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H.B. 250

             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.
             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, insured, 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          [(11)] (14) "Current service" means covered service [rendered after the effective date of


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


             648      costs of administering a system, plan, or program.
             649          [(15)] (20) (a) "Inactive member" means a member who has [received no compensation for
             650      a period longer than four months] not been employed by a participating employer for a period of
             651      at least 120 days.
             652          (b) "Inactive member" does not include retirees.
             653          (21) "Insured" means any individual covered under the group health, group life, or
             654      long-term disability programs.
             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
             761      private, state, 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) [act upon all] perform other duties assigned to it by the board.
             874          Section 8. Section 49-11-203 , which is renumbered from Section 49-1-203 is renumbered
             875      and amended to read:
             876           [49-1-203].     49-11-203. Powers and duties of board.
             877          (1) The board shall:
             878          (a) appoint an executive director to administer the [retirement] office;
             879          (b) receive and act upon reports covering the operations of the systems, plans, programs,
             880      and funds administered by the [retirement] office;
             881          (c) ensure that the systems, plans, programs, and funds are administered according to law;
             882          (d) [sit as a board of appeal on any appeal filed by a member of a system, plan, or program
             883      or by a covered employer] review any final order of a hearing officer and approve or modify the
             884      order at the board's discretion in accordance with Section 49-11-613 ;
             885          (e) examine and approve an annual operating budget for the [retirement] office;
             886          (f) serve as investment trustees of the [retirement fund] Utah State Retirement Investment
             887      Fund as provided under this title;
             888          (g) maintain, in conjunction with participating employers and members, the systems, plans,
             889      and programs on an actuarially sound [or approved] basis[, subject to the responsibility of the
             890      Legislature to adjust benefits and contribution rates when recommended by the board];
             891          (h) report annually to the governor, the Legislature, and each participating employer the
             892      contribution rates, premium rates, and any adjustments necessary to maintain the systems, plans,
             893      and programs on a financially and actuarially sound basis;
             894          [(h)] (i) receive and act upon recommendations of the executive director;
             895          [(i)] (j) recommend to the governor and Legislature, through the executive director, any


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


             927          (a) subpoena witnesses and compel their attendance to testify before it, for which purpose
             928      each board member [and the secretary of the board] may administer oaths and affirmations to
             929      witnesses and others transacting business of the [retirement system] office;
             930          (b) establish [membership] councils to [advise] recommend to the board and the executive
             931      director [on] policies affecting members of any [system] systems, plans, and programs
             932      administered by the board [and may];
             933          (c) pay the travel expenses of council members who attend council meetings; and
             934          [(c)] (d) sue and be sued in its own name.
             935          Section 9. Section 49-11-204 , which is renumbered from Section 49-1-204 is renumbered
             936      and amended to read:
             937           [49-1-204].     49-11-204. Powers and duties of executive director.
             938          The executive director shall:
             939          (1) act as the executive officer of the board and the [retirement] office;
             940          (2) administer the various [acts,] systems, plans, programs, and functions assigned to the
             941      board or office;
             942          (3) subject to board review, develop and [promulgate, with the approval of the board,
             943      administrative rules which are within the authority granted by this title, in the administration of
             944      the various retirement systems, plans, and programs] implement internal policies and procedures
             945      which administer and govern the day-to-day operations of the systems, plans, and programs;
             946          (4) transmit orders of a hearing officer made under Section 49-11-613 to the board [any
             947      appeals received from members of any retirement system, plan, or program under this title, or any
             948      covered employer, arising out of a ruling of the director, and to arrange a hearing before the board
             949      for any affected party];
             950          (5) [keep the board, the governor, the Legislature, and its agencies, and other affected
             951      officers, associations, and groups informed on the operations of the retirement office] provide
             952      information concerning the operation of the office to the board, the governor, the Legislature,
             953      participating employers, and employer and employee associations, unless otherwise restricted
             954      under Section 49-11-618 ;
             955          (6) [recommend to the board] inform the Legislature of any recommendations from the
             956      board regarding any necessary or desirable changes [in the retirement statutes] to this title;
             957          (7) [serve as a consultant] consult with the Legislature on all [retirement] legislation under


             958      this title;
             959          (8) (a) recommend to the board an annual administrative budget covering the operations
             960      of the [retirement] office and, upon approval, submit the budget along with the actuarial status of
             961      the [fund] funds to the governor and the Legislature for [examination] review and comment; [after
             962      which the director shall] and
             963          (b) direct and control the subsequent expenditures of the budget;
             964          (9) employ, within the limitations of the budget, [staff] personnel [and consultants] to
             965      administer the [retirement] systems, plans, programs, and funds assigned to the [retirement] office,
             966      including consultants, actuaries, attorneys, medical examiners, investment counselors, and
             967      accountants[, and clerical and other assistants] to accomplish the [purpose] purposes of [the
             968      retirement office] this title;
             969          [(10) develop, with approval of the board, common administrative procedures and rules
             970      for each of the retirement systems, plans, and programs administered by the retirement office;]
             971          [(11)] (10) establish[, with approval of the board,] independent financial records for each
             972      of the [retirement] systems, plans, and programs or combine all financial records using acceptable
             973      principles of [fund] accounting to identify the assets and vested interests of each [retirement]
             974      system, plan, or program;
             975          [(12) credit contributions of employers and other accounts with interest at the rate adopted
             976      in accordance with Subsection (13);]
             977          [(13) from time to time, upon the recommendation of the consulting actuary, adopt interest
             978      rates, mortality tables, and other tables necessary for the administration of the systems, plans, and
             979      programs;]
             980          [(14) keep in convenient form all records and accounts necessary for the administration
             981      of the systems, plans, and programs and data for investigation of its experience and its actuarial
             982      valuation;]
             983          (11) maintain individual records necessary to provide benefits under this title;
             984          (12) keep in convenient form all records, accounts, and data necessary for the
             985      administration and actuarial valuation of the systems, plans, and programs;
             986          (13) adopt fees, charges, and upon the recommendation of the actuary, interest rates and
             987      tables for the administration of the systems, plans, and programs;
             988          [(15)] (14) consolidate into one [warrant] payment all monthly [payments of annuities,


