S.J.R. 13

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RETIREMENT CONVERSION AND CREDIT RESOLUTION
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Ed P. Mayne
5 A JOINT RESOLUTION OF THE LEGISLATURE URGING THE UTAH STATE
6 RETIREMENT OFFICE TO REVIEW ITS PRACTICES RELATING TO PUBLIC
7 EMPLOYEES' PURCHASE OF RETIREMENT SERVICE CREDIT.
8 Be it resolved by the Legislature of the state of Utah:
9 WHEREAS in 1995, the Legislature passed S.B. 34, "Retirement Service-Conversion and
10 Credit Amendments";
11 WHEREAS the enacted Section 49-3-410 allows members of the Public Employees'
12 Noncontributory Retirement System to purchase up to five years of retirement service credit upon
13 meeting certain requirements;
14 WHEREAS the statutory purchase price for the retirement service credit is an amount fixed
15 by the retirement office that is established on an actuarial equivalent basis;
16 WHEREAS in practice, the purchase price for employees has included the actuarial costs
17 to the retirement system and additional age penalties, resulting in a windfall profit to the retirement
18 office; and
19 WHEREAS these additional costs violate the intent of the Legislature and restrict access
20 to this benefit for qualifying public employees:
21 NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah urge
22 the retirement office to review its practices for calculating retirement service credit's purchase price
23 for public employees to eliminate any age penalties from those costs.
24 BE IT FURTHER RESOLVED that copies of this resolution be sent to the Utah State
25 Retirement Office and the members of the Utah State Retirement Board.

Legislative Review Note
as of 2-20-97 12:59 PM

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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