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Utah State Retirement and Insurance Benefit Act | |
Public Employees' Noncontributory Retirement Act | |
Section 701 | Early retirement incentive -- Eligibility -- Calculation of benefit -- Payment of costs -- Savings to be appropriated by Legislature -- Restrictions on reemployment. |
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49-13-701. Early retirement incentive -- Eligibility -- Calculation of benefit --
Payment of costs -- Savings to be appropriated by Legislature -- Restrictions on
reemployment. (1) Any member of this system may retire and receive the allowance allowed under Subsection (2) if the member meets the following requirements as of the member's retirement: (a) the member is eligible for retirement under Section 49-13-401, or has 25 years of service credit; (b) the member elects to forfeit any stipend for retirement offered by the participating employer; and (c) the member elects to retire from this system by applying for retirement by the date established under Subsection (3)(a) or (3)(b). (2) (a) A member who retires under Subsection (1) shall receive 2% of that member's final average salary for all years of service credit. (b) No actuarial reduction may be applied to the allowance granted under this section. (3) In order to receive the allowance allowed by this section, a member shall submit an application to the office as follows: (a) (i) For state and school employees under Level A, the application shall be filed by May 31, 1987. The member's retirement date shall then be set by the member on the 1st or 16th day of July, August, or September, 1987. (ii) If a Level A member elects to retire, the executive director or participating employer may request the member to delay the retirement date until a later date, but no later than June 30, 1988. (iii) If the member agrees to delay the retirement date, the retirement date shall be delayed, but service credit may not be accrued after the member's original retirement date elected by the member, and compensation earned after the member's original retirement date may not be used in the calculation of the final average salary for determining the retirement allowance. (b) (i) For political subdivision employees under Level B, the application shall be filed by September 30, 1987. (ii) The member's retirement date shall then be set by the member on the 1st or 16th day of July, August, September, October, November, or December, 1987. (4) (a) The cost of providing the allowance under this section shall be funded in fiscal year 1987-88 by a supplemental appropriation in the 1988 General Session based on the retirement contribution rate increase established by the consulting actuary and approved by the board. (b) The cost of providing the allowance under this section shall be funded beginning July 1, 1988, by means of an increase in the retirement contribution rate established by the consulting actuary and approved by the board. (c) The rate increase under Subsections (4)(a) and (b) shall be funded: (i) for state employees, by an appropriation from the account established by the Division of Finance under Subsection (4)(d), which is funded by savings derived from this early retirement incentive and a work force reduction; (ii) for school employees, by direct contributions from the employing unit, which may not be funded through an increase in the retirement contribution amount established in Title 53A, Chapter 17a, Minimum School Program Act; and (iii) for political subdivisions under Level B, by direct contributions by the participating
employer.
Amended by Chapter 264, 2010 General Session |
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