§ 36-7-33.1. FICA Alternative Retirement Income Security Program. (a) For FARP eligible employees, the state shall establish the FICA Alternative Retirement Income Security Program. The FARP shall be administered in accordance with the following provisions:

(1) IRC compliance. The FARP shall be administered as a defined contribution plan under section 401(a) of the IRC, and shall provide retirement benefits as required under section 3121(b)(7)(F) of the IRC.

(2) Employee participation in the FARP -- One-Time Opt-Out Exception. With the one exception described in (b) below, FARP-eligible employee participation in the FARP shall be mandatory. Each participant shall make mandatory payroll deduction contributions to the FARP equal to a minimum of seven and five tenths percent (7.5%) of the employee's gross wages for each pay period. Any payroll deduction contributions made pursuant to the FARP shall not be included in the computation of federal income taxes withheld on behalf of any participant. Once implemented, the participants, and the state on behalf of the participants, shall not continue to make FICA contributions. The FARP shall be administered by the financial institution currently administering the 401(a) plan for the state employee retirement plan, as described in Title 36 Chapter 10.3.

(b) An otherwise FARP-eligible employee, who is employed by the state at the time this section takes effect, may opt to not participate in the FARP. An employee who opts to not participate in the FARP will continue to make FICA contributions and the state shall continue to make FICA contributions on behalf of the employee. An employee who opts to not participate in the FARP may subsequently, without penalty, choose to participate in the FARP; provided, however, such employee must continue to participate in the FARP for as long as he or she is a FARP-eligible employee.

(c) Review by state investment commission. The state investment commission shall, from time to time, review and evaluate the reasonableness of the selected financial institution's fees and the performance of the selected financial institution's funds.

History of Section. (P.L. 2013, ch. 144, art. 4, § 2.)