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S.B. 130
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6 AN ACT RELATING TO PENSIONS; CREATING A NONCONTRIBUTORY RETIREMENT
7 SYSTEM FOR FIREFIGHTERS; PROVIDING DEFINITIONS; PROVIDING ELIGIBILITY
8 AND PARTICIPATION REQUIREMENTS; PROVIDING FOR ADMINISTRATION OF
9 THE SYSTEM; MAKING TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE
10 DATE.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 AMENDS:
13 49-1-505, as last amended by Chapters 197 and 288, Laws of Utah 1995
14 67-20-7 (Effective 07/01/97), as last amended by Chapter 240, Laws of Utah 1996
15 ENACTS:
16 49-5a-101, Utah Code Annotated 1953
17 49-5a-102, Utah Code Annotated 1953
18 49-5a-103, Utah Code Annotated 1953
19 49-5a-201, Utah Code Annotated 1953
20 49-5a-202, Utah Code Annotated 1953
21 49-5a-203, Utah Code Annotated 1953
22 49-5a-204, Utah Code Annotated 1953
23 49-5a-205, Utah Code Annotated 1953
24 49-5a-301, Utah Code Annotated 1953
25 49-5a-401, Utah Code Annotated 1953
26 49-5a-402, Utah Code Annotated 1953
27 49-5a-403, Utah Code Annotated 1953
1 49-5a-501, Utah Code Annotated 1953
2 49-5a-502, Utah Code Annotated 1953
3 49-5a-503, Utah Code Annotated 1953
4 49-5a-601, Utah Code Annotated 1953
5 49-5a-701, Utah Code Annotated 1953
6 49-5a-702, Utah Code Annotated 1953
7 49-5a-703, Utah Code Annotated 1953
8 49-5a-704, Utah Code Annotated 1953
9 49-5a-801, Utah Code Annotated 1953
10 Be it enacted by the Legislature of the state of Utah:
11 Section 1. Section 49-1-505 is amended to read:
12 49-1-505. Reemployment of a retired member of a system administered by the board.
13 The following laws govern the reemployment of a member of any system administered by
14 the board who has retired from any agency and who returns to work at that agency after retirement.
15 A member of any system administered by the board who has retired from any agency and who
16 returns to work for a private employer or at a different agency from which the member retired is
17 not subject to any reemployment restrictions under this section, except as provided in Subsection
18 (4).
19 (1) (a) (i) If a member of any system administered by the board retires from any agency
20 and is reemployed by the agency from which the member retired, including exempt positions, but
21 excluding part-time or full-time elected officials, the employer shall immediately notify the
22 administrator.
23 (ii) If the member has full-time employment and is not subject to Subsection (1)(b), the
24 administrator shall cancel the member's retirement allowance and reinstate the member to active
25 member status.
26 (iii) This cancellation of retirement and reinstatement to active status is effective on the
27 first day of the month following the date of reemployment.
28 (iv) If a member's retirement allowance is cancelled and the member is reinstated to active
29 member status pursuant to this subsection, the member may not retire again with a recalculated
30 benefit for a two-year period from the date of cancellation of the original retirement. If the
31 member retires again within the two-year period, the original retirement benefit shall be resumed.
1 (v) A reinstated member shall be credited with the service credits standing to the member's
2 account at the time of the first retirement and from that time shall be treated as a member of the
3 system in all respects, including the accrual of additional service credits but subject to
4 recalculation of the retirement allowance under Subsection (4).
5 (b) (i) If the member is reemployed on a part-time basis or is not an elected official and
6 is otherwise subject to Section 49-4-205, 49-4a-206, [
7 employee may earn, without penalty, compensation from that position or employment which is not
8 in excess of the exempt earnings permitted by Social Security.
9 (ii) If a member or an employee receives compensation in a calendar year in excess of the
10 limitation, 25% of the retirement allowance shall be suspended.
11 (iii) The effective date of a suspension and reinstatement of an allowance shall be set by
12 the administrator.
13 (iv) Any suspension of a member's retirement allowance pursuant to Subsection (1)(b)(ii)
14 shall be calculated on a calendar year basis.