             989      pensions, and subsistence payments made to each retired member as long as] allowances and any
             990      defined contribution distributions if the integrity of the various funds is maintained through
             991      appropriate accounting records [which shall be established];
             992          [(16) comply with the procedures and requirements of Title 63, Chapter 46b,
             993      Administrative Procedures Act, in any adjudicative proceedings conducted by the director; and
             994      (17) from time to time, but]
             995          (15) at least biennially[, and in cooperation with the Office of Legislative Research and
             996      General Counsel,]:
             997          (a) make an actuarial investigation into the mortality, service, and other experience of the
             998      members [and], participants, beneficiaries, and insureds of the systems, plans, and programs[,];
             999          (b) actuarially value the assets and liabilities of the administered funds and accounts[,];
             1000      and
             1001          (c) determine the rate of interest being earned by the funds[, and, based upon all these
             1002      determinations and factors, including items requested by the Office of Legislative Research and
             1003      General Counsel, shall confer with that office and];
             1004          (16) report to the board findings [of the investigation] under Subsection (15), with
             1005      recommendations, [to the Legislature along with any] including proposed changes in the rates of
             1006      contribution or benefits that are necessary to [the security] maintain the actuarial soundness of the
             1007      [system, plan, or program. Costs of the investigation, as well as all actuarial consulting and other
             1008      services, shall be paid from the interest earnings of the fund.] systems, plans, or programs;
             1009          (17) regulate participating employers by:
             1010          (a) educating them on their duties imposed by this title;
             1011          (b) specifying the time, place, and manner in which contributions shall be withheld and
             1012      paid; and
             1013          (c) requiring any reports necessary for the administration of this title; and
             1014          (18) otherwise exercise the powers and perform the duties conferred on the executive
             1015      director by this title.
             1016          Section 10. Section 49-11-301 , which is renumbered from Section 49-1-301 is renumbered
             1017      and amended to read:
             1018     
Part 3. Investment Fund

             1019           [49-1-301].     49-11-301. Creation -- Board to act as trustees of the fund --


             1020      Commingling and pooling of funds -- Interest earnings.
             1021          (1) There is created [for the purpose of enlarging the investment base and simplifying
             1022      investment procedures and functions] a common trust fund known as the "Utah State Retirement
             1023      Investment Fund[.]" for the purpose of enlarging the investment base and simplifying investment
             1024      procedures and functions.
             1025          (2) (a) The board shall act as trustees of the [fund,] Utah State Retirement Investment Fund
             1026      and, through [its] the executive [officer] director, may commingle and pool the funds and
             1027      investments of any [retirement] system, plan, or program into the Utah State Retirement
             1028      Investment Fund, [as long as] if the principal amounts of the participating funds do not lose their
             1029      individual identity and are maintained as separate trust funds on the books of the [retirement]
             1030      office.
             1031          (b) (i) In combining the investments of any fund, each of the participating funds shall be
             1032      credited initially with its share of the total assets transferred to the Utah State Retirement
             1033      Investment Fund[, the calculation being made on the basis of the fair market value of the various
             1034      investments at the time the investments are credited to the Utah State Retirement Investment
             1035      Fund].
             1036          (ii) The value of the transferred assets shall be calculated in accordance with generally
             1037      accepted accounting principles.
             1038          (c) Subsequent transfers of additional capital from participating funds shall be credited
             1039      similarly to its respective trust account.
             1040          (d) [Funds may be withdrawn or transferred out of the Utah State Retirement Investment
             1041      Fund and credited back to a participating fund, but at no time may the] The income or principal
             1042      or equity credit belonging to one participating fund may not be transferred to another, except for
             1043      the purpose of:
             1044          (i) actuarially recommended transfers in order to adjust employer contribution rates for an
             1045      employer that participates in both contributory and noncontributory systems[.]; or
             1046          (ii) transfers which reflect the value of service credit accrued in different systems during
             1047      a member's career.
             1048          (3) The assets of the [participating] funds are for the exclusive benefit of the members,
             1049      participants, and insureds and may not be diverted or appropriated for any purpose other than that
             1050      permitted by this [chapter or the chapters covering the individual participating funds] title.


