495—4.8 (97B) Additional employer contributions from employer-mandated reduction in hours. This rule applies only to the restoration of covered wages reduced by an employer-mandated reduction in hours (EMRH). It does not apply to reductions in base wages, reduced overtime wages, reduced wages due to position changes, permanent layoffs or other termination of employment situations.
	 4.8(1) A member may restore the member’s three-year average covered wage to the amount that it would have been but for an EMRH by completing the IPERS EMRH application form and related payroll deduction authorization and by filing the application and payroll deduction authorization forms with the employer. By so doing, the member agrees to pay the employee and employer contributions for all EMRH wages retroactive to January 1, 2009, and all future EMRH wages through June 30, 2010.
	 4.8(2) A member cannot pay the EMRH contributions described under this rule in any manner except through payroll deductions.
	 4.8(3) The payroll deduction authorization described under this rule shall be irrevocable, except upon death, retirement or termination of employment. If revoked by the member’s death, retirement, or termination of employment, all amounts held by an employer in the member’s name shall be forwarded to the member along with the member’s final wages.
	 4.8(4) A member may obtain a refund of EMRH contributions collected under this rule as part of a refund of the member’s entire account balance or an actuarial equivalent (AE) payment, but a member who commences a monthly retirement allowance shall not receive a refund of any amounts contributed, even if the covered wages being restored are not used in the member’s three-year average covered wage.
	 4.8(5) A covered employer must cooperate with an eligible member’s request for payroll deductions using the applicable IPERS forms. Employers shall be required to complete and submit wage certifications showing the covered wages that would have been reported but for the EMRH.
	 4.8(6) After IPERS has received and processed wage certification forms, the employer will be billed for the applicable EMRH contributions on the next employer monthly statement. If contributions are not paid by the employer statement’s due date, the employer will be assessed late fees and interest in accordance with rule 495—4.3(97B).
	 4.8(7) In completing the federal and state wage reporting forms to be filed with the federal and state tax authorities, an employer shall treat the EMRH contributions collected and forwarded to IPERS the same as pretax IPERS employee contributions.
	 4.8(8) Upon receipt of the contributions pursuant to this rule, IPERS shall apply them to the member’s account as pretax employee contributions.
	 4.8(9) This rule applies to reductions in wages caused by an EMRH through June 30, 2010. An employer's collection of contributions from such wages shall terminate as of midnight, July 31, 2010. All completed EMRH forms and contributions collected under this rule must be forwarded to IPERS by a covered employer no later than August 15, 2010.
[ARC 7759B, IAB 5/6/09, effective 4/17/09]