H.B. 12

1

ADDITIONAL STATE RETIREMENT BENEFIT
2 2007 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: LaWanna Lou Shurtliff
5 Senate Sponsor: Howard A. Stephenson
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Utah State Retirement and Insurance Benefit Act by authorizing
10 an additional retirement benefit for certain retirees.
11 Highlighted Provisions:
12 This bill:
13 . increases the retirement allowance of members of the Public Employees'
14 Contributory Retirement System with service prior to July 1, 1975; and
15 . increases the retirement allowance of members of the Public Employees'
16 Noncontributory Retirement System with service prior to July 1, 1975.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 This bill takes effect on July 1, 2007.
21 Utah Code Sections Affected:
22 ENACTS:
23 49-11-702, Utah Code Annotated 1953
24
25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 49-11-702 is enacted to read:
27 49-11-702. Additional retirement benefit -- Implementation rules.

28 (1) (a) The board shall provide an additional benefit to retirees under Title 49, Chapter
29 12, Public Employees' Contributory Retirement Act, and Chapter 13, Public Employees'
30 Noncontributory Retirement Act, whose retirement allowance, when calculated, amounts to
31 less than the allowance provided by using at least 2% per year of service factor for all years of
32 service rendered.
33 (b) The benefit provided in Subsection (1)(a) shall be calculated by the board using a
34 formula based upon actuarial assumptions and principles that results in a benefit that is as close
35 as reasonably possible to 2% per year of service for each retiree for all years of service
36 rendered.
37 (2) After consultation with representatives of those retirees under Title 49, Chapters 12
38 and 13, the board shall adopt rules governing the distribution of any additional retirement
39 benefit under this section.
40 (3) The additional benefit provided in Subsection (1) shall be funded by an increase in
41 the certified contribution rates under Sections 49-12-301 and 49-13-301 .
42 Section 2. Effective date.
43 This bill takes effect on July 1, 2007.




Legislative Review Note
as of 11-15-06 4:56 PM

Office of Legislative Research and General Counsel

Interim Committee Note
as of 12-12-06 10:26 AM

The Retirement and Independent Entities Interim Committee reviewed this bill and voted the
bill out without recommendation.