15 (2) The member and employer shall maintain an accurate record of gross earnings in
16 employment after retirement, shall report the gross earnings on a monthly basis to the retirement
17 office, and shall immediately notify the administrator in writing of any postretirement earnings
18 under Subsection (1)(a) and whether postretirement earnings equal or exceed the exempt earnings
19 under Subsection (1)(b).
20 (3) If a member is reinstated to active service and subsequently retires after the two-year
21 period as provided in Subsection (1)(a)(iv), the member's retirement allowance shall be calculated
22 using:
23 (a) the formula in effect at the date of the member's original retirement for all service prior
24 to that date; and
25 (b) the formula in effect at the date of the subsequent retirement for all service rendered
26 between the first and the subsequent retirement dates.
27 (4) A member who has retired from any agency and who returns to work at that agency
28 or a different agency from which the member retired may not accrue any additional service credit,
29 except that a member who cancels the retirement allowance under Subsection (1) may earn
30 additional service credit.
31 (5) For the purposes of this section "part-time" employment means employment
1 contemplated as less than full-time by the employer at the time of hire.
2 (6) The board may make rules to implement this section.
3 Section 2. Section 49-5a-101 is enacted to read:
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6 49-5a-101. Short title.
7 This chapter is known as the "Firefighters' Noncontributory Retirement Act."
8 Section 3. Section 49-5a-102 is enacted to read:
9 49-5a-102. Purpose.
10 The purpose of this chapter is to establish a retirement plan for firefighters which provides
11 the following:
12 (1) a uniform system of membership;
13 (2) retirement requirements;
14 (3) benefits for firefighters;
15 (4) funding on an actuarially sound basis;
16 (5) contributions made entirely by employers; and
17 (6) economy and efficiency in public service.
18 Section 4. Section 49-5a-103 is enacted to read:
19 49-5a-103. Definitions.
20 As used in this chapter:
21 (1) (a) "Compensation," "salary," or "wages" means the total amount of payments which
22 are currently includable in gross income made by an employer to an employee for services
23 rendered to the employer as base income. Base income shall be determined prior to any salary
24 deductions or reductions for any salary deferral or pretax benefit programs authorized by federal
25 law for the position covered under the retirement system.
26 (b) "Compensation" includes performance-based bonuses and cost-of-living adjustments.
27 (c) "Compensation" does not include:
28 (i) overtime;
29 (ii) sick pay incentives;
30 (iii) retirement pay incentives;
31 (iv) remuneration paid in kind such as a residence, use of equipment, uniforms, or travel
1 allowances;
2 (v) a lump-sum payment or special payments covering accumulated leave; and
3 (vi) all contributions made by an employer under this plan or under any other employee
4 benefit plan maintained by an employer for the benefit of a participant.
5 (d) "Compensation" for purposes of this chapter may not exceed the amount allowed under
6 Internal Revenue Code Section 401(a)(17).
7 (2) (a) "Disability" means a physical or mental condition which, in the judgment of the
8 board:
9 (i) is total and presumably permanent;
10 (ii) prevents a member from fulfilling the responsibilities of the member's assignment; and
11 (iii) prevents the member from performing satisfactorily in some other assignment of the
12 same general class.
13 (b) The determination of disability is based upon medical and other evidence satisfactory
14 to the board.
15 (3) "Employer" or "employing unit" means any regularly constituted fire department of
16 a political subdivision for which any employee or member performs services subject to this
17 chapter.
18 (4) "Final average salary" means the amount computed by averaging the highest three
19 years of annual compensation preceding retirement, but not including overtime or lump-sum or
20 special salary adjustments received instead of uniform or other allowances or expenses or other
21 payments made covering accumulated leave.
22 (a) Except as provided in Subsection (b), the percentage increase in any one of the years
23 used may not exceed the previous year's salary by more than 10% plus a cost-of-living adjustment
24 equal to the decrease in the purchasing power of the dollar during the previous year, as measured
25 by the Consumer Price Index prepared by the United States Bureau of Labor Statistics.
