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First Substitute H.B. 250

Representative Ron Bigelow proposes the following substitute bill:


             1     
RETIREMENT LAW RECODIFICATION

             2     
2002 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Ron Bigelow

             5      This act recodifies the Retirement Code. This act has an immediate effective date. h This act
             5a      provides a coordination clause. h
             6      This act affects sections of Utah Code Annotated 1953 as follows:
             7      AMENDS:
             8          31A-22-703, as last amended by Chapter 116, Laws of Utah 2001
             9          35A-4-502, as last amended by Chapter 116, Laws of Utah 1998
             10          51-7-4, as last amended by Chapter 222, Laws of Utah 2000
             11          53-6-107, as last amended by Chapter 79, Laws of Utah 1996
             12          53-7-105, as last amended by Chapter 282, Laws of Utah 1998
             13          53-13-108, as renumbered and amended by Chapter 282, Laws of Utah 1998
             14          53A-17a-125, as last amended by Chapter 335, Laws of Utah 2001
             15          63-95-102, as last amended by Chapters 210 and 222, Laws of Utah 2000
             16          63-95-202, as enacted by Chapter 210, Laws of Utah 2000
             17          63E-1-102 (Effective 07/01/02), as enacted by Chapter 201, Laws of Utah 2001
             18          63E-1-202 (Effective 07/01/02), as enacted by Chapter 201, Laws of Utah 2001
             19          67-8-3, as last amended by Chapter 299, Laws of Utah 1995
             20          67-20-7, as last amended by Chapter 240, Laws of Utah 1996
             21          67-22-1, as last amended by Chapters 116 and 264, Laws of Utah 2001
             22          67-22-2, as last amended by Chapters 116 and 264, Laws of Utah 2001
             23          78-7-35, as renumbered and amended by Chapter 46, Laws of Utah 2001
             24      ENACTS:
             25          49-11-603, Utah Code Annotated 1953


             26          49-11-604, Utah Code Annotated 1953
             27          49-11-605, Utah Code Annotated 1953
             28          49-11-606, Utah Code Annotated 1953
             29          49-11-620, Utah Code Annotated 1953
             30          49-11-802, Utah Code Annotated 1953
             31          49-12-302, Utah Code Annotated 1953
             32          49-13-302, Utah Code Annotated 1953
             33          49-14-505, Utah Code Annotated 1953
             34          49-15-505, Utah Code Annotated 1953
             35          49-16-203, Utah Code Annotated 1953
             36          49-16-505, Utah Code Annotated 1953
             37          49-16-506, Utah Code Annotated 1953
             38          49-17-403, Utah Code Annotated 1953
             39          49-19-102, Utah Code Annotated 1953
             40          49-19-402, Utah Code Annotated 1953
             41          49-19-403, Utah Code Annotated 1953
             42          49-19-404, Utah Code Annotated 1953
             43          49-20-403, Utah Code Annotated 1953
             44      RENUMBERS AND AMENDS:
             45          49-11-101, (Renumbered from 49-1-101, as last amended by Chapter 231, Laws of Utah
             46      1996)
             47          49-11-102, (Renumbered from 49-1-103, as last amended by Chapter 73, Laws of Utah
             48      2001)
             49          49-11-103, (Renumbered from 49-1-102, as last amended by Chapter 231, Laws of Utah
             50      1996)
             51          49-11-201, (Renumbered from 49-1-201, as last amended by Chapter 210, Laws of Utah
             52      2000)
             53          49-11-202, (Renumbered from 49-1-202, as last amended by Chapter 243, Laws of Utah
             54      1996)
             55          49-11-203, (Renumbered from 49-1-203, as last amended by Chapter 31, Laws of Utah
             56      1997)


             57          49-11-204, (Renumbered from 49-1-204, as last amended by Chapter 231, Laws of Utah
             58      1996)
             59          49-11-301, (Renumbered from 49-1-301, as last amended by Chapter 283, Laws of Utah
             60      2000)
             61          49-11-302, (Renumbered from 49-1-302, as last amended by Chapter 79, Laws of Utah
             62      1996)
             63          49-11-303, (Renumbered from 49-1-303, as enacted by Chapter 1, Laws of Utah 1987)
             64          49-11-304, (Renumbered from 49-1-304, as last amended by Chapter 231, Laws of Utah
             65      1996)
             66          49-11-305, (Renumbered from 49-1-305, as enacted by Chapter 1, Laws of Utah 1987)
             67          49-11-401, (Renumbered from 49-1-401, as last amended by Chapter 31, Laws of Utah
             68      1997)
             69          49-11-402, (Renumbered from 49-1-402, as last amended by Chapter 197, Laws of Utah
             70      1995)
             71          49-11-403, (Renumbered from 49-1-407, as last amended by Chapter 141, Laws of Utah
             72      2001)
             73          49-11-404, (Renumbered from 49-1-404, as last amended by Chapter 231, Laws of Utah
             74      1996)
             75          49-11-405, (Renumbered from 49-1-406, as last amended by Chapter 31, Laws of Utah
             76      1997)
             77          49-11-501, (Renumbered from 49-1-502, as last amended by Chapter 141, Laws of Utah
             78      2001)
             79          49-11-502, (Renumbered from 49-1-503, as last amended by Chapter 292, Laws of Utah
             80      1999)
             81          49-11-503, (Renumbered from 49-1-504, as last amended by Chapter 292, Laws of Utah
             82      1999)
             83          49-11-504, (Renumbered from 49-1-505, as last amended by Chapter 141, Laws of Utah
             84      2001)
             85          49-11-601, (Renumbered from 49-1-601, as last amended by Chapter 141, Laws of Utah
             86      2001)
             87          49-11-602, (Renumbered from 49-1-602, as last amended by Chapter 157, Laws of Utah


             88      1992)
             89          49-11-607, (Renumbered from 49-1-603, as last amended by Chapter 81, Laws of Utah
             90      1989)
             91          49-11-608, (Renumbered from 49-1-604, as last amended by Chapter 81, Laws of Utah
             92      1989)
             93          49-11-609, (Renumbered from 49-1-606, as last amended by Chapter 141, Laws of Utah
             94      2001)
             95          49-11-610, (Renumbered from 49-1-607, as last amended by Chapter 31, Laws of Utah
             96      1997)
             97          49-11-611, (Renumbered from 49-1-608, as last amended by Chapters 2 and 7, Laws of
             98      Utah 1989, Second Special Session)
             99          49-11-612, (Renumbered from 49-1-609, as last amended by Chapter 141, Laws of Utah
             100      2001)
             101          49-11-613, (Renumbered from 49-1-610, as last amended by Chapter 141, Laws of Utah
             102      2001)
             103          49-11-614, (Renumbered from 49-1-613, as enacted by Chapter 273, Laws of Utah 1990)
             104          49-11-615, (Renumbered from 49-1-614, as enacted by Chapter 273, Laws of Utah 1990)
             105          49-11-616, (Renumbered from 49-1-615, as enacted by Chapter 229, Laws of Utah 1991)
             106          49-11-617, (Renumbered from 49-1-616, as enacted by Chapter 226, Laws of Utah 1993)
             107          49-11-618, (Renumbered from 49-1-403, as enacted by Chapter 1, Laws of Utah 1987)
             108          49-11-619, (Renumbered from 49-1-405, as enacted by Chapter 285, Laws of Utah 1990)
             109          49-11-701, (Renumbered from 49-1-701, as last amended by Chapter 90, Laws of Utah
             110      1994)
             111          49-11-801, (Renumbered from 49-1-611, as last amended by Chapter 267, Laws of Utah
             112      1998)
             113          49-12-101, (Renumbered from 49-2-101, as enacted by Chapter 1, Laws of Utah 1987)
             114          49-12-102, (Renumbered from 49-2-103, as last amended by Chapter 141, Laws of Utah
             115      2001)
             116          49-12-103, (Renumbered from 49-2-201, as enacted by Chapter 1, Laws of Utah 1987)
             117          49-12-104, (Renumbered from 49-2-202, as enacted by Chapter 1, Laws of Utah 1987)
             118          49-12-201, (Renumbered from 49-2-203, as enacted by Chapter 1, Laws of Utah 1987)


             119          49-12-202, (Renumbered from 49-2-204, as last amended by Chapter 220, Laws of Utah
             120      2000)
             121          49-12-203, (Renumbered from 49-2-205, as last amended by Chapter 31, Laws of Utah
             122      1997)
             123          49-12-204, (Renumbered from 49-2-206, as enacted by Chapter 1, Laws of Utah 1987)
             124          49-12-301, (Renumbered from 49-2-301, as last amended by Chapter 157, Laws of Utah
             125      1992)
             126          49-12-401, (Renumbered from 49-2-401, as last amended by Chapter 292, Laws of Utah
             127      1999)
             128          49-12-402, (Renumbered from 49-2-402, as last amended by Chapter 10, Laws of Utah
             129      1997)
             130          49-12-403, (Renumbered from 49-2-404, as enacted by Chapter 1, Laws of Utah 1987)
             131          49-12-404, (Renumbered from 49-2-405, as last amended by Chapter 197, Laws of Utah
             132      1995)
             133          49-12-405, (Renumbered from 49-2-406, as last amended by Chapter 267, Laws of Utah
             134      1998)
             135          49-12-406, (Renumbered from 49-2-409, as enacted by Chapter 1, Laws of Utah 1987)
             136          49-12-407, (Renumbered from 49-2-601, as last amended by Chapter 157, Laws of Utah
             137      1992)
             138          49-12-408, (Renumbered from 49-2-602, as last amended by Chapter 353, Laws of Utah
             139      2000)
             140          49-12-501, (Renumbered from 49-2-701, as last amended by Chapter 90, Laws of Utah
             141      1994)
             142          49-12-601, (Renumbered from 49-2-503, as enacted by Chapter 1, Laws of Utah 1987)
             143          49-12-701, (Renumbered from 49-2-802, as last amended by Chapter 226, Laws of Utah
             144      1993)
             145          49-13-101, (Renumbered from 49-3-101, as enacted by Chapter 1, Laws of Utah 1987)
             146          49-13-102, (Renumbered from 49-3-103, as last amended by Chapter 141, Laws of Utah
             147      2001)
             148          49-13-103, (Renumbered from 49-3-201, as enacted by Chapter 1, Laws of Utah 1987)
             149          49-13-104, (Renumbered from 49-3-202, as enacted by Chapter 1, Laws of Utah 1987)


             150          49-13-201, (Renumbered from 49-3-203, as enacted by Chapter 1, Laws of Utah 1987)
             151          49-13-202, (Renumbered from 49-3-204, as last amended by Chapter 220, Laws of Utah
             152      2000)
             153          49-13-203, (Renumbered from 49-3-206, as last amended by Chapter 141, Laws of Utah
             154      2001)
             155          49-13-204, (Renumbered from 49-3-207, as enacted by Chapter 1, Laws of Utah 1987)
             156          49-13-205, (Renumbered from 49-3-205, as last amended by Chapter 46, Laws of Utah
             157      1995)
             158          49-13-301, (Renumbered from 49-3-301, as last amended by Chapter 157, Laws of Utah
             159      1992)
             160          49-13-303, (Renumbered from 49-3-302, as last amended by Chapter 157, Laws of Utah
             161      1992)
             162          49-13-401, (Renumbered from 49-3-401, as last amended by Chapter 292, Laws of Utah
             163      1999)
             164          49-13-402, (Renumbered from 49-3-402, as last amended by Chapter 231, Laws of Utah
             165      1996)
             166          49-13-403, (Renumbered from 49-3-404, as enacted by Chapter 1, Laws of Utah 1987)
             167          49-13-404, (Renumbered from 49-3-405, as last amended by Chapter 197, Laws of Utah
             168      1995)
             169          49-13-405, (Renumbered from 49-3-406, as last amended by Chapter 267, Laws of Utah
             170      1998)
             171          49-13-406, (Renumbered from 49-3-409, as enacted by Chapter 1, Laws of Utah 1987)
             172          49-13-407, (Renumbered from 49-3-601, as enacted by Chapter 1, Laws of Utah 1987)
             173          49-13-408, (Renumbered from 49-3-410, as last amended by Chapter 141, Laws of Utah
             174      2001)
             175          49-13-501, (Renumbered from 49-3-701, as last amended by Chapters 12 and 90, Laws of
             176      Utah 1994)
             177          49-13-701, (Renumbered from 49-3-802, as last amended by Chapter 226, Laws of Utah
             178      1993)
             179          49-14-101, (Renumbered from 49-4-101, as enacted by Chapter 1, Laws of Utah 1987)
             180          49-14-102, (Renumbered from 49-4-103, as last amended by Chapter 92, Laws of Utah


             181      1999)
             182          49-14-103, (Renumbered from 49-4-201, as enacted by Chapter 1, Laws of Utah 1987)
             183          49-14-104, (Renumbered from 49-4-202, as enacted by Chapter 1, Laws of Utah 1987)
             184          49-14-201, (Renumbered from 49-4-203, as last amended by Chapter 92, Laws of Utah
             185      1999)
             186          49-14-202, (Renumbered from 49-4-204, as enacted by Chapter 1, Laws of Utah 1987)
             187          49-14-203, (Renumbered from 49-4-205, as last amended by Chapter 110, Laws of Utah
             188      2001)
             189          49-14-301, (Renumbered from 49-4-301, as last amended by Chapter 169, Laws of Utah
             190      1996)
             191          49-14-401, (Renumbered from 49-4-401, as last amended by Chapter 292, Laws of Utah
             192      1999)
             193          49-14-402, (Renumbered from 49-4-402, as enacted by Chapter 1, Laws of Utah 1987)
             194          49-14-403, (Renumbered from 49-4-601, as last amended by Chapter 31, Laws of Utah
             195      1997)
             196          49-14-501, (Renumbered from 49-4-701, as last amended by Chapter 285, Laws of Utah
             197      1990)
             198          49-14-502, (Renumbered from 49-4-702, as enacted by Chapter 1, Laws of Utah 1987)
             199          49-14-503, (Renumbered from 49-4-703, as last amended by Chapter 292, Laws of Utah
             200      1999)
             201          49-14-504, (Renumbered from 49-4-704, as last amended by Chapter 141, Laws of Utah
             202      2001)
             203          49-15-101, (Renumbered from 49-4a-101, as enacted by Chapter 260, Laws of Utah 1989)
             204          49-15-102, (Renumbered from 49-4a-103, as last amended by Chapter 92, Laws of Utah
             205      1999)
             206          49-15-103, (Renumbered from 49-4a-201, as enacted by Chapter 260, Laws of Utah 1989)
             207          49-15-104, (Renumbered from 49-4a-202, as enacted by Chapter 260, Laws of Utah 1989)
             208          49-15-201, (Renumbered from 49-4a-203, as last amended by Chapter 92, Laws of Utah
             209      1999)
             210          49-15-202, (Renumbered from 49-4a-204, as enacted by Chapter 260, Laws of Utah 1989)
             211          49-15-203, (Renumbered from 49-4a-206, as last amended by Chapter 305, Laws of Utah


             212      1999)
             213          49-15-204, (Renumbered from 49-4a-205, as last amended by Chapter 268, Laws of Utah
             214      1998)
             215          49-15-301, (Renumbered from 49-4a-301, as last amended by Chapter 157, Laws of Utah
             216      1992)
             217          49-15-401, (Renumbered from 49-4a-401, as last amended by Chapter 292, Laws of Utah
             218      1999)
             219          49-15-402, (Renumbered from 49-4a-402, as last amended by Chapter 273, Laws of Utah
             220      1990)
             221          49-15-403, (Renumbered from 49-4a-601, as enacted by Chapter 260, Laws of Utah 1989)
             222          49-15-501, (Renumbered from 49-4a-701, as last amended by Chapter 366, Laws of Utah
             223      1998)
             224          49-15-502, (Renumbered from 49-4a-702, as enacted by Chapter 260, Laws of Utah 1989)
             225          49-15-503, (Renumbered from 49-4a-703, as last amended by Chapter 292, Laws of Utah
             226      1999)
             227          49-15-504, (Renumbered from 49-4a-704, as last amended by Chapter 141, Laws of Utah
             228      2001)
             229          49-16-101, (Renumbered from 49-5-101, as enacted by Chapter 1, Laws of Utah 1987)
             230          49-16-102, (Renumbered from 49-5-103, as last amended by Chapter 73, Laws of Utah
             231      2001)
             232          49-16-103, (Renumbered from 49-5-201, as enacted by Chapter 1, Laws of Utah 1987)
             233          49-16-104, (Renumbered from 49-5-202, as enacted by Chapter 1, Laws of Utah 1987)
             234          49-16-201, (Renumbered from 49-5-203, as last amended by Chapter 283, Laws of Utah
             235      2000)
             236          49-16-202, (Renumbered from 49-5-204, as enacted by Chapter 1, Laws of Utah 1987)
             237          49-16-301, (Renumbered from 49-5-301, as last amended by Chapters 131 and 292, Laws
             238      of Utah 1999)
             239          49-16-401, (Renumbered from 49-5-401, as last amended by Chapter 292, Laws of Utah
             240      1999)
             241          49-16-402, (Renumbered from 49-5-402, as last amended by Chapter 51, Laws of Utah
             242      1990)


             243          49-16-403, (Renumbered from 49-5-601, as last amended by Chapter 31, Laws of Utah
             244      1997)
             245          49-16-501, (Renumbered from 49-5-701, as last amended by Chapter 293, Laws of Utah
             246      1999)
             247          49-16-502, (Renumbered from 49-5-702, as last amended by Chapter 267, Laws of Utah
             248      1998)
             249          49-16-503, (Renumbered from 49-5-703, as last amended by Chapter 90, Laws of Utah
             250      1994)
             251          49-16-504, (Renumbered from 49-5-704, as last amended by Chapter 141, Laws of Utah
             252      2001)
             253          49-16-601, (Renumbered from 49-5-501, as last amended by Chapter 283, Laws of Utah
             254      2000)
             255          49-16-602, (Renumbered from 49-5-502, as last amended by Chapter 141, Laws of Utah
             256      2001)
             257          49-16-603, (Renumbered from 49-5-503, as enacted by Chapter 1, Laws of Utah 1987)
             258          49-16-701, (Renumbered from 49-5-802, as enacted by Chapter 1, Laws of Utah 1987)
             259          49-17-101, (Renumbered from 49-6-101, as enacted by Chapter 1, Laws of Utah 1987)
             260          49-17-102, (Renumbered from 49-6-103, as last amended by Chapter 31, Laws of Utah
             261      1997)
             262          49-17-103, (Renumbered from 49-6-201, as last amended by Chapter 198, Laws of Utah
             263      1996)
             264          49-17-104, (Renumbered from 49-6-202, as enacted by Chapter 1, Laws of Utah 1987)
             265          49-17-201, (Renumbered from 49-6-203, as last amended by Chapter 198, Laws of Utah
             266      1996)
             267          49-17-301, (Renumbered from 49-6-301, as last amended by Chapter 198, Laws of Utah
             268      1996)
             269          49-17-401, (Renumbered from 49-6-401, as last amended by Chapter 292, Laws of Utah
             270      1999)
             271          49-17-402, (Renumbered from 49-6-402, as last amended by Chapter 75, Laws of Utah
             272      1990)
             273          49-17-404, (Renumbered from 49-6-404, as last amended by Chapter 7, Laws of Utah


             274      1991, Second Special Session)
             275          49-17-405, (Renumbered from 49-6-601, as enacted by Chapter 1, Laws of Utah 1987)
             276          49-17-501, (Renumbered from 49-6-701, as last amended by Chapter 285, Laws of Utah
             277      1990)
             278          49-17-502, (Renumbered from 49-6-702, as enacted by Chapters 1 and 168, Laws of Utah
             279      1987)
             280          49-17-701, (Renumbered from 49-6-801, as enacted by Chapter 84, Laws of Utah 1996)
             281          49-18-101, (Renumbered from 49-6a-101, as enacted by Chapter 356, Laws of Utah 1997)
             282          49-18-102, (Renumbered from 49-6a-103, as enacted by Chapter 356, Laws of Utah 1997)
             283          49-18-103, (Renumbered from 49-6a-201, as enacted by Chapter 356, Laws of Utah 1997)
             284          49-18-104, (Renumbered from 49-6a-202, as enacted by Chapter 356, Laws of Utah 1997)
             285          49-18-201, (Renumbered from 49-6a-203, as enacted by Chapter 356, Laws of Utah 1997)
             286          49-18-301, (Renumbered from 49-6a-301, as enacted by Chapter 356, Laws of Utah 1997)
             287          49-18-401, (Renumbered from 49-6a-401, as last amended by Chapter 292, Laws of Utah
             288      1999)
             289          49-18-402, (Renumbered from 49-6a-402, as enacted by Chapter 356, Laws of Utah 1997)
             290          49-18-403, (Renumbered from 49-6a-501, as enacted by Chapter 356, Laws of Utah 1997)
             291          49-18-501, (Renumbered from 49-6a-601, as enacted by Chapter 356, Laws of Utah 1997)
             292          49-18-502, (Renumbered from 49-6a-602, as enacted by Chapter 356, Laws of Utah 1997)
             293          49-18-701, (Renumbered from 49-6a-701, as enacted by Chapter 267, Laws of Utah 1998)
             294          49-19-101, (Renumbered from 49-7-101, as enacted by Chapter 1, Laws of Utah 1987)
             295          49-19-103, (Renumbered from 49-7-201, as enacted by Chapter 1, Laws of Utah 1987)
             296          49-19-104, (Renumbered from 49-7-202, as enacted by Chapter 1, Laws of Utah 1987)
             297          49-19-201, (Renumbered from 49-7-203, as last amended by Chapter 197, Laws of Utah
             298      1995)
             299          49-19-301, (Renumbered from 49-7-301, as enacted by Chapter 1, Laws of Utah 1987)
             300          49-19-401, (Renumbered from 49-7-401, as last amended by Chapter 292, Laws of Utah
             301      1999)
             302          49-19-501, (Renumbered from 49-7-403, as last amended by Chapter 197, Laws of Utah
             303      1995)
             304          49-20-101, (Renumbered from 49-8-101, as enacted by Chapter 1, Laws of Utah 1987)


             305          49-20-102, (Renumbered from 49-8-103, as last amended by Chapter 292, Laws of Utah
             306      1999)
             307          49-20-103, (Renumbered from 49-8-201, as enacted by Chapter 1, Laws of Utah 1987)
             308          49-20-104, (Renumbered from 49-8-202, as enacted by Chapter 1, Laws of Utah 1987)
             309          49-20-105, (Renumbered from 49-8-102, as last amended by Chapter 292, Laws of Utah
             310      1999)
             311          49-20-201, (Renumbered from 49-8-203, as last amended by Chapter 360, Laws of Utah
             312      1998)
             313          49-20-202, (Renumbered from 49-8-204, as last amended by Chapter 360, Laws of Utah
             314      1998)
             315          49-20-301, (Renumbered from 49-8-301, as enacted by Chapter 1, Laws of Utah 1987)
             316          49-20-401, (Renumbered from 49-8-401, as last amended by Chapter 360, Laws of Utah
             317      1998)
             318          49-20-402, (Renumbered from 49-8-402, as enacted by Chapter 1, Laws of Utah 1987)
             319          49-20-404, (Renumbered from 49-8-403, as last amended by Chapter 292, Laws of Utah
             320      1999)
             321          49-20-405, (Renumbered from 49-8-404, as last amended by Chapter 283, Laws of Utah
             322      2000)
             323          49-20-406, (Renumbered from 49-8-405, as last amended by Chapter 154, Laws of Utah
             324      2000)
             325          49-21-101, (Renumbered from 49-9-101, as enacted by Chapter 1, Laws of Utah 1987)
             326          49-21-102, (Renumbered from 49-9-103, as last amended by Chapter 283, Laws of Utah
             327      2000)
             328          49-21-103, (Renumbered from 49-9-201, as last amended by Chapter 169, Laws of Utah
             329      1988)
             330          49-21-104, (Renumbered from 49-9-202, as enacted by Chapter 1, Laws of Utah 1987)
             331          49-21-105, (Renumbered from 49-9-102, as last amended by Chapter 111, Laws of Utah
             332      1987)
             333          49-21-201, (Renumbered from 49-9-203, as last amended by Chapter 157, Laws of Utah
             334      1992)
             335          49-21-301, (Renumbered from 49-9-301, as last amended by Chapter 90, Laws of Utah


