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S.B. 214 Enrolled

                 

POSTRETIREMENT EMPLOYMENT RESTRICTIONS

                 
1999 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: David H. Steele

                  AN ACT RELATING TO RETIREMENT; AMENDING CERTAIN POSTRETIREMENT
                  EMPLOYMENT RESTRICTIONS.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      49-3-410, as last amended by Chapter 202, Laws of Utah 1996
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 49-3-410 is amended to read:
                       49-3-410. Purchase of retirement credit -- Conditions -- Cost.
                      (1) Any member of this system may receive retirement service credit in accordance with
                  Subsection (2).
                      (2) (a) A member may purchase or a member and an employing unit may jointly purchase
                  a combined maximum total of five years of retirement service credit which is not otherwise
                  purchasable under this chapter.
                      (b) The number of years of retirement service credit purchased may not exceed the number
                  of years required by the member to retire with no actuarial reduction.
                      (c) The purchase of retirement service credit must allow the member to meet the retirement
                  eligibility requirements of this system with no actuarial reduction.
                      (d) The member must retire effective immediately after the purchase of retirement service
                  credit is made.
                      (e) The member shall pay at least 5% of the cost of the purchase.
                      (3) The purchase price for the retirement service credit shall be calculated and paid for as
                  provided in Section 49-1-407 .
                      (4) (a) The employing unit may elect to purchase retirement service credit for a member
                  under Subsection (2) while the member is on an unpaid leave of absence.
                      (b) If the member is on an unpaid leave of absence, the employing unit may make


                  installment payments towards the purchase in amounts fixed by the administrator.
                      (c) The member shall retire when the purchase obligations are fulfilled.
                      (5) (a) A member who retires after the employer purchases retirement service credit under
                  this section may not be reemployed by the employing unit from which the member retired.
                      (b) Subsection (5)(a) does not apply to a member if the member does not earn compensation
                  in excess of the exempt earnings permitted by Social Security.
                      (6) Prior to making any purchase of service credit under this section, an employing unit shall
                  adopt a purchase policy that includes nondiscriminatory participation standards for all employees.

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