             1051          (4) (a) Interest and other earnings shall be credited to each participating fund on a pro rata
             1052      equity position basis [monthly, or otherwise as directed by the board].
             1053          (b) (i) A portion of the interest and other earnings of the common trust fund may be
             1054      credited to a reserve account within the Utah State Retirement Investment Fund to meet adverse
             1055      experiences arising from investments or other contingencies.
             1056          (ii) Each participating fund shall retain its proportionate equity in the reserve account.
             1057          Section 11. Section 49-11-302 , which is renumbered from Section 49-1-302 is renumbered
             1058      and amended to read:
             1059           [49-1-302].     49-11-302. Board duties with respect to fund.
             1060          (1) The board [shall]:
             1061          (a) shall review and establish the asset allocation of [all funds assigned to the board or
             1062      retirement office] the Utah State Retirement Investment Fund for investment, and [through its]
             1063      with the executive [officer] director, shall determine the method of investing the funds [to ensure
             1064      the greatest return commensurate with sound financing adequately safeguarded. The board,];
             1065          (b) through [its] the executive [officer, may] director:
             1066          (i) shall invest [and reinvest] the money in the [retirement fund or funds and] Utah State
             1067      Retirement Investment Fund; and
             1068          (ii) may provide for the holding, purchasing, selling, assigning, transferring, and disposing
             1069      of any of the securities and investments in which any of the money of the [fund] Utah
             1070      State Retirement Investment Fund is invested. [The board shall appoint a custodian for the funds
             1071      and securities under its control.]
             1072          (2) Fees for all services shall be paid from the interest earnings of the [investment fund]
             1073      Utah State Retirement Investment Fund.
             1074          [(2)] (3) [The board may hold title] Title to real estate or any other fund investment may
             1075      be:
             1076          (a) held in the name of the Utah State Retirement Investment Fund; or [may by rule
             1077      determine under what name or names it holds title to real estate or any other fund investment.]
             1078          (b) held in another name or names as determined by the board.
             1079          Section 12. Section 49-11-303 , which is renumbered from Section 49-1-303 is renumbered
             1080      and amended to read:
             1081           [49-1-303].     49-11-303. Fund investment standard -- Prudent investor rule.


             1082          The [fund] Utah State Retirement Investment Fund shall be invested in accordance with
             1083      the prudent [man] investor rule [established] under Section 75-7-302 .
             1084          Section 13. Section 49-11-304 , which is renumbered from Section 49-1-304 is renumbered
             1085      and amended to read:
             1086           [49-1-304].     49-11-304. Administrative costs -- Payable from fund.
             1087          General administrative costs of operating the [retirement] office shall be assessed to the
             1088      [retirement] systems, plans, programs, and funds [administered upon the basis of cost and service
             1089      performed. Special costs, such as actuarial studies and service, investment counsel, legal fees, and
             1090      medical examiner charges, which are or can be directly attributable to a system, plan, program, or
             1091      fund shall be paid directly from the respective fund involved. Since the administrative funds are
             1092      derived from the systems, plans, and programs administered by the retirement office, rather than
             1093      an administrative appropriation from the General Fund, any balance in the administrative fund at
             1094      the end of a fiscal or biennial period shall remain in the fund, but shall be taken into consideration
             1095      in preparing a subsequent budget] on a pro rata basis and shall be paid from earnings of the Utah
             1096      State Retirement Investment Fund.
             1097          Section 14. Section 49-11-305 , which is renumbered from Section 49-1-305 is renumbered
             1098      and amended to read:
             1099           [49-1-305].     49-11-305. Self-insurance option -- Purchase of liability insurance.
             1100          (1) The [retirement] office may self insure and may purchase commercial insurance[, self
             1101      insure, or purchase excess commercial insurance in excess of] in any amount.
             1102          (2) The office may also purchase excess commercial insurance above the limits provided
             1103      by the Governmental Immunity Act against any:
             1104          (a) risk created or recognized by the Governmental Immunity Act; or [any]
             1105          (b) other action for which the board, office, or any of its employees, may be held liable.
             1106          Section 15. Section 49-11-401 , which is renumbered from Section 49-1-401 is renumbered
             1107      and amended to read:
             1108     
Part 4. Service Credits

             1109           [49-1-401].     49-11-401. Transfer of service credit -- Eligibility for service credit --
             1110      Computation of service credit.
             1111          (1) (a) The [board] office shall make the transfer of service [credits] credit, together with
             1112      related member and participating employer contributions, from one [retirement] system to another


             1113      upon terms and conditions established by the board.
             1114          (b) The terms and conditions may not result in a loss of accrued benefits.
             1115          (2) Transfer of employment from a position covered by one [public retirement] system to
             1116      a position covered by another system does not [either: (a)] cause the employee to lose active
             1117      [membership] member status [in the system; or].
             1118          [(b) constitute a termination of employment prerequisite to qualifying for a refund of
             1119      contributions.]
             1120          [(2)] (3) In the [establishment] accrual of service [credits] credit, the following provisions
             1121      apply:
             1122          [(a) Any member of a retirement system who performs covered services shall receive
             1123      service credit for the service.]
             1124          [(b) Any member who is not in an active service status because of sickness, injury, leave
             1125      of absence, including service in the armed forces of the United States, or because the member is
             1126      in the process of transfer from one employing unit to another shall, upon returning to active status,
             1127      have the same rights and be subject to the same requirements as other employees under this title.]
             1128          [(c) (i) For the purpose of computing the amount of a member's retirement allowance, no
             1129      service credit may be given to any member for the period during which the member is on leave of
             1130      absence without compensation, except as otherwise provided in this title or Subsection (2)(c)(ii).]
             1131          [(ii) A member with full-time public service while on an approved leave of absence may
             1132      purchase, or the employer may purchase on their behalf, credit equal to the public service by
             1133      making contributions fixed by the administrator.]
             1134          [(d) No service credit may be given to a member for the period during which the member
             1135      was in any inactive status unless the service is purchased according to the provisions of this title.]
             1136          [(e) Credit for service shall be granted in proportion to the work performed under rules
             1137      adopted by the board. (f) In no case may a retirement]
             1138          (a) A person employed and compensated by a participating employer who meets the
             1139      eligibility requirements for membership in a system or the Utah Governors' and Legislators'
             1140      Retirement Plan shall receive service credit for the term of the employment provided that all
             1141      required contributions are paid to the office.
             1142          (b) An allowance or other benefit [be granted] may not accrue under this title which is
             1143      based upon the same [service] period of employment as has been the basis for any retirement