             336      1994)
             337          49-21-401, (Renumbered from 49-9-401, as last amended by Chapter 292, Laws of Utah
             338      1999)
             339          49-21-402, (Renumbered from 49-9-402, as last amended by Chapter 231, Laws of Utah
             340      1996)
             341          49-21-403, (Renumbered from 49-9-403, as last amended by Chapter 292, Laws of Utah
             342      1999)
             343          49-21-404, (Renumbered from 49-9-404, as enacted by Chapter 1, Laws of Utah 1987)
             344          49-21-405, (Renumbered from 49-9-405, as last amended by Chapter 81, Laws of Utah
             345      1989)
             346          49-21-406, (Renumbered from 49-9-407, as enacted by Chapter 1, Laws of Utah 1987)
             347          49-21-407, (Renumbered from 49-9-409, as last amended by Chapter 231, Laws of Utah
             348      1996)
             349      REPEALS:
             350          49-1-501, as enacted by Chapter 1, Laws of Utah 1987
             351          49-1-605, as enacted by Chapter 1, Laws of Utah 1987
             352          49-1-612, as enacted by Chapter 273, Laws of Utah 1990
             353          49-1-617, as last amended by Chapter 332, Laws of Utah 2001
             354          49-2-102, as enacted by Chapter 1, Laws of Utah 1987
             355          49-2-403, as last amended by Chapter 90, Laws of Utah 1994
             356          49-2-501, as enacted by Chapter 1, Laws of Utah 1987
             357          49-2-702, as enacted by Chapter 1, Laws of Utah 1987
             358          49-3-102, as enacted by Chapter 1, Laws of Utah 1987
             359          49-3-403, as last amended by Chapter 90, Laws of Utah 1994
             360          49-3-501, as enacted by Chapter 1, Laws of Utah 1987
             361          49-3-702, as enacted by Chapter 1, Laws of Utah 1987
             362          49-4-102, as enacted by Chapter 1, Laws of Utah 1987
             363          49-4-403, as enacted by Chapter 1, Laws of Utah 1987
             364          49-4a-102, as enacted by Chapter 260, Laws of Utah 1989
             365          49-4a-403, as enacted by Chapter 260, Laws of Utah 1989
             366          49-5-102, as enacted by Chapter 1, Laws of Utah 1987


             367          49-5-403, as enacted by Chapter 1, Laws of Utah 1987
             368          49-5-602, as last amended by Chapter 285, Laws of Utah 1990
             369          49-6-102, as enacted by Chapter 1, Laws of Utah 1987
             370          49-6-602, as last amended by Chapter 75, Laws of Utah 1990
             371          49-6a-102, as enacted by Chapter 356, Laws of Utah 1997
             372          49-7-102, as enacted by Chapter 1, Laws of Utah 1987
             373          49-7-402, as enacted by Chapter 1, Laws of Utah 1987
             374          49-7-404, as last amended by Chapter 88, Laws of Utah 2000
             375          49-9-302, as enacted by Chapter 132, Laws of Utah 1987
             376          49-9-406, as last amended by Chapter 267, Laws of Utah 1998
             377          49-9-408, as last amended by Chapter 111, Laws of Utah 1987
             378          49-10-303, as enacted by Chapter 151, Laws of Utah 1995
             379      Be it enacted by the Legislature of the state of Utah:
             380          Section 1. Section 31A-22-703 is amended to read:
             381           31A-22-703. Conversion rights on termination of group accident and health
             382      insurance coverage.
             383          (1) Except as provided in Subsections (2) through (5), all policies of accident and health
             384      insurance offered on a group basis under this title or Title 49, Chapter [8] 20, [Group] Public
             385      Employees' Insurance Program Act, shall provide that a person whose insurance under the group
             386      policy has been terminated for any reason, and who has been continuously insured under the group
             387      policy or its predecessor for at least six months immediately prior to termination, is entitled to
             388      choose a converted individual policy of accident and health insurance from the insurer which
             389      conforms to Section 31A-22-708 or an extension of benefits under the group policy as provided
             390      in Section 31A-22-714 .
             391          (2) Subsection (1) does not apply if the policy:
             392          (a) provides catastrophic, aggregate stop loss, or specific stop loss benefits;
             393          (b) provides benefits for specific diseases or for accidental injuries only, or for dental
             394      service; or
             395          (c) is an income replacement policy.
             396          (3) An employee or group member does not have conversion rights under Subsection (1)
             397      if:


             398          (a) termination of the group coverage occurred because of failure of the group member to
             399      pay any required individual contribution;
             400          (b) the individual group member acquires other group coverage covering all preexisting
             401      conditions including maternity, if the coverage existed under the replaced group coverage; or
             402          (c) the person has:
             403          (i) performed an act or practice that constitutes fraud; or
             404          (ii) made an intentional misrepresentation of material fact under the terms of the coverage.
             405          (4) Notwithstanding Subsections (1), (2), and (3), an employee or group member does not
             406      have conversion rights under Subsection (1) if the individual or group member qualifies to
             407      continue coverage under his existing group policy in accordance with the terms of his policy.
             408          (5) (a) Notwithstanding Subsection 31A-22-613 (1), an insurer may reduce benefits under
             409      a converted policy covering any person to the extent the benefits provided or available to that
             410      person under one or more of the sources listed under Subsection (5)(b), together with the benefits
             411      provided by the converted policy, would result in coverage that would result in payment of more
             412      than 100% of the amount of the claim.
             413          (b) The benefits sources referred to under Subsection (5)(a) include:
             414          (i) benefits under another insurance policy; and
             415          (ii) benefits under any arrangement of coverage for individuals in a group, whether on an
             416      insured or an uninsured basis.
             417          (6) (a) The conversion policy shall provide maternity benefits equal to the lesser of the
             418      maternity benefits of the group policy or the conversion policy until termination of pregnancy that
             419      exists on the date of conversion if:
             420          (i) one of the following is pregnant on the date of the conversion:
             421          (A) the insured;
             422          (B) a spouse of the insured; or
             423          (C) a dependent of the insured; and
             424          (ii) the accident and health policy had maternity benefits.
             425          (b) The requirements of this Subsection (6) do not apply to a pregnancy that occurs after
             426      the date of conversion.
             427          Section 2. Section 35A-4-502 is amended to read:
             428           35A-4-502. Administration of Employment Security Act.


             429          (1) (a) The department shall administer this chapter through the division.
             430          (b) The department may make, amend, or rescind any rules and special orders necessary
             431      for the administration of this chapter.
             432          (c) The division may:
             433          (i) employ persons;
             434          (ii) make expenditures;
             435          (iii) require reports;
             436          (iv) make investigations;
             437          (v) make audits of any or all funds provided for under this chapter when necessary; and
             438          (vi) take any other action it considers necessary or suitable to that end.
             439          (d) No later than the first day of October of each year, the department shall submit to the
             440      governor a report covering the administration and operation of this chapter during the preceding
             441      calendar year and shall make any recommendations for amendments to this chapter as the
             442      department considers proper.
             443          (e) (i) The report required under Subsection (1)(d) shall include a balance sheet of the
             444      moneys in the fund in which there shall be provided, if possible, a reserve against liability in future
             445      years to pay benefits in excess of the then current contributions, which reserve shall be set up by
             446      the division in accordance with accepted actuarial principles on the basis of statistics of
             447      employment, business activity, and other relevant factors for the longest possible period.
             448          (ii) Whenever the department believes that a change in contribution or benefit rates will
             449      become necessary to protect the solvency of the fund, it shall promptly inform the governor and
             450      the Legislature and make appropriate recommendations.
             451          (2) (a) The department may make, amend, or rescind rules in accordance with Title 63,
             452      Chapter 46a, Utah Administrative Rulemaking Act.
             453          (b) The director of the division or the director's designee may adopt, amend, or rescind
             454      special orders after appropriate notice and opportunity to be heard. Special orders become
             455      effective ten days after notification or mailing to the last-known address of the individuals or
             456      concerns affected thereby.
             457          (3) The director of the division or the director's designee shall cause to be printed for
             458      distribution to the public:
             459          (a) the text of this chapter;


             460          (b) the department's rules pertaining to this chapter;
             461          (c) the department's annual reports to the governor required by Subsection (1)(e); and
             462          (d) any other material the director of the division or the director's designee considers
             463      relevant and suitable and shall furnish them to any person upon application.
             464          (4) (a) The division may delegate to any person so appointed the power and authority it
             465      considers reasonable and proper for the effective administration of this chapter and may bond any
             466      person handling moneys or signing checks under this authority.
             467          (b) The department may, when permissible under federal and state law, make arrangements
             468      to voluntarily elect coverage under the United States Civil Service Retirement System or a
             469      comparable private retirement plan with respect to past as well as future services of individuals
             470      employed under this chapter who:
             471          (i) were hired prior to October 1, 1980; and
             472          (ii) have been retained by the department without significant interruption in the employees'
             473      services for the department.
             474          (c) An employee of the department who no longer may participate in a federal or other
             475      retirement system as a result of a change in status or appropriation under this chapter may purchase
             476      credit in a retirement system created under Title 49, Chapter [3] 13, Public Employees'
             477      Noncontributory Retirement Act, with the employee's assets from the federal or other retirement
             478      system in which the employee may no longer participate.
             479          (5) There is created an Employment Advisory Council composed of the members listed
             480      in Subsections (5)(a) and (b).
             481          (a) The executive director shall appoint:
             482          (i) not less than five employer representatives chosen from individuals recommended by
             483      employers, employer associations, or employer groups;
             484          (ii) not less than five employee representatives chosen from individuals recommended by
             485      employees, employee associations, or employee groups; and
             486          (iii) five public representatives chosen at large.
             487          (b) The executive director or the executive director's designee shall serve as a nonvoting
             488      member of the council.
             489          (c) The employee representatives shall include both union and nonunion employees who
             490      fairly represent the percentage in the labor force of the state.


             491          (d) Employers and employees shall consider nominating members of groups who
             492      historically may have been excluded from the council, such as women, minorities, and individuals
             493      with disabilities.
             494          (e) (i) Except as required by Subsection (5)(e)(ii), as terms of current council members
             495      expire, the executive director shall appoint each new member or reappointed member to a
             496      four-year term.
             497          (ii) Notwithstanding the requirements of Subsection (5)(e)(i), the executive director shall,
             498      at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             499      council members are staggered so that approximately half of the council is appointed every two
             500      years.
             501          (f) When a vacancy occurs in the membership for any reason, the replacement shall be
             502      appointed for the unexpired term.
             503          (g) The executive director shall terminate the term of any council member who ceases to
             504      be representative as designated by the council member's original appointment.
             505          (h) The council shall advise the department and the Legislature in formulating policies and
             506      discussing problems related to the administration of this chapter including:
             507          (i) reducing and preventing unemployment;
             508          (ii) encouraging the adoption of practical methods of vocational training, retraining, and
             509      vocational guidance;
             510          (iii) monitoring the implementation of the Wagner-Peyser Act;
             511          (iv) promoting the creation and development of job opportunities and the reemployment
             512      of unemployed workers throughout the state in every possible way; and
             513          (v) appraising the industrial potential of the state.
             514          (i) The council shall assure impartiality and freedom from political influence in the solution
             515      of the problems listed in Subsection (5)(h).
             516          (j) The executive director or the executive director's designee shall serve as chair of the
             517      council and call the necessary meetings.
             518          (k) (i) A member shall receive no compensation or benefits for the member's services, but
             519      may receive per diem and expenses incurred in the performance of the member's official duties
             520      at the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             521          (ii) A member may decline to receive per diem and expenses for the member's service.


             522          (l) The department shall provide staff support to the council.
             523          (6) In the discharge of the duties imposed by this chapter, the division director or the
             524      director's designee as designated by department rule, may in connection with a disputed matter or
             525      the administration of this chapter:
             526          (a) administer oaths and affirmations;
             527          (b) take depositions;
             528          (c) certify to official acts; and
             529          (d) issue subpoenas to compel the attendance of witnesses and the production of books,
             530      papers, correspondence, memoranda, and other records necessary as evidence.
             531          (7) (a) In case of contumacy by or refusal to obey a subpoena issued to any person, any
             532      court of this state within the jurisdiction of which the inquiry is carried on or within the jurisdiction
             533      of which the person guilty of contumacy or refusal to obey is found or resides or transacts business,
             534      upon application by the director of the division or the director's designee shall have jurisdiction
             535      to issue to that person an order requiring the person to appear before the director or the director's
             536      designee to produce evidence, if so ordered, or give testimony regarding the matter under
             537      investigation or in question. Any failure to obey that order of the court may be punished by the
             538      court as contempt.
             539          (b) Any person who, without just cause, fails or refuses to attend and testify or to answer
             540      any lawful inquiry or to produce books, papers, correspondence, memoranda, and other records,
             541      if it is in that person's power to do so, in obedience to a subpoena of the director or the director's
             542      designee shall be punished as provided in Subsection 35A-1-301 (1)(b). Each day the violation
             543      continues is a separate offense.
             544          (c) In the event a witness asserts a privilege against self-incrimination, testimony and
             545      evidence from the witness may be compelled pursuant to Title 77, Chapter 22b, Grants of
             546      Immunity.
             547          (8) (a) In the administration of this chapter, the division shall cooperate with the United
             548      States Department of Labor to the fullest extent consistent with the provisions of this chapter and
             549      shall take action, through the adoption of appropriate rules by the department and administrative
             550      methods and standards, as necessary to secure to this state and its citizens all advantages available
             551      under the provisions of:
             552          (i) the Social Security Act that relate to unemployment compensation;


             553          (ii) the Federal Unemployment Tax Act; and
             554          (iii) the Federal-State Extended Unemployment Compensation Act of 1970.
             555          (b) In the administration of Section 35A-4-402 , which is enacted to conform with the
             556      requirements of the Federal-State Extended Unemployment Compensation Act of 1970, 26 U.S.C.
             557      3304, the division shall take any action necessary to ensure that the section is interpreted and
             558      applied to meet the requirements of the federal act, as interpreted by the United States Department
             559      of Labor and to secure to this state the full reimbursement of the federal share of extended and
             560      regular benefits paid under this chapter that are reimbursable under the federal act.
             561          Section 3. Section 49-11-101 , which is renumbered from Section 49-1-101 is renumbered
             562      and amended to read:
             563     
TITLE 49. UTAH STATE RETIREMENT AND INSURANCE BENEFIT ACT

             564     
CHAPTER 11. UTAH STATE RETIREMENT SYSTEMS ADMINISTRATION

             565     
Part 1. General Provisions

             566           [49-1-101].     49-11-101. Title.
             567          (1) This title is known as the "Utah State Retirement and Insurance Benefit Act."
             568          (2) This chapter is known as the "Utah State Retirement Systems Administration."
             569          Section 4. Section 49-11-102 , which is renumbered from Section 49-1-103 is renumbered
             570      and amended to read:
             571           [49-1-103].     49-11-102. Definitions.
             572          As used in this title:
             573          [(1) "Accumulated contributions" means the sum of the contributions made by or on behalf
             574      of a member and standing to the credit of the member's individual account, including regular
             575      interest where allowed by law.]
             576          (1) (a) "Active member" means a member who is employed or who has been employed by
             577      a participating employer within the previous 120 days.
             578          (b) "Active member" does not include retirees.
             579          (2) "Actuarial equivalent" means a benefit of equal value when computed upon the basis
             580      of mortality tables [adopted by the board] as recommended by the actuary and adopted by the
             581      executive director, including regular interest.
             582          (3) "Actuarial interest rate" means the interest rate as recommended by the actuary and
             583      adopted by the board [upon the recommendation of the actuary and] upon which the funding of


             584      [retirement] system costs and benefits are computed.
             585          [(4) "Administrator" means the executive director of the board.]
             586          [(5)] (4) "Agency" means:
             587          (a) a department, division, agency, office, authority, commission, board, institution, or
             588      hospital of the state;
             589          (b) a county, municipality, school district, or special district;
             590          (c) a state college or university; or
             591          (d) any other [individual employing unit that participates in a system administered by the
             592      board] participating employer.
             593          [(6)] (5) "Allowance" means the pension plus the annuity, including any cost of living or
             594      other authorized adjustments to the pension and annuity.
             595          (6) "Alternate payee" means a member's former spouse or family member eligible to
             596      receive payments under a Domestic Relations Order in compliance with Section 49-11-612 .
             597          (7) "Annuity" means [annual] monthly payments [for life] derived from member
             598      contributions [made by the employee].
             599          (8) "Appointive officer" means an employee appointed to a position for a definite and
             600      fixed term of office by official and duly recorded action of a participating employer, and who earns
             601      during the first full month of the term of office $500 or more, indexed as of January 1, 1989, as
             602      provided in Section 49-12-407 .
             603          [(8)] (9) "Beneficiary" means any person entitled to receive a [retirement allowance or
             604      other benefit provided by] payment under this title through a relationship with or designated by a
             605      member, participant, covered individual, or alternate payee of a defined contribution plan.
             606          [(9)] (10) "Board" [or "retirement board"] means the Utah State Retirement Board
             607      established under [this title] Section 49-11-202 .
             608          (11) "Board member" means a person serving on the Utah State Retirement Board as
             609      established under Section 49-11-202 .
             610          [(10)] (12) "Contributions" means the [contributions] total amount paid by the
             611      participating employer and the member[, if any,] into a [retirement fund] system or to the Utah
             612      Governors' and Legislators' Retirement Plan under Chapter 19, Utah Governor's and Legislators'
             613      Retirement Act.
             614          (13) "Council member" means a person serving on the Membership Council established


             615      under Section 49-11-202 .
             616          (14) "Covered Individual" means any individual covered under Chapter 20, Public
             617      Employees Benefit and Insurance Program Act.
             618          [(11)] (15) "Current service" means covered service [rendered after the effective date of
             619      each system] as defined in Chapters 12, 13, 14, 15, 16, 17, 18, and 19.
             620          [(12) "Department" means any department, office, board, commission, instrumentality, or
             621      other agency of the state.]
             622          [(13) "Dependent beneficiary" means a spouse, child, or children under 21 years of age,
             623      a child or children with a physical or mental disability, regardless of age, or a parent, or person,
             624      regardless of age or relationship, who is or are financially dependent upon the member. The
             625      dependency of a person other than a spouse or child shall be proved by written verified documents
             626      acceptable to the board or by a copy of the member's state income tax return for the last reportable
             627      year listing the person as a dependent. All documents are subject to review and approval of the
             628      administrator.]
             629          (16) "Defined contribution" or "defined contribution plan" means any defined contribution
             630      plan authorized under the Internal Revenue Code and administered by the board.
             631          (17) "Educational institution" means a political subdivision or instrumentality of the state
             632      or a combination thereof primarily engaged in educational activities or the administration or
             633      servicing of educational activities, including:
             634          (a) the State Board of Education and its instrumentalities;
             635          (b) any institution of higher education and its branches;
             636          (c) any school district and its instrumentalities;
             637          (d) any vocational and technical school; and
             638          (e) any entity arising out of a consolidation agreement between entities described under
             639      this Subsection (16).
             640          [(14)] (18) (a) "Employer" [or "employing unit"] means any department, educational
             641      institution, or political subdivision[, organization, or agency financed in whole or in part by public
             642      funds for which any employee or member performs services subject to this title] of the state
             643      eligible to participate in a government-sponsored retirement system under federal law.
             644          (b) "Employer” may also include an agency financed in whole or in part by public funds
             645      as allowed under Chapter 12 or 13.


             646          (19) "Final average monthly salary" means the amount computed by dividing the
             647      compensation received during the final average salary period under each system by the number of
             648      months in the final average salary period.
             649          (20) "Fund” means any fund created under this title for the purpose of paying benefits or
             650      costs of administering a system, plan, or program.
             651          [(15)] (21) (a) "Inactive member" means a member who has [received no compensation for
             652      a period longer than four months] not been employed by a participating employer for a period of
             653      at least 120 days.
             654          (b) "Inactive member" does not include retirees.
             655          [(16) (a) "Member" means any person included in the membership of any retirement
             656      system administered by the board. (b) A]
             657          (22) (a) "Member" means a person [is considered to be a member if he has], except a
             658      retiree, with contributions on deposit with [the retirement] a system, the Utah Governors' and
             659      Legislators' Retirement Plan under Chapter 19, or with [the] a terminated system.
             660          (b) "Member" also includes leased employees within the meaning of Section 414(n)(2) of
             661      the [federal] Internal Revenue Code, if the employees have contributions on deposit with the
             662      office. If leased employees constitute less than 20% of the participating employer's work force that
             663      is not highly compensated within the meaning of Section 414(n)(5)(c)(ii), Internal Revenue Code,
             664      "member" does not include leased employees covered by a plan described in Section 414(n)(5) of
             665      the federal Internal Revenue Code.
             666          (23) "Member contributions" means the sum of the contributions paid to a system or the
             667      Utah Governors' and Legislators' Retirement Plan, including refund interest if allowed by a system,
             668      and which are made by:
             669          (a) the member; and
             670          (b) the participating employer on the member's behalf under Section 414(h) of the Internal
             671      Revenue Code.
             672          (24) "Nonelective contribution" means an amount contributed by a participating employer
             673      into a participant's defined contribution account.
             674          [(17)] (25) "Office" [or "retirement office"] means the Utah State Retirement Office.
             675          (26) "Participant" means an individual with voluntary deferrals or nonelective
             676      contributions on deposit with the defined contribution plans administered under this title.