26 (b) In cases where the employing unit provides acceptable documentation to the board, the
27 limitation in Subsection (4)(a) may be exceeded if:
28 (i) the member has transferred from another employing unit; or
29 (ii) the member has been promoted to a new position.
30 (5) "Firefighter service" means full-time paid service rendered as an individual or as a
31 member of a group of firefighters regularly assigned to a regularly constituted fire department.
1 (6) "Full-time service" means 2,080 hours per year.
2 (7) "Inactive member" means a member who has received no compensation for a period
3 of longer than four months.
4 (8) "Line-of-duty death or disability" means a death or any physical or mental disability
5 resulting from external force, violence, or disease occasioned by an act of duty as a firefighter and
6 includes for a paid firefighter, after five years of credited service, any death or disability resulting
7 from heart disease, lung disease, or respiratory tract, but if a firefighter ceases to be an active
8 member because of personal illness or service-connected disability, neither of which is related to
9 heart or lung disease nor the respiratory tract for a period of six months or more and then again
10 becomes an active member, the provision relating to death or disability resulting from heart, lung,
11 or respiratory disease does not apply until the member again becomes an active member for a
12 period of not less than two years or unless clear and precise evidence is presented that the heart,
13 lung, or respiratory disease was, in fact, occasioned in the line-of-duty.
14 (9) (a) "Member" means any person included in the membership of the firefighter's
15 noncontributory retirement system.
16 (b) A person is a member if the person has employer contributions on deposit with the
17 retirement system.
18 (c) A person hired in a fire department, who is assigned directly to a clerical position, and
19 because of lack of training in firefighting techniques is not subject to reassignment into positions
20 of hazardous duty, is not eligible for membership in this system.
21 (i) The person in a clerical position shall become a member of the appropriate retirement
22 system.
23 (ii) The required employer contributions shall be paid by the fire department.
24 (iii) This membership exclusion may not be interpreted to prohibit the assignment of a
25 firefighter with a disability or a partial disability to that position.
26 (iv) If Subsection (iii) applies, the firefighter retains status as an active member of this
27 system and continues to accrue service credits while so employed.
28 (10) "Regularly constituted fire department" means a fire department which employs a
29 full-time fire chief and promulgates rules.
30 (11) (a) "Service" or "covered service" means firefighter service rendered an employer for
31 compensation which is included in computations relating to membership status or benefit rights
1 under this chapter.
2 (b) A retirement allowance or other benefit may not be granted under this system that is
3 based upon the same service for retirement benefits under some other retirement system
4 administered by the board.
5 (12) (a) "Volunteer firefighter" means any individual that is not regularly employed as a
6 firefighter, but who is on the rolls of a regularly constituted fire department.
7 (b) An individual that volunteers assistance but is not a regularly enrolled firefighter is not
8 a volunteer firefighter.
9 (c) Service as a volunteer firefighter is not creditable towards qualifying for a service
10 retirement allowance.
11 (13) "Years of service" or "service years" means the number of periods consisting of 12
12 full months, whether consecutive or not, during which an employee performed services for an
13 employer or received full-time pay while on sick leave, including any time the employee was
14 absent in the service of the United States.
15 Section 5. Section 49-5a-201 is enacted to read:
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17 49-5a-201. Creation of system.
18 There is created for firefighters in this state the "Firefighters' Noncontributory Retirement
19 System."
20 Section 6. Section 49-5a-202 is enacted to read:
21 49-5a-202. Creation of trust fund.
22 There is created the "Firefighters' Noncontributory Retirement Trust Fund" for the purpose
23 of paying the benefits and costs of administering this system. The fund shall consist of all money
24 and assets transferred to it from any terminated system, all money paid into it in accordance with
25 this chapter, whether in the form of cash, securities, or other assets, and of all money received from
26 any other source. The custody, management, and investment of the fund shall be governed by
27 Title 49, Chapter 1.
28 Section 7. Section 49-5a-203 is enacted to read:
29 49-5a-203. Eligibility for membership in the system.
30 (1) Any person entering full-time employment in a firefighter position after July 1, 1997,
31 shall automatically become a member of the noncontributory retirement system.
