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HomeMy WebLinkAbout56- Board of Admin. of Public Employees Retirement System of Montana -, .. . , ... , 1,0 ~ ..- Pian and Agreement -- - - ~ >- - - '" 'rHr~ CITY ,)F BJZEi,'tf\}I; HUNTPi'!A ; --~-"- -,,',~ - hereinafter designated as "Political Subdivision" does hereby apply to the Board of Administration of the Public Employees Retirement System of Montana, hereinafter designated as "State Agency", pursuant to the provisions of Section 2 (d), Chapter 270, 1955 Session Laws of Montana, to extend the insurance system established by Title II of the Federal Social Security Act, and amended by Title I, Public Law 761, 83rd Congress of the United States, to services performed by individuals as employees of the political subdivision. In consideration of extending such insurance to its employees the political subdivision submits for the approval of the State Agency this plan and agreement to become effective on the date hereinafter stated, and promises and agrees to be bound by the terms and conditions therein provided. ARTICLE I Definitions For the purpose of this Agreement: 1. The term "employee" means an employee as defined in Section 210 (k) and Section 218 (b) (3) of the Social Security Act and shall include an elective or appointive officer or employee of a political subdivision as hereinafter defined. 2. The term "political subdivision" includes an instrumentality of a State, of one or more of its political subdivisions, or of the State and one or more of its political subdivisions, but only if such instrumentality is a juristic entity which is legally separate and distinct from the State or subdivision and only if its employees are not by virtue of their relation to such juristic entity employees of the State ex subdivision. The term shall include special districts or authorities created by the State Legislature or local governments such as but not limited to school districts, hous- ing authorities, etc. 3. The term "retirement system" means a pension, annuity, retirement or similar fund or system established by the State or by a political subdivision thereof. 4. A "coverage group" means a coverage group as defined in Section 218 (b) (5) of the Social Security Act. ARTICLE II Services Covered This agreement includes all services which constitute employment under the provisions of Section 2 (b), Chapter 270, or Section 2, Chapter 271, 1955 Session Laws of Montana, and are performed in the employ of the political subdivision by employees thereof, except: 1. Any service performed by an employee in a position covered by a retirement system on the date this agreement is made applicable to his coverage, except where a referendum has been successfully held. 2. Service performed by an employee who is employed to relieve him from unemployment. 3. Service performed by an inmate of a hospital, home, or other institution. 4. Service performed by employees of transportation systems which are otherwise covered under Federal Old Age and Survivors Insurance and as defined in Section 210 (1) of the Social Security Act. 5. Service excluded from employment by any provision of Section 210 (a) of the Social Security Act, other than paragraph 7 of such section. 6. Services of an emergency nature. 7. Services in a class or classes of positions the compensation for which is on a fee basis. ARTICLE III Ohligatiolls of Political Subdivisioll 1. The political subdivision shall notify the State Agency of its pay-plan and the approximate pay date when payrolls are issued and whether said payrolls are issued weekly, bi-monthly, monthly, or otherwise. 2. The political subdivision shall furnish the State Agency, if it so directs, not later than ten (10) days after each payroll date: a. A certified copy of the entire payroll on payroll forms approved by the State Agency. Each such payroll form shall show the full name, Social Security number, gross compensation, and Social Security deduction for every person receiving compensation during the payroll period. b. A check or warrant for the total of the employees' Social Security contributions for the period plus an equal amount for the employer's contribution plus the pro rata amount set by the Board of Administration for administrative purposes. 3. Within fifteen (15) days after the final pay-period in each quarter, unless changed under terms of Section 6 of this Article, the political subdivision shall furnish to the State Agency, on forms prescribed by the Social Security Admin- istration, an original and one copy of the Quarterly Report, listing the name and Social Security number of each person who has been on its payroll during the quarter, the gross amount of compensation earned by, and the total Social Security deduction withheld from, each of the employees during the quarter. 4. At the end of each calendar year the political subdivision shall furnish to each of its covered employees a statement showing total gross compensation earned by such employee during the year and the total Social Security deductions withheld therefrom during the year. (Section 7204, IRC) 5. The political subdivision shall furnish every employee, upon his termination of employment, a statement showing his total gross compensation earned in the calendar year during which he terminated service and the total Social Security deduc- tion withheld therefrom during that same period. 