             677          [(18)] (27) "Participating employer" [or "participating employing unit" means any
             678      employer or employing unit participating in the system whose employees are members of the
             679      system] means a participating employer, as defined by Chapters 12, 13, 14, 15, 16, 17, and 18, or
             680      an agency financed in whole or in part by public funds which is participating in a system or plan
             681      as of January 1, 2002.
             682          [(19) "Payroll" means a register, warrant, or any other document upon which all persons
             683      receiving salary payments are listed.]
             684          [(20)] (28) "Pension" means [annual] monthly payments [for life] derived from
             685      participating employer contributions [made by employers].
             686          (29) "Plan" means the Utah Governors' and Legislators' Retirement Plan created by
             687      Chapter 19 or the defined contribution plans created under Section 49-11-801 .
             688          [(21)] (30) (a) "Political subdivision" means any [political subdivision of the state] local
             689      government entity, including cities, towns, counties, and school districts, but only if the
             690      subdivision is a juristic entity that is legally separate and distinct from the state and only if its
             691      employees are not by virtue of their relationship to the entity[,] or employees of the state [or one
             692      of its departments]. [(a) The term]
             693          (b) "Political subdivision" includes special districts or authorities created by the
             694      Legislature or by local governments, including [mosquito abatement districts, sewer or water
             695      districts, water associations and companies, libraries, and any entity arising out of a consolidation
             696      agreement between political subdivisions. (b) The term includes] the [retirement] office.
             697          (c) [The term] "Political subdivision" does not include a project entity created under Title
             698      11, Chapter 13, Interlocal Cooperation Act.
             699          [(22) "Prior service" means service rendered prior to the effective date of each system.]
             700          [(23) "Refund" means a return of contributions to a terminating member.]
             701          (31) "Program" means the Public Employees' Insurance Program created under Chapter
             702      20, Public Employees' Insurance Program Act, or the Public Employees' Long-Term Disability
             703      program created under Chapter 21, Public Employees' Long-Term Disability Act.
             704          (32) "Public funds" means those funds derived, either directly or indirectly, from public
             705      taxes or public revenue, dues or contributions paid or donated by the membership of the
             706      organization, used to finance an activity whose objective is to improve, on a nonprofit basis, the
             707      governmental, educational, and social programs and systems of the state or its political


             708      subdivisions.
             709          [(24) "Regular] (33) "Refund interest" means [interest compounded annually at a rate] the
             710      amount accrued on member contributions at a rate adopted by the board [in accordance with this
             711      title].
             712          [(25)] (34) "[Retirant] Retiree" means [a retired member] an individual who [is receiving
             713      retirement benefits] has qualified for an allowance under this title.
             714          [(26)] (35) "Retirement" means [withdrawal from active service with a retirement
             715      allowance granted under this title] the status of an individual who has become eligible, applies for,
             716      and is entitled to receive an allowance under this title.
             717          (36) "Retirement date" means the date selected by the member on which the member's
             718      retirement becomes effective with the office.
             719          [(27)] (37) "Service credit" [or "covered service"] means [service used in the computation
             720      of benefits.]:
             721          (a) the period during which an employee is employed and compensated by a participating
             722      employer and meets the eligibility requirements for membership in a system or the Utah
             723      Governors' and Legislators' Retirement Plan, provided that any required contributions are paid to
             724      the office; and
             725          (b) periods of time otherwise purchasable under this title.
             726          (38) "System" means the individual retirement systems created by Chapters 12, 13, 14,
             727      15, 16, 17, and 18.
             728          (39) "Voluntary deferrals" means an amount contributed by a participant into that
             729      participant's defined contribution account.
             730          Section 5. Section 49-11-103 , which is renumbered from Section 49-1-102 is renumbered
             731      and amended to read:
             732           [49-1-102].     49-11-103. Purpose -- Liberal construction.
             733          (1) The purpose of this [chapter] title is to establish [a central administrative office and
             734      a board to administer the various]:
             735          (a) retirement systems [established by the Legislature.] and the Utah Governors' and
             736      Legislators' Retirement Plan for members which provide:
             737          (i) a uniform system of membership;
             738          (ii) retirement requirements;


             739          (iii) benefits for members;
             740          (iv) funding on an actuarially sound basis;
             741          (v) contributions; and
             742          (vi) economy and efficiency in public service; and
             743          (b) a central administrative office and a board to administer the various systems, plans, and
             744      programs established by the Legislature or the board.
             745          (2) This title shall be liberally construed to provide maximum benefits and protections
             746      consistent with sound fiduciary and actuarial principals.
             747          Section 6. Section 49-11-201 , which is renumbered from Section 49-1-201 is renumbered
             748      and amended to read:
             749     
Part 2. Retirement Office and Board

             750           [49-1-201].     49-11-201. Establishment of retirement office -- An independent state
             751      agency -- Office exemption.
             752          (1) (a) There is established the Utah State Retirement Office.
             753          (b) The office shall administer the [state retirement] systems, plans, and programs and
             754      perform all other functions assigned to it [by law] under this title.
             755          (2) (a) The office is an independent state agency.
             756          (b) It is subject to legislative and executive department budgetary [examination] review
             757      and comment.
             758          (3) The office [shall be housed in Salt Lake City, but branches of the office may be
             759      established in other areas of the state] may establish branch offices upon approval of the board.
             760          (4) [(a)] The board [is] and office are exempt from those acts which are applicable to state
             761      and other governmental entities under this code.
             762          [(b) Notwithstanding Subsection (4)(a), the board shall:]
             763          [(i) adopt, where not in conflict with its trust and fiduciary responsibilities or other law,
             764      rules governing the operation of the retirement office that are substantially similar to those
             765      governing other public agencies; and]
             766          [(ii) report the rules and any amendments to the rules adopted under Subsection (4)(b)(i)
             767      to the Legislative Quasi-Governmental Entities Committee on an annual basis or as otherwise
             768      requested by the Legislative Quasi-Governmental Entities Committee.]
             769          Section 7. Section 49-11-202 , which is renumbered from Section 49-1-202 is renumbered


             770      and amended to read:
             771           [49-1-202].     49-11-202. Establishment of Utah State Retirement Board -- Quorum
             772      -- Terms -- Officers -- Expenses and per diem -- Membership council established.
             773          (1) There is established the Utah State Retirement Board composed of seven board
             774      members determined as follows:
             775          (a) Four board members, with experience in investments or banking, shall be appointed
             776      by the governor from the general public.
             777          (b) One board member shall be a school employee appointed by the governor from at least
             778      three nominations submitted by the governing board of [a] the school employees' association that
             779      is representative of a majority of the school employees who are members of [the school employees'
             780      retirement] a system administered by the board.
             781          (c) One board member shall be a public employee appointed by the governor from at least
             782      three nominations submitted by the governing board of [a] the public employee association that
             783      is representative of a majority of the public employees who are members of [the public employees'
             784      retirement] a system administered by the board.
             785          (d) One board member shall be the state treasurer[, who shall serve as an ex officio
             786      member with full voting privileges].
             787          (2) Four board members constitute a quorum for the [purpose of doing all] transaction of
             788      business.
             789          (3) (a) All appointments to the board shall be made on a nonpartisan basis, with the advice
             790      and consent of the Senate.
             791          (b) [Members] Board members shall serve until their successors are appointed and take
             792      the constitutional oath of office.
             793          (c) When a vacancy occurs [in the membership] on the board for any reason, the
             794      replacement shall be appointed for the unexpired term.
             795          [(d) Members appointed to the board between sessions of the Legislature shall serve with
             796      full authority until acted upon by the Senate in session.]
             797          (4) (a) Except as required by Subsection (4)(b), all appointed board members shall serve
             798      for four-year terms.
             799          (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the time
             800      of appointment or reappointment, adjust the length of terms to ensure that the terms of board


             801      members are staggered so that approximately half of the board is appointed every two years.
             802          (c) [Public employees or educators] A board member who is appointed as a school
             803      employee or as a public employee who [retire] retires or [otherwise terminate their employment]
             804      who is no longer employed with a [covered unit] participating employer shall immediately resign
             805      from the board.
             806          (5) (a) Each year the board shall elect a president and [vice-president] vice president from
             807      its membership. [Each member shall be reimbursed for expenses incurred in service to the board.]
             808          (b) Each board member shall receive a per diem plus [travel] expenses for attending
             809      regularly constituted meetings and conferences as provided by [law for attending board meetings]
             810      board action.
             811          (6) (a) [The board shall establish] There is established a Membership Council to [advise
             812      and counsel with the board and the director on policies affecting members of the various systems
             813      administered by the retirement office] perform the duties under Subsection (10).
             814          (b) The board may pay the travel expenses of council members who attend council
             815      meetings.
             816          (7) [Beginning July 1, 1991, the] The Membership Council shall be composed of 13
             817      council members selected as follows:
             818          (a) Three council members shall be school employees selected by the governing board of
             819      an association representative of a majority of school employees who are members of [the Public
             820      Employees' Retirement System or the Public Employees' Noncontributory Retirement System] a
             821      system administered by the board.
             822          (b) One council member shall be a classified school employee selected by the governing
             823      board of [an] the association representative of a majority of classified school employees who are
             824      members of [the Public Employees' Retirement System or the Public Employees' Noncontributory
             825      Retirement System] a system administered by the board.
             826          (c) Two council members shall be public employees selected by the governing board of
             827      [an] the association representative of a majority of the public employees who are members of [the
             828      Public Employees' Retirement System or the Public Employees' Noncontributory Retirement
             829      System] a system administered by the board.
             830          (d) One council member shall be a [city or town] municipal officer or employee selected
             831      by the governing board of [an] the association representative of a majority of the [cities and towns]


             832      municipalities who [are members of the Public Employees' Retirement System or the Public
             833      Employees' Noncontributory Retirement System] participate in a system administered by the board.
             834          (e) One council member shall be a county officer or employee selected by the governing
             835      board of [an] the association representative of a majority of counties who [are members of the
             836      Public Employees' Retirement System or the Public Employees' Noncontributory Retirement
             837      System] participate in a system administered by the board.
             838          (f) One council member shall be a representative of members of the Judges'
             839      Noncontributory Retirement System selected by the Judicial Council.
             840          (g) One council member shall be a representative of members of the Public Safety
             841      Retirement [System] Systems selected by the governing board of [an] the association
             842      representative of the majority of peace officers who are members of the Public Safety Retirement
             843      [System] Systems.
             844          (h) One council member shall be a representative of members of the Firefighters'
             845      Retirement System selected by the governing board of [an] the association representative of the
             846      majority of paid professional firefighters who are members of the Firefighters' Retirement System.
             847          (i) One council member shall be a [retired member] retiree selected by the Utah
             848      Association of Retired Public Employees.
             849          (j) One council member shall be a [retired member] retiree selected by the Utah Retired
             850      School Employees' Association.
             851          (8) (a) [Members shall be appointed as provided for in Subsection (7)] Each entity granted
             852      authority to select council members under Subsection (7) may also revoke the selection at any
             853      time.
             854          (b) [Except as required by Subsection (c), as terms of current council members expire, the
             855      board shall appoint each new member or reappointed member to a four-year term] Each term on
             856      the council shall be for a period of four years, subject to Subsection (8)(a).
             857          [(c) Notwithstanding the requirements of Subsection (b), the board shall, at the time of
             858      appointment or reappointment, adjust the length of terms to ensure that the terms of council
             859      members are staggered so that approximately half of the council is appointed every two years.]
             860          [(d)] (c) Each term begins on July 1 and expires on June 30 [in the year of expiration].
             861          [(e)] (d) When a vacancy occurs [in] on the [membership] council for any reason, the
             862      replacement shall be [appointed] selected for the remainder of the unexpired term.


             863          (9) The council shall annually designate one council member as chair [annually].
             864          (10) The council shall:
             865          (a) recommend to the board and to the Legislature benefits and policies for members of
             866      any system or plan administered by the board [to the board and to the Legislature];
             867          (b) recommend procedures and practices to improve the administration of the [system]
             868      systems and plans and the public employee relations responsibilities of the board and office;
             869          (c) examine the record of all decisions affecting retirement benefits made by a hearing
             870      officer under Section 49-11-613 ;
             871          (d) submit nominations to the board for the position of executive director if that position
             872      is vacant; [and]
             873          (e) advise and counsel with the board and the director on policies affecting members of
             874      the various systems administered by the office; and
             875          [(e) act upon all] (f) perform other duties assigned to it by the board.
             876          Section 8. Section 49-11-203 , which is renumbered from Section 49-1-203 is renumbered
             877      and amended to read:
             878           [49-1-203].     49-11-203. Powers and duties of board.
             879          (1) The board shall:
             880          (a) appoint an executive director to administer the [retirement] office;
             881          (b) receive and act upon reports covering the operations of the systems, plans, programs,
             882      and funds administered by the [retirement] office;
             883          (c) ensure that the systems, plans, programs, and funds are administered according to law;
             884          (d) [sit as a board of appeal on any appeal filed by a member of a system, plan, or program
             885      or by a covered employer] review any final order of a hearing officer and approve or modify the
             886      order at the board's discretion in accordance with Section 49-11-613 ;
             887          (e) examine and approve an annual operating budget for the [retirement] office;
             888          (f) serve as investment trustees of the [retirement fund] Utah State Retirement Investment
             889      Fund as provided under this title;
             890          (g) maintain, in conjunction with participating employers and members, the systems, plans,
             891      and programs on an actuarially sound [or approved] basis[, subject to the responsibility of the
             892      Legislature to adjust benefits and contribution rates when recommended by the board];
             893          (h) report annually to the governor, the Legislature, and each participating employer the


             894      contribution rates, premium rates, and any adjustments necessary to maintain the systems, plans,
             895      and programs on a financially and actuarially sound basis;
             896          [(h)] (i) receive and act upon recommendations of the executive director;
             897          [(i)] (j) recommend to the governor and Legislature, through the executive director, any
             898      necessary or desirable changes [in the statutes governing the systems, plans, and programs
             899      administered by the retirement office] to this title;
             900          [(j)] (k) develop broad policy for the long-term operation of the various [retirement]
             901      systems, plans, and programs [and is granted] under broad discretion and power to perform [its]
             902      the board's policymaking functions, including the specific authority to interpret and define any
             903      provision or term under this title when the board or office provides written documentation which
             904      demonstrates that the interpretation or definition promotes uniformity in the administration of the
             905      systems or maintains the actuarial soundness of the systems, plans, or programs;
             906          (l) adopt interest rates, premium rates, and annual contribution rates after reviewing
             907      actuarial recommendations;
             908          [(k)] (m) establish the compensation of the executive director and adopt compensation
             909      plans and policies based on market surveys for [fiduciary and administrative] positions in the
             910      office;
             911          [(l) regulate the duties of employing units and other public authorities which are imposed
             912      upon them by this title and specify the time, place, and manner in which contributions shall be
             913      withheld and paid, and obtain any reports necessary for the administration of this title;]
             914          [(m) adopt rules consistent with this title for the management of the systems, plans, and
             915      programs in order to carry out the purposes of this title, and perform all other acts necessary for
             916      the administration of the retirement systems, plans, and programs;]
             917          [(n) comply with the procedures and requirements of Title 63, Chapter 46b, Administrative
             918      Procedures Act, in its adjudicative proceedings;]
             919          [(o) otherwise exercise the powers and perform the duties conferred on it by this title; and]
             920          (n) take action consistent with this title for the administration of the systems, plans, and
             921      programs in order to carry out the purposes of this title;
             922          [(p)] (o) provide for audits of the [retirement system] systems, plans, programs, and funds;.
             923          (p) take actions not in conflict with the board's trust and fiduciary responsibilities or other
             924      law, with respect to the governance of the office which are substantially similar to those governing


             925      other public agencies; and
             926          (q) otherwise exercise the powers and perform the duties conferred on the board by this
             927      title.
             928          (2) The board may:
             929          (a) subpoena witnesses and compel their attendance to testify before it, for which purpose
             930      each board member [and the secretary of the board] may administer oaths and affirmations to
             931      witnesses and others transacting business of the [retirement system] office;
             932          (b) establish [membership] councils to [advise] recommend to the board and the executive
             933      director [on] policies affecting members of any [system] systems, plans, and programs
             934      administered by the board [and may];
             935          (c) pay the travel expenses of council members who attend council meetings; and
             936          [(c)] (d) sue and be sued in its own name.
             937          Section 9. Section 49-11-204 , which is renumbered from Section 49-1-204 is renumbered
             938      and amended to read:
             939           [49-1-204].     49-11-204. Powers and duties of executive director.
             940          The executive director shall:
             941          (1) act as the executive officer of the board and the [retirement] office;
             942          (2) administer the various [acts,] systems, plans, programs, and functions assigned to the
             943      board or office;
             944          (3) subject to board review, develop and [promulgate, with the approval of the board,
             945      administrative rules which are within the authority granted by this title, in the administration of
             946      the various retirement systems, plans, and programs] implement internal policies and procedures
             947      which administer and govern the day-to-day operations of the systems, plans, and programs;
             948          (4) transmit orders of a hearing officer made under Section 49-11-613 to the board [any
             949      appeals received from members of any retirement system, plan, or program under this title, or any
             950      covered employer, arising out of a ruling of the director, and to arrange a hearing before the board
             951      for any affected party];
             952          (5) [keep the board, the governor, the Legislature, and its agencies, and other affected
             953      officers, associations, and groups informed on the operations of the retirement office] provide
             954      information concerning the operation of the office to the board, the governor, the Legislature,
             955      participating employers, and employer and employee associations, unless otherwise restricted


             956      under Section 49-11-618 ;
             957          (6) [recommend to the board] inform the Legislature of any recommendations from the
             958      board regarding any necessary or desirable changes [in the retirement statutes] to this title;
             959          (7) [serve as a consultant] consult with the Legislature on all [retirement] legislation under
             960      this title;
             961          (8) (a) recommend to the board an annual administrative budget covering the operations
             962      of the [retirement] office and, upon approval, submit the budget along with the actuarial status of
             963      the [fund] funds to the governor and the Legislature for [examination] review and comment; [after
             964      which the director shall] and
             965          (b) direct and control the subsequent expenditures of the budget;
             966          (9) employ, within the limitations of the budget, [staff] personnel [and consultants] to
             967      administer the [retirement] systems, plans, programs, and funds assigned to the [retirement] office,
             968      including consultants, actuaries, attorneys, medical examiners, investment counselors, and
             969      accountants[, and clerical and other assistants] to accomplish the [purpose] purposes of [the
             970      retirement office] this title;
             971          [(10) develop, with approval of the board, common administrative procedures and rules
             972      for each of the retirement systems, plans, and programs administered by the retirement office;]
             973          [(11)] (10) establish[, with approval of the board,] independent financial records for each
             974      of the [retirement] systems, plans, and programs or combine all financial records using acceptable
             975      principles of [fund] accounting to identify the assets and vested interests of each [retirement]
             976      system, plan, or program;
             977          [(12) credit contributions of employers and other accounts with interest at the rate adopted
             978      in accordance with Subsection (13);]
             979          [(13) from time to time, upon the recommendation of the consulting actuary, adopt interest
             980      rates, mortality tables, and other tables necessary for the administration of the systems, plans, and
             981      programs;]
             982          [(14) keep in convenient form all records and accounts necessary for the administration
             983      of the systems, plans, and programs and data for investigation of its experience and its actuarial
             984      valuation;]
             985          (11) maintain individual records necessary to provide benefits under this title;
             986          (12) keep in convenient form all records, accounts, and data necessary for the


             987      administration and actuarial valuation of the systems, plans, and programs;
             988          (13) adopt fees, charges, and upon the recommendation of the actuary, interest rates and
             989      tables for the administration of the systems, plans, and programs;
             990          [(15)] (14) consolidate into one [warrant] payment all monthly [payments of annuities,
             991      pensions, and subsistence payments made to each retired member as long as] allowances and any
             992      defined contribution distributions if the integrity of the various funds is maintained through
             993      appropriate accounting records [which shall be established];
             994          [(16) comply with the procedures and requirements of Title 63, Chapter 46b,
             995      Administrative Procedures Act, in any adjudicative proceedings conducted by the director; and
             996      (17) from time to time, but]
             997          (15) at least biennially[, and in cooperation with the Office of Legislative Research and
             998      General Counsel,]:
             999          (a) make an actuarial investigation into the mortality, service, and other experience of the
             1000      members [and], participants, beneficiaries, and covered individuals of the systems, plans, and
             1001      programs[,];
             1002          (b) actuarially value the assets and liabilities of the administered funds and accounts[,];
             1003      and
             1004          (c) determine the rate of interest being earned by the funds[, and, based upon all these
             1005      determinations and factors, including items requested by the Office of Legislative Research and
             1006      General Counsel, shall confer with that office and];
             1007          (16) report to the board findings [of the investigation] under Subsection (15), with
             1008      recommendations, [to the Legislature along with any] including proposed changes in the rates of
             1009      contribution or benefits that are necessary to [the security] maintain the actuarial soundness of the
             1010      [system, plan, or program. Costs of the investigation, as well as all actuarial consulting and other
             1011      services, shall be paid from the interest earnings of the fund.] systems, plans, or programs;
             1012          (17) regulate participating employers by:
             1013          (a) educating them on their duties imposed by this title;
             1014          (b) specifying the time, place, and manner in which contributions shall be withheld and
             1015      paid; and
             1016          (c) requiring any reports necessary for the administration of this title; and
             1017          (18) otherwise exercise the powers and perform the duties conferred on the executive


             1018      director by this title.
             1019          Section 10. Section 49-11-301 , which is renumbered from Section 49-1-301 is renumbered
             1020      and amended to read:
             1021     
Part 3. Investment Fund

             1022           [49-1-301].     49-11-301. Creation -- Board to act as trustees of the fund --
             1023      Commingling and pooling of funds -- Interest earnings.
             1024          (1) There is created [for the purpose of enlarging the investment base and simplifying
             1025      investment procedures and functions] a common trust fund known as the "Utah State Retirement
             1026      Investment Fund[.]" for the purpose of enlarging the investment base and simplifying investment
             1027      procedures and functions.
             1028          (2) (a) The board shall act as trustees of the [fund,] Utah State Retirement Investment Fund
             1029      and, through [its] the executive [officer] director, may commingle and pool the funds and
             1030      investments of any [retirement] system, plan, or program into the Utah State Retirement
             1031      Investment Fund, [as long as] if the principal amounts of the participating funds do not lose their
             1032      individual identity and are maintained as separate trust funds on the books of the [retirement]
             1033      office.
             1034          (b) (i) In combining the investments of any fund, each of the participating funds shall be
             1035      credited initially with its share of the total assets transferred to the Utah State Retirement
             1036      Investment Fund[, the calculation being made on the basis of the fair market value of the various
             1037      investments at the time the investments are credited to the Utah State Retirement Investment
             1038      Fund].
             1039          (ii) The value of the transferred assets shall be calculated in accordance with generally
             1040      accepted accounting principles.
             1041          (c) Subsequent transfers of additional capital from participating funds shall be credited
             1042      similarly to its respective trust account.
             1043          (d) [Funds may be withdrawn or transferred out of the Utah State Retirement Investment
             1044      Fund and credited back to a participating fund, but at no time may the] The income or principal
             1045      or equity credit belonging to one participating fund may not be transferred to another, except for
             1046      the purpose of:
             1047          (i) actuarially recommended transfers in order to adjust employer contribution rates for an
             1048      employer that participates in both contributory and noncontributory systems[.]; or


             1049          (ii) transfers which reflect the value of service credit accrued in different systems during
             1050      a member's career.
             1051          (3) The assets of the [participating] funds are for the exclusive benefit of the members,
             1052      participants, and covered individuals and may not be diverted or appropriated for any purpose
             1053      other than that permitted by this [chapter or the chapters covering the individual participating
             1054      funds] title.
             1055          (4) (a) Interest and other earnings shall be credited to each participating fund on a pro rata
             1056      equity position basis [monthly, or otherwise as directed by the board].
             1057          (b) (i) A portion of the interest and other earnings of the common trust fund may be
             1058      credited to a reserve account within the Utah State Retirement Investment Fund to meet adverse
             1059      experiences arising from investments or other contingencies.
             1060          (ii) Each participating fund shall retain its proportionate equity in the reserve account.
             1061          Section 11. Section 49-11-302 , which is renumbered from Section 49-1-302 is renumbered
             1062      and amended to read:
             1063           [49-1-302].     49-11-302. Board duties with respect to fund.
             1064          (1) The board [shall]:
             1065          (a) shall review and establish the asset allocation of [all funds assigned to the board or
             1066      retirement office] the Utah State Retirement Investment Fund for investment, and [through its]
             1067      with the executive [officer] director, shall determine the method of investing the funds [to ensure
             1068      the greatest return commensurate with sound financing adequately safeguarded. The board,];
             1069          (b) through [its] the executive [officer, may] director:
             1070          (i) shall invest [and reinvest] the money in the [retirement fund or funds and] Utah State
             1071      Retirement Investment Fund; and
             1072          (ii) may provide for the holding, purchasing, selling, assigning, transferring, and disposing
             1073      of any of the securities and investments in which any of the money of the [fund] Utah
             1074      State Retirement Investment Fund is invested. [The board shall appoint a custodian for the funds
             1075      and securities under its control.]
             1076          (2) Fees for all services shall be paid from the interest earnings of the [investment fund]
             1077      Utah State Retirement Investment Fund.
             1078          [(2)] (3) [The board may hold title] Title to real estate or any other fund investment may
             1079      be:


             1080          (a) held in the name of the Utah State Retirement Investment Fund; or [may by rule
             1081      determine under what name or names it holds title to real estate or any other fund investment.]
             1082          (b) held in another name or names as determined by the board.
             1083          Section 12. Section 49-11-303 , which is renumbered from Section 49-1-303 is renumbered
             1084      and amended to read:
             1085           [49-1-303].     49-11-303. Fund investment standard -- Prudent investor rule.
             1086          The [fund] Utah State Retirement Investment Fund shall be invested in accordance with
             1087      the prudent [man] investor rule [established] under Section 75-7-302 .
             1088          Section 13. Section 49-11-304 , which is renumbered from Section 49-1-304 is renumbered
             1089      and amended to read:
             1090           [49-1-304].     49-11-304. Administrative costs -- Payable from fund.
             1091          General administrative costs of operating the [retirement] office shall be assessed to the
             1092      [retirement] systems, plans, programs, and funds [administered upon the basis of cost and service
             1093      performed. Special costs, such as actuarial studies and service, investment counsel, legal fees, and
             1094      medical examiner charges, which are or can be directly attributable to a system, plan, program, or
             1095      fund shall be paid directly from the respective fund involved. Since the administrative funds are
             1096      derived from the systems, plans, and programs administered by the retirement office, rather than
             1097      an administrative appropriation from the General Fund, any balance in the administrative fund at
             1098      the end of a fiscal or biennial period shall remain in the fund, but shall be taken into consideration
             1099      in preparing a subsequent budget] on a pro rata basis and shall be paid from earnings of the Utah
             1100      State Retirement Investment Fund.
             1101          Section 14. Section 49-11-305 , which is renumbered from Section 49-1-305 is renumbered
             1102      and amended to read:
             1103           [49-1-305].     49-11-305. Self-insurance option -- Purchase of liability insurance.
             1104          (1) The [retirement] office may self insure and may purchase commercial insurance[, self
             1105      insure, or purchase excess commercial insurance in excess of] in any amount.
             1106          (2) The office may also purchase excess commercial insurance above the limits provided
             1107      by the Governmental Immunity Act against any:
             1108          (a) risk created or recognized by the Governmental Immunity Act; or [any]
             1109          (b) other action for which the board, office, or any of its employees, may be held liable.
             1110          Section 15. Section 49-11-401 , which is renumbered from Section 49-1-401 is renumbered


