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S.B. 171

             1     

STATE RETIREMENT FORMULA CHANGES

             2     
2001 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: John L. Valentine

             5      This act modifies the Utah State Retirement Act to authorize an additional retirement benefit
             6      to certain retirees. This act takes effect on July 1, 2001.
             7      This act affects sections of Utah Code Annotated 1953 as follows:
             8      AMENDS:
             9          49-1-617, as enacted by Chapter 353, Laws of Utah 2000
             10      Be it enacted by the Legislature of the state of Utah:
             11          Section 1. Section 49-1-617 is amended to read:
             12           49-1-617. Payment of additional retirement benefit -- Rules for implementation.
             13          (1) (a) [If the Legislature in an annual appropriations act with accompanying intent
             14      language specifically authorizes this use, the] The board shall provide an additional benefit to
             15      retirees under Title 49, Chapters 2, Public Employees' Retirement Act, and 3, Public Employees'
             16      Noncontributory Retirement Act, whose retirement allowance, when calculated, amounts to less
             17      than the allowance provided by using at least 1.25% per year of service factor for all years of
             18      service rendered prior to July 1, 1967.
             19          (b) The benefit provided in Subsection (1)(a) shall be calculated by the board using a
             20      formula based upon actuarial assumptions and principles that results in a benefit that is as close
             21      as reasonably possible to 1.25% per year of service for each retiree for service rendered prior to
             22      July 1, 1967.
             23          [(2) Upon receipt of the legislative appropriation and after]
             24           h [ (2) (a) If the contribution rates established under Sections 49-2-301 and 49-3-301 are
             25      reduced for fiscal year 2002-03, the difference between the rates for fiscal years 2001-02 and
             26      2002-03 shall be used by the board to provide an additional benefit to retirees under Title 49,
             27      Chapters 2, Public Employees' Retirement Act, and 3, Public Employees' Noncontributory
] h


             28      h [ Retirement Act, whose retirement allowance, when calculated, amounts to less than the allowance
             29      provided by using at least 2% per year of service factor for all years of service.
             30          (b) The benefit provided in Subsection (2)(a) shall be calculated by the board using a
             31      formula based upon actuarial assumptions and principles that results in a benefit that is as close
             32      as reasonably possible to 2% per year of service for each retiree, based upon available funding
             33      from the contribution rate reduction.
]

             34           [ (3) ] (2) h After consultation with representatives of those retirees under Title 49, Chapters 2
             34a      and
             35      3, the board shall adopt standards and rules governing the distribution of [the money] any
             36      additional retirement benefit under this section.
             37          Section 2. Effective date.
             38          This act takes effect on July 1, 2001.




Legislative Review Note
    as of 12-5-00 8:23 AM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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