             1144      benefits under some other [state] public retirement system.
             1145          [(g) Members shall be credited with any fractions of years of service to which they are
             1146      entitled.]
             1147          [(h)] (c) The board shall fix the minimum time per day, per month, and per year upon the
             1148      basis of which one year of service and proportionate parts of a year shall be credited toward
             1149      qualification for retirement. Service may be computed on a fiscal or calendar year basis and
             1150      portions of years served shall be accumulated and counted as service. In any event, all of the
             1151      service rendered in any one fiscal or calendar year may not count for more than one year.
             1152          [(i) Any employee who is transferred to the Division of Information of Technology Service
             1153      from the Department of Public Safety, and who was a member in the Public Safety Retirement
             1154      System or Public Safety Noncontributory Retirement System, shall be entitled to remain a member
             1155      in the system he participated in prior to being transferred regardless of whether the employee's
             1156      current position is covered by the respective public safety system. This exception does not apply
             1157      to any person hired on or after January 1, 1992.]
             1158          (d) Service credit shall be accrued on a fiscal or calendar year basis as determined by the
             1159      participating employer.
             1160          (e) A member may not accrue more than one year of service credit per fiscal or calendar
             1161      year as determined by the office.
             1162          (f) Fractions of years of service credit shall be accumulated and counted in proportion to
             1163      the work performed.
             1164          (4) The office may estimate the amount of service credit, compensation, or age of any
             1165      member, participant, or alternate payee, if information is not contained in the records.
             1166          [(3) (a) The board may adopt rules under which a member may make the necessary
             1167      contributions to the system for purchases or redeposits under this title through a
             1168      direct transfer, direct rollover or rollover from a qualified plan under Section 401, Internal
             1169      Revenue Code, or an eligible individual retirement account.]
             1170          [(b) The board may reject any contributions if the board determines the tax status of the
             1171      system would be jeopardized by allowing the contribution.]
             1172          [(c) For purposes of this section, a direct rollover shall be determined under the provisions
             1173      of Section 401(a)(31), Internal Revenue Code.]
             1174          Section 16. Section 49-11-402 , which is renumbered from Section 49-1-402 is renumbered


             1175      and amended to read:
             1176           [49-1-402].     49-11-402. Purchase of military service credit.
             1177          [(1) (a) Members with full-time military service not qualifying for service credit under this
             1178      title may purchase credit for that military service or the employer may make the purchase on behalf
             1179      of the member by making contributions to the system in an amount recommended by the
             1180      consulting actuary.]
             1181          [(b) Contributions shall be based on age and salary and the purchase shall be made through
             1182      payroll deductions or through a lump sum deposit based upon the present value of future
             1183      payments.]
             1184          [(c) Military service credit acquired in this manner is limited to a maximum of four years.]
             1185          [(d) Total payment must be completed prior to retirement or service will be prorated in
             1186      accordance with the amount paid. (2) Any employee of a covered unit, who has status as a ]
             1187          (1) A member [of a retirement system authorized by this title and] who is absent from
             1188      employment with a participating employer by reason of an official call to full-time United States
             1189      military service [in the armed forces of the United States,] may receive service credit for that
             1190      military service as follows:
             1191          (a) the member [and], the participating employer, or the member and participating
             1192      employer jointly shall make the [appropriate contributions] required payments, as determined by
             1193      the office, to the [retirement] system in which the member participated at the time of the official
             1194      call, according to the law governing that particular system;
             1195          (b) prior to a member's retirement date, the [contributions] required payments shall be
             1196      made:
             1197          (i) during the period of [the official call, or a contribution adjustment shall be made
             1198      subsequent to the official call, but at least five years prior to the member's retirement date;]
             1199      full-time United States military service;
             1200          (ii) after the military service, but within a period not to exceed three times the period of
             1201      military service up to a maximum of five years; or
             1202          (iii) as otherwise allowed by federal law;
             1203          (c) required payments shall be based on the member's compensation at the time of the
             1204      official military call;
             1205          (d) if a required payment is not made within the time allowed under Subsection (1)(b), the


