H.B. 260
         POST RETIREMENT EMPLOYMENT

house floor Amendments

Amendment 2 January 31, 2007 11:27 am



Representative David Clark proposes the following amendments:

1.    Page 1, Lines 15 through 17 :    

             15          .    requires that a retiree's retirement allowance be cancelled if the retiree is
             16      reemployed on
{   any basis or is retained on contract by the same agency within 12

             17      months of retirement  
}
  on a full-time basis unless a total separation from employment with the same agency has occurred for a period of not less than six consecutive months after the date of retirement       ; and


2.    Page 1, Line 22 :    

             22          
{   This bill takes effect on July 1, 2007.   }


3.    Page 6, Lines 176 through 178 :    

             176          (4) [A]
{   For the first 12 months from the date of retirement, a retiree of an agency who

             177      is reemployed on  
}
[a full-time]
{   any basis by the same agency   } [within six months of the date of

             178      retirement]
{   or who is retained by contract by the same agency   }        Unless a total separation from employment with the same agency has occurred for a period of not less than six consecutive months after the date of retirement, a retiree of an agency who is reemployed, on a full-time basis or on another basis that is equivalent to a full-time basis, by the same agency       is subject to the following:


4.    Page 7, Line 187 through Page 8, Line 233 :    

             187          (e) a reinstated retiree retiring after the two-year period shall be credited with the
             188      service credit in the retiree's account at the time of the first retirement and from that time shall
             189      be treated as a member of a system, including the accrual of additional service credit, but
             190      subject to recalculation of the allowance under Subsection
{   [   } (9)      {   ]   }      {   (7)   } .

             191          
{   [   } (5) A retiree of an agency who is reemployed by the same agency within six months of

             192      retirement on a less than full-time basis by the same agency is subject to the following:
{   ]   }

             193          
{   [   } (a) the retiree may earn, without penalty, compensation from that position which is not

             194      in excess of the exempt earnings permitted by Social Security;
{   ]   }

             195          
{   [   } (b) if a retiree receives compensation in a calendar year in excess of the Social

             196      Security limitation, 25% of the allowance shall be suspended for the remainder of the
             197      six-month period;
{   ]   }

             198          
{   [   } (c) the effective date of a suspension and reinstatement of an allowance shall be set by


             199
     the office; and
{   ]   }

             200          
{   [   } (d) any suspension of a retiree's allowance under this Subsection (5) shall be applied

             201      on a calendar year basis.
{   ]   }

             202          
{   [   } (6)      {   For six months immediately following   }        After       retirement, the retiree and        the       participating

             203      employer shall:
{   ]   }

             204          
{   [   } (a) maintain an accurate record of gross earnings in employment;      {   ]   }

             205          
{   [   } (b) report the gross earnings at least monthly to the office;      {   ]   }

             206          
{   [   } (c) immediately notify the office in writing of any postretirement earnings under

             207      Subsection (4); and
{   ]   }

             208          
{   [   } (d) immediately notify the office in writing whether postretirement earnings equal or

             209      exceed the exempt earnings under Subsection (5).
{   ]   }

             210          
{   [   } (7)      {   ]   }      {   (5)   } A retiree of an agency who is reemployed by the same agency after [six]      {   12

             211      months from  
}
  a total separation from employment with the same agency for a period of not less than six consecutive months after       the retirement date:

             212          (a) is not subject to any postretirement restrictions under this title; and
             213          (b) may not earn additional service credit.
             214          
{   [   } (8)      {   ]   }      {   (6)   } If a participating employer hires a nonexempt retiree who may not earn

             215      additional service credit under this section, the participating employer shall contribute the same
             216      percentage of a retiree's salary that the participating employer would have been required to
             217      contribute if the retiree were an active member, up to the amount allowed by federal law, to a
             218      retiree designated:
             219          (a) defined contribution plan administered by the board, if the participating employer
             220      participates in the defined contribution plan administered by the board; or
             221          (b) defined contribution plan offered by the participating employer if the participating
             222      employer does not participate in a defined contribution plan administered by the board.
             223          
{   [   } (9)      {   ]   }      {   (7)   } Notwithstanding any other provision of this section, a retiree who has returned

             224      to work, accrued additional service credit, and again retires shall have the retiree's allowance
             225      recalculated using:
             226          (a) the formula in effect at the date of the retiree's original retirement for all service
             227      credit accrued prior to that date; and
             228          (b) the formula in effect at the date of the subsequent retirement for all service credit
             229      accrued between the first and subsequent retirement dates.
             230          
{   [   } (10)      {   ]   }      {   (8)   } This section does not apply to elected positions.

             231          
{   [   } (11)      {   ]   }      {   (9)   } The board may make rules to implement this section.

             232          
{   Section 3. Effective date.

             233          This bill takes effect on July 1, 2007.  
}




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