Members’ Contributions

(a)All contributions by the members shall be mandatory.

(b)From the operative date through December 31, 2017, contributions shall be equal to five percent (5%) of base pay. On and after January 1, 2018, contributions shall be equal to six and two tenths percent (6.2%) of base pay.

(c)Such reductions from base pay, although designated as member contributions, shall be deducted by the employer at the normal payroll intervals, shall be paid by the employer in lieu of contributions by the member, and shall be remitted within five working days to the insurance, annuity, mutual fund, or other qualified company or companies designated by the board to administer the operations of the Defined Contribution Retirement System. The employer shall deduct the member’s mandatory contributions required by this Section from member’s base pay on or after the first payroll interval following the latest of

(1)the enactment of this Article

(2)October 1, 1995, or

(3)a member’s transfer to the Defined Contribution Retirement System pursuant to § 8207, and the contributions so deducted shall be treated as employer contributions in determining federal tax treatment under Section 414

(h)of the United States Internal Revenue Code. The employer shall contribute or pay these member deducted contributions from the same source of funds which is used in paying base pay to the member. CH. 8 RETIREMENT OF PUBLIC EMPLOYEES

(d)Member contributions deducted shall be treated for all purposes of the government of Guam Retirement Fund Defined Contribution Retirement System in the same manner and to the same extent as member contributions made prior to the date of deduction. All member contributions shall be immediately credited to an account or accounts established for the benefit of the member under a trust agreement.

(e)A summary plan description shall be issued to each member setting forth the terms and conditions under which contributions are received, and the investment and retirement options available to the member.

(f)The board shall promulgate within ninety

(90)days after enactment of the law, pursuant to § 8205 of this Article, rules defining the minimum requirements for the investment and retirement options, including but not limited to:

(1)Lump sum distributions of members’ accounts which do not exceed an amount established by the board;

(2)Joint and Survivor annuities;

(3)Other annuity forms;

(4)Variable annuities which gradually increase monthly retirement payments; provided, that said increased payments are funded solely by existing current value of the member’s account at the time the member’s retirement payments commence and not, to any extent, in a manner which would require additional employer or member contributions to any member’s account after retirement or after the cessation of employment; and

(5)The instances in which, if any, distributions or loans can be made from this on account balances prior to having attained the age of fifty-five.