             1206      member or participating employer may purchase the service credit as allowed in Subsection (2);
             1207      and
             1208          [(c)] (e) the member [must] shall return to [covered service] employment with the
             1209      participating employer upon receiving an honorable discharge from military service and there may
             1210      not be intervening employment outside of [covered service ; and] the employment with the
             1211      participating employer.
             1212          [(d) contributions shall be based on the member's compensation at the time of the official
             1213      military call.]
             1214          (2) (a) A member, a participating employer, or a member and a participating employer
             1215      jointly, may purchase service credit for full-time United States military service, resulting from an
             1216      official call to duty, if the member has four or more years of service credit and the military service
             1217      does not otherwise qualify for service credit under this title.
             1218          (b) Payment to the office for a military service credit purchase shall be made to the system
             1219      under which the member is currently covered in an amount determined by the office based on a
             1220      formula recommended by the actuary and adopted by the board.
             1221          (c) The purchase shall be made through payroll deductions or through a lump sum deposit
             1222      based upon the present value of future payments.
             1223          (d) If total payment is not completed prior to retirement, service credit shall be prorated
             1224      in accordance with the amount paid.
             1225          (3) For purposes of this section, full-time United States military service does not include
             1226      any regularly scheduled or annual military service that is required by a reserve unit, National Guard
             1227      unit, or any other United States military unit.
             1228          (4) (a) If any of the factors used to determine the cost of a service credit purchase change
             1229      at or before the member's retirement date, the cost of the purchase shall be recalculated.
             1230          (b) If the recalculated cost exceeds the amount paid for the purchase, the member may:
             1231          (i) pay the increased cost, plus interest, to receive the full amount of service credit; or
             1232          (ii) not pay the increased cost and have the purchased service credit prorated.
             1233          (5) If the recalculated cost under Subsection (4) is less than the amount paid for the
             1234      purchase, the office shall refund the excess payment to the member or participating employer who
             1235      paid for the purchase.
             1236          (6) (a) The board may adopt rules under which a member may make the necessary


             1237      payments to the office for purchases under this title as permitted by federal law.
             1238          (b) The office may reject any payments if the office determines the tax status of the system,
             1239      plans, or programs would be jeopardized by allowing the payment.
             1240          Section 17. Section 49-11-403 , which is renumbered from Section 49-1-407 is renumbered
             1241      and amended to read:
             1242           [49-1-407].     49-11-403. Purchase of public service credit not otherwise qualifying
             1243      for benefit.
             1244          (1) A member, a participating employer, or a member and a participating employer jointly
             1245      may purchase service credit equal to the period of the member's [service] employment in the
             1246      following:
             1247          (a) United States federal employment;
             1248          (b) [private school] employment in a private school based in the United States;
             1249          (c) public employment in this or another state that does not qualify for service credit under
             1250      a system administered by the board which qualifies the member for membership in the public plan
             1251      or system covering the employment, but only if the member does not qualify for any retirement
             1252      benefits based on the employment;
             1253          [(d) employment in a university or a public school system if the member is on a leave of
             1254      absence for reasons relating to employment;]
             1255          [(e)] (d) forfeited [public] service credit in this state if the member does not qualify for [a
             1256      retirement benefit for that service; or] an allowance based on the service credit;
             1257          (e) full-time public service while on an approved leave of absence; or
             1258          (f) the period of time for which disability benefits were paid if:
             1259          (i) the member was receiving:
             1260          (A) long-term disability benefits;
             1261          (B) short-term disability benefits; or
             1262          (C) worker's compensation disability benefits; and
             1263          (ii) the member's employer had not entered into a benefit protection contract [pursuant to]
             1264      under Section [ 49-1-404 ] 49-11-404 during the period the member was disabled due to sickness
             1265      or accident.
             1266          [(2) To purchase credit, the member shall pay an amount fixed by the administrator that
             1267      is established on an actuarial equivalent basis.]


             1268          [(3) The purchase may be made through payroll deductions or through a lump-sum
             1269      deposit.]
             1270          [(4) The employer may make the purchase on behalf of the member.]
             1271          [(5) Total payment must be completed prior to retirement or service will be prorated in
             1272      accordance with the amount paid.]
             1273          (2) A member shall have:
             1274          (a) at least four years of service credit before a purchase can be made under this section;
             1275      and
             1276          (b) forfeited service credit under any other retirement system or plan based on the public
             1277      employment for which service credit is being purchased.
             1278          (3) To purchase credit under this section, the member or participating employer shall make
             1279      payment to the system in an amount determined by the office based on a formula recommended
             1280      by the actuary and adopted by the board.
             1281          (4) The purchase may be made through payroll deductions or through a lump sum deposit
             1282      based upon the present value of future payments.
             1283          (5) Total payment must be completed prior to the member's effective date of retirement
             1284      or service credit will be prorated in accordance with the amount paid.
             1285          (6) (a) If any of the factors used to determine the cost of a service credit purchase change
             1286      at or before the member's retirement date, the cost of the purchase shall be recalculated.
             1287          (b) If the recalculated cost exceeds the amount paid for the purchase, the member may:
             1288          (i) pay the increased cost, plus interest, to receive the full amount of service credit; or
             1289          (ii) not pay the increased cost and have the purchased service credit prorated.
             1290          (7) If the recalculated cost under Subsection (6) is less than the amount paid for the
             1291      purchase, the office shall refund the excess payment to the member or participating employer who
             1292      paid for the purchase.
             1293          (8) (a) The board may adopt rules under which a member may make the necessary
             1294      payments to the office for purchases under this title as permitted by federal law.
             1295          (b) The office may reject any payments if the office determines the tax status of the system,
             1296      plans, or programs would be jeopardized by allowing the payment.
             1297          Section 18. Section 49-11-404 , which is renumbered from Section 49-1-404 is renumbered
             1298      and amended to read:


