First Substitute S.B. 201

Senator Michael G. Waddoups proposes to substitute the following bill:

1 RETIREMENT ELIGIBILITY FORMULA
2 1998 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Michael G. Waddoups
5 AN ACT RELATING TO RETIREMENT; REQUIRING THE RETIREMENT BOARD TO
6 STUDY THE CONSOLIDATION OF RETIREMENT SYSTEMS; REQUIRING A REPORT;
7 PROVIDING FOR STAFFING; AND PROVIDING AN EFFECTIVE DATE.
8 This act enacts uncodified material.
9 Be it enacted by the Legislature of the state of Utah:
10 Section 1. Retirement study.
11 (1) The retirement board shall, in conjunction with participating employers and employees
12 of the retirement systems administered by the board, study a consolidation of all retirement
13 systems which it is authorized to administer.
14 (2) The study shall include:
15 (a) administration of the new plan;
16 (b) a uniform system of benefits;
17 (c) a system for establishing contribution rates for the state, educational institutions, and
18 political subdivisions;
19 (d) the protection of vested rights of members with service credit in existing retirement
20 systems;
21 (e) the feasibility of including a deferred compensation component to the retirement plan,
22 either in the form of an employer paid or matching contribution formula;
23 (f) the application of the new uniform system to prospective employees of state,
24 educational, and local government units;
25 (g) time frames for conversion to the new system;

1 (h) a comparison of contributory versus noncontributory retirement system contribution
2 rates;
3 (i) exemptions and exclusions from the system; and
4 (k) any other issues agreed upon by the board relating to unifying Chapters, 2, 3, 4, 4a, 5,
5 and 7 of Title 49, Utah State Retirement Act.
6 Section 2. Report.
7 The board shall prepare and present a written report of its findings to the Legislative
8 Retirement Committee on or before November 30, 1998, in anticipation of presenting the study
9 findings to the 1999 Legislature and for implementation by July 1, 1999.
10 Section 3. Staffing.
11 The Retirement Office shall provide staffing, including legal and actuarial services required
12 for the study.
13 Section 4. Effective date.
14 If approved by two-thirds of all the members elected to each house, this act takes effect
15 upon approval by the governor, or the day following the constitutional time limit of Utah
16 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
17 date of veto override.

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