6. The political subdivision shall follow the instructions furnished to it by: a. Requiring that each employee establish a Social Security account number; b. Reporting the accounts of employees who have applied for but have not yet received Social Security account numbers; c. Verifying account numbers for employees who have already established accounts; d. Completing quarterly reports; e. Complying with any directive, rule, or regulation of the Social Security Administration or the State Agency, which relates to Old Age and Survivors Insurance coverage. ~l . ., - ... ! . ,.. - . . ARTICLE IV ... - ... - ~j. Contributions ... 1. The political subdivision shall be liable for the contributions required of an employer by the Federal Insurance Contri- butions Act and amendments thereto, except that no contributions shall be remitted prior to the approval of the State-Federal agreement by the Director of the Bureau of Old Age and Survivors Insurance, Department of Health, Education, and Welfare. 2. The political subdivision shall withhold from compensation paid by it to officers and employees covered by this agree- ment, and remit to the State Agency, that portion required to be withheld from the salaries and wages of employees under the provisions of Section 1400 of the Federal Insurance Contributions Act and amendments thereto. 3. The political subdivision shall contribute its pro rata share of the expense incurred in the administration of the Social Security Act at a rate established by the State Agency with such administrative share to be used also in the execution of functions required by the Federal-State agreement and made in conformance with said law. Such administrative share shall be made quarterly, unless directed otherwise by the State Agency, and shall be based on the number of covered employees, or their gross compensation, on the payroll of the political subdivision during the quarter. ARTICLE V Adjustments, Refunds and Penalties 1. If more or less than the correct amount of any payment due under Article IV of this agreement is remitted, proper adjustments, or refund if adjustment is impracticable, shall be made in such manner and at such time as the State Agency shall prescribe. 2. In the event of failure of the political subdivision to remit contributions or pay its pro rata share of the expenses of administration as determined by the State Agency, said agency may recover by action in a court of competent jurisdiction the amount due and unpaid. If the political subdivision is entitled by law to share in the apportionment of any state revenues or funds, the State Agency shall, in the event of delinquency of the political subdivision, certify the amount of such delin- quency to the State Auditor, who shall draw his warrant for payment of such claim out of any revenues or funds in the State Treasury apportioned to said political subdivision. 3. If the political subdivisIOn fails to report or remit to the State Agency in the manner and within the time prescribed in the regulations adopted by said State Agency, said agency may, without notice, send an auditor to the office of the political subdivision to examine its records and to secure the necessary reports or remittances with the entire cost of such audit to be paid by the pOlitical subdivision. 4. If taxes are not paid when due, or if an underpayment of tax is made, interest on such amount shall accrue at the rate of six (6) percent per annum. (Sec. 6601 (a), IRC). 5. Any person who is required to collect, truthfully account for, and pay over any tax, or who willfully attempts in any manner to evade or defeat any such tax or payment thereof, is subject to a penalty equal to the total amount of tax payable. Where there is a failure to file timely tax returns and such failure is due to willful neglect, a penalty of five (5) percent per month of such tax, up to an aggregate of twenty-five (25) percent will be assessed. (Section 6651 (a), IRC). ARTICLE VI Termination 1. The political subdivision may request the State Agency to give notice to the Department of Health, Education, and Welfare, Social Security Administration, pursuant to Section 218 (g) of the Social Security Act, to terminate this agreement either in its entirety or with respect to any coverage group, in conformance with the Social Security Act and the Laws of Montana. 2. If the State Agency finds there has been a failure of the political subdivision to comply substantially with this agree- ment, it will give notice to the Department of Health, Education, and Welfare, Social Security Administration, of its intention to terminate this agreement with said political subdivision, such termination to take effect as provided for by Section 218 (g) of the Social Security Act. ARTICLE VII Modifications This agreement may be modified, at the request of the political subdivision, to include coverage groups or services in addition to those now included, but may not include such groups as are excluded specifically by the Social Security Act. ARTICLE VIII Effective Date This agreement shall be effective for the coverage of employees in this political subdivision as of.~___<,L!d.ly_J~ t., .. .-, 1955....-. IN WITNESS WHEREOF, the political subdivision has, by resolution or ordinance, duly adopted, caused this agreement to be signed by its-.blayor.... .____~_~and the State Agency has caused the same to be signed by its President and Title of Officer Secretary, on this~_day oL_l1QX'~~_,"__, 1 95Q.... /t; Z4 _.~im CITX"--.9F B\)Z;~~16ILL_110N'rANA ATTEST: . . -_._---_._,_..._,_..,~.- Name of Political Subdivision .J,____ ~.~ Clerk Signature and Title of Officer of the City CJ:nrntssiJn BOARD OF ADMINISTRATION ATTEST: PUBLIC EMPLOYEES RETIREMENT SYSTEM -# ~ ' .,' . h--- By '?kh~-<-- l? J ~..(..-v~ ~ ~ se~;';' Boo," : , President of Board ~t