1 (2) Any person in full-time employment in a firefighter position prior to July 1, 1997, may
2 either become a member of this noncontributory system or remain a member of the Firefighters'
3 Retirement System established under Title 49, Chapter 5, Firefighters' Retirement Act, by
4 following the procedures established by the board pursuant to this chapter.
5 (3) (a) Membership in the noncontributory system is optional for political subdivisions,
6 except that once a political subdivision elects to participate in the noncontributory system, that
7 election is final and binding upon the political subdivision.
8 (b) Persons entering firefighter employment with political subdivisions that elect to
9 participate in the noncontributory system after July 1, 1997, shall automatically become members
10 of the noncontributory retirement system.
11 (c) Any person in full-time employment with the political subdivision prior to that election
12 to participate in this system may either become a member of the noncontributory retirement system
13 or remain a member of the Firefighters' Retirement System established under Title 49, Chapter 5,
14 by following the procedures established by the board pursuant to this chapter.
15 (4) (a) Any new employee engaged to perform covered services for an agency or political
16 subdivision that participates in this system after July 1, 1997, shall undergo a physical examination
17 to determine the employee's fitness for employment, and file a membership form with the
18 retirement office. The employer shall notify the administrator of the employee's employment
19 within 30 days of employment.
20 (b) In political subdivisions with public safety and firefighter personnel where
21 cross-training and duty is required, the employing unit may, with the prior written approval of the
22 board, through its executive director, enroll the dual purpose personnel in the retirement system
23 in which the greatest amount of duty time is contemplated and actually worked. The personnel
24 shall be full-time public safety or firefighter employees of the employing unit.
25 Section 8. Section 49-5a-204 is enacted to read:
26 49-5a-204. Participation of political subdivisions -- Full participation in system --
27 Exception for continued employment and receipt of pension at the same time --
28 Supplemental programs authorized.
29 (1) All political subdivisions are participating employers in the system and may not
30 withdraw from participation in the system. As participating employers, political subdivisions shall
31 meet all requirements for full participation in the system.
1 (2) (a) Except as provided in Subsection (2)(b), no participating employer may maintain
2 participation in the system by covering only part of its eligible employees.
3 (b) Notwithstanding Subsection (2)(a), the chief of any fire department may elect not to
4 participate in the system, but cannot continue employment in the same covered employer unit and
5 receive payment from the retirement office at the same time.
6 (3) In addition to their participation in the system, participating employers may provide
7 or participate in any additional public or private retirement, supplemental or deferred income
8 program, either directly or indirectly, for their employees.
9 Section 9. Section 49-5a-205 is enacted to read:
10 49-5a-205. Conversion to system -- Time schedule.
11 The following laws govern conversion to the Firefighters' Noncontributory Retirement
12 System:
13 (1) For persons governed by Subsection 49-5a-203(2), the election to participate in the
14 noncontributory system shall be made by January 1, 1998.
15 (2) (a) For political subdivisions governed by Subsection 49-5a-203(3), the election to
16 participate as a local government unit shall be made by January 1, 1998. The political subdivision
17 shall indicate whether or not it elects to participate by enacting a resolution or ordinance to that
18 effect. Prior to the enactment of the resolution or ordinance, a hearing shall be held by the political
19 subdivision, at which all public safety employees of the political subdivision shall be given an
20 opportunity to be heard on the question of participating in this noncontributory retirement system.
21 Notice of the hearing shall be mailed to all employees within 30 days of the hearing and shall
22 contain the time, place, and purpose of the hearing.
23 (b) A person in full-time employment with a political subdivision prior to its election to
24 participate has six months from the date the political subdivision elects to participate in which to
25 elect to become a member of the noncontributory system.
26 Section 10. Section 49-5a-301 is enacted to read:
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28 49-5a-301. Contributions of employers.
29 (1) The system shall be maintained on a financially and actuarially sound basis by means
30 of contributions made by the state and the employing units of the system. For purposes of
31 determining contribution rates and benefits, the system is divided into two divisions according to
1 Social Security coverage. Firefighters with on-the-job Social Security coverage are Division A,
2 and firefighters without on-the-job Social Security coverage are Division B.
