§ 5070 - Defined contribution retirement plan - Vermont Statutes

§ 5070. Defined contribution retirement plan

(a) The board may approve a defined contribution retirement plan for one or more groups of members. The plan shall qualify as a defined contribution plan under the United States Internal Revenue Code, as amended. Participation in a defined contribution plan offered under this section shall be in lieu of participation in any other plan established under this title. The board shall ensure that objective educational material be prepared and presented to the employees in order to enable them to make an informed decision, under the assumption that each participant is an unsophisticated investor.

(b) The proper authority or officer responsible for making up each employer payroll shall certify to the board the amounts deducted on each and every payroll for employees participating in the defined contribution plan, and each of those amounts shall be paid into the defined contribution fund and credited to the individual account of the member from whose compensation the deduction was made.

(1) Employer reports and corresponding member contributions required by this subsection shall be provided by the due date established by the board. An employer that provides reports or remits contributions, which are more than 30 days delinquent, may be assessed a delinquent reporting fee of one percent of the amount that should have been reported and remitted for each month, or prorated portion of a month, that the report or contributions are delinquent.

(2) Employers shall provide accurate reports. An employer who provides an inaccurate report shall be responsible for correcting any deficiencies and shall reimburse the system for any costs incurred by the system as a result of inaccuracy.

(3) In the event that an employer willfully files an inaccurate report, in addition to any other penalties provided by law, the employer shall pay the system an administrative penalty of up to 50 percent of the amount that was not accurately reported.

(4) The system may enforce the provisions of this subsection in Washington superior court.

(5) The board may, in its discretion, waive part or all of a penalty assessment for good cause shown. (Added 1999, No. 53, § 14; amended 2007, No. 13, § 49.)