             1111      and amended to read:
             1112     
Part 4. Service Credits

             1113           [49-1-401].     49-11-401. Transfer of service credit -- Eligibility for service credit --
             1114      Computation of service credit.
             1115          (1) (a) The [board] office shall make the transfer of service [credits] credit, together with
             1116      related member and participating employer contributions, from one [retirement] system to another
             1117      upon terms and conditions established by the board.
             1118          (b) The terms and conditions may not result in a loss of accrued benefits.
             1119          (2) Transfer of employment from a position covered by one [public retirement] system to
             1120      a position covered by another system does not [either: (a)] cause the employee to lose active
             1121      [membership] member status [in the system; or].
             1122          [(b) constitute a termination of employment prerequisite to qualifying for a refund of
             1123      contributions.]
             1124          [(2)] (3) In the [establishment] accrual of service [credits] credit, the following provisions
             1125      apply:
             1126          [(a) Any member of a retirement system who performs covered services shall receive
             1127      service credit for the service.]
             1128          [(b) Any member who is not in an active service status because of sickness, injury, leave
             1129      of absence, including service in the armed forces of the United States, or because the member is
             1130      in the process of transfer from one employing unit to another shall, upon returning to active status,
             1131      have the same rights and be subject to the same requirements as other employees under this title.]
             1132          [(c) (i) For the purpose of computing the amount of a member's retirement allowance, no
             1133      service credit may be given to any member for the period during which the member is on leave of
             1134      absence without compensation, except as otherwise provided in this title or Subsection (2)(c)(ii).]
             1135          [(ii) A member with full-time public service while on an approved leave of absence may
             1136      purchase, or the employer may purchase on their behalf, credit equal to the public service by
             1137      making contributions fixed by the administrator.]
             1138          [(d) No service credit may be given to a member for the period during which the member
             1139      was in any inactive status unless the service is purchased according to the provisions of this title.]
             1140          [(e) Credit for service shall be granted in proportion to the work performed under rules
             1141      adopted by the board. (f) In no case may a retirement]


             1142          (a) A person employed and compensated by a participating employer who meets the
             1143      eligibility requirements for membership in a system or the Utah Governors' and Legislators'
             1144      Retirement Plan shall receive service credit for the term of the employment provided that all
             1145      required contributions are paid to the office.
             1146          (b) An allowance or other benefit [be granted] may not accrue under this title which is
             1147      based upon the same [service] period of employment as has been the basis for any retirement
             1148      benefits under some other [state] public retirement system.
             1149          [(g) Members shall be credited with any fractions of years of service to which they are
             1150      entitled.]
             1151          [(h)] (c) The board shall fix the minimum time per day, per month, and per year upon the
             1152      basis of which one year of service and proportionate parts of a year shall be credited toward
             1153      qualification for retirement. Service may be computed on a fiscal or calendar year basis and
             1154      portions of years served shall be accumulated and counted as service. In any event, all of the
             1155      service rendered in any one fiscal or calendar year may not count for more than one year.
             1156          [(i) Any employee who is transferred to the Division of Information of Technology Service
             1157      from the Department of Public Safety, and who was a member in the Public Safety Retirement
             1158      System or Public Safety Noncontributory Retirement System, shall be entitled to remain a member
             1159      in the system he participated in prior to being transferred regardless of whether the employee's
             1160      current position is covered by the respective public safety system. This exception does not apply
             1161      to any person hired on or after January 1, 1992.]
             1162          (d) Service credit shall be accrued on a fiscal or calendar year basis as determined by the
             1163      participating employer.
             1164          (e) A member may not accrue more than one year of service credit per fiscal or calendar
             1165      year as determined by the office.
             1166          (f) Fractions of years of service credit shall be accumulated and counted in proportion to
             1167      the work performed.
             1168          (4) The office may estimate the amount of service credit, compensation, or age of any
             1169      member, participant, or alternate payee, if information is not contained in the records.
             1170          [(3) (a) The board may adopt rules under which a member may make the necessary
             1171      contributions to the system for purchases or redeposits under this title through a
             1172      direct transfer, direct rollover or rollover from a qualified plan under Section 401, Internal


             1173      Revenue Code, or an eligible individual retirement account.]
             1174          [(b) The board may reject any contributions if the board determines the tax status of the
             1175      system would be jeopardized by allowing the contribution.]
             1176          [(c) For purposes of this section, a direct rollover shall be determined under the provisions
             1177      of Section 401(a)(31), Internal Revenue Code.]
             1178          Section 16. Section 49-11-402 , which is renumbered from Section 49-1-402 is renumbered
             1179      and amended to read:
             1180           [49-1-402].     49-11-402. Purchase of military service credit.
             1181          [(1) (a) Members with full-time military service not qualifying for service credit under this
             1182      title may purchase credit for that military service or the employer may make the purchase on behalf
             1183      of the member by making contributions to the system in an amount recommended by the
             1184      consulting actuary.]
             1185          [(b) Contributions shall be based on age and salary and the purchase shall be made through
             1186      payroll deductions or through a lump sum deposit based upon the present value of future
             1187      payments.]
             1188          [(c) Military service credit acquired in this manner is limited to a maximum of four years.]
             1189          [(d) Total payment must be completed prior to retirement or service will be prorated in
             1190      accordance with the amount paid. (2) Any employee of a covered unit, who has status as a ]
             1191          (1) A member [of a retirement system authorized by this title and] who is absent from
             1192      employment with a participating employer by reason of an official call to full-time United States
             1193      military service [in the armed forces of the United States,] may receive service credit for that
             1194      military service as follows:
             1195          (a) the member [and], the participating employer, or the member and participating
             1196      employer jointly shall make the [appropriate contributions] required payments, as determined by
             1197      the office, to the [retirement] system in which the member participated at the time of the official
             1198      call, according to the law governing that particular system;
             1199          (b) prior to a member's retirement date, the [contributions] required payments shall be
             1200      made:
             1201          (i) during the period of [the official call, or a contribution adjustment shall be made
             1202      subsequent to the official call, but at least five years prior to the member's retirement date;]
             1203      full-time United States military service;


             1204          (ii) after the military service, but within a period not to exceed three times the period of
             1205      military service up to a maximum of five years; or
             1206          (iii) as otherwise allowed by federal law;
             1207          (c) required payments shall be based on the member's compensation at the time of the
             1208      official military call;
             1209          (d) if a required payment is not made within the time allowed under Subsection (1)(b), the
             1210      member or participating employer may purchase the service credit as allowed in Subsection (2);
             1211      and
             1212          [(c)] (e) the member [must] shall return to [covered service] employment with the
             1213      participating employer upon receiving an honorable discharge from military service and there may
             1214      not be intervening employment outside of [covered service ; and] the employment with the
             1215      participating employer.
             1216          [(d) contributions shall be based on the member's compensation at the time of the official
             1217      military call.]
             1218          (2) (a) A member, a participating employer, or a member and a participating employer
             1219      jointly, may purchase service credit for full-time United States military service, resulting from an
             1220      official call to duty, if the member has four or more years of service credit and the military service
             1221      does not otherwise qualify for service credit under this title.
             1222          (b) Payment to the office for a military service credit purchase shall be made to the system
             1223      under which the member is currently covered in an amount determined by the office based on a
             1224      formula recommended by the actuary and adopted by the board.
             1225          (c) The purchase shall be made through payroll deductions or through a lump sum deposit
             1226      based upon the present value of future payments.
             1227          (d) If total payment is not completed prior to retirement, service credit shall be prorated
             1228      in accordance with the amount paid.
             1229          (3) For purposes of Subsection (2), full-time United States military service does not
             1230      include any regularly scheduled or annual military service that is required by a reserve unit,
             1231      National Guard unit, or any other United States military unit.
             1232          (4) (a) If any of the factors used to determine the cost of a service credit purchase change
             1233      at or before the member's retirement date, the cost of the purchase shall be recalculated.
             1234          (b) If the recalculated cost exceeds the amount paid for the purchase, the member may:


             1235          (i) pay the increased cost, plus interest, to receive the full amount of service credit; or
             1236          (ii) not pay the increased cost and have the purchased service credit prorated.
             1237          (5) If the recalculated cost under Subsection (4) is less than the amount paid for the
             1238      purchase, the office shall refund the excess payment to the member or participating employer who
             1239      paid for the purchase.
             1240          (6) (a) The board may adopt rules under which a member may make the necessary
             1241      payments to the office for purchases under this title as permitted by federal law.
             1242          (b) The office may reject any payments if the office determines the tax status of the system,
             1243      plans, or programs would be jeopardized by allowing the payment.
             1244          Section 17. Section 49-11-403 , which is renumbered from Section 49-1-407 is renumbered
             1245      and amended to read:
             1246           [49-1-407].     49-11-403. Purchase of public service credit not otherwise qualifying
             1247      for benefit.
             1248          (1) A member, a participating employer, or a member and a participating employer jointly
             1249      may purchase service credit equal to the period of the member's [service] employment in the
             1250      following:
             1251          (a) United States federal employment;
             1252          (b) [private school] employment in a private school based in the United States;
             1253          (c) public employment in [this or] another state [that does not qualify for service credit
             1254      under a system administered by the board] which qualifies the member for membership in the
             1255      public plan or system covering the employment, but only if the member does not qualify for any
             1256      retirement benefits based on the employment;
             1257          [(d) employment in a university or a public school system if the member is on a leave of
             1258      absence for reasons relating to employment;]
             1259          [(e)] (d) forfeited [public] service credit in this state if the member does not qualify for [a
             1260      retirement benefit for that service; or] an allowance based on the service credit;
             1261          (e) full-time public service while on an approved leave of absence; or
             1262          (f) the period of time for which disability benefits were paid if:
             1263          (i) the member was receiving:
             1264          (A) long-term disability benefits;
             1265          (B) short-term disability benefits; or


             1266          (C) worker's compensation disability benefits; and
             1267          (ii) the member's employer had not entered into a benefit protection contract [pursuant to]
             1268      under Section [ 49-1-404 ] 49-11-404 during the period the member was disabled due to sickness
             1269      or accident.
             1270          [(2) To purchase credit, the member shall pay an amount fixed by the administrator that
             1271      is established on an actuarial equivalent basis.]
             1272          [(3) The purchase may be made through payroll deductions or through a lump-sum
             1273      deposit.]
             1274          [(4) The employer may make the purchase on behalf of the member.]
             1275          [(5) Total payment must be completed prior to retirement or service will be prorated in
             1276      accordance with the amount paid.]
             1277          (2) A member shall have:
             1278          (a) at least four years of service credit before a purchase can be made under this section;
             1279      and
             1280          (b) forfeited service credit under any other retirement system or plan based on the public
             1281      employment for which service credit is being purchased.
             1282          (3) To purchase credit under this section, the member, a participating employer, or a
             1283      member and a participating employer jointly shall make payment to the system in an amount
             1284      determined by the office based on a formula recommended by the actuary and adopted by the
             1285      board.
             1286          (4) The purchase may be made through payroll deductions or through a lump sum deposit
             1287      based upon the present value of future payments.
             1288          (5) Total payment must be completed prior to the member's effective date of retirement
             1289      or service credit will be prorated in accordance with the amount paid.
             1290          (6) (a) If any of the factors used to determine the cost of a service credit purchase change
             1291      at or before the member's retirement date, the cost of the purchase shall be recalculated.
             1292          (b) If the recalculated cost exceeds the amount paid for the purchase, the member, a
             1293      participating employer, or a member and a participating employer jointly may:
             1294          (i) pay the increased cost, plus interest, to receive the full amount of service credit; or
             1295          (ii) not pay the increased cost and have the purchased service credit prorated.
             1296          (7) If the recalculated cost under Subsection (6) is less than the amount paid for the


             1297      purchase, the office shall refund the excess payment to the member or participating employer who
             1298      paid for the purchase.
             1299          (8) (a) The board may adopt rules under which a member may make the necessary
             1300      payments to the office for purchases under this title as permitted by federal law.
             1301          (b) The office may reject any payments if the office determines the tax status of the system,
             1302      plans, or programs would be jeopardized by allowing the payment.
             1303          Section 18. Section 49-11-404 , which is renumbered from Section 49-1-404 is renumbered
             1304      and amended to read:
             1305           [49-1-404].     49-11-404. Benefit protection contract authorized.
             1306          [(1) Any department or political subdivision covered by any system administered by the
             1307      retirement office that has established a paid salary protection program under which its officers or
             1308      employees, during periods of disability arising out of sickness or accident, are paid by it or by an
             1309      insurance underwriter at the disabled member's rate of compensation in effect at the time disability
             1310      occurred and the program is substantially equivalent to the program offered under Title 49, Chapter
             1311      9, may with the approval of the board, enter into a "benefit protection contract" with the retirement
             1312      office.]
             1313          (1) (a) A participating employer may establish a salary protection program under which
             1314      its employees are paid during periods of disability.
             1315          (b) If a salary protection program is established, a participating employer may enter into
             1316      benefit protection contracts with the office.
             1317          (c) A salary protection program shall:
             1318          (i) pay benefits based on the disabled member's rate of compensation at the time of
             1319      disability;
             1320          (ii) be substantially equivalent to the long-term disability programs offered under Chapter
             1321      21, Public Employees' Long-Term Disability Act; and
             1322          (iii) comply with requirements adopted by the board.
             1323          (2) [The] A benefit protection contract shall [provide a means whereby] allow:
             1324          (a) the disabled member [is] to be considered [to be] an active [participating] member [of
             1325      this retirement] in a system and [as such continues] continue to accrue [full-time] service credit
             1326      and salary [credits during the time employer contributions,] credit based [upon] on the member's
             1327      [full] rate of pay in effect at the time disability [began, are paid to the retirement office]


             1328      commences;
             1329          (b) the office to require participating employer contributions to be paid before granting
             1330      service credit and salary credit to the member;
             1331          [(b)] (c) the disabled member [or beneficiary remains] to remain eligible during the
             1332      contract period for any [retirement system] benefits provided by the [retirement] system that covers
             1333      the member; and
             1334          [(c)] (d) the benefit for the disabled member [is] to be improved by the annual
             1335      cost-of-living increase factor applied to retired members of the system that covered the [employee
             1336      at the time of disability] member on the date the member is eligible to receive benefits under a
             1337      benefit protection contract.
             1338          (3) (a) The [board] office shall establish the manner and times when employer
             1339      contributions are [to be] paid.
             1340          (b) A failure to make the required payments is cause for the [board] office to cancel [the
             1341      contracts as to any individual covered by the] a contract.
             1342          (c) Service credit and salary [credits] credit granted and accrued up to the time of
             1343      cancellation[, however,] may not be forfeited.
             1344          (4) The board may adopt rules to implement and administer this section.
             1345          Section 19. Section 49-11-405 , which is renumbered from Section 49-1-406 is renumbered
             1346      and amended to read:
             1347           [49-1-406].     49-11-405. Service credit from different systems or plans -- Eligibility
             1348      and calculation of service credit.
             1349          (1) [Any] (a) A member who has [years of] service credit from two or more systems or
             1350      [plans administered by the board which is not concurrent service] one or more systems and the
             1351      Utah Governors' and Legislators' Retirement Plan may combine [these credits] service credit for
             1352      purposes of determining eligibility for retirement.
             1353          (b) The provisions of Subsection (1)(a) do not apply to concurrent service.
             1354          (2) To be eligible for the calculation under Subsection (3), the member's [years of] service
             1355      [credits] credit earned under the [two or more] different [retirement] systems or the Utah
             1356      Governors' and Legislators' Retirement Plan shall at least equal the minimum [number of years]
             1357      amount of service credit required to retire [under the system from which the member is seeking
             1358      to retire] from the system which most recently covered the member.


             1359          (3) If [the] a member meets the requirements of Subsection (2), the [board] office shall
             1360      calculate the member's [retirement] allowance using all [credits] service credit earned from any
             1361      [retirement] system or the Utah Governors' and Legislators' Retirement Plan, with no actuarial
             1362      reduction applied to the allowance, except the [years of] service credit used to calculate the benefit
             1363      shall be increased or decreased to reflect the value of the assets transferred [to effectuate the
             1364      calculation of the allowance].
             1365          (4) The [retirement board] office shall [adopt rules to] establish the standards used for
             1366      calculating any increase or decrease in the [years of] service credit.
             1367          (5) This section does not apply to a retiree who is subject to Section 49-11-504 .
             1368          Section 20. Section 49-11-501 , which is renumbered from Section 49-1-502 is renumbered
             1369      and amended to read:
             1370     
Part 5. General Member Provisions

             1371           [49-1-502].     49-11-501. Refunds of member contributions -- Transfers of
             1372      contributions to defined contribution plan.
             1373          (1) If a member shall for any cause, except retirement, permanent or temporary disability,
             1374      or death, [cease to be employed in covered services for an employer then] terminate employment
             1375      with a participating employer the member may[:] leave the member contributions in the fund or
             1376      may receive a refund of the member contributions as provided under this section.
             1377          [(a) By signing a written request, affirming therein that the member has neither applied for,
             1378      nor contemplates further employment with a covered unit, and directing the request to the
             1379      retirement office, receive a refund of all accumulated contributions, less a withdrawal fee the
             1380      amount of which the board shall establish by rule for the purpose of reimbursing its administrative
             1381      fund for the cost entailed by the withdrawal. Notwithstanding the written request, if a member
             1382      who has requested a refund accepts employment with another covered unit within the 60-day
             1383      period, the member shall inform the retirement office immediately. In the event of this election,
             1384      a terminating employee, upon later reemployment by an employer under this title, unless the
             1385      employee redeposits the refund as permitted by this section, shall be treated as a new employee and
             1386      the employee's service history and benefit rights shall then be based upon current services from the
             1387      date of reemployment in covered services.]
             1388          [(b) Leave the member's account in the fund intact. In the event of this election, a
             1389      terminating employee shall retain status as a member of the system, except for the lack of


             1390      contributions paid into the fund by the member or on the member's behalf. In the event of
             1391      reemployment by an employer for services covered by this title, the employee's service history and
             1392      benefit rights shall be based upon the service credit accredited to the employee at the time of the
             1393      employee's most recent termination of employment, as well as upon the current service credit that
             1394      is acquired as the result of reemployment.]
             1395          [(2) Upon the attainment of retirement age, an inactive member has the same rights to
             1396      retirement benefits, if so eligible, as any active employee member.]
             1397          [(3) Refunds of vested contributions may not be made prior to 60 days from the last day
             1398      the contributions were made, and only upon the termination of the member.]
             1399          [(4) No refund may be made to an active member of any retirement system administered
             1400      by the board. Contributions made in error will be returned to the employing unit.]
             1401          (2) A member who applies for a refund of member contributions shall apply in writing on
             1402      forms provided by the office.
             1403          (3) A refund of member contributions may not be made to a member within 60 days from
             1404      the last date of the pay period for which contributions are made by or on behalf of the member.
             1405          (4) If the member is reemployed by a participating employer within the time period under
             1406      Subsection (3), the member is not eligible for a refund.
             1407          (5) A member who receives a refund of member contributions forfeits the service credit
             1408      based on those contributions.
             1409          [(5) Members] (6) A member who [are] is exempted from a [retirement] system
             1410      [administered by the board] but who [remain] remains employed by a [covered unit] participating
             1411      employer may request a plan-to-plan transfer of [vested, untaxed employee contributions to a
             1412      salary deferral plan administered by the board, as permitted by federal law] member contributions
             1413      to a qualified defined contribution plan administered by the board.
             1414          [(6) An employee, who is no longer a member of a retirement system administered by the
             1415      board because the employee's employing unit withdrew from the retirement systems under this
             1416      title, may request a plan transfer of vested employee contributions to a plan offered by the
             1417      employer that is qualified to receive the transfer under federal law.]
             1418          (7) A member who remains employed with an employer which has withdrawn from a
             1419      system may request a plan-to-plan transfer of member contributions to a qualified defined
             1420      contribution plan administered by the board or a qualified plan offered by the member's employer.


             1421          (8) Refund interest shall be paid on refunds of member contributions under this section.
             1422          Section 21. Section 49-11-502 , which is renumbered from Section 49-1-503 is renumbered
             1423      and amended to read:
             1424           [49-1-503].     49-11-502. Redeposits of refunds -- Time period.
             1425          (1) [A] (a) If a member [of any system who withdraws accumulated contributions upon
             1426      a previous termination of employment and who returns to covered employment in a status
             1427      prerequisite for membership may redeposit or the member's employer may redeposit the
             1428      accumulated] receives a refund of member contributions and is subsequently reemployed in a
             1429      position covered by a system or the Utah Governors' and Legislators' Retirement Plan, the
             1430      participating employer or the member may redeposit an amount equal to the member contributions
             1431      [withdrawn, together with] refunded and interest charged under Section 49-11-503 .
             1432          (b) The interest shall be compounded annually from the date of refund through the month
             1433      of payment[, at rates compounded annually under Section 49-1-504 ].
             1434          (c) If a redeposit is made, service credit shall be restored [and credited to the same
             1435      retirement system from which the refund was taken providing that the total redeposit is made prior
             1436      to retirement] to the member's account and credited to the same system or the Utah Governors' and
             1437      Legislator's Retirement Plan from which the refund was taken.
             1438          (2) (a) A member may redeposit [a previous] an amount equal to a prior refund of member
             1439      contributions and interest charges in one lump sum or [may redeposit the refund amount and
             1440      interest charges] in monthly installments by payroll deduction in a time period determined by the
             1441      [executive director] office.
             1442          (b) If the total redeposit is not made prior to the member's retirement date, the amount of
             1443      redeposit paid to the office shall be refunded to the member without interest and the member is not
             1444      entitled to service credit based on the amount of the refund.
             1445          (c) The interest rate charged during the installment period shall be a fixed rate calculated
             1446      at the time of the first installment payment in accordance with Section 49-11-503 .
             1447          (3) A member who redeposits a refund of member contributions under this section shall
             1448      receive the amount of service credit forfeited in taking the refund.
             1449          (4) (a) For purposes of this section, the Public Employees' Contributory Retirement
             1450      System created under Chapter 12, and the Public Employees' Noncontributory Retirement System
             1451      created under Chapter 13, are considered one system.