3 (2) The board shall report to the governor, the Legislature, and each employing unit under
4 Division A or Division B the contribution rates and any adjustments necessary to maintain the
5 system on a financially and actuarially sound basis, and the employer shall pay the certified
6 contribution rates.
7 (3) In addition, there shall be paid to the Firefighters' Noncontributory Retirement Trust
8 Fund:
9 (a) 50% of the annual tax for each year that is levied, assessed, and collected under Title
10 59, Chapter 9, Taxation of Admitted Insurers, upon property insurance premiums, as defined by
11 Section 31A-1-301, and as applied to fire and allied lines insurance collected by insurance
12 companies within the state; and
13 (b) 10% of all money assessed and collected under Title 59, Chapter 9, Taxation of
14 Admitted Insurers, upon life insurance premiums within the state. Payments to the fund shall be
15 made annually until the prior service liability is liquidated, after which the tax revenue provided
16 in this Subsection (3)(b) for the Firefighters' Noncontributory Retirement Trust Fund ceases.
17 Section 11. Section 49-5a-401 is enacted to read:
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19 49-5a-401. Eligibility for service retirement -- Date of retirement -- Qualifications.
20 (1) (a) Any member who qualifies for service retirement may retire by applying in writing
21 to the retirement office stating the proposed effective date of retirement, which may not be more
22 than 90 days after the date of application.
23 (b) The effective date shall be the 1st or 16th day of the month, as selected by the member,
24 but must follow the last day of actual work.
25 (2) The member is qualified to retire upon termination of service on or before the effective
26 date of retirement if one of the following requirements on that date is met:
27 (a) the member is credited with at least 20 years of service;
28 (b) the member is credited with at least ten years of service and is 60 years of age or more;
29 or
30 (c) the member is credited with at least four years of service and is 65 years of age or
31 more.
1 Section 12. Section 49-5a-402 is enacted to read:
2 49-5a-402. Service retirement plan -- Calculation of retirement benefit -- Adjustments
3 to formula permitted.
4 Upon retirement as provided in Section 49-5a-401, the member shall receive a retirement
5 allowance as follows:
6 (1) If the member is a participant in Division A or Division B and has 20 or more years
7 of service credit, the monthly retirement allowance is equal to 2-1/2% of the member's final
8 average monthly salary multiplied by the number of years of service credit.
9 (2) If the member is a participant in Division A or Division B and is 60 but less than 65
10 years of age and has ten but less than 20 years of service credit, the monthly retirement allowance
11 is an amount equal to 2-1/2% of the member's final average monthly salary multiplied by the
12 number of years of service credit.
13 (3) If the member is a participant in Division A or Division B and is 65 years of age or
14 older and has four years of service credit or more, the monthly retirement allowance is an amount
15 equal to 2-1/2% of the member's final average monthly salary multiplied by the number of years
16 of service credit.
17 (4) The monthly service retirement allowance as calculated under this section may not
18 exceed 70% of the member's final average monthly salary.
19 (5) Years of service include any fractions of years of service to which the member may
20 be entitled. Notwithstanding the formula for computing the service retirement allowance under
21 this section for members participating in the program, the board shall, in as far as practical, adjust
22 the percentage factor used in the service retirement allowance formula, in its application to the
23 years of service of a retiring member, to a percentage amount not less than 1-1/2%, nor more than
24 2-1/2% per year of service, limited to the first 25 years. This adjustment, when made, shall
25 maintain the retirement trust account on an actuarially sound basis if the employer contributions,
26 insurance fees, and earnings of the fund are insufficient to fund the benefits provided for members
27 participating in the program.
28 Section 13. Section 49-5a-403 is enacted to read:
29 49-5a-403. Service credit under both Division A and Division B -- Computation of
30 benefit.
31 If a member has service under both Division A and Division B, benefits are computed
1 under both systems, first using "B" service under the Division B formula and then "A" service
2 under the Division A formula.
3 Section 14. Section 49-5a-501 is enacted to read:
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5 49-5a-501. Disability program -- Line-of-duty disability -- Benefits -- Monthly
6 allowance.
