(1) Every employer in this state, except those employers covering their employees under social security and those described in section 31-31-802 (2)(b) and (2)(c) who have not elected to be subject to the provisions of this part 8, shall be governed by the provisions of this section. For members who die or are disabled on or after January 1, 1980, the death and disability benefits provided to any member pursuant to this part 8 shall be paid for by state moneys transferred to the fire and police members' benefit investment fund created by section 31-31-301 (1)(a), subject to the limitations imposed by this section. Moneys in the disability and death benefits trust fund created by section 31-31-813 shall not be used for any purpose other than the payment of the death and disability benefits established by this part 8. (2) (a) The board shall submit an annual actuarial valuation report dated January 1 of the year in which the report is submitted, regarding the benefit liabilities accrued under this part 8 to the state auditor, the legislative audit committee, and the joint budget committee of the general assembly, together with any recommendations concerning such liabilities as accrued. (b) (Deleted by amendment, L. 2020.) (3) Repealed. (3.5) (a) To ensure that there is sufficient money to pay death and disability benefits for members hired before January 1, 1997, the state treasurer shall issue warrants to the fire and police pension association on July 1, 2022, and July 1, 2023, in an amount equal to six million six hundred fifty thousand dollars for each warrant and on July 1, 2025, and every July 1 thereafter through July 1, 2059, in an amount equal to two million fifty thousand dollars for each warrant. The warrant issued on July 1, 2022, is to be paid from the general fund, and the remaining warrants are to be paid from the death and disability payment cash fund created in subsection (3.5)(b) of this section. The board shall deposit this money in the statewide death and disability trust fund created in section 31-31-813. (b) (I) The death and disability payment cash fund is hereby created in the state treasury. The fund consists of money transferred to the fund in accordance with subsections (3.5)(b)(II) and (3.5)(b)(III) of this section. In accordance with section 24-36-114 (1), the state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the general fund. The state treasurer shall use the money in the fund for the warrants issued on July 1, 2023, July 1, 2025, and every July 1 thereafter through July 1, 2059, in accordance with subsection (3.5)(a) of this section. (II) On July 1, 2022, the state treasurer shall transfer six million six hundred fifty thousand dollars from the general fund to the death and disability payment cash fund created in subsection (3.5)(b)(I) of this section. (III) On July 1, 2025, and every July 1 thereafter through July 1, 2059, the state treasurer shall transfer two million fifty thousand dollars from the general fund to the death and disability payment cash fund created in section (3.5)(b)(I) of this section. (4) For each member hired on or after January 1, 1997, who is eligible for the death and disability coverage provided by this part 8, a contribution shall be made to the death and disability account in the fund for the year 2021 in an amount not greater than three percent of the member's salary. Thereafter, the board, based on an annual actuarial valuation, may adjust the contribution rate every year, but in no event may the adjustment for any one-year period exceed two-tenths of one percent of the member's salary. Any employer and any local pension board or authority shall provide such information as may be required by the board in order to complete the annual actuarial valuations. The actuary appointed by the board may utilize either the entry age-normal cost method or the aggregate cost method for purposes of the study required by this subsection (4). Any unfunded accrued liability shall be funded over a period not to exceed thirty years. The actuarial study shall not include any consideration of a cost of living adjustment to benefits awarded to members who are occupationally disabled. Payments shall be made by the employer and are due no later than ten days following the date of payment of salary to the member. The payments required by this section are subject to interest if not submitted when due. Any decision regarding whether the contribution required by this subsection (4) shall be assessed against the employer or the member, or shall in some manner be assessed jointly against the employer and the member, will be made at the local level utilizing the usual process for determining employee benefits. If it is not already part of the usual process for determining employee benefits, the employer shall confer with the employees or their representative prior to making a determination on how the contribution will be assessed.
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