§88-100 Payment by employers of costs associated with significant non-base pay increases. (a) The contribution payable in each year to the pension accumulation fund by the State and each county shall include the actuarial present value, as determined by the system, of the excess maximum retirement allowance, payable over the employee's or former employee's actuarial life expectancy, resulting from significant non-base pay increases for each employee or former employee who became a member of the system prior to July 1, 2012. The additional contributions required by this section shall be payable as provided in subsection (e).

(b) The last employer of the employee or former employee shall pay the additional contributions required by this section.

(c) An excess maximum retirement allowance resulting from significant non-base pay increases occurs when:

(1) The employee's or former employee's average non-base pay, divided by the employee's or former employee's average base pay, is greater than ten per cent; and

(2) The employee's or former employee's average final compensation non-base pay ratio divided by the comparison period non-base pay ratio is greater than or equal to one-hundred twenty per cent.

(d) The amount of the "excess maximum retirement allowance resulting from significant non-base pay increases" is the amount by which an employee's or former employee's maximum retirement allowance exceeds what the employee's or former employee's maximum retirement allowance would be if the employee's or former employee's average final compensation was equal to the employee's or former employee's average base pay multiplied by the sum of one and the employee's or former employee's comparison period non-base pay ratio.

(e) The additional contributions required by this section shall be payable in a lump sum within two fiscal years following the fiscal year in which the employee or former employee retired; provided that, if the additional contributions required for the employees or former employees who retire in a fiscal year are greater than ten per cent of the employer's contributions (excluding the additional contributions) to the pension accumulation fund for that fiscal year, the employer may pay the additional contributions over a period of three fiscal years in installments equal to no less than one-third of the original amount of the required additional contributions, plus interest on the unpaid balance, commencing on the first day of the second fiscal year following the retirement of the employees or former employees, at an annual rate equal to the investment yield rate assumption for actuarial valuations of the system. [L 2012, c 153, §5; am L 2017, c 17, §2]