7 Any member who becomes disabled may apply to the retirement office for disability
8 retirement subject to the following provisions:
9 (1) (a) If the disability is classified as a line-of-duty disability, the member shall retire on
10 disability and be granted a disability allowance subject to Section 49-5a-502.
11 (b) If the member is a participant in Division A or Division B, the monthly disability
12 allowance is an amount equal to 50% of the member's final average monthly salary.
13 (2) (a) If the disability is classified as ordinary disability and not incurred in the
14 line-of-duty and if the member has five or more years of service, the member shall retire on
15 disability and be granted a disability allowance subject to Section 49-5a-502.
16 (b) If the member is a participant in Division A or Division B, the monthly disability
17 allowance is an amount equal to 50% of the member's final average monthly salary.
18 Section 15. Section 49-5a-502 is enacted to read:
19 49-5a-502. Disability retirement -- Disability allowance eligibility -- Conversion to
20 service retirement -- Examinations -- Reemployment.
21 The following rules apply to all members applying for disability retirement under this part:
22 (1) Any member who applies and is qualified for disability retirement shall receive a
23 disability allowance until the earlier of:
24 (a) the date the member has accumulated 20 years of service credit, including years earned
25 while disabled; or
26 (b) the member has received disability benefits for the following time periods:
27 (i) if the member is under age 60, the disability allowance is payable until age 65;
28 (ii) if the member is 60-61, the disability allowance is payable for five years;
29 (iii) if the member is 62-63, the disability allowance is payable for four years;
30 (iv) if the member is 64-65, the disability allowance is payable for three years;
31 (v) if the member is 66-68, the disability allowance is payable for two years; and
1 (vi) if the member is age 69 or older, the disability benefit is payable for one year.
2 (2) (a) The member shall receive service credit during the period of disability.
3 (b) The disability retirement shall be converted to a service retirement at the time the
4 disability benefits terminate.
5 (3) The board shall approve or disapprove applications for disability retirement based upon
6 the evaluation and recommendations of one or more physicians to the effect that the member is
7 mentally or physically totally disabled.
8 (4) Any disability retirant who regains health and is regularly employed shall have the
9 disability allowance reduced or suspended as the retirant's earnings justify.
10 (5) (a) Members receiving benefits under this section shall, upon request of the
11 administrator, submit to a medical examination by one or more physicians as directed by the board.
12 (b) If the member resides outside the state and is requested to submit to an examination,
13 the member shall be examined under the same rules in the area in which the member resides.
14 (c) If, after an examination, the examiners report that the retirant is physically able and
15 capable of resuming employment, the retirant shall be reinstated at the retirant's former
16 classification and rank, and disability benefits terminate.
17 (d) Examinations may not be required more than once every year.
18 (e) A retirant who returns to employment of a participating employer shall immediately
19 commence accruing service credit that shall be added to that credit that has been accrued by virtue
20 of previous service, including service credited while disabled.
21 (6) Retired members are not subject to medical examinations after reaching age 55.
22 (7) Refusal or neglect to submit to an examination is sufficient cause for suspension or
23 discontinuance of benefits and if the refusal or neglect continues for one year, the member's rights
24 to all benefits may be revoked by the board.
25 (8) Retirants who receive benefits under this part shall file a sworn statement with the
26 retirement office on or before January 15 of each year for the first five years a retirant receives
27 benefits. The sworn statement shall indicate whether or not the retirant engaged in any gainful
28 employment during the preceding year and, if so, the amount of earnings received during the
29 calendar year.
30 (a) If the retirant has been gainfully employed, the retirant's benefit payments shall be
31 reduced in the year following employment so that the total payments, when added to the
1 compensation received for employment, do not exceed 125% of the retirant's final average salary.
2 (b) If any retirant refuses or neglects to file a sworn statement as required, the
3 administrator may suspend payment of any and all benefits pending receipt of the statement. Upon
4 filing the statement, the retirant's payments shall be resumed.
5 (9) The disability allowance shall be improved by the annual cost-of-living increase factor
6 applied to retired members of the system that covered the employee at the time of disability.