             1452          (b) For purposes of this section, the Public Safety Contributory Retirement System created
             1453      under Chapter 14, and the Public Safety Noncontributory Retirement System created under Chapter
             1454      15, are considered one system.
             1455          (c) For purposes of this section, the Judges' Contributory Retirement System created under
             1456      Chapter 17, and the Judges' Noncontributory Retirement System created under, Chapter 18, are
             1457      considered one system.
             1458          (5) (a) The board may make rules to allow a member to make the necessary payments to
             1459      the office for redeposits under this title as permitted by federal law.
             1460          (b) The office may reject any payments if the office determines the tax status of the
             1461      systems, plans, or programs may be jeopardized by allowing the payment.
             1462          Section 22. Section 49-11-503 , which is renumbered from Section 49-1-504 is renumbered
             1463      and amended to read:
             1464           [49-1-504].     49-11-503. Rate of interest on redeposits, purchases, and delinquent
             1465      payments.
             1466          The rate of interest charged on redeposits of refunds, [withdrawals] purchases, or
             1467      delinquent [contributions] payments is the greater of:
             1468          (1) [the average rate of the effective yield for the previous five years, rounded off to the
             1469      nearest whole or quarter percent rate, which has been earned by the Utah State Retirement
             1470      Investment Fund at the end of each preceding calendar year, as determined by the executive
             1471      director and] the interest rate as determined under a formula approved by the board; or
             1472          (2) the actuarial interest rate as of the preceding June 30.
             1473          Section 23. Section 49-11-504 , which is renumbered from Section 49-1-505 is renumbered
             1474      and amended to read:
             1475           [49-1-505].     49-11-504. Reemployment of a retiree -- Restrictions.
             1476          [The following laws govern the reemployment of a member of any system administered
             1477      by the board who has retired from any agency and who returns to work at that agency after
             1478      retirement. A member of any system administered by the board who has retired from any agency
             1479      and who returns to work for a private employer or at a different agency from which the member
             1480      retired is not subject to any reemployment restrictions under this section, except as provided in
             1481      Subsection (4).]
             1482          [(1) (a) (i) If a member of any system administered by the board retires from any agency


             1483      and is reemployed within a six month period by the agency from which the member retired,
             1484      including exempt positions, but excluding part-time or full-time elected officials, the employer
             1485      shall immediately notify the administrator.]
             1486          [(ii) If the member has full-time employment and is not subject to Subsection (1)(b), the
             1487      administrator shall cancel the member's retirement allowance and reinstate the member to active
             1488      member status.]
             1489          [(iii) This cancellation of retirement and reinstatement to active status is effective on the
             1490      first day of the month following the date of reemployment.]
             1491          [(iv) If a member's retirement allowance is cancelled and the member is reinstated to active
             1492      member status pursuant to this subsection, the member may not retire again with a recalculated
             1493      benefit for a two-year period from the date of cancellation of the original retirement. If the
             1494      member retires again within the two-year period, the original retirement benefit shall be resumed.]
             1495          [(v) A reinstated member shall be credited with the service credits standing to the
             1496      member's account at the time of the first retirement and from that time shall be treated as a member
             1497      of the system in all respects, including the accrual of additional service credits but subject to
             1498      recalculation of the retirement allowance under Subsection (4).]
             1499          [(b) (i) If the member is reemployed on a part-time basis or is not an elected official and
             1500      is otherwise subject to Section 49-4-205 , 49-4a-206 , or 49-5-204 , that member or employee may
             1501      earn, without penalty, compensation from that position or employment which is not in excess of
             1502      the exempt earnings permitted by Social Security.]
             1503          [(ii) If a member or an employee receives compensation in a calendar year in excess of the
             1504      limitation, 25% of the retirement allowance shall be suspended.]
             1505          [(iii) The effective date of a suspension and reinstatement of an allowance shall be set by
             1506      the administrator.]
             1507          [(iv) Any suspension of a member's retirement allowance pursuant to Subsection (1)(b)(ii)
             1508      shall be calculated on a calendar year basis.]
             1509          [(2) The member and employer shall maintain an accurate record of gross earnings in
             1510      employment after retirement, shall report the gross earnings on a monthly basis to the retirement
             1511      office, and shall immediately notify the administrator in writing of any postretirement earnings
             1512      under Subsection (1)(a) and whether postretirement earnings equal or exceed the exempt earnings
             1513      under Subsection (1)(b).]


             1514          [(3) If a member is reinstated to active service and subsequently retires after the two-year
             1515      period as provided in Subsection (1)(a)(iv), the member's retirement allowance shall be calculated
             1516      using:]
             1517          [(a) the formula in effect at the date of the member's original retirement for all service prior
             1518      to that date; and]
             1519          [(b) the formula in effect at the date of the subsequent retirement for all service rendered
             1520      between the first and the subsequent retirement dates.]
             1521          [(4) (a) A member who has retired from any agency and who returns to work at that
             1522      agency or a different agency from which the member retired may not accrue any additional service
             1523      credit, except that a member who cancels the retirement allowance under Subsection (1) may earn
             1524      additional service credit.]
             1525          [(b) If a member may not accrue additional service credit under Subsection (4)(a), then the
             1526      member's employer shall contribute the same percentage of the member's salary that would have
             1527      been contributed if the member were a member of the retirement system to a:]
             1528          [(i) defined contribution plan administered by the board if the employer participates in the
             1529      defined contribution plan administered by the board; or]
             1530          [(ii) defined contribution plan offered by the employer if the employer does not participate
             1531      in the defined contribution plan administered by the board.]
             1532          [(5) For the purposes of this section:]
             1533          [(a) "full-time" employment means employment of 20 or more hours per week; and]
             1534          [(b) "part-time" employment means employment of less than 20 hours per week.]
             1535          (1) A person who retires from a nonparticipating employer is not subject to any
             1536      postretirement restrictions under this title.
             1537          (2) A retiree of an agency who returns to work at a different agency is not subject to any
             1538      postretirement restrictions under this section and may not earn additional service credit.
             1539          (3) For the purposes of Subsections (4) and (5), "full-time" employment means
             1540      employment requiring compensation for 20 hours per week or more or at least a half-time teaching
             1541      contract.
             1542          (4) A retiree of an agency who is reemployed on a full-time basis by the same agency
             1543      within six months of the date of retirement is subject to the following:
             1544          (a) the agency shall immediately notify the office;


             1545          (b) the office shall cancel the retiree's allowance and reinstate the retiree to active member
             1546      status;
             1547          (c) the allowance calculations and reinstatement to active member status is effective on
             1548      the first day of the month following the date of reemployment;
             1549          (d) the reinstated retiree may not retire again with a recalculated benefit for a two-year
             1550      period from the date of cancellation of the original allowance, and if the retiree retires again within
             1551      the two-year period, the original allowance shall be resumed; and
             1552          (e) a reinstated retiree shall be credited with the service credit in the retiree's account at
             1553      the time of the first retirement and from that time shall be treated as a member of a system,
             1554      including the accrual of additional service credit, but subject to recalculation of the allowance
             1555      under Subsection (9).
             1556          (5) A retiree of an agency who is reemployed by the same agency within six months of
             1557      retirement on a less than full-time basis by the same agency is subject to the following:
             1558          (a) the retiree may earn, without penalty, compensation from that position which is not in
             1559      excess of the exempt earnings permitted by Social Security;
             1560          (b) if a retiree receives compensation in a calendar year in excess of the Social Security
             1561      limitation, 25% of the allowance shall be suspended for the remainder of the six-month period;
             1562          (c) the effective date of a suspension and reinstatement of an allowance shall be set by the
             1563      office; and
             1564          (d) any suspension of a retiree's allowance under this Subsection (5) shall be applied on
             1565      a calendar year basis.
             1566          (6) For six months immediately following retirement, the retiree and participating
             1567      employer shall:
             1568          (a) maintain an accurate record of gross earnings in employment;
             1569          (b) report the gross earnings at least monthly to the office;
             1570          (c) immediately notify the office in writing of any postretirement earnings under
             1571      Subsection (4); and
             1572          (d) immediately notify the office in writing whether postretirement earnings equal or
             1573      exceed the exempt earnings under Subsection (5).
             1574          (7) A retiree of an agency who is reemployed by the same agency after six months from
             1575      the retirement date is not subject to any postretirement penalties under this title and may not earn


             1576      additional service credit.
             1577          (8) If a participating employer hires a retiree that may not earn additional service credit
             1578      under this section, the participating employer shall contribute the same percentage of a retiree's
             1579      salary that the participating employer would have been required to contribute if the retiree were
             1580      an active member, up to the amount allowed by federal law, to a retiree designated:
             1581          (a) defined contribution plan administered by the board, if the participating employer
             1582      participates in the defined contribution plan administered by the board; or
             1583          (b) defined contribution plan offered by the participating employer if the participating
             1584      employer does not participate in a defined contribution plan administered by the board.
             1585          (9) Notwithstanding any other provision of this section, a retiree who has returned to work,
             1586      accrued additional service credit, and again retires shall have the retiree's allowance recalculated
             1587      using:
             1588          (a) the formula in effect at the date of the retiree's original retirement for all service credit
             1589      accrued prior to that date; and
             1590          (b) the formula in effect at the date of the subsequent retirement for all service credit
             1591      accrued between the first and subsequent retirement dates.
             1592          (10) This section does not apply to elected positions.
             1593          [(6)] (11) The board may make rules to implement this section.
             1594          Section 24. Section 49-11-601 , which is renumbered from Section 49-1-601 is renumbered
             1595      and amended to read:
             1596     
Part 6. Procedures and Records

             1597           [49-1-601].     49-11-601. Payment of employer contributions -- Penalties for failure
             1598      to comply -- Adjustments to be made.
             1599          (1) The employer contributions, fees, [and] premium taxes, contribution adjustments, and
             1600      other required payments shall be paid to the [fund] office by the participating employer [in
             1601      accordance with rules adopted by the board] as determined by the executive director.
             1602          (2) [Any employing unit] A participating employer that fails to withhold the amount of any
             1603      [employee] member contributions [is required to pay the contribution, together with any employer
             1604      contribution, fee, or premium tax, to the fund, if necessary, out of its own funds], as soon as
             1605      administratively possible, shall also pay the member contributions to the office out of its own
             1606      funds.


             1607          (3) [(a)] If [an employing unit] a participating employer does not make the [payments]
             1608      contributions required by this title [as the payments become due, there is added as part of the
             1609      amounts due, except for corrections in the amounts of contributions, fees, and premium taxes
             1610      arising out of error in computation, interest established under this title.] within 60 days of the end
             1611      of the pay period, the participating employer is liable to the office as provided in Section
             1612      49-11-604 for:
             1613          (a) delinquent contributions;
             1614          (b) refund interest on the delinquent contributions; and
             1615          (c) a 12% per annum penalty on delinquent contributions.
             1616          [(b)] (4) The [board] executive director may waive all or any part of the interest, penalties,
             1617      expenses, and fees if the [board] executive director finds there were extenuating circumstances
             1618      surrounding [any delinquencies] the participating employer's failure to comply with this section.
             1619          [(4) If more or less than the correct amount of contributions, fees, and premium taxes
             1620      required by this title is deducted with respect to any payment of compensation, the employer shall
             1621      make the necessary adjustment with or without interest as required by the board.]
             1622          (5) Contributions made in error will be refunded to the participating employer or member
             1623      that made the contributions.
             1624          Section 25. Section 49-11-602 , which is renumbered from Section 49-1-602 is renumbered
             1625      and amended to read:
             1626           [49-1-602].     49-11-602. Participating employer to maintain records -- Time limit --
             1627      Penalties for failure to comply.
             1628          (1) [Each employing unit] A participating employer shall maintain records [and file reports
             1629      relating to compensation, employees, service, and other factors relating to the proper
             1630      administration of this title under rules adopted by the board] necessary to calculate benefits under
             1631      this title and other records necessary for proper administration of this title as required by the office.
             1632          [(2) A penalty of 1% of the covered unit's last monthly employer contribution to the
             1633      system may be assessed by the board for each week a required payroll report of members' earnings
             1634      and employer contributions is delinquent beyond a 60-day grace period beginning with the month
             1635      after the month in which the report is due.]
             1636          (2) A participating employer shall maintain the records required under Subsection (1) until
             1637      three years after the latest of:


             1638          (a) the date of retirement of the employee from a system or plan; or
             1639          (b) the date of death of the employee.
             1640          (3) A participating employer shall be liable to the office for:
             1641          (a) any liabilities and expenses, including administrative expenses and the cost of
             1642      increased benefits to members, resulting from the participating employer's failure to maintain
             1643      records under this section; and
             1644          (b) 12% per annum penalty of those liabilities and expenses.
             1645          (4) The executive director may waive all or any part of the interest, penalties, expenses,
             1646      and fees if the executive director finds there were extenuating circumstances surrounding the
             1647      participating employer's failure to comply with this section.
             1648          (5) The executive director may estimate the length of service, compensation, or age of any
             1649      member, if that information is not contained in the records.
             1650          Section 26. Section 49-11-603 is enacted to read:
             1651          49-11-603. Participating employer to report and certify -- Time limit -- Penalties for
             1652      failure to comply.
             1653          (1) As soon as administratively possible, but in no event later than 60 days after the end
             1654      of each pay period, a participating employer shall report and certify to the office:
             1655          (a) the eligibility for service credit accrual of:
             1656          (i) all current members;
             1657          (ii) each new member as they begin employment; and
             1658          (iii) any changes to eligibility for service credit accrual of each member.
             1659          (b) the compensation of each current member eligible for service credit; and
             1660          (c) other factors relating to the proper administration of this title as required by the
             1661      executive director.
             1662          (2) Each participating employer shall submit the reports required under Subsection (1) in
             1663      a form approved by the office.
             1664          (3) A participating employer shall be liable to the office for:
             1665          (a) any liabilities and expenses, including administrative expenses and the cost of
             1666      increased benefits to members, resulting from the participating employer's failure to correctly
             1667      report and certify records under this section;
             1668          (b) 12% per annum penalty of those liabilities and expenses; and


             1669          (c) attorneys' fees.
             1670          (4) The executive director may waive all or any part of the interest, penalties, expenses,
             1671      and fees if the executive director finds there were extenuating circumstances surrounding the
             1672      participating employer's failure to comply with this section.
             1673          (5) The executive director may estimate the length of service, compensation, or age of any
             1674      member, if that information is not contained in the records.
             1675          Section 27. Section 49-11-604 is enacted to read:
             1676          49-11-604. Office audits of participating employers -- Penalties for failure to comply.
             1677          (1) (a) The office may perform on-site compliance audits of participating employers to
             1678      determine compliance with reporting, contribution, and certification requirements under this title.
             1679          (b) The office may request records to be provided by the participating employer at the time
             1680      of the audit.
             1681          (c) Audits shall be conducted at the sole discretion of the office after reasonable notice to
             1682      the participating employer of at least five working days.
             1683          (d) The participating employer shall extract and provide records as requested by the office
             1684      in an appropriate, organized, and usable format.
             1685          (e) Failure of a participating employer to allow access, provide records, or comply in any
             1686      way with an office audit shall result in the participating employer being liable to the office for:
             1687          (i) any liabilities and expenses, including administrative expenses and travel expenses,
             1688      resulting from the participating employer's failure to comply with the audit; and
             1689          (ii) a 1% penalty of the participating employer's last month's contributions.
             1690          (2) If the audit reveals a participating employer's failure to make contributions as required
             1691      under Section 49-11-601 , a failure to maintain records as required under Section 49-11-602 , or a
             1692      failure to correctly report or certify eligibility as required under Section 49-11-603 , the
             1693      participating employer shall reimburse the office for the cost of the audit.
             1694          (3) If the audit reveals that an incorrect benefit has been paid by the office to a member,
             1695      participant, alternate payee, or beneficiary due to a participating employer's failure to comply with
             1696      the requirements of Section 49-11-601 , 49-11-602 , or 49-11-603 , in addition to the liabilities
             1697      contained in Subsection (2), the participating employer shall be liable to the office for the
             1698      following:
             1699          (a) the actuarial cost of correcting the incorrect benefit; and


             1700          (b) administrative expenses.
             1701          (4) The executive director may waive all or any part of the interest, penalties, expenses,
             1702      and fees if the executive director finds there were extenuating circumstances surrounding the
             1703      participating employer's failure to comply with this section.
             1704          Section 28. Section 49-11-605 is enacted to read:
             1705          49-11-605. Notification and correction of violations.
             1706          If a participating employer discovers that it has violated Section 49-11-601 , 49-11-602, or
             1707      49-11-603 prior to the office becoming aware of the violation, notifies the office of the violation
             1708      in writing, and corrects the violation within a period agreed to by the office, the penalties under
             1709      those sections shall be waived.
             1710          Section 29. Section 49-11-606 is enacted to read:
             1711          49-11-606. Full participation.
             1712          Except as provided in Sections 49-12-203 , 49-12-204 , 49-13-203 , 49-13-204 , 49-14-203 ,
             1713      and 49-15-203 , participating employers shall cover all employees eligible for service credit under
             1714      this title.
             1715          Section 30. Section 49-11-607 , which is renumbered from Section 49-1-603 is renumbered
             1716      and amended to read:
             1717           [49-1-603].     49-11-607. Determination of benefits -- Errors in records or
             1718      calculations -- Correction of errors by the office.
             1719          (1) After the [date of] retirement date, which shall be set by a member in the member's
             1720      application for retirement, no alteration, addition, or cancellation of a benefit may be made except
             1721      as provided in Subsections (2), (3), and (4) or other law.
             1722          (2) (a) Errors in the records or in the calculations of the [retirement] office which result
             1723      in an incorrect benefit to any member, retiree, participant, covered individual, alternate payee, or
             1724      beneficiary [receiving more or less than the member or beneficiary is entitled to receive] shall be
             1725      corrected by the [administrator] office.
             1726          (b) Future payments shall be made to any member, retiree, participant, covered individual,
             1727      alternate payee, or beneficiary[, insofar as practicable, on an actuarially equivalent basis so as] to:
             1728          [(a)] (i) pay the benefit to which the member or beneficiary was entitled; or
             1729          [(b)] (ii) recover any overpayment.
             1730          [(3) When it is documented that an incorrect calculation by an employing unit has resulted


             1731      in a decreased benefit to a retirant, and the incorrect calculation is due to a bona fide error in
             1732      employer records, the error may be corrected by the administrator, if the employing unit makes the
             1733      calculation adjustment required by the administrator to keep the retirement system affected
             1734      actuarially sound.]
             1735          (3) (a) Errors in the records or calculation of a participating employer which result in an
             1736      incorrect benefit to a member, retiree, participant, covered individual, alternate payee, or
             1737      beneficiary shall be corrected by the participating employer.
             1738          (b) If insufficient employer contributions have been received by the office, the
             1739      participating employer shall pay any delinquent employer contributions, plus interest under Section
             1740      49-11-503 , required by the office to maintain the system, plan, or program affected on an
             1741      actuarially sound basis.
             1742          (c) If excess contributions have been received by the office, the contributions shall be
             1743      refunded to the participating employer or member which paid the contributions.
             1744          (4) If a [salary] dispute exists between [an employing unit] a participating employer and
             1745      [an employee] a member at the time of the [employee's] member's retirement which will affect the
             1746      [employee's retirement] member's benefit calculation, and notice of the dispute is given to the
             1747      [retirement] office prior to the calculation of a member's benefit, the benefit may be paid based on
             1748      the member's [stated] retirement date and [on] the records available [at that time] and then
             1749      recalculated upon settlement of the dispute [according to Subsection (2)].
             1750          Section 31. Section 49-11-608 , which is renumbered from Section 49-1-604 is renumbered
             1751      and amended to read:
             1752           [49-1-604].     49-11-608. False statements or records -- Unlawfully cashing benefit
             1753      checks.
             1754          (1) [Any] A person who knowingly makes any false statement, or who falsifies or permits
             1755      to be falsified any record necessary for carrying out the intent of this title is in violation of Section
             1756      76-6-504 .
             1757          (2) [Any] A person cashing a benefit check to which that person is not entitled is in
             1758      violation of Section 76-6-501 .
             1759          Section 32. Section 49-11-609 , which is renumbered from Section 49-1-606 is renumbered
             1760      and amended to read:
             1761           [49-1-606].     49-11-609. Beneficiary designations -- Revocation of beneficiary


             1762      designation -- Procedure -- Beneficiary not designated -- Payment to survivors in order
             1763      established under the Uniform Probate Code -- Restrictions on payment -- Payment of
             1764      deceased's expenses.
             1765          (1) As used in this section, "member" includes a member, retiree, participant, covered
             1766      individual, a spouse of a retiree participating in the insurance benefits created by Sections
             1767      49-12-404 and 49-13-404 , or an alternate payee under a domestic relations order dividing a defined
             1768      contribution account.
             1769          [(1)] (2) The most recent beneficiary [designation in a member's file at the retirement
             1770      office] designations contained in office records, including electronic records, at the time of the
             1771      member's death [is] are binding in the payment of any benefits due under this title.
             1772          [(2) A] (3) (a) Except where an optional continuing benefit is chosen, or the law makes
             1773      a specific benefit designation to a dependent spouse, a member may revoke a beneficiary
             1774      designation [of beneficiary] at any time and may execute and file a different beneficiary
             1775      designation [by executing and filing with the retirement office a written beneficiary designation
             1776      on forms provided by the retirement office, except where an optional continuing plan is chosen,
             1777      or the law makes a specific benefit designation to a dependent spouse, in which case the
             1778      beneficiary designation may not be revoked.] with the office.
             1779          (b) A change of beneficiary designation shall be completed on forms provided by the
             1780      office.
             1781          (4) (a) All benefits payable by the office may be paid or applied to the benefit of the
             1782      surviving next of kin of the deceased in the order of precedence established under Title 75, Chapter
             1783      2, Intestate Succession and Wills, if:
             1784          [(3) If] (i) no beneficiary is designated[, all benefits payable from the retirement system
             1785      may be paid or applied to the benefit of the surviving next of kin of the deceased in the order of
             1786      precedence established under Title 75, Chapter 2, Intestate Succession and Wills.];
             1787          (ii) the location of the beneficiary cannot be ascertained by the office within 12 months
             1788      of the date beneficiaries are provided with the forms; or
             1789          (iii) the beneficiary has not completed the forms necessary to pay the benefits within six
             1790      months of the date beneficiaries are provided the forms.
             1791          [(4) No] (b) (i) A payment may not be made to [persons] a person included in any of
             1792      [these] the groups referred to in Subsection (3)(a) if at the date of payment there [are] is a living


             1793      [persons] person in any of the groups preceding it.
             1794          (ii) Payment to [the persons] a person in any group based upon receipt from [those
             1795      persons] the person of an affidavit in a form satisfactory to the [administrator] office that:
             1796          [(a)] (A) there are no living individuals in the group preceding it;
             1797          [(b) that] (B) the probate of the estate of the deceased has not been commenced; and
             1798          [(c) that] (C) more than three months have elapsed since the date of death of the
             1799      decedent[,].
             1800          (5) Benefits paid under this section shall be [in]:
             1801          (a) a full satisfaction and discharge of all claims for benefits under this title; and
             1802          (b) payable by reason of the death of the decedent.
             1803          [(5) If the location of the nominated beneficiary cannot be ascertained or if the nominated
             1804      beneficiary is the estate of the deceased person, the administrator may pay the costs of the
             1805      deceased's last illness, convalescent care, and funeral expenses directly to the undertaking
             1806      establishment, hospital, doctor, or convalescent home which provided the service. The
             1807      administrator shall require verified statements of the charges before making partial or full payment.
             1808      The payment shall discharge the obligation of the system and of the fund up to the amount paid.]
             1809          Section 33. Section 49-11-610 , which is renumbered from Section 49-1-607 is renumbered
             1810      and amended to read:
             1811           [49-1-607].     49-11-610. Benefits payable in name of beneficiary -- Delivery.
             1812          (1) (a) Any benefits payable to a beneficiary [or dependent beneficiary] shall be made in
             1813      the name of [the beneficiary or beneficiaries] and delivered to the beneficiary or the lawfully
             1814      appointed guardian or conservator of the beneficiary, or delivered as otherwise ordered by a court
             1815      of competent jurisdiction [pursuant to] under Title 75, Utah Uniform Probate Code. [In those
             1816      cases where]
             1817          (b) If the benefit involves a payment not to exceed an amount authorized by the Utah
             1818      Uniform Probate Code to any one beneficiary, the [administrator] office may, without the
             1819      appointment of a guardian or conservator or the giving of a bond, pay the amount due to the
             1820      [beneficiaries themselves] beneficiary or to the [person,] persons[, or institutions] assuming their
             1821      support.
             1822          (c) The payment shall be in either a lump sum or in monthly amounts[, and the].
             1823          (d) The total of the payments [so] made under this section shall [be a full] fully discharge


             1824      and release [to] the [system] office from any further claims.
             1825          (2) All continuing monthly benefits payable to beneficiaries upon the death of [an active]
             1826      a member or participant shall be [paid] effective on the first day of the month following the date
             1827      of death of the member or participant.
             1828          Section 34. Section 49-11-611 , which is renumbered from Section 49-1-608 is renumbered
             1829      and amended to read:
             1830           [49-1-608].     49-11-611. Benefits and money in the fund exempt from taxation --
             1831      Exceptions.
             1832          [The] (1) Except as provided under Subsection (2), the benefits accrued or paid to any
             1833      beneficiary of any system or plan administered by the [retirement office] board and the
             1834      [accumulated] contributions, money, [and] securities, and other assets in the [fund] funds created
             1835      by this title are exempt from any state, county, or municipal tax[, except that the retirement].
             1836          (2) An allowance, a refund of member contributions, or other benefits that are subject to
             1837      [the] federal income tax, which [are] is received by a member, retiree, alternate payee, participant,
             1838      or beneficiary of any system or plan administered by the board and which [have] has not been
             1839      taxed is subject to Title 59, Chapter 10, Individual Income Tax Act.
             1840          Section 35. Section 49-11-612 , which is renumbered from Section 49-1-609 is renumbered
             1841      and amended to read:
             1842           [49-1-609].     49-11-612. Nonassignability of benefits or payments -- Exemption from
             1843      legal process.
             1844          (1) Except as provided in [Subsection] Subsections (2), (3), and (4), the right of any
             1845      member, retiree, participant, or beneficiary to any benefit, payment, or any other right accrued or
             1846      accruing [to any person] under this title and the assets of the [fund] funds created by this title are
             1847      not subject to alienation or assignment by the member, retiree, participant, or [beneficiary] their
             1848      beneficiaries and are not subject to attachment, execution, garnishment, or any other legal or
             1849      equitable process.
             1850          [(2) This section may not be construed to prohibit the administrator from deducting
             1851      medical or other insurance premiums from a retirant's allowance as requested by the retirant
             1852      providing that any request is within limitations and rules prescribed by the board.]
             1853          (2) The office may, upon the request of the retiree, deduct from the retiree's allowance
             1854      insurance premiums or other dues payable on behalf of the retiree, but only to those entities that


             1855      have received the deductions prior to February 1, 2002.
             1856          (3) (a) [Notwithstanding Subsection (1), the retirement board] The office shall provide for
             1857      the division of [a member's service retirement] an allowance, defined contribution account,
             1858      continuing monthly death benefit, or refund of member contributions upon termination to former
             1859      spouses and family members [pursuant to] under an order of a court of competent jurisdiction with
             1860      respect to domestic relations matters on file with the [retirement] office.
             1861          (b) The court order shall specify the manner in which the [retirement] allowance, defined
             1862      contribution account, continuing monthly death benefit, or refund of member contributions shall
             1863      be partitioned, whether as a fixed amount or as a percentage of the benefit.
             1864          [(c) The board may also provide for the division of a member's defined contribution
             1865      account.]
             1866          [(d) Once benefit payments under a domestic relations order begin, the period for which
             1867      the payment shall be made may not be altered.]
             1868          [(e) Benefit payments to an alternate payee shall begin at the time the member or
             1869      beneficiary begins receiving benefit payments.]
             1870          [(f) The alternate payee shall receive benefits in the same form as benefits are received by
             1871      the member.]
             1872          [(g) The board shall make rules to implement this section.]
             1873          (c) Allowances, continuing monthly death benefits, and refunds of member contributions
             1874      split under a domestic relations order are subject to the following:
             1875          (i) the period for which payments shall be made under the original domestic relations order
             1876      may not be altered;
             1877          (ii) payments to an alternate payee shall begin at the time the member or beneficiary begins
             1878      receiving payments; and
             1879          (iii) the alternate payee shall receive payments in the same form as payments received by
             1880      the member or beneficiary.
             1881          (4) In accordance with federal law, the board may deduct the required amount from any
             1882      benefit, payment, or other right accrued or accruing to any member of a system, plan, or program
             1883      under this title to offset any amount that member owes to a system, plan, or program administered
             1884      by the board.
             1885          (5) The board shall make rules to implement this section.


