Governmental employer wants to participate in state DB plan that generally requires employers to contribute between 7.5% and 9.5% of each eligible employee's compensation. However employer wants to effectively cap its potential contribution at 7.5% by requiring employees to pay back, via payroll deductions, the amount of any employer contributions made on their behalf above the 7.5% threshhold. Can they do this?

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You'd have to look at the specific state's laws, including the terms of the state retirement system, to determine this. It's not a federal issue, but may well be an issue under applicable state law.

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