7 Section 16. Section 49-5a-503 is enacted to read:
8 49-5a-503. Suspension of allowance upon settlement of workers' compensation claim
9 -- Lump sum settlement -- Line-of-duty death provisions -- Surviving spouse allowance.
10 Settlement of a claim for workers' compensation for injury or disability shall suspend
11 payments under this part, except for the initial three months, to a member granted disability until
12 workers' compensation payments terminate. If there is a lump-sum settlement of the workers'
13 compensation claim, the administrator shall suspend the allowance until the total of suspended
14 payments is equal to 75% of the settlement received from workers' compensation. If death is in
15 the line-of-duty, the surviving spouse is eligible for a firefighter's pension on the first day of the
16 month following the date of death. Settlement with workers' compensation has no effect on the
17 spouse's retirement allowance, nor do other benefits paid at the member's death have any effect on
18 the spouse's allowance.
19 Section 17. Section 49-5a-601 is enacted to read:
20
21 49-5a-601. Annual cost-of-living allowance.
22 (1) (a) The retirement office shall compute and pay, upon approval by the board, an annual
23 cost-of-living adjustment to all retired members after those members have been retired for one
24 year.
25 (b) The adjustment is equal to the decrease in the purchasing power of the dollar during
26 the preceding year, as measured by the Consumer Price Index, United States City Average,
27 prepared by the United States Bureau of Labor Statistics, and is limited to a maximum of 4% of
28 the retirant's or beneficiary's original retirement allowance.
29 (c) Decreases in the purchasing power of the dollar exceeding 4% annually are
30 accumulated and used in subsequent allowances when the cost-of-living adjustment is less than
31 4% annually.
1 (2) (a) The cost-of-living adjustment shall be reduced if the index shows a decline of 4%
2 or more during any period of more than one year.
3 (b) These reductions may not exceed 2% per year based upon the original retirement
4 allowance.
5 (c) Payments made under this section are a part of the retired member's allowance.
6 (d) Payments and adjustments for the retirant also apply to the beneficiary who is paid an
7 allowance under optional retirement plans.
8 Section 18. Section 49-5a-701 is enacted to read:
9
10 49-5a-701. Death of active member in Division A -- Payment of benefits.
11 If an active member of the system enrolled in Division A dies, the following benefits are
12 payable:
13 (1) If death is classified as line-of-duty, the dependent spouse receives a lump sum of
14 $1,500 and a monthly allowance equal to 30% of the deceased member's final average monthly
15 salary.
16 (2) If death is not classified as line-of-duty, the benefit is as follows:
17 (a) If the member has less than ten years of service credit at the time of death, the
18 member's beneficiary receives a lump sum payment of $1,000.
19 (b) If the member has ten or more years of service credit the dependent spouse receives
20 $500 plus a monthly allowance equal to 2% of the final average monthly salary of the deceased
21 member for each year of service credit with a maximum of 30% allowed.
22 (3) In the event of the death of the member and there is no spouse, the spouse's benefit
23 shall be equally divided and paid to each unmarried child until the child reaches age 21.
24 (4) If the benefit is not distributed under this section, and there is a beneficiary, the vested
25 contribution shall be paid to the beneficiary.
26 Section 19. Section 49-5a-702 is enacted to read:
27 49-5a-702. Death of active member in Division B -- Payment of benefits.
28 If an active member of the system enrolled in Division B dies, the following benefits are
29 payable:
30 (1) If death is classified as line-of-duty, the dependent spouse receives a lump sum of
31 $1,500 and a monthly allowance equal to 37-1/2% of the deceased member's final average monthly
1 salary, subject to Section 49-5a-503.
2 (2) If death is classified as line-of-duty, and the member has 20 or more years of service
3 credit, the member shall be considered to have retired and the dependent spouse shall receive the
4 death benefit payable to a retired member under Section 49-5a-704.
5 (3) If death is not classified as line-of-duty and the deceased member has five or more
6 years of service credit, the death is considered line-of-duty and the same benefits are payable as
7 established under Subsection (1).
8 (4) If death is not classified as line-of-duty and the deceased member has less than five
9 years of service credit, the benefit is a lump sum payment of 50% of the member's most recent 12
10 months regular salary.