             1299           [49-1-404].     49-11-404. Benefit protection contract authorized.
             1300          [(1) Any department or political subdivision covered by any system administered by the
             1301      retirement office that has established a paid salary protection program under which its officers or
             1302      employees, during periods of disability arising out of sickness or accident, are paid by it or by an
             1303      insurance underwriter at the disabled member's rate of compensation in effect at the time disability
             1304      occurred and the program is substantially equivalent to the program offered under Title 49, Chapter
             1305      9, may with the approval of the board, enter into a "benefit protection contract" with the retirement
             1306      office.]
             1307          (1) (a) A participating employer may establish a salary protection program under which
             1308      its employees are paid during periods of disability.
             1309          (b) If a salary protection program is established, a participating employer may enter into
             1310      benefit protection contracts with the office.
             1311          (c) A salary protection program shall:
             1312          (i) pay benefits based on the disabled member's rate of compensation at the time of
             1313      disability;
             1314          (ii) be substantially equivalent to the long-term disability programs offered under Chapter
             1315      21, Public Employees' Long-Term Disability Act; and
             1316          (iii) comply with requirements adopted by the board.
             1317          (2) [The] A benefit protection contract shall [provide a means whereby] allow:
             1318          (a) the disabled member [is] to be considered [to be] an active [participating] member [of
             1319      this retirement] in a system and [as such continues] continue to accrue [full-time] service credit
             1320      and salary [credits during the time employer contributions,] credit based [upon] on the member's
             1321      [full] rate of pay in effect at the time disability [began, are paid to the retirement office]
             1322      commences;
             1323          (b) the office to require participating employer contributions to be paid before granting
             1324      service credit and salary credit to the member;
             1325          [(b)] (c) the disabled member [or beneficiary remains] to remain eligible during the
             1326      contract period for any [retirement system] benefits provided by the [retirement] system that covers
             1327      the member; and
             1328          [(c)] (d) the benefit for the disabled member [is] to be improved by the annual
             1329      cost-of-living increase factor applied to retired members of the system that covered the [employee


             1330      at the time of disability] member on the date the member is eligible to receive benefits under a
             1331      benefit protection contract.
             1332          (3) (a) The [board] office shall establish the manner and times when employer
             1333      contributions are [to be] paid.
             1334          (b) A failure to make the required payments is cause for the [board] office to cancel [the
             1335      contracts as to any individual covered by the] a contract.
             1336          (c) Service credit and salary [credits] credit granted and accrued up to the time of
             1337      cancellation[, however,] may not be forfeited.
             1338          (4) The board may adopt rules to implement and administer this section.
             1339          Section 19. Section 49-11-405 , which is renumbered from Section 49-1-406 is renumbered
             1340      and amended to read:
             1341           [49-1-406].     49-11-405. Service credit from different systems or plans -- Eligibility
             1342      and calculation of service credit.
             1343          (1) [Any] (a) A member who has [years of] service credit from two or more systems or
             1344      [plans administered by the board which is not concurrent service] one or more systems and the
             1345      Utah Governors' and Legislators' Retirement Plan may combine [these credits] service credit for
             1346      purposes of determining eligibility for retirement.
             1347          (b) The provisions of Subsection (1)(a) do not apply to concurrent service.
             1348          (2) To be eligible for the calculation under Subsection (3), the member's [years of] service
             1349      [credits] credit earned under the [two or more] different [retirement] systems or the Utah
             1350      Governors' and Legislators' Retirement Plan shall at least equal the minimum [number of years]
             1351      amount of service credit required to retire [under the system from which the member is seeking
             1352      to retire] from the system which most recently covered the member.
             1353          (3) If [the] a member meets the requirements of Subsection (2), the [board] office shall
             1354      calculate the member's [retirement] allowance using all [credits] service credit earned from any
             1355      [retirement] system or the Utah Governors' and Legislators' Retirement Plan, with no actuarial
             1356      reduction applied to the allowance, except the [years of] service credit used to calculate the benefit
             1357      shall be increased or decreased to reflect the value of the assets transferred [to effectuate the
             1358      calculation of the allowance].
             1359          (4) The [retirement board] office shall [adopt rules to] establish the standards used for
             1360      calculating any increase or decrease in the [years of] service credit.


             1361          (5) This section does not apply to a retiree who is subject to Section 49-11-504 .
             1362          Section 20. Section 49-11-501 , which is renumbered from Section 49-1-502 is renumbered
             1363      and amended to read:
             1364     
Part 5. General Member Provisions

             1365           [49-1-502].     49-11-501. Refunds of member contributions -- Transfers of
             1366      contributions to defined contribution plan.
             1367          (1) If a member shall for any cause, except retirement, permanent or temporary disability,
             1368      or death, [cease to be employed in covered services for an employer then] terminate employment
             1369      with a participating employer the member may[:] leave the member contributions in the fund or
             1370      may receive a refund of the member contributions as provided under this section.
             1371          [(a) By signing a written request, affirming therein that the member has neither applied for,
             1372      nor contemplates further employment with a covered unit, and directing the request to the
             1373      retirement office, receive a refund of all accumulated contributions, less a withdrawal fee the
             1374      amount of which the board shall establish by rule for the purpose of reimbursing its administrative
             1375      fund for the cost entailed by the withdrawal. Notwithstanding the written request, if a member
             1376      who has requested a refund accepts employment with another covered unit within the 60-day
             1377      period, the member shall inform the retirement office immediately. In the event of this election,
             1378      a terminating employee, upon later reemployment by an employer under this title, unless the
             1379      employee redeposits the refund as permitted by this section, shall be treated as a new employee and
             1380      the employee's service history and benefit rights shall then be based upon current services from the
             1381      date of reemployment in covered services.]
             1382          [(b) Leave the member's account in the fund intact. In the event of this election, a
             1383      terminating employee shall retain status as a member of the system, except for the lack of
             1384      contributions paid into the fund by the member or on the member's behalf. In the event of
             1385      reemployment by an employer for services covered by this title, the employee's service history and
             1386      benefit rights shall be based upon the service credit accredited to the employee at the time of the
             1387      employee's most recent termination of employment, as well as upon the current service credit that
             1388      is acquired as the result of reemployment.]
             1389          [(2) Upon the attainment of retirement age, an inactive member has the same rights to
             1390      retirement benefits, if so eligible, as any active employee member.]
             1391          [(3) Refunds of vested contributions may not be made prior to 60 days from the last day


