish an employer's account for each governmental employer who is subject to this section, shall also maintain a subsidiary solvency account for the purposes set forth in section fourteen, and such accounts as are necessary for calculations under subsection (h).

(g) The commissioner shall determine charges and credits to each employer's account according to the provisions of section fourteen except that all extended benefit payments shall be charged to the employer's account which are not reimbursable by funds made available under any act of Congress.

(h) Rated governmental employers eligible for a rate computation shall make quarterly payments at a calendar year rate determined by the experience of all rated governmental employers and by the individual employer's experience. The rate shall be computed by the following method:

(1) The Required Yield from all rated governmental employers shall be determined by the rate, stated as a per cent, rounded to two decimal places, of total benefits paid in the prior fiscal year ending September thirtieth plus an adjustment factor of 0.5 times the total benefits paid less the current fund balance of the accounts established in subsection (f) of this section, all of which is divided by total wages reported by all rated governmental employers for the prior fiscal year ending September thirtieth.

RY (Required Yield) = Total Benefits Paid + (0.5 Total BenefitsPaid - Current Fund Balance)———————————————Total Wages Reported

(a) For the calendar year nineteen hundred and eighty the adjustment factor shall be 0.2;

(b) For calendar years subsequent to nineteen hundred and eighty the adjustment factor shall be increased by 0.1 until nineteen hundred and eighty-three from which time it will remain 0.5;

(c) In no case shall the adjustment to total benefits paid be less than zero, or increase the Required Yield by more than 0.2.

(2) An individual experience factor, stated as a per cent rounded to two decimal places, shall be computed for each eligible rated governmental employer by dividing the benefits charged to the employer's account by such employer's wages reported, for two preceding fiscal years ending September thirtieth.

In no case shall the factor thus calculated be increased by more than two percentage points over the factor for the prior calendar year.

(3) An aggregate experience factor, stated as a per cent rounded to two decimal places, shall be computed for all eligible rated governmental employers by dividing the benefits charged to all employers' accounts by all such employers' wages reported, for two preceding fiscal years ending September thirtieth.

(4) The contribution rates to be effective for the subsequent calendar year shall be determined by adjusting proportionately the required yield determined under paragraph (1) of this subsection to the experience factor under paragraph (2) of this subsection adjusted by the aggregate experience factor under paragraph (3) of this subsection rounded to the nearest one-tenth of a per cent, except that no employer's rate for any calendar year will be less than one-tenth of one per cent.

(5) An emergency rate increase shall be imposed at the beginning of any quarter in which the rated governmental employers' fund balances are less than the benefit payments charged to all rated governmental employers' accounts during the prior quarter. The emergency rate increase will be up to one per cent added to the rate calculated in paragraph (4) of subsection (h) and is to be effective for the balance of the rate year. If an emergency tax is imposed for more than two consecutive years, the commissioner shall initiate a study and make appropriate recommendations to the general court in the following year.

(i) The commissioner shall promptly notify each rated governmental employer of such employer's rate for the following calendar year which will become final unless application to the commissioner for a review of his determination of its contribution rate is filed within sixty days of the date of such determination.

(j) In order to implement the provisions of section four A, whenever any political subdivision of the commonwealth or any instrumentality thereof, or any instrumentality of one or more such subdivisions, is liable for the payment of contributions as of January first, nineteen hundred and seventy-eight, the treasurer thereof, upon certification to the board of assessors, shall expend available funds in order to pay said contributions.

(k) To the extent that the provisions of this section do not cover all aspects of administration, the appropriate subsections of section fourteen shall apply.

(l) The commissioner may for good cause extend the period within which a notice of election, or a notice of termination, shall be filed and may permit an election to be retroactive but not earlier than January first of the calendar year immediately preceding the date said notice was filed.