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This entry was published on 2014-09-22
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SECTION 1204-A
Pick up of member contributions by employer
Retirement & Social Security (RSS) CHAPTER 51-A, ARTICLE 22
* § 1204-a. Pick up of member contributions by employer. a.
Notwithstanding any other provision of law, each participating employer
shall pick up the member contributions required to be made under section
twelve hundred four of this article by its employees and shall do so by
reducing the salary of each of its employees to which this section is
applicable by that amount which each such employee is required to
contribute under section twelve hundred four of this article. The
contributions so picked up shall be paid by each participating employer
in lieu of the member contributions to be paid by its employees under
this section and shall be treated as employer contributions in
determining income tax treatment under section 414(h) of the Internal
Revenue Code. With the exception of federal income tax treatment, the
member contributions picked up pursuant to this subdivision shall for
all other purposes, including computation of retirement benefits and
contributions by employers and employees, be deemed employee salary.

b. Any employee (subject to this article) of a participating employer
who, in lieu of joining a public retirement system of the state, elected
an optional retirement program to which their employers are thereby
required to contribute shall, in order for the provisions of this
subdivision to apply, be required to execute a salary reduction
agreement (in accordance with the regulations promulgated under section
403(b) of the Internal Revenue Code) in an amount equal to the employee
contributions which would otherwise be mandatory under the provisions of
state law. With the exception of federal income tax treatment, the
employee contributions picked up or paid pursuant to this subdivision
shall for all other purposes, including computation of retirement
benefits and contributions by employers and employees, be deemed
employee salary. Nothing contained in this subdivision shall be
construed as superseding any provision of law which limits the salary
base for computing retirement benefits payable by a public retirement
system.

* NB See ch 525/2011 § 7 for effectiveness