             1392      the contributions were made, and only upon the termination of the member.]
             1393          [(4) No refund may be made to an active member of any retirement system administered
             1394      by the board. Contributions made in error will be returned to the employing unit.]
             1395          (2) A member who applies for a refund of member contributions shall apply in writing on
             1396      forms provided by the office.
             1397          (3) A refund of member contributions may not be made to a member within 60 days from
             1398      the last date of the pay period for which contributions are made by or on behalf of the member.
             1399          (4) If the member is reemployed by a participating employer within the time period under
             1400      Subsection (3), the member is not eligible for a refund.
             1401          (5) A member who receives a refund of member contributions forfeits the service credit
             1402      based on those contributions.
             1403          [(5) Members] (6) A member who [are] is exempted from a [retirement] system
             1404      [administered by the board] but who [remain] remains employed by a [covered unit] participating
             1405      employer may request a plan-to-plan transfer of [vested, untaxed employee contributions to a
             1406      salary deferral plan administered by the board, as permitted by federal law] member contributions
             1407      to a qualified defined contribution plan administered by the board.
             1408          [(6) An employee, who is no longer a member of a retirement system administered by the
             1409      board because the employee's employing unit withdrew from the retirement systems under this
             1410      title, may request a plan transfer of vested employee contributions to a plan offered by the
             1411      employer that is qualified to receive the transfer under federal law.]
             1412          (7) A member who remains employed with an employer which has withdrawn from a
             1413      system may request a plan-to-plan transfer of member contributions to a qualified defined
             1414      contribution plan administered by the board or a qualified plan offered by the member's employer.
             1415          (8) Refund interest shall be paid on refunds of member contributions under this section.
             1416          Section 21. Section 49-11-502 , which is renumbered from Section 49-1-503 is renumbered
             1417      and amended to read:
             1418           [49-1-503].     49-11-502. Redeposits of refunds -- Time period.
             1419          (1) [A] (a) If a member [of any system who withdraws accumulated contributions upon
             1420      a previous termination of employment and who returns to covered employment in a status
             1421      prerequisite for membership may redeposit or the member's employer may redeposit the
             1422      accumulated] receives a refund of member contributions and is subsequently reemployed in a


             1423      position covered by a system or the Utah Governors' and Legislators' Retirement Plan, the
             1424      participating employer or the member may redeposit an amount equal to the member contributions
             1425      [withdrawn, together with] refunded and interest charged under Section 49-11-503 .
             1426          (b) The interest shall be compounded annually from the date of refund through the month
             1427      of payment[, at rates compounded annually under Section 49-1-504 ].
             1428          (c) If a redeposit is made, service credit shall be restored [and credited to the same
             1429      retirement system from which the refund was taken providing that the total redeposit is made prior
             1430      to retirement] to the member's account and credited to the same system or the Utah Governors' and
             1431      Legislator's Retirement Plan from which the refund was taken.
             1432          (2) (a) A member may redeposit [a previous] an amount equal to a prior refund of member
             1433      contributions and interest charges in one lump sum or [may redeposit the refund amount and
             1434      interest charges] in monthly installments by payroll deduction in a time period determined by the
             1435      [executive director] office.
             1436          (b) If the total redeposit is not made prior to the member's retirement date, the amount of
             1437      redeposit paid to the office shall be refunded to the member without interest and the member is not
             1438      entitled to service credit based on the amount of the refund.
             1439          (c) The interest rate charged during the installment period shall be a fixed rate calculated
             1440      at the time of the first installment payment in accordance with Section 49-11-503 .
             1441          (3) A member who redeposits a refund of member contributions under this section shall
             1442      receive the amount of service credit forfeited in taking the refund.
             1443          (4) (a) For purposes of this section, the Public Employees' Contributory Retirement
             1444      System created under Chapter 12, and the Public Employees' Noncontributory Retirement System
             1445      created under Chapter 13, are considered one system.
             1446          (b) For purposes of this section, the Public Safety Contributory Retirement System created
             1447      under Chapter 14, and the Public Safety Noncontributory Retirement System created under Chapter
             1448      15, are considered one system.
             1449          (c) For purposes of this section, the Judges' Contributory Retirement System created under
             1450      Chapter 17, and the Judges' Noncontributory Retirement System created under, Chapter 18, are
             1451      considered one system.
             1452          (5) (a) The board may make rules to allow a member to make the necessary payments to
             1453      the office for redeposits under this title as permitted by federal law.