11 (5) If the deceased member has five or more years of service credit, the member's
12 unmarried children, until they reach age 21, receive a monthly allowance of $75. In the event of
13 the death of the member and spouse, the spouse's benefits are equally divided and paid to each
14 unmarried child until the child reaches age 21. The payments shall be made to the surviving
15 parent, duly appointed guardian, or pursuant to Section 49-1-607.
16 (6) If the benefit is not distributed under this section, and there is a beneficiary, the vested
17 contribution shall be paid to the beneficiary.
18 (7) The total monthly payments made on behalf of any one deceased member's account
19 may not exceed 75% of the member's final average salary.
20 Section 20. Section 49-5a-703 is enacted to read:
21 49-5a-703. Death of active or inactive member having no spouse or minor children
22 as beneficiary -- Benefits payable to widow on death of inactive member.
23 (1) The death settlement payable on behalf of an active or inactive member who dies
24 without spouse or minor children is $500.
25 (2) The death benefit payable monthly on behalf of an inactive member who dies and is
26 survived by a spouse to whom the member was married at the time of death is 50% of the amount
27 the member would have received had the member retired on the first day of the month following
28 the month death occurred, the computation being based upon years of service and final average
29 salary, reduced actuarially from age 50 to age at death, if the member was not 50 years of age
30 when death occurred.
31 (3) No monthly pension may be paid under this section unless the member had 20 years
1 of service credit at the time of death.
2 Section 21. Section 49-5a-704 is enacted to read:
3 49-5a-704. Death of retired member -- Benefits.
4 (1) (a) Except as provided in Subsection (3), the death benefit payable to a dependent
5 spouse after death of the retirant is a monthly amount equal to 75% of the allowance being paid
6 to the retirant at the time of death.
7 (b) The effective date of accrual of this pension is the first day of the month following the
8 month the retirant died.
9 (c) Except as provided in Subsection (3), payment of the full pension for this latter month
10 shall be made to the dependent beneficiary instead of the deceased member.
11 (2) If the member retires under Division B and dies leaving dependent children, they
12 qualify for benefits prescribed for children under Section 49-5a-701 or 49-5a-702.
13 (3) (a) In the event of a court order complying with Section 49-1-609 a former spouse of
14 a retired member is entitled to the court designated share of the retirant's monthly retirement
15 benefit and the court designated share of the spouse's death benefit.
16 (b) Subsection (3) supersedes conflicting subsections of this section.
17 Section 22. Section 49-5a-801 is enacted to read:
18
19 49-5a-801. Volunteer firefighters considered members of the system for line-of-duty
20 death and disability benefits in Division A -- Computation of benefit.
21 Volunteer firefighters are considered members of the system but are only eligible for
22 line-of-duty death and line-of-duty disability benefits provided for firefighters enrolled in Division
23 A, subject to Section 49-5a-503. The lowest monthly salary of firefighters of a city of the first
24 class in this state at the time of death or disability shall be the basis for computing the final average
25 monthly salary payable to a volunteer firefighter, the surviving spouse, and children.
26 Section 23. Section 67-20-7 is amended to read:
27 67-20-7 (Effective 07/01/97). Workers' compensation benefits for volunteer
28 firefighters.
29 (1) In addition to the purposes set out in Subsections 67-20-3(2) and (3), a volunteer
30 firefighter, as defined in Section 49-5-103 or 49-5a-103, is considered an agency employee for the
31 purpose of receiving workers' compensation benefits under Title 35A, Chapter 3, Workers'
1 Compensation Act and Chapter 3a, Utah Occupational Disease Act.
2 (2) These benefits are the exclusive remedy for all injuries and occupational diseases
3 resulting from his services as a volunteer firefighter. Compensation shall be computed as indicated
4 in Section 49-5-802 or 49-5a-801.
5 Section 24. Effective date.
6 This act takes effect on July 1, 1997.
Legislative Review Note
as of 1-14-97 8:06 AM
A limited legal review of this bill raises no obvious constitutional or statutory concerns.
Office of Legislative Research and General Counsel
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