Rulemaking. (1) As used in this section, "withdrawing entity" means an entity that: (a) participates in a system or plan under this title before January 1, 2023; and (b) (i) is a public employees' association; (ii) is an insurer that is subject to the disclosure requirements of Section 31A-4-113; or (iii) after beginning participation with a system or plan under this title, has modified the entity's federal tax status to a nonprofit organization that qualified under Section 501(c) of the Internal Revenue Code. (2) Notwithstanding any other provision of this title, a withdrawing entity may provide for the participation of the withdrawing entity's employees with that system or plan as follows: (a) the withdrawing entity shall determine a date that is no later than July 1, 2028, on which the withdrawing entity shall make an election and complete withdrawal under Subsection (3); (b) the withdrawing entity shall provide to the office notice of the withdrawing entity's intent to enter into an agreement described in Subsection (2)(c); (c) the withdrawing entity and the office may enter into an intent to withdraw agreement to document a good faith arrangement to complete a withdrawal under this section; and (d) subject to Subsection (6), the withdrawing entity shall pay to the office any reasonable actuarial and administrative costs determined by the office to have arisen out of an election made under this section, including an actuarially determined short-fall liability contribution and a contingency payment to provide financial protection to the remaining participating employers. (3) The withdrawing entity may elect to: (a) (i) continue the withdrawing entity's participation for all current employees of the withdrawing entity, who are covered by a system or plan on the date set under Subsection (2)(a); and (ii) withdraw from participation in all systems and plans for all persons initially entering employment with the withdrawing entity, beginning on the date set under Subsection (2)(a); or (b) withdraw from participation in all systems or plans for all current and future employees of the withdrawing entity, beginning on the date set under Subsection (2)(a). (4) (a) An election made under Subsection (3): (i) shall be made on or before the date specified under Subsection (2)(a); (ii) shall be documented by a resolution adopted by the governing body of the withdrawing entity; (iii) remains in effect unless and until the withdrawing entity again becomes a participating employer with the office in accordance with Subsection (5); and (iv) applies to the withdrawing entity as the employer and to all employees of the withdrawing entity. (b) Notwithstanding an election made under Subsection (3), any eligibility for service credit earned by an employee under this title before the date specified under Subsection (2)(a) is not affected by this section. (c) Notwithstanding any other provision of this title, a withdrawing entity that makes an election under Subsection (3) may provide or participate in any type of public or private retirement for the withdrawing entity's employees after the withdrawal. (5) After the withdrawal and subject to the laws and rules governing participating employer admission, the withdrawing entity may elect, by resolution of the withdrawing entity's governing body, to resume participation with the office and apply for admission as a participating employer in a system or plan under this title. (6) Before a withdrawing entity may withdraw under this section, the withdrawing entity and the office shall enter into an agreement on: (a) the costs described under Subsection (2)(d); and (b) arrangements for the payment of the costs described under Subsection (2)(d).
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