             1886          Section 36. Section 49-11-613 , which is renumbered from Section 49-1-610 is renumbered
             1887      and amended to read:
             1888           [49-1-610].     49-11-613. Appeals procedure -- Right of appeal to hearing officer --
             1889      Board reconsideration -- Judicial review.
             1890          (1) (a) All members, retirees, participants, alternative payees, or covered individuals of a
             1891      system, plan, or program under this title shall acquaint themselves with their rights and obligations
             1892      [as members] under this title.
             1893          (b) A [member shall] person who claims a benefit, legal right, or employment right under
             1894      this title shall request a ruling by the [administrator on any benefit claim or legal right under this
             1895      title] executive director.
             1896          (c) [Any] A person who is dissatisfied by a ruling of the [administrator] executive director
             1897      with respect to any benefit claim or legal right under any system, plan, or program under this title
             1898      shall request a review of that claim by a hearing officer.
             1899          [(d)] (2) The hearing officer shall:
             1900          [(i)] (a) be hired by the executive director after consultation [and review] with the
             1901      [membership council] board; [and]
             1902          [(ii)] (b) follow the procedures and requirements of Title 63, Chapter 46b, Administrative
             1903      Procedures Act[. (2) (a) (i) The hearing officer shall], except as specifically modified under this
             1904      title;
             1905          (c) hear and determine all facts pertaining to applications for benefits under any
             1906      [retirement] system, plan, or program under this title and all matters pertaining to the
             1907      administration of the [system.] office; and
             1908          [(ii) The membership council may examine the record of the hearing, provide a
             1909      recommendation to the board, and recommend any necessary changes in retirement policy or
             1910      procedure to the Legislature.]
             1911          [(b) (i) If the executive officer of the board cannot determine from the records or other
             1912      information available the length of service, compensation, or age of any member, the executive
             1913      officer may estimate, for the purpose of any determination required to be made, any of these
             1914      factors.]
             1915          (d) make conclusions of law in determining the person's rights under any system, plan, or
             1916      program under this title and matters pertaining to the administration of the office.


             1917          [(ii)] (3) The board shall review and approve or deny all decisions of the hearing officer
             1918      in accordance with rules adopted by the board.
             1919          [(3)] (4) The moving party in any proceeding brought under this section shall bear the
             1920      burden of proof.
             1921          [(4) Any applicant] (5) A party may file an application for reconsideration [according to
             1922      the procedures and requirements of Title 63, Chapter 46b, Administrative Procedures Act,] by the
             1923      board upon any of the following grounds:
             1924          (a) that the board acted in excess of its powers;
             1925          (b) that the order or award was procured by fraud;
             1926          (c) that the evidence does not justify the determination of the [board] hearing officer; or
             1927          (d) that the [applicant] party has discovered new material evidence that could not, with
             1928      reasonable diligence, have been discovered or procured [at] prior to the hearing.
             1929          (6) The board shall affirm, reverse, or modify the decision of the hearing officer, or
             1930      remand the application to the hearing officer for further consideration.
             1931          [(5)] (7) A [member] party aggrieved by the board's decision may obtain judicial review
             1932      by complying with the procedures and requirements of Title 63, Chapter 46b, Administrative
             1933      Procedures Act.
             1934          (8) The board may make rules to implement this section.
             1935          Section 37. Section 49-11-614 , which is renumbered from Section 49-1-613 is renumbered
             1936      and amended to read:
             1937           [49-1-613].     49-11-614. Vesting on termination of system or plan.
             1938          If any [retirement plan established under this title] system or the Utah Governors' and
             1939      Legislators' Retirement Plan is terminated, the accrued benefits of each member in the terminated
             1940      system or plan shall immediately become [100%] vested and nonforfeitable.
             1941          Section 38. Section 49-11-615 , which is renumbered from Section 49-1-614 is renumbered
             1942      and amended to read:
             1943           [49-1-614].     49-11-615. Election to grandfather -- Applicability of provisions.
             1944          (1) Notwithstanding any other provision of this title, the [retirement plan or program]
             1945      allowance payable to any person who becomes a member of any system, administered by the board
             1946      on or after January 1, 1990, may not exceed the limitation imposed by Section 415 of the Internal
             1947      Revenue Code of 1986, as amended, which is incorporated by reference.


             1948          (2) This constitutes an election of the grandfather provision under Section 415(b)(10)(C)
             1949      of the Internal Revenue Code.
             1950          Section 39. Section 49-11-616 , which is renumbered from Section 49-1-615 is renumbered
             1951      and amended to read:
             1952           [49-1-615].     49-11-616. Benefits information.
             1953          (1) The [retirement board] office shall provide [the following] written general
             1954      information[, by means of a form to be adopted by the board,] to each [employing unit]
             1955      participating [in a plan, program, or system administered by the board:] employer concerning
             1956      benefits available under this title.
             1957          [(a) all retirement benefits available to participants in a retirement system administered by
             1958      the board, including the right to participate in deferred compensation programs and rights upon
             1959      termination;]
             1960          [(b) all group health and dental insurance benefits available to participants, including
             1961      conversion and coverage rights upon termination;]
             1962          [(c) all group life insurance benefits and other death benefits, including conversion and
             1963      coverage rights upon termination;]
             1964          [(d) all long-term disability programs available to participants;]
             1965          [(e) any other benefits that the board may make available to eligible employers and their
             1966      employees; and]
             1967          [(f) the address and telephone number of the division of the retirement office responsible
             1968      for each of these plans, programs, and systems.]
             1969          (2) (a) [The] A participating [employing unit] employer shall provide the information
             1970      under Subsection (1) to each eligible employee immediately upon:
             1971          (i) termination of service[,];
             1972          (ii) leave of absence[, or];
             1973          (iii) commencement of long-term disability benefits; or
             1974          (iv) retirement.
             1975          (b) (i) Each participating employer shall maintain the records necessary to demonstrate that
             1976      each employee has received the information outlined in Subsection (1).
             1977          (ii) The records shall be made available to the office upon request.
             1978          [(3) Each eligible employee shall sign the form provided under Subsection (1), a]


             1979          (3) (a) The office shall provide each participating employer with a form to be signed by
             1980      each employee which verifies that the employee has been given the information required by this
             1981      section.
             1982          (b) A copy of [which] the signed form shall be immediately forwarded to the [retirement]
             1983      office [immediately] by the participating employer or the employee.
             1984          (4) The dissemination of information to the employer by the [board pursuant to] office
             1985      under this section constitutes presentment by the policyholder [pursuant to] under Title 31A,
             1986      Chapter 22, Contracts in Specific Lines, and other law.
             1987          Section 40. Section 49-11-617 , which is renumbered from Section 49-1-616 is renumbered
             1988      and amended to read:
             1989           [49-1-616].     49-11-617. Original documents.
             1990          [(1) The retirement office may treat any document received by facsimile as an original if
             1991      it pertains to member accounts and is forwarded by a member or employer.]
             1992          [(2) All records at the retirement office, filmed from facsimile or other sources, or
             1993      produced from optical imaging or other technology, have the same legal effect as the original
             1994      record.]
             1995          At the reasonable discretion of the office, any document relating to this title may be treated
             1996      as an original, whether created by photocopy, facsimile, e-mail, electronic transmission, imaging,
             1997      or other technology.
             1998          Section 41. Section 49-11-618 , which is renumbered from Section 49-1-403 is renumbered
             1999      and amended to read:
             2000           [49-1-403].     49-11-618. Members and beneficiaries subject to chapter -- Furnishing
             2001      of information -- Confidentiality of information.
             2002          (1) (a) Every member, retiree, participant, covered individual, alternate payee, and
             2003      beneficiary is subject to this chapter [and to all], rules [adopted] made by the board [under this
             2004      chapter] or office, board actions, resolutions, policies, and procedures adopted under this title.
             2005          (b) Each member, retiree, participant, covered individual, alternate payee, and beneficiary
             2006      shall furnish to the [retirement] office any information required [by the executive director affecting
             2007      the member's status as a member or beneficiary] to carry out the purposes of this title.
             2008          (2) (a) All data [filed with the retirement] in the possession of the office is confidential,
             2009      and [no information contained in any record pertaining to individual data] may not be divulged by


             2010      [any official or employee of] the office except as permitted by board action. [The information]
             2011          (b) All data in the possession of the office or divulged pursuant to board action shall be
             2012      used for the sole purpose of carrying into effect the provisions of this [chapter. The record may
             2013      not be open to inspection to any person except the board, the employees of the retirement office,
             2014      and the employing unit] title.
             2015          Section 42. Section 49-11-619 , which is renumbered from Section 49-1-405 is renumbered
             2016      and amended to read:
             2017           [49-1-405].     49-11-619. Permanent relinquishment of benefit -- Procedure.
             2018          [Any retired member or beneficiary receiving a continuing benefit who for any reason
             2019      desires to permanently relinquish that retirement benefit may do so at any time after the effective
             2020      date of retirement. The relinquishment of the benefit is irrevocable 30 days after the witnessed
             2021      signing of the waiver agreement by the member and the beneficiary.]
             2022          (1) (a) Except for defined contribution plans authorized by this title, a retiree or beneficiary
             2023      may permanently relinquish a benefit under this title by signing an irrevocable written
             2024      relinquishment.
             2025          (b) If the retiree has designated a beneficiary which is still living, the written
             2026      relinquishment must be signed by both the retiree and the beneficiary.
             2027          (2) The value of the benefit permanently relinquished under Subsection (1) shall remain
             2028      in the fund from which the benefit was relinquished and shall be used in the calculation of future
             2029      contribution rates.
             2030          (3) A designated beneficiary may disclaim beneficiary status and the benefit shall then be
             2031      payable first to any alternate designated beneficiary, then dispersed under Title 75, Chapter 2,
             2032      Intestate Succession and Wills, as applicable.
             2033          (4) The office is not required to recognize or accept any written relinquishment that
             2034      jeopardizes the tax qualified status of the systems, plans, or programs or otherwise violates federal
             2035      law.
             2036          Section 43. Section 49-11-620 is enacted to read:
             2037          49-11-620. Closing the retirement account -- Status of retirants and beneficiaries.
             2038          (1) The monthly benefit payable for the month a retiree, beneficiary, or alternate payee dies
             2039      shall be a full monthly benefit and shall be payable to the estate of the deceased.
             2040          (2) If more than one year has elapsed since the death of a retiree whose designated


             2041      beneficiary is deceased and whose account payable to the beneficiary amounts to $100 or less, the
             2042      account shall be closed and further payment may not be made.
             2043          Section 44. Section 49-11-701 , which is renumbered from Section 49-1-701 is renumbered
             2044      and amended to read:
             2045     
Part 7. Allowance Increase

             2046           [49-1-701].     49-11-701. Allowance increase to offset tax liability -- Administration.
             2047          (1) This section applies to members of any system administered by the board under this
             2048      title, whose retirement allowance remained exempt from the tax imposed under Title 59, Chapter
             2049      10, Individual Income Tax Act, pursuant to Section 2, Chapter 195, Laws of Utah 1988, but whose
             2050      allowance has subsequently become subject to that tax.
             2051          (2) Any member who meets the conditions established under Subsection (1) shall receive
             2052      the following:
             2053          (a) the administrator shall calculate the member's retirement allowance pursuant to the
             2054      formula governing the system from which the member retired;
             2055          (b) the administrator shall then increase the allowance calculated under Subsection (2)(a)
             2056      by 3%; and
             2057          (c) the adjusted retirement allowance under Subsection (2) (b) is the new basis upon which
             2058      any future adjustments to benefits are made.
             2059          (3) (a) For all members who retire or are receiving retirement allowances in calendar year
             2060      1989, the administrator shall apply the 3% adjustment under Subsection (2) to all retirement
             2061      allowances received in 1989, so that the period for which the allowance becomes subject to the tax
             2062      under Title 59, Chapter 10, Individual Income Tax Act, and the period for which the 3%
             2063      adjustment is given are the same.
             2064          (b) For all members who retire after December 31, 1989, and who meet the requirements
             2065      of Subsection (1), the administrator shall apply the 3% adjustment under Subsection (2) beginning
             2066      on the effective date of retirement.
             2067          (4) Any penalty or interest for underpayment of taxes under Title 59, Chapter 1, General
             2068      Taxation Policies, or 10, Individual Income Tax Act, shall be waived for members whose
             2069      noncompliance is attributable to Section [ 49-1-608 ] 49-11-611 and this section. This only applies
             2070      to tax year 1989.
             2071          (5) The administrator shall comply with Title 59, Chapter 10, Part 4, Withholding of Tax,


             2072      with respect to withholding of taxes.
             2073          (6) (a) The retirement board shall annually certify the contribution rate necessary for each
             2074      system to comply with this section and may adopt rules to administer this section.
             2075          (b) This contribution rate shall be reported separately from the total contribution rate
             2076      necessary to fund the systems on an actuarially sound basis and may not be used in comparative
             2077      studies of public employee benefits.
             2078          Section 45. Section 49-11-801 , which is renumbered from Section 49-1-611 is renumbered
             2079      and amended to read:
             2080     
Part 8. Defined Contribution Plans

             2081           [49-1-611].     49-11-801. Defined contribution plans authorized -- Subject to federal
             2082      and state laws -- Rules to implement this provision -- Costs of administration -- Limitations
             2083      on eligibility -- Protection of tax status.
             2084          (1) (a) The board may establish and administer [additional benefit] defined contribution
             2085      plans established under [Sections 401(k) and 457 of] the Internal Revenue Code. [Employee and
             2086      employer]
             2087          (b) Voluntary deferrals and nonelective contributions shall be permitted according to the
             2088      provisions of these plans as established by the board. [The amount of these accumulated
             2089      contributions, together with dividend or interest credits, are vested in the member, and are
             2090      nonforfeitable.]
             2091          (c) The defined contribution account balance is vested in the participant.
             2092          [(2) Earnings credited to accounts established as a result of this action shall be at a rate
             2093      fixed by the board. (3) Contributions]
             2094          (2) (a) Voluntary deferrals and nonelective contributions shall be [invested as provided by
             2095      contract in accordance with federal and state law] posted to the participant's account.
             2096          (b) Participants may direct the investment of their account in the investment options
             2097      established by the board and in accordance with federal and state law.
             2098          [(4) The] (3) (a) The board may [establish] make rules and create plan documents to
             2099      implement and administer this section.
             2100          (b) The board may adopt rules under which a participant may put money into a defined
             2101      contribution plan as permitted by federal law.
             2102          (c) The office may reject any payments if the office determines the tax status of the


             2103      systems, plans, or programs would be jeopardized by allowing the payment.
             2104          (d) Costs of administration [may] shall be paid [from the interest earnings of the funds
             2105      accrued as a result of deposits or as an assessment against each account, to be decided] as
             2106      established by the board. [All funds and deposits]
             2107          (4) Voluntary deferrals and nonelective contributions may be invested [as a separate
             2108      account or accounts in] separately or in conjunction with the Utah State Retirement Investment
             2109      Fund.
             2110          [(5) This supplemental program shall be limited to members who contract to participate
             2111      in the program a minimum of one year.]
             2112          [(6)] (5) The board or office may take [the] actions necessary to protect the tax qualified
             2113      status of the [plans,] systems, plans, and programs under its control, including the movement of
             2114      [members] individuals from defined contribution plans to defined benefit [plans] systems or the
             2115      creation of excess benefit plans authorized by federal law[, and shall report its actions to the
             2116      Legislature at the subsequent legislative session].
             2117          (6) The office may, at its sole discretion, correct errors made in the administration of its
             2118      defined contribution plans.
             2119          Section 46. Section 49-11-802 is enacted to read:
             2120          49-11-802. Permanent relinquishment of defined contribution benefit -- Procedure.
             2121          A participant or designated beneficiary under a defined contribution plan may permanently
             2122      relinquish the benefit by signing an irrevocable written relinquishment.
             2123          Section 47. Section 49-12-101 , which is renumbered from Section 49-2-101 is renumbered
             2124      and amended to read:
             2125     
CHAPTER 12. PUBLIC EMPLOYEES' CONTRIBUTORY RETIREMENT ACT

             2126     
Part 1. General Provisions

             2127           [49-2-101].     49-12-101. Title.
             2128          This chapter is known as the "Public Employees' Contributory Retirement Act."
             2129          Section 48. Section 49-12-102 , which is renumbered from Section 49-2-103 is renumbered
             2130      and amended to read:
             2131           [49-2-103].     49-12-102. Definitions.
             2132          As used in this chapter:
             2133          [(1) "Appointive officer" means an employee appointed to a position for a definite and


             2134      fixed term of office by official and duly recorded action of the governing body of an employing
             2135      unit who earns $500 or more per month over a 12-month period adjusted annually by the Bureau
             2136      of Labor Statistics Consumer Price Index.]
             2137          [(2) (a) "Compensation," "salary," or "wages" means the total amount of payments made
             2138      by an employer to an employee for services rendered to the employer, including:]
             2139          [(i) bonuses;]
             2140          [(ii) cost-of-living adjustments;]
             2141          [(iii) other payments currently includable in gross income and that are subject to Social
             2142      Security deductions, including any payments in excess of the maximum amount subject to
             2143      deduction under Social Security law; and]
             2144          [(iv) amounts that the employee authorizes to be deducted or reduced for salary deferral
             2145      or other benefit programs authorized by federal law.]
             2146          [(b) "Compensation" for purposes of this chapter may not exceed the amount allowed
             2147      under Internal Revenue Code Section 401(a)(17).]
             2148          [(c) "Compensation," "salary," or "wages" does not include:]
             2149          [(i) the monetary value of remuneration paid in kind, such as a residence or use of
             2150      equipment;]
             2151          [(ii) all contributions made by an employer under any plan for the benefit of a participant;]
             2152          [(iii) salary paid to an employee working under the minimum number of hours required
             2153      for membership;]
             2154          [(iv) salary paid to a temporary or exempt employee;]
             2155          [(v) any payments upon termination, including accumulated vacation, sick leave payments,
             2156      or any other special payments; or]
             2157          [(vi) uniform, travel, or similar allowances.]
             2158          [(3) "Educational institution" means a political subdivision or instrumentality of the state
             2159      or a combination thereof primarily engaged in educational activities or the administration or
             2160      servicing of educational activities, including:]
             2161          [(a) the State Board of Education and its instrumentalities;]
             2162          [(b) any institution of higher learning and its branches;]
             2163          [(c) any school district and its instrumentalities;]
             2164          [(d) any vocational and technical school; and]


             2165          [(e) any entity arising out of a consolidation agreement between entities under this
             2166      definition.]
             2167          [(4) (a) "Employee" or "regular employee" means any regular full-time employee whose
             2168      term of employment for an employer contemplates continued employment during a calendar or
             2169      school year and who performs covered service for one or more employers.]
             2170          [(b) "Employee" or "regular employee" means an officer, elective or appointive, who
             2171      receives as compensation from an employer $500 or more per month over a 12-month period
             2172      adjusted annually by the Bureau of Labor Statistics Consumer Price Index.]
             2173          [(5) "Employer" or "employing unit" means any department, educational institution,
             2174      political subdivision, or organization or agency financed in whole or in part by public funds for
             2175      which any employee or member performs services subject to this chapter.]
             2176          (1) (a) Except as provided in Subsection (1)(c),"compensation" means the total amount
             2177      of payments made by a participating employer to a member of this system for services rendered
             2178      to the participating employer, including:
             2179          (i) bonuses;
             2180          (ii) cost-of-living adjustments;
             2181          (iii) other payments currently includable in gross income and that are subject to Social
             2182      Security deductions, including any payments in excess of the maximum amount subject to
             2183      deduction under Social Security law;
             2184          (iv) amounts that the member authorizes to be deducted or reduced for salary deferral or
             2185      other benefits authorized by federal law; and
             2186          (v) member contributions.
             2187          (b) "Compensation" for purposes of this chapter may not exceed the amount allowed under
             2188      Internal Revenue Code, Section 401(a)(17).
             2189          (c) "Compensation" does not include:
             2190          (i) the monetary value of remuneration paid in kind, including a residence or use of
             2191      equipment;
             2192          (ii) the cost of any employment benefits paid for by the participating employer;
             2193          (iii) compensation paid to a temporary employee, an exempt employee, or an employee
             2194      otherwise ineligible for service credit;
             2195          (iv) any payments upon termination, including accumulated vacation, sick leave payments,


             2196      severance payments, compensatory time payments, or any other special payments; or
             2197          (v) any costs incurred by the member and reimbursed by the participating employer,
             2198      including automobile costs, uniform costs, travel costs, tuition costs, housing costs, insurance
             2199      costs, and dependent care costs.
             2200          (d) The executive director may determine if a payment not listed under this Subsection (1)
             2201      falls within the definition of compensation.
             2202          [(6)] (2) "Final average salary" means the amount computed by averaging the highest five
             2203      years of annual compensation preceding retirement subject to Subsections [(6)] (2)(a), (b), (c), and
             2204      (d).
             2205          (a) Except as provided in Subsection [(6)] (2)(b), the percentage increase in annual
             2206      compensation in any one of the years used may not exceed the previous year's [salary]
             2207      compensation by more than 10% plus a cost-of-living adjustment equal to the decrease in the
             2208      purchasing power of the dollar during the previous year, as measured by [the Consumer Price
             2209      Index prepared by the] a United States Bureau of Labor Statistics Consumer Price Index average
             2210      as determined by the board.
             2211          (b) In cases where the [employing unit] participating employer provides acceptable
             2212      documentation to the [board] office, the limitation in Subsection [(6)] (2)(a) may be exceeded if:
             2213          (i) the member has transferred from another [employing unit] agency; or
             2214          (ii) the member has been promoted to a new position.
             2215          (c) If the member retires more than six months from the date of termination of employment
             2216      [and for purposes of computing the member's final average salary only], the member is considered
             2217      to have been in service at the member's last [salary] rate of pay from the date of the termination
             2218      of employment to the effective date of retirement [becomes effective if the member so requests]
             2219      for purposes of computing the member's final average salary only.
             2220          (d) If [participating service is] the member has less than five years of service credit in this
             2221      system, final average salary means the average annual compensation paid to the member during
             2222      the full period of [participating] service credit.
             2223          [(7) "Normal retirement age" means the age of 65 years.]
             2224          [(8) "Organization or agency financed in whole or in part by public funds" means an
             2225      agency, association, or organization that receives public funds. The term does not include political
             2226      subdivisions, departments, or educational institutions.]


