HOUSE AMENDMENT

                                                   Bill No. HB 933

    Amendment No. 2 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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  5                                           ORIGINAL STAMP BELOW

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11  The Committee on Fiscal Policy & Resources offered the

12  following:

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14         Amendment 

15         On page 10, lines 23 through page 11, line 27,

16  remove:  all of said lines,

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18  and insert:  121.571  Contributions.--Contributions to the

19  Public Employee Optional Retirement Program shall be made as

20  follows:

21         (2)  CONTRIBUTIONS TO PARTICIPANT ACCOUNTS.--Employer

22  and participant contributions to participant accounts shall be

23  accounted for separately. Interest and investment earnings on

24  employer contributions shall accrue on a tax-deferred basis

25  until proceeds are distributed. Pursuant thereto:

26         (a)  All contributions made on behalf of a participant

27  pursuant to this subsection shall be transferred by the

28  employer to the third-party administrator for deposit in the

29  participant's account.  All contributions made on behalf of a

30  participant shall be made timely.  Employer contributions

31  received after the 5th working day of each month shall be

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    File original & 9 copies    02/14/02
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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 933

    Amendment No. 2 (for drafter's use only)





  1  considered late.  The employer shall be assessed a penalty of

  2  1 percent of the contributions due for each calendar month or

  3  part thereof that the contributions are late.  If

  4  contributions made by an employer are not received within the

  5  calendar month they are due and if the lateness results in

  6  market losses to participants, the employer shall make each

  7  participant whole for market losses resulting from the late

  8  contributions.  Proceeds from the 1 percent assessment and any

  9  market loss will be deposited into participant accounts by the

10  third-party administrator.  The third-party administrator

11  hired by the board pursuant to section 121.4501(8), will

12  calculate the market losses for each affected participant.

13  When contributions are more than one calendar month late, the

14  employer shall also pay the cost of the third-party

15  administrator calculation and reconciliation adjustments

16  resulting from the late contributions.  The third-party

17  administrator will notify the employer of the total amount

18  due.  The employer will remit to the third-party administrator

19  the amount due within ten (10) working days of the date of the

20  penalty notice sent by the third-party administrator.  The

21  board is authorized to adopt rules to implement the provisions

22  regarding late contributions, the process for making

23  participants whole for resultant market losses and the

24  penalties charged to the employers.

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    File original & 9 copies    02/14/02
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