             2227          [(9) "Public funds" means those funds derived, either directly or indirectly, from public
             2228      taxes or public revenue, dues or contributions paid or donated by the membership of the
             2229      organization, used to finance an activity whose objective is to improve, on a nonprofit basis, the
             2230      governmental, educational, and social programs and systems of the state or its political
             2231      subdivisions.]
             2232          [(10) (a) "Regular full-time employee," in qualifying for membership and accrual of
             2233      service credit under this system, means an employee whose employment normally requires an
             2234      average of 20 hours or more per week, except as modified by the board, and who receives benefits
             2235      normally provided by the employing unit.]
             2236          [(b) "Regular full-time employee" includes:]
             2237          [(i) a teacher who teaches half-time or more, or a classified school employee who works
             2238      an average of 20 hours per week or more, regardless of benefits provided; and]
             2239          [(ii) an individual who otherwise meets the definition of this Subsection (10) who
             2240      performs services for a participating employer through an employee leasing or similar
             2241      arrangement.]
             2242          [(11) "Years of service" or "service years" means:]
             2243          [(a) the number of periods, each to consist of 12 full months as determined by the board;]
             2244          [(b) a period determined by the board, whether consecutive or not, during which an
             2245      employee performed services for an employer or employers, including any time the employee
             2246      rendered service in the armed forces of the United States before membership in the system or was
             2247      absent on a paid leave of absence granted by an employer or absent in the service of the United
             2248      States government on military duty as provided by this chapter; or]
             2249          [(c) for a teacher, school administrator, or other contract employee of an educational
             2250      institution, not less than eight months of full-time service constitutes a service year.]
             2251          (3) "Participating employer" means an employer which meets the participation
             2252      requirements of Section 49-12-201 .
             2253          (4) (a) "Regular full-time employee" means an employee whose term of employment for
             2254      a participating employer contemplates continued employment during a fiscal or calendar year and
             2255      whose employment normally requires an average of 20 hours or more per week, except as modified
             2256      by the board, and who receives benefits normally provided by the participating employer.
             2257          (b) "Regular full-time employee" includes:


             2258          (i) a teacher whose term of employment for a participating employer contemplates
             2259      continued employment during a school year and who teaches half-time or more or a classified
             2260      school employee who works an average of 20 hours per week or more for a participating employer,
             2261      regardless of benefits provided;
             2262          (ii) an officer, elective or appointive, who earns during the first full month of the term of
             2263      office $500 or more, indexed as of January 1, 1989, as provided in Section 49-12-407 ;
             2264          (iii) a faculty member or employee of an institution of higher education who is considered
             2265      full-time by that institution of higher education; and
             2266          (iv) an individual who otherwise meets the definition of this Subsection (4) who performs
             2267      services for a participating employer through an employee leasing or similar arrangement.
             2268          (5) "System" means the Public Employees' Contributory Retirement System created under
             2269      this chapter.
             2270          (6) "Years of service credit" means:
             2271          (a) a period, consisting of 12 full months as determined by the board;
             2272          (b) a period determined by the board, whether consecutive or not, during which a regular
             2273      full-time employee performed services for a participating employer, including any time the regular
             2274      full-time employee was absent on a paid leave of absence granted by a participating employer or
             2275      was absent in the service of the United States government on military duty as provided by this
             2276      chapter; or
             2277          (c) the regular school year consisting of not less than eight months of full-time service for
             2278      a regular full-time employee of an educational institution.
             2279          Section 49. Section 49-12-103 , which is renumbered from Section 49-2-201 is renumbered
             2280      and amended to read:
             2281           [49-2-201].     49-12-103. Creation of system.
             2282          There is created for [the employees of the state, its educational institutions, and political
             2283      subdivisions] members employed by a participating employer the "Public Employees' Contributory
             2284      Retirement System."
             2285          Section 50. Section 49-12-104 , which is renumbered from Section 49-2-202 is renumbered
             2286      and amended to read:
             2287           [49-2-202].     49-12-104. Creation of trust fund.
             2288          (1) There is created the "Public Employees' Contributory Retirement Trust Fund" for the


             2289      purpose of paying the benefits and costs of administering this system.
             2290          (2) The fund shall consist of all money paid into it, including interest, in accordance with
             2291      this chapter, whether in the form of cash, securities, or other assets, and of all money received from
             2292      any other source.
             2293          (3) Custody, management, and investment of the fund shall be governed by [Title 49,]
             2294      Chapter [1] 11, Utah State Retirement Systems Administration.
             2295          Section 51. Section 49-12-201 , which is renumbered from Section 49-2-203 is renumbered
             2296      and amended to read:
             2297     
Part 2. Membership Eligibility

             2298           [49-2-203].     49-12-201. System membership -- Eligibility.
             2299          [All employees, as defined under Section 49-2-103 , who perform covered services for any
             2300      employing unit, except as excluded by Section 49-2-205 , are members of the retirement system
             2301      as follows:]
             2302          [(1) Every employee who is employed to perform covered services for a department or
             2303      educational institution prior to July 1, 1986, shall become a member of the system effective on the
             2304      date of employment.]
             2305          [(2) Each employee engaged in performing covered services for a political subdivision on
             2306      the date the political subdivision becomes a participant in the system under Section 49-2-204 shall
             2307      become a member of the system as of the date of coverage. Each new employee of the covered
             2308      unit shall thereafter become a member of the system effective on the date of employment.]
             2309          (1) A regular full-time employee of a participating employer is eligible for service credit
             2310      in this system upon the later of:
             2311          (a) the date on which the participating employer began participating in this system; or
             2312          (b) the effective date of employment of the regular full-time employee with the
             2313      participating employer.
             2314          (2) Beginning July 1, 1986, a person entering employment with the state and its
             2315      educational institutions may not participate in this system.
             2316          Section 52. Section 49-12-202 , which is renumbered from Section 49-2-204 is renumbered
             2317      and amended to read:
             2318           [49-2-204].     49-12-202. Participation of employers -- Limitations -- Exclusions --
             2319      Admission requirements -- Exceptions -- Nondiscrimination requirements.


             2320          (1) (a) [All political subdivisions of the state, unless] Unless excluded under Subsection
             2321      (2), [are] an employer is a participating [employers in the system] employer and may not withdraw
             2322      from participation in [the] this system. [All departments and educational institutions are also
             2323      participating employers in the system and may not withdraw from participation in the system. As
             2324      participating employers, political subdivisions, departments, and educational institutions shall meet
             2325      all requirements for full participation in the system.]
             2326          (b) In addition to their participation in this system, participating employers may provide
             2327      or participate in public or private retirement, supplemental or defined contribution plan, either
             2328      directly or indirectly, for their employees.
             2329          (2) [(a) Any political subdivision] An employer not initially admitted or included as a
             2330      participating employer in [the] this system prior to January 1, 1982, may be excluded from
             2331      participation in [the] this system if:
             2332          [(i)] (a) the [political subdivision] employer elects not to provide or participate in any type
             2333      of private or public retirement, supplemental or [deferred income program] defined contribution
             2334      plan, either directly or indirectly, for its employees, except for social security; or
             2335          [(ii)] (b) the [political subdivision participated in] employer offers another collectively
             2336      bargained retirement [program] benefit and has continued to do so on an uninterrupted basis since
             2337      that date.
             2338          [(b) Any excluded political subdivision may by resolution of its governing body apply for
             2339      and receive admission to the system. Once admitted, the political subdivision may not withdraw
             2340      from participation and shall meet all requirements for full participation in the system. If an
             2341      excluded political subdivision elects at any time to provide or participate in any type of public or
             2342      private retirement, supplemental or deferred income program, either directly or indirectly, except
             2343      for social security, the political subdivision shall be required to be a participating employer in the
             2344      system. As a participating employer, the political subdivision may not withdraw from participation
             2345      and shall meet all requirements for full participation in the system.]
             2346          [(3) (a) Any organization or agency supported in whole or in part by state public funds,
             2347      which prior to application is not covered by this chapter, may by resolution of its governing body
             2348      apply for admission to the system. The board may refuse admission to any organization or agency
             2349      applying for admission upon a finding that it is not in the best interest of the participating
             2350      employers and employees.]


             2351          [(b) Upon approval of the board, the organization or agency shall become a participant in
             2352      the system if the board and the organization or agency agree upon:]
             2353          [(i) the terms by which its employees shall become members of the system, such as the
             2354      effective date of coverage;]
             2355          [(ii) the amount of prior service credit with which they may be credited, if any;]
             2356          [(iii) the amount of any contributions in addition to regular contributions that will be
             2357      required to provide any prior service credits or retroactive current service credits from either the
             2358      employing unit or its employees; and ]
             2359          [(iv) the manner in which retroactive current or prior service credits may be established,
             2360      if any.]
             2361          [(c) Once admitted to the system, an organization or agency may not withdraw from
             2362      participation, except as provided in Subsection (4), and shall meet all requirements for full
             2363      participation in the system.]
             2364          [(d) An organization or agency supported in whole or in part by public funds may not
             2365      apply for or receive admission to the system after the effective date of this Subsection (3)(d).]
             2366          [(4) (a) An organization or agency admitted to the system pursuant to Subsection (3) which
             2367      no longer receives public funds may withdraw from the system if:]
             2368          [(i) the organization or agency's governing body, by resolution, petitions the board for
             2369      withdrawal from the system; and]
             2370          [(ii) the board approves the withdrawal.]
             2371          [(b) Once approval to withdraw is granted, the organization or agency and its employees
             2372      shall be governed by Sections 49-1-502 and 49-1-503 .]
             2373          [(5) Except as provided in Sections 49-2-205 and 49-2-206 , no participating employer may
             2374      maintain full participation in the system by covering only part of its employees. The full
             2375      participation requirement is satisfied if a participating employer covers those of its employees
             2376      eligible for coverage under:]
             2377          [(a) Title 49, Chapter 4, Public Safety Retirement Act; or]
             2378          [(b) Title 49, Chapter 5, Firefighters' Retirement Act and its remaining employees under
             2379      either Title 49, Chapter 2, Public Employees' Retirement Act or Title 49, Chapter 3, Public
             2380      Employees' Noncontributory Retirement Act, whichever is applicable.]
             2381          [(6) In addition to their participation in the system, participating employers may provide


             2382      or participate in any additional public or private retirement, supplemental or deferred income
             2383      program, either directly or indirectly, for their employees.]
             2384          [(7) (a) Credit unions or private hospitals which are participating units in any system
             2385      administered by the board may withdraw from participation upon applying to the board. This
             2386      application shall be made between July 1, 2000, and December 31, 2000. The withdrawal is
             2387      effective the day after the last day the withdrawing unit pays retirement contributions on its
             2388      employees' salaries.]
             2389          [(b) Once the withdrawal of the credit union or private hospital is complete, the employees
             2390      of the withdrawing unit may apply to withdraw their vested contributions. Refunds shall then be
             2391      paid in accordance with Subsection 49-1-502 (3).]
             2392          [(c) Under no circumstance may a withdrawing unit receive the employer contributions
             2393      which have been made to the system.]
             2394          (3) An employer who did not become a participating employer in this system prior to July
             2395      1, 1986, may not participate in this system.
             2396          (4) If a participating employer purchases service credit on behalf of regular full-time
             2397      employees for service rendered prior to the participating employer's admission to this system, the
             2398      service credit shall be purchased in a nondiscriminatory manner on behalf of all current and former
             2399      regular full-time employees who were eligible for service credit at the time service was rendered.
             2400          Section 53. Section 49-12-203 , which is renumbered from Section 49-2-205 is renumbered
             2401      and amended to read:
             2402           [49-2-205].     49-12-203. Exclusions from membership in system.
             2403          (1) The following employees are [excluded from membership in the retirement] not
             2404      eligible for service credit in this system:
             2405          [(1)] (a) [Every] An employee whose employment status is temporary in nature due to the
             2406      nature or the type of work to be performed[.], provided that:
             2407          (i) if the term of employment exceeds six months[, then for that employee a regular
             2408      full-time status shall be assumed, and the employee shall be enrolled in the system] and the
             2409      employee otherwise qualifies for service credit in this system, the participating employer shall
             2410      report and certify to the office that the employee is a regular full-time employee effective the
             2411      beginning of the seventh month of employment[.]; or
             2412          (ii) if [the same] an employee, previously terminated prior to [enrollment as a member, is


             2413      again employed] being eligible for service credit in this system is reemployed within three months
             2414      of termination by the same participating employer, [the employee shall be immediately enrolled
             2415      as a member if the work constitutes full-time as defined in this chapter] the participating employer
             2416      shall report and certify that the member is a regular full-time employee when the total of the
             2417      periods of employment equals six months and the employee otherwise qualifies for service credit
             2418      in this system.
             2419          [(2)] (b) [Full-time students or] A full-time student, the spouse of a full-time student [and
             2420      persons], or a person employed in a trainee relationship [may be excluded from coverage by rules
             2421      adopted by the board] who files a formal request for exemption.
             2422          [(3)] (c) (i) [Every] A current or future employee of a two-year or four-year college or
             2423      university who holds, or is entitled to hold, [pursuant to] under Section [ 49-2-206 ] 49-12-204 , a
             2424      retirement annuity contract with the Teachers' Insurance and Annuity Association of America or
             2425      with any other public or private system, organization, or company during any period in which [that
             2426      employee has received] required contributions [toward the premiums required] based on
             2427      compensation [from the employing unit] have been paid on behalf of the employee by the
             2428      employer.
             2429          (ii) The employee, upon cessation of the participating employer contributions, shall
             2430      immediately become [a contributing member] eligible for service credit in this system.
             2431          [(4)] (d) [Every] An employee serving as an exchange employee from outside the state.
             2432          [(5)] (e) [Elected officials] An elected official who [file] files a formal request for
             2433      exemption.
             2434          [(6) Executive] (f) An executive department [heads] head of the state, [members] a
             2435      member of the State Tax Commission, the Public Service Commission, and [other members] a
             2436      member of a full-time or part-time [boards] board or [commissions] commission who [file] files
             2437      a formal request [to be excluded from coverage] for exemption.
             2438          [(7) (a) Employees of the Department of Employment Security who are covered under
             2439      another retirement system allowed under Title 35A, Chapter 4, Employment Security Act; or (b)
             2440      employees]
             2441          (g) An employee of the Department of Workforce Services [who were covered under
             2442      Subsection (a) and] who [are] is covered under another retirement system allowed under Title 35A,
             2443      Chapter 4, Employment Security Act.


             2444          [(8)] (h) (i) [Persons] A person appointed as a city [managers] manager or chief city
             2445      [administrators or other persons] administrator or another person employed by a [city, town]
             2446      municipality, county, or other political subdivision who [are] is not entitled to merit or civil service
             2447      protection. [Persons]
             2448          (ii) A person eligible for exclusion under [this] Subsection (1)(h)(i) shall file a formal
             2449      request for [exclusion from coverage] exemption and be employed in a position designated as
             2450      exempt under an employee exemption plan developed by the [city, town] municipality, county, or
             2451      political subdivision. [Employee exemption plans shall be subject to the following limitations:(a)
             2452      The total number of positions a city, town]
             2453          (2) (a) A municipality, county, or political subdivision may not exempt [may not exceed
             2454      the lesser of] more than 30 positions or a number equal to 10% of the employees of the [city, town]
             2455      municipality, county, or political subdivision[. However, every city, town] whichever is lesser.
             2456          (b) A municipality, county, or political subdivision [is entitled to a minimum exemption
             2457      of one eligible] may exempt at least one regular full-time employee.
             2458          [(b) Employee exemption plans shall be filed]
             2459          (3) Each participating employer shall:
             2460          (a) file employee exemptions annually with the [retirement] office[,]; and [the city, town,
             2461      county, or political subdivision shall]
             2462          (b) update the [exemption plan] employee exemptions in the event of any change.
             2463          [(c) The retirement]
             2464          (4) The office may [promulgate] make rules to implement this [subsection] section.
             2465          Section 54. Section 49-12-204 , which is renumbered from Section 49-2-206 is renumbered
             2466      and amended to read:
             2467           [49-2-206].     49-12-204. Higher education employees' eligibility requirements --
             2468      Election between different retirement plans -- Classification requirements -- Transfer
             2469      between systems -- Supplemental plans authorized.
             2470          (1) (a) [The faculty members and] Regular full-time employees of institutions of higher
             2471      education who are eligible to participate in either this system or in a retirement annuity contract
             2472      with the [Teacher's] Teachers' Insurance and Annuity Association of America or with any other
             2473      public or private system, organization, or company, designated by the Board of Regents, shall, not
             2474      later than January 1, 1979, elect to participate exclusively in this system or in an annuity contract


             2475      allowed under this Subsection (1).
             2476          (b) The election is final, and no right exists to make any further election.
             2477          (2) (a) A [faculty member or] regular full-time employee hired by an institution of higher
             2478      education after January 1, 1979, may participate only in the retirement plan which attaches to the
             2479      person's employment classification[, and each].
             2480          (b) Each institution of higher education [is directed to] shall prepare or amend existing
             2481      employment classifications, under the direction of the Board of Regents, so that each classification
             2482      is assigned with either:
             2483          (i) this system [or with];
             2484          (ii) the [Teacher's] Teachers' Insurance and Annuity Association of America; or [with any
             2485      other]
             2486          (iii) another public or private system, organization, or company designated by the Board
             2487      of Regents.
             2488          (3) A [faculty member or] regular full-time employee hired by an institution of higher
             2489      education after January 1, 1979, whose employment classification requires participation in [the
             2490      state retirement] this system may[,] elect to continue participation in this system upon change to
             2491      an employment classification which requires participation in:
             2492          (a) an annuity plan with the [Teacher's] Teachers' Insurance and Annuity Association of
             2493      America; or [with some other]
             2494          (b) another public or private system, organization, or company designated by the Board
             2495      of Regents[, finally elect to continue participation in the state retirement system].
             2496          (4) A [faculty member or] regular full-time employee hired by an institution of higher
             2497      education after January 1, 1979, whose employment classification requires participation in [such
             2498      an annuity plan, upon change to an employment classification which requires participation in this
             2499      system,] this system shall participate in this system.
             2500          [(5) Nothing contained in this section prohibits a faculty member or employee of an
             2501      institution of higher education from participating in a supplemental annuity plan, and the Board
             2502      of Regents shall promulgate rules governing permissible participation, but in no event may the
             2503      contribution by an institution for the purchase of an old age annuity or other approved investment
             2504      exceed 14.2% of the employee's or member's salary.]
             2505          [(6) The State Board of Education may assist its faculties and employees to purchase any


             2506      old age annuity plan or other approved investment by promulgating rules governing permissible
             2507      participation in a supplemental old age annuity plan or other approved investment, but such
             2508      assistance is limited to contracting with the employee to receive a reduced salary, and investing
             2509      the employee contribution towards the purchase of the annuity or other approved investment.]
             2510          Section 55. Section 49-12-301 , which is renumbered from Section 49-2-301 is renumbered
             2511      and amended to read:
             2512     
Part 3. Contributions

             2513           [49-2-301].     49-12-301. Contributions -- Two levels -- Election by a participating
             2514      employer to pay employee contributions -- Accounting for and vesting of member
             2515      contributions -- Deductions.
             2516          (1) [The system shall be maintained on a financially and actuarially sound basis by means
             2517      of contributions made jointly by the participating employer and by the active members of the
             2518      system.] Participating employers and members shall jointly pay the certified contribution rates to
             2519      the office to maintain this system on a financially and actuarially sound basis.
             2520          (2) For purposes of determining contribution rates, [the] this system is divided into two
             2521      levels according to participating employers[. The levels are] as follows:
             2522          (a) Level A includes the state [of Utah, the Utah State Retirement Office], its independent
             2523      agencies, independent entities, public corporations, and other instrumentalities, all participating
             2524      educational institutions, and all other participating employers whose activities are associated with
             2525      participating educational institutions.
             2526          (b) Level B includes all other participating employers in [the] this system.
             2527          [(2) Any] (3) (a) A participating employer may elect to pay all or part of [its members']
             2528      the required member contributions, in addition to the required participating employer
             2529      contributions.
             2530          (b) Any amount contributed by [an] a participating employer under this [subsection]
             2531      section shall vest to the member's benefit as though the member had made the contribution.
             2532          (c) The [member's] required [contribution] member contributions shall be reduced by the
             2533      amount that is paid by the participating employer.
             2534          [(3)] (4) (a) All member contributions are credited by the [retirement] office to the account
             2535      of the individual member.
             2536          (b) This amount, together with [regular] refund interest, is held in trust for the payment


             2537      of benefits to the member or the member's beneficiaries.
             2538          (c) All member contributions are [100%] vested and nonforfeitable.
             2539          [(4)] (5) (a) Each member is [deemed] considered to consent to [monthly] payroll
             2540      deductions of member contributions.
             2541          (b) The payment of compensation less [retirement] these payroll deductions is considered
             2542      full payment [of the employee's salary] for services rendered by the member.
             2543          [(5) The board shall report at least biennially to the governor, the Legislature, and each
             2544      employing unit under Division A or B the contribution rates and any adjustments necessary to
             2545      maintain the system on a financially and actuarially sound basis, and the employer and employee
             2546      shall pay the certified contribution rates. ]
             2547          Section 56. Section 49-12-302 is enacted to read:
             2548          49-12-302. Purchase of service credit.
             2549          Any member who works 20 or more hours per week for a participating employer
             2550      participating in this system, but does not meet other eligibility requirements for service credit, may
             2551      purchase the service credit in accordance with Section 49-11-403 .
             2552          Section 57. Section 49-12-401 , which is renumbered from Section 49-2-401 is renumbered
             2553      and amended to read:
             2554     
Part 4. Defined Benefit

             2555           [49-2-401].     49-12-401. Eligibility for an allowance -- Date of retirement --
             2556      Qualifications.
             2557          [(1) (a) Any member who qualifies for service retirement may retire by submitting to the
             2558      retirement office an application form notarized by a notary public. The application shall state the
             2559      proposed effective date of retirement, which may not be more than 90 days before or after the date
             2560      of application.]
             2561          [(b) The effective date shall be the 1st or 16th day of the month, as selected by the
             2562      member, but must be after the last day of actual work.]
             2563          [(c) The member shall actually terminate employment and provide evidence of
             2564      termination.]
             2565          [(2) The member is qualified to retire upon termination of services on or before the
             2566      effective date of retirement if one of the following requirements on that date is met:]
             2567          (1) A member is qualified to receive an allowance from this system when:


             2568          (a) the member ceases actual work for a participating employer in this system before the
             2569      member's retirement date and provides evidence of the termination;
             2570          (b) the member has submitted to the office a notarized retirement application form that
             2571      states the member's proposed retirement date; and
             2572          (c) one of the following conditions is met as of the member's retirement date:
             2573          [(a)] (i) the member has [been credited with] accrued at least four years of service credit
             2574      and has attained an age of 65 years [or more];
             2575          [(b)] (ii) the member has [been credited with] accrued at least ten years of service credit
             2576      and has attained an age of 62 years [or more];
             2577          [(c)] (iii) the member has [been credited with] accrued at least 20 years of service credit
             2578      and has attained an age of 60 years [or more]; or
             2579          [(d)] (iv) the member has [been credited with] accrued at least 30 years of service credit.
             2580          (2) (a) The member's retirement date shall be the 1st or the 16th day of the month, as
             2581      selected by the member, but the retirement date must be on or after the date of termination.
             2582          (b) The retirement date may not be more than 90 days before or after the date the
             2583      application is received by the office.
             2584          Section 58. Section 49-12-402 , which is renumbered from Section 49-2-402 is renumbered
             2585      and amended to read:
             2586           [49-2-402].     49-12-402. Service retirement plans -- Calculation of retirement
             2587      allowance -- Social Security limitations.
             2588          (1) (a) [There are six service retirement plans available to members of the system. Plan
             2589      One is as follows, with Plans Two, Three, Four, Five, and Six established under Section 49-2-403 .]
             2590      Except as provided under Section 49-12-701 , retirees of this system may choose from the six
             2591      retirement options described in this section.
             2592          (b) Options Two, Three, Four, Five, and Six are modifications of the Option One
             2593      calculation.
             2594          (2) [Except for members of this system who meet the requirements of Section 49-2-802 ,
             2595      upon the service retirement of a member under Section 49-2-401 , the member shall receive a
             2596      retirement allowance consisting of an annuity, a pension based on prior service and a pension
             2597      based on current service, the total of which is determined] The Option One benefit is an annual
             2598      allowance calculated as follows:


             2599          (a) If the [member has attained the age of] retiree is at least 65 years of age or has accrued
             2600      at least 30 years of service credit, the [retirement] allowance is:
             2601          [(i) (A) an amount equal to 1.10% of the member's final average monthly salary, multiplied
             2602      by the number of years of service credited for service rendered prior to July 1, 1967; plus]
             2603          [(B)] (i) an amount equal to 1.25% of the [member's] retiree's final average monthly salary
             2604      multiplied by the number of years of service [credited for service rendered on and after July 1,
             2605      1967, through June 30, 1975] credit accrued prior to July 1, 1975; plus
             2606          [(C)] (ii) an amount equal to 2% of the [member's] retiree's final average monthly salary
             2607      multiplied by the number of years of service [credited for service rendered] credit accrued on and
             2608      after July 1, 1975.
             2609          [(ii) In no case may that part of a retiring member's allowance, based upon prior service,
             2610      as provided in Subsection (2)(a)(i)(A) be less than 1.15% of that member's final average monthly
             2611      salary if the final average monthly salary is $500 or less, multiplied by the number of prior service
             2612      years standing to the member's credit at retirement.]
             2613          (b) If the [member] retiree is less than 65 years [old] of age, the [retirement] allowance
             2614      shall be reduced 3% for each year of retirement from age 60 to age 65, unless the member has 30
             2615      or more years of accrued credit in which event no reduction is made to the allowance.
             2616          [(3)] (c) (i) Years of service includes any fractions of years of service to which the
             2617      [member] retiree may be entitled. [Service amounting to 9/10 of one year constitutes a year of
             2618      service credit in the computation of a retirement benefit.]
             2619          (ii) At the time of retirement, if a retiree's combined years of actual, not purchased, service
             2620      credit is within 1/10 of one year of the total years of service credit required for retirement, the
             2621      retiree shall be considered to have the total years of service credit required for retirement.
             2622          (3) The allowance payable under Options Two, Three, Four, Five, and Six is calculated
             2623      by reducing an Option One benefit based on actuarial computations to provide the following:
             2624          (a) Option Two is a reduced allowance paid to and throughout the lifetime of the retiree,
             2625      and, if the retiree receives less in annuity payments than the amount of the retiree's member
             2626      contributions, the remaining balance of the retiree's member contributions shall be paid in
             2627      accordance with Sections 49-11-609 and 49-11-610 .
             2628          (b) Option Three is a reduced allowance paid to and throughout the lifetime of the retiree,
             2629      and, upon the death of the retiree, the same reduced allowance paid to and throughout the lifetime


             2630      of the retiree's lawful spouse at the time of retirement.
             2631          (c) Option Four is a reduced allowance paid to and throughout the lifetime of the retiree,
             2632      and upon the death of the retiree, an amount equal to 1/2 of the retiree's allowance paid to and
             2633      throughout the lifetime of the retiree's lawful spouse at the time of retirement.
             2634          (d) Option Five is a modification of Option Three so that if the lawful spouse at the time
             2635      of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time
             2636      of initial retirement under Option One shall be paid to the retiree for the remainder of the retiree's
             2637      life, beginning on the last day of the month following the month in which the lawful spouse dies.
             2638          (e) Option Six is a modification of Option Four so that if the lawful spouse at the time of
             2639      retirement predeceases the retiree, an allowance equivalent to the amount payable at the time of
             2640      initial retirement under Option One shall be paid to the retiree for the remainder of the retiree's life,
             2641      beginning on the last day of the month following the month in which the lawful spouse dies.
             2642          (4) (a) (i) The final average salary is limited in the computation of that part of [a member's
             2643      prior service retirement] an allowance based on service rendered prior to July 1, 1967, during a
             2644      period when the [member] retiree received employer contributions on a portion of compensation
             2645      from an educational institution toward the payment of the premium required on a retirement
             2646      annuity contract with the Teachers' Insurance and Annuity Association of America or with any
             2647      other public or private system, organization, or company to $4,800.
             2648          (ii) This limitation is not applicable to [members] retirees who elected to continue in the
             2649      [state retirement] this system by July 1, 1967.
             2650          (b) Periods of [service] employment which are exempt from this system under Subsection
             2651      [ 49-2-205 (3), not to exceed four years] 49-12-203 (1)(c), may be purchased by the member for the
             2652      purpose of retirement[.] only if all benefits from the Teachers' Insurance and Annuity Association
             2653      of America or any other public or private system or organization based on this period of
             2654      employment are forfeited.
             2655          (5) (a) If a retiree under Option One dies within 90 days after the retiree's retirement date,
             2656      the retirement is canceled and the death shall be considered as that of a member before retirement.
             2657          (b) Any payments made to the retiree shall be deducted from the amounts due to the
             2658      beneficiary.
             2659          (6) If a retiree retires under either Option Five or Six and subsequently divorces, the retiree
             2660      may elect to convert the benefit to a Option One benefit at the time of divorce, if there is no court


             2661      order filed in the matter.
             2662          Section 59. Section 49-12-403 , which is renumbered from Section 49-2-404 is renumbered
             2663      and amended to read:
             2664           [49-2-404].     49-12-403. Allowance payable by lump sum payment.
             2665          (1) If a [retiring member's monthly] retiree's allowance, as computed under [Section
             2666      49-2-402 ] this chapter, amounts to $25 or less, the [benefit claim] allowance may be settled by the
             2667      [administrator] office by making a lump-sum payment of an amount actuarially equivalent to the
             2668      [monthly] allowance. [Payment thus]
             2669          (2) A payment made under this section constitutes a full and complete settlement of the
             2670      [retiring member's] retiree's claim against [the] this system.
             2671          Section 60. Section 49-12-404 , which is renumbered from Section 49-2-405 is renumbered
             2672      and amended to read:
             2673           [49-2-405].     49-12-404. Lump-sum death benefit for retiree and spouse.
             2674          (1) (a) [A member, upon service] Upon retirement, a retiree may elect to have the
             2675      [administrator set aside in reserve from the member's retirement allowance a sufficient sum of
             2676      money, based upon age, sex, interest rate in effect, and the mortality rates for the member's group,]
             2677      office deduct an actuarially determined amount from the retiree's allowance to provide a lump-sum
             2678      benefit payable to a beneficiary upon the death of the [member after retirement, under an
             2679      agreement that will provide a reduced retirement allowance payable to the retirant throughout the
             2680      retirant's lifetime, plus the lump-sum amount at death] retiree.
             2681          (b) A retiree may also elect to have an actuarially determined amount deducted from the
             2682      retiree's allowance to provide a lump-sum death benefit payable to a beneficiary upon the death
             2683      of the retiree's lawful spouse at the time of retirement.
             2684          [(b) This] (c) The board may make rules for the administration of this lump-sum death
             2685      [benefit may be purchased in accordance with rules adopted by the board] benefit.
             2686          [(c) The spouse of a retiring member may also be covered with a death benefit upon the
             2687      request of the member.]
             2688          [(2) The lump-sum death benefit provided by this section may be chosen as a modification
             2689      of or deduction from the retirement allowance provided under Sections 49-2-402 and 49-2-403 ,
             2690      and is payable to the designated beneficiary chosen at the time of the member's retirement, to a
             2691      beneficiary subsequently designated, or to the retirant's estate under applicable conditions


             2692      established under Section 49-1-606 or 49-1-607 .]
             2693          [(3) If a retirant cancels retirement as permitted by this title, the lump-sum death benefit
             2694      under this section shall also be canceled, with the appropriate reserve, as determined by the
             2695      administrator, credited back to the member's contribution account.]
             2696          [(4) Payment of the lump-sum death benefit consists only of a refund of the retirant's
             2697      reserve or the amount determined by the board and set aside as provided in this section if death
             2698      occurs within three years from the date of retirement and is due to a health condition existing and
             2699      being treated at the time of retirement.]
             2700          [(5) The board may establish rules and adopt suitable mortality rates to protect the fund
             2701      against adverse selection of benefits by a retiring member under this section.]
             2702          (2) (a) For retirees who pay for a lump-sum death benefit under this section through a
             2703      reduction of an allowance, benefits shall be paid in accordance with Sections 49-11-609 and
             2704      49-11-610 .
             2705          (b) If the retiree chooses Option Three, Four, Five, or Six, and a lump-sum death benefit
             2706      is payable after the death of the retiree or the lawful spouse, the allowance shall be restored to its
             2707      original amount.
             2708          Section 61. Section 49-12-405 , which is renumbered from Section 49-2-406 is renumbered
             2709      and amended to read:
             2710           [49-2-406].     49-12-405. Death of married member -- Service retirement benefits to
             2711      surviving spouse.
             2712          (1) [(a) A member who has] Upon the request of the member's lawful spouse at the time
             2713      of death, a member is considered to be eligible to retire under Option Three on the first day of the
             2714      month following the month in which the member died if the following requirements are met:
             2715          (a) the member has:
             2716          (i) 25 or more years of [credited] service[,] credit;
             2717          (ii) attained age 60 with 20 or more years of [credited] service[,] credit;
             2718          (iii) attained age 62 with ten or more years of [credited] service[,] credit; or
             2719          (iv) attained age 65 with four or more years of [credited] service[, respectively, and who]
             2720      credit; and
             2721          (b) the member dies leaving a spouse to whom the member has been married at least six
             2722      months prior to the death date[, may, upon the request of the spouse, be considered to have retired


             2723      on the first day of the month following the month in which death occurred under Plan Number
             2724      Three].
             2725          [(b)] (2) The spouse who requests a benefit [pursuant to Subsection (1)(a)] under this
             2726      section shall apply in writing to the [retirement] office stating the proposed effective date to begin
             2727      receiving [a monthly retirement] an allowance, which may not be more than 90 days [before or]
             2728      after the date of application[, and which shall be effective on the 1st or 16th day of the month, as
             2729      selected by the spouse].
             2730          [(2)] (3) The [benefit] Option Three benefit calculation, when there are 25 or more years
             2731      of service credit, shall be calculated without [an actuarial] a reduction in allowance under Section
             2732      49-12-402 .
             2733          [(3) Benefits] (4) Except for a return of member contributions, benefits payable under this
             2734      section are [service] retirement benefits and shall be paid in addition to any payments made under
             2735      Section [ 49-2-701 , except for a return of accumulated contributions,] 49-12-501 and constitute a
             2736      full and final settlement of the claim of the spouse or any other beneficiary filing claim for benefits
             2737      under Section [ 49-2-701 ] 49-12-501 .
             2738          Section 62. Section 49-12-406 , which is renumbered from Section 49-2-409 is renumbered
             2739      and amended to read:
             2740           [49-2-409].     49-12-406. Part-time elective or appointive service -- Computation of
             2741      allowance.
             2742          [Elective] Notwithstanding any other provision of this title, elective or appointive service
             2743      rendered on a basis not considered full time by the [board,] office, unless otherwise provided by
             2744      this chapter, shall have a [retirement] separate allowance computed on the basis of compensation
             2745      actually received by the [official] member during the period of elective or appointive service.
             2746          Section 63. Section 49-12-407 , which is renumbered from Section 49-2-601 is renumbered
             2747      and amended to read:
             2748           [49-2-601].     49-12-407. Annual cost-of-living adjustment.
             2749          (1) [There shall be computed and paid by the retirement] The office[, upon the approval
             2750      of the board,] shall make an annual cost-of-living [allowance] adjustment to: [all retired members
             2751      of this system after the members have been retired one year. The adjustment shall be equal to the
             2752      decrease in the purchasing power of the dollar during the preceding year, as measured by the
             2753      Consumer Price Index, prepared by the United States Bureau of Labor Statistics, limited to a


             2754      maximum of 4% of the retirant's or beneficiary's original retirement allowance. Decreases in the
             2755      purchasing power of the dollar in excess of 4% annually shall be accumulated and used in
             2756      subsequent allowances when the cost-of-living adjustment is less than 4% annually.]
             2757          [(2) If the cost-of-living shows a decline of 4% or more during any period of time
             2758      extending longer than one year a reduction not to exceed the rate of 2% per year shall be made
             2759      based upon the original retirement allowance. Payments made under this section shall be a part
             2760      of the retired member's allowance. These payments and subsequent adjustments as prescribed for
             2761      the retirant shall also apply to the beneficiary who is paid an allowance under optional retirement
             2762      plans. Cost-of-living benefits granted prior to July 1, 1975, are not subject to adjustment.]
             2763          (a) an original allowance paid under Section 49-12-402 or 49-12-404 , if the allowance has
             2764      been paid for at least one year; and
             2765          (b) an original payment made to an alternate payee under a domestic relations order, if the
             2766      payment is to be paid as a percentage of the allowance rather than a specific dollar amount.
             2767          (2) (a) The original allowance shall be increased by the annual increase in the Consumer
             2768      Price Index up to a maximum of 4%.
             2769          (b) Annual increases in the Consumer Price Index in excess of 4% shall be accumulated
             2770      and used in subsequent adjustments when the annual increase in the Consumer Price Index is less
             2771      than 4%.
             2772          (3) The Consumer Price Index used in calculating adjustments shall be a United States
             2773      Bureau of Labor Statistics Consumer Price Index average as determined by the board.
             2774          (4) The cost-of-living adjustment made under this section may not decrease the allowance.
             2775          Section 64. Section 49-12-408 , which is renumbered from Section 49-2-602 is renumbered
             2776      and amended to read:
             2777           [49-2-602].     49-12-408. Minimum monthly allowance.
             2778          (1) [No member who retired] A retiree under this system may not receive less than $9 per
             2779      month for each year of service credit at the time of retirement.
             2780          (2) The increased allowance provided by this section may not exceed the allowance
             2781      payable under [Plan I] Option One under Section 49-12-402 , by more than 75%.
             2782          (3) The cost of providing this benefit shall be assumed within the contribution rate
             2783      established under Section [ 49-2-301 ] 49-12-301 .
             2784          Section 65. Section 49-12-501 , which is renumbered from Section 49-2-701 is renumbered


             2785      and amended to read:
             2786     
Part 5. Death Benefit

             2787           [49-2-701].     49-12-501. Death benefit by means of group insurance policy --
             2788      Eligibility for death benefit -- Benefit calculation -- Payment of claim -- Exclusion.
             2789          (1) The [board] office shall provide a death benefit through the purchase of a group
             2790      insurance policy for members of this system.
             2791          (2) The board shall make rules to [implement and] administer the death benefit provided
             2792      by this section and may, in accordance with federal law, establish:
             2793          (a) benefit levels [or];
             2794          (b) classes of [employees] members; and
             2795          [(b)] (c) a living benefit option.
             2796          [(2) Upon receipt of acceptable proof of death of a member of the system, either prior to
             2797      the effective date of the member's retirement, except as provided in Section 49-2-406 , or after the
             2798      date of retirement but under circumstances that Section 49-2-403 requires to be treated as the death
             2799      of member before retirement, the following death benefits, except those benefits already provided
             2800      to the member under a living benefit option, shall be paid to the beneficiary:]
             2801          [(a) the return of any accumulated contributions under this chapter; plus]
             2802          [(b) a percentage of the final average salary of the deceased member to be determined by
             2803      the board. This percentage shall be the highest percentage of final average salary obtainable by
             2804      the board through the purchase of a group insurance policy using the money contributed by the
             2805      employer under Subsection (3).]
             2806          (3) This death benefit is payable when:
             2807          (a) the member dies prior to the member's retirement date or dies under circumstances
             2808      which Section 49-12-402 requires to be treated as the death of a member before retirement;
             2809          (b) the office receives acceptable proof of death; and
             2810          (c) benefits are not payable under Section 49-12-404 .
             2811          (4) The death benefit payable to the beneficiary under this section is a lump-sum payment
             2812      consisting of:
             2813          (a) the return of any member contributions under this chapter; plus
             2814          (b) a percentage of the final average salary of the member to be determined by the board.
             2815          (5) Any amount of a living benefit option paid to the member prior to death shall be


             2816      deducted from the benefit payable to the beneficiary.
             2817          [(3)] (6) The cost of the death benefit shall be paid by the participating employer as a
             2818      portion of the contribution rate established under Section 49-12-301 .
             2819          [(4)] (7) The portion of the death benefit provided under Subsection [(2)] (4)(b)[, based
             2820      upon the member's past compensation,] may not be paid to the beneficiary of an inactive member
             2821      unless:
             2822          (a) that member has [credit for] ten or more years of accrued service credit prior to July
             2823      1, 1987; or
             2824          (b) the death of the member occurs either:
             2825          (i) within a period of 120 days after the last day of [service] work for which the person
             2826      received compensation; or
             2827          (ii) while the [person] member is still physically or mentally incapacitated from
             2828      performance of duties, if the incapacity has been continuous since the last day of [service] work
             2829      for which compensation [is] was received[; or].
             2830          [(iii) while that person is on military leave and has elected to remain in active contributing
             2831      membership status as provided in Section 49-1-402 .]
             2832          (8) The death benefit [may not be paid to any person except a beneficiary] provided under
             2833      Subsection (4)(b) shall be paid in accordance with Sections 49-11-609 and 49-11-610 .
             2834          [(5)] (9) The death benefit [for] paid to the beneficiary of an inactive member, except as
             2835      otherwise provided under Subsection [(4)] (7), is a lump-sum return of the [deceased] member's
             2836      [accumulated] member contributions.
             2837          [(6)] (10) Payment of the death benefit by the [retirement] office constitutes a full
             2838      settlement of any beneficiary's claim against the [system] office, and the [system] office is not
             2839      liable for any further or additional claims or assessments on behalf of the [deceased] member.
             2840          [(7)] (11) Unless otherwise specified in a written document filed [in] with the [retirement]
             2841      office, death benefits payable to beneficiaries shall be in accordance with the order of precedence
             2842      established under Title 75, Chapter 2, [Uniform Probate Code] Intestate Succession and Wills.
             2843          [(8) In the implementation of this section and for administrative purposes only, the State
             2844      Tax Commission shall provide pertinent information to the retirement administrator, upon request,
             2845      concerning dependents claimed by a deceased member on the income tax return covering the year
             2846      prior to the member's death.]


             2847          [(9)] (12) A death benefit under this section may not be paid to a [member who has retired]
             2848      beneficiary of a retiree under this system.
             2849          Section 66. Section 49-12-601 , which is renumbered from Section 49-2-503 is renumbered
             2850      and amended to read:
             2851     
Part 6. Disability

             2852           [49-2-503].     49-12-601. Disability retirement -- Medical examinations --
             2853      Reemployment of disabled retirant -- Cancellation of benefit -- Service credit -- Disabled
             2854      retirant engaging in gainful employment -- Reduction of allowance -- Refusal to submit to
             2855      medical examination.
             2856          (1) Only members of this system who became eligible for a disability retirement allowance
             2857      before January 1, 1983, are covered under this section.
             2858          [(1)] (2) (a) The board may, upon the recommendation of the administrator, require any
             2859      retirant who has been retired for disability and who has not attained the age of 60 years, to undergo
             2860      a medical examination by a physician or surgeon, appointed by the board, at the place of residence
             2861      of the retirant or other place mutually agreed upon.
             2862          (b) Upon the basis of the examination, the board shall determine whether the disabled
             2863      retirant is still incapacitated, physically or mentally, for service under this chapter.
             2864          (c) If the board determines that the retirant is not incapacitated, the retirement allowance
             2865      shall be cancelled and the retirant shall be reinstated immediately to a position of the same class
             2866      as that held by the retirant when retired for disability.
             2867          (d) If any employing unit is unable to reinstate the retirant, the board shall continue the
             2868      disability retirement allowance of the retirant until [such time as] employment is available.
             2869          [(2)] (3) (a) If a disabled retirant under this system reenters covered service and is eligible
             2870      for membership in the retirement system, the retirement allowance shall be cancelled and the
             2871      retirant shall immediately become a member of the retirement system.
             2872          (b) (i) The member's individual account shall be credited with an amount which is the
             2873      actuarial equivalent, at the time of reentry, based on a disabled life, of that portion of the member's
             2874      retirement allowance which was derived from the member's accumulated contributions[, but that].
             2875          (ii) The amount credited may not exceed the amount of accumulated contributions
             2876      standing at the time of retirement.
             2877          (c) Each member shall receive credit for the service [standing to] in the member's account


             2878      at the time of retirement.
             2879          [(3)] (4) If the retirement allowance of any disabled retirant is cancelled for any cause other
             2880      than reentry into service, the retirant shall be paid the accumulated contributions less the amounts
             2881      prescribed by Subsection [(5)] (6).
             2882          [(4)] (5) (a) If any member retired for disability engages in a gainful occupation prior to
             2883      attaining age 60, the administrator shall reduce the amount of the retirement [benefit] allowance
             2884      to an amount which, when added to the compensation earned monthly by the retirant in that
             2885      occupation, may not exceed the amount of the final average monthly salary on the basis of which
             2886      the current service retirement [benefit] allowance was determined.
             2887          (b) If the earning capacity of the retirant is further altered, the administrator may further
             2888      alter the retirement [benefit] allowance as provided in this Subsection (5).
             2889          (c) In no event, however, may the retirement benefit be reduced below that portion of the
             2890      retirant's allowance derived from the retirant's own accumulated contributions.
             2891          (d) When the retirant reaches age 60, the retirement allowance shall be made equal to the
             2892      amount upon which the retirant was originally retired and may not again be modified for any cause.
             2893          [(5)] (6) (a) If any member who retired for disability under age 60, refuses to submit to a
             2894      medical examination, the retirement allowance may be discontinued until the retirant withdraws
             2895      that refusal[, and if].
             2896          (b) If the refusal continues for one year the disability status may be cancelled and
             2897      membership terminated.
             2898          (c) (i) The retirant's accumulated contribution account shall be the actuarial equivalent on
             2899      the date of the retirant's change of status, based on a disabled life, of that portion of the disability
             2900      retirement allowance which was derived from the retirant's accumulated contributions[, but that].
             2901          (ii) The amount credited may not exceed the amount of the retirant's accumulated
             2902      contributions at the time of disability retirement.
             2903          Section 67. Section 49-12-701 , which is renumbered from Section 49-2-802 is renumbered
             2904      and amended to read:
             2905     
Part 7. Early Retirement Incentive

             2906           [49-2-802].     49-12-701. Early retirement incentive -- Eligibility -- Calculation of
             2907      benefit -- Payment of costs -- Savings to be appropriated by Legislature -- Restrictions on
             2908      reemployment.


             2909          (1) Any member of this system may retire and receive the [benefit] allowance allowed
             2910      under Subsection (2) if the member meets the following requirements as of the [effective date of]
             2911      member's retirement date:
             2912          (a) the member is eligible for retirement under Section