             1454          (b) The office may reject any payments if the office determines the tax status of the
             1455      systems, plans, or programs may be jeopardized by allowing the payment.
             1456          Section 22. Section 49-11-503 , which is renumbered from Section 49-1-504 is renumbered
             1457      and amended to read:
             1458           [49-1-504].     49-11-503. Rate of interest on redeposits, purchases, and delinquent
             1459      payments.
             1460          The rate of interest charged on redeposits of refunds, [withdrawals] purchases, or
             1461      delinquent [contributions] payments is the greater of:
             1462          (1) [the average rate of the effective yield for the previous five years, rounded off to the
             1463      nearest whole or quarter percent rate, which has been earned by the Utah State Retirement
             1464      Investment Fund at the end of each preceding calendar year, as determined by the executive
             1465      director and] the interest rate as determined under a formula approved by the board; or
             1466          (2) the actuarial interest rate as of the preceding June 30.
             1467          Section 23. Section 49-11-504 , which is renumbered from Section 49-1-505 is renumbered
             1468      and amended to read:
             1469           [49-1-505].     49-11-504. Reemployment of a retiree -- Restrictions.
             1470          [The following laws govern the reemployment of a member of any system administered
             1471      by the board who has retired from any agency and who returns to work at that agency after
             1472      retirement. A member of any system administered by the board who has retired from any agency
             1473      and who returns to work for a private employer or at a different agency from which the member
             1474      retired is not subject to any reemployment restrictions under this section, except as provided in
             1475      Subsection (4).]
             1476          [(1) (a) (i) If a member of any system administered by the board retires from any agency
             1477      and is reemployed within a six month period by the agency from which the member retired,
             1478      including exempt positions, but excluding part-time or full-time elected officials, the employer
             1479      shall immediately notify the administrator.]
             1480          [(ii) If the member has full-time employment and is not subject to Subsection (1)(b), the
             1481      administrator shall cancel the member's retirement allowance and reinstate the member to active
             1482      member status.]
             1483          [(iii) This cancellation of retirement and reinstatement to active status is effective on the
             1484      first day of the month following the date of reemployment.]


             1485          [(iv) If a member's retirement allowance is cancelled and the member is reinstated to active
             1486      member status pursuant to this subsection, the member may not retire again with a recalculated
             1487      benefit for a two-year period from the date of cancellation of the original retirement. If the
             1488      member retires again within the two-year period, the original retirement benefit shall be resumed.]
             1489          [(v) A reinstated member shall be credited with the service credits standing to the
             1490      member's account at the time of the first retirement and from that time shall be treated as a member
             1491      of the system in all respects, including the accrual of additional service credits but subject to
             1492      recalculation of the retirement allowance under Subsection (4).]
             1493          [(b) (i) If the member is reemployed on a part-time basis or is not an elected official and
             1494      is otherwise subject to Section 49-4-205 , 49-4a-206 , or 49-5-204 , that member or employee may
             1495      earn, without penalty, compensation from that position or employment which is not in excess of
             1496      the exempt earnings permitted by Social Security.]
             1497          [(ii) If a member or an employee receives compensation in a calendar year in excess of the
             1498      limitation, 25% of the retirement allowance shall be suspended.]
             1499          [(iii) The effective date of a suspension and reinstatement of an allowance shall be set by
             1500      the administrator.]
             1501          [(iv) Any suspension of a member's retirement allowance pursuant to Subsection (1)(b)(ii)
             1502      shall be calculated on a calendar year basis.]
             1503          [(2) The member and employer shall maintain an accurate record of gross earnings in
             1504      employment after retirement, shall report the gross earnings on a monthly basis to the retirement
             1505      office, and shall immediately notify the administrator in writing of any postretirement earnings
             1506      under Subsection (1)(a) and whether postretirement earnings equal or exceed the exempt earnings
             1507      under Subsection (1)(b).]
             1508          [(3) If a member is reinstated to active service and subsequently retires after the two-year
             1509      period as provided in Subsection (1)(a)(iv), the member's retirement allowance shall be calculated
             1510      using:]
             1511          [(a) the formula in effect at the date of the member's original retirement for all service prior
             1512      to that date; and]
             1513          [(b) the formula in effect at the date of the subsequent retirement for all service rendered
             1514      between the first and the subsequent retirement dates.]
             1515          [(4) (a) A member who has retired from any agency and who returns to work at that


             1516      agency or a different agency from which the member retired may not accrue any additional service
             1517      credit, except that a member who cancels the retirement allowance under Subsection (1) may earn
             1518      additional service credit.]
             1519          [(b) If a member may not accrue additional service credit under Subsection (4)(a), then the
             1520      member's employer shall contribute the same percentage of the member's salary that would have
             1521      been contributed if the member were a member of the retirement system to a:]
             1522          [(i) defined contribution plan administered by the board if the employer participates in the
             1523      defined contribution plan administered by the board; or]
             1524          [(ii) defined contribution plan offered by the employer if the employer does not participate
             1525      in the defined contribution plan administered by the board.]
             1526          [(5) For the purposes of this section:]
             1527          [(a) "full-time" employment means employment of 20 or more hours per week; and]
             1528          [(b) "part-time" employment means employment of less than 20 hours per week.]
             1529          (1) A person who retires from a nonparticipating employer is not subject to any
             1530      postretirement restrictions under this title.
             1531          (2) A retiree of an agency who returns to work at a different agency is not subject to any
             1532      postretirement restrictions under this section and may not earn additional service credit.
             1533          (3) For the purposes of Subsections (4) and (5), "full-time" employment means
             1534      employment requiring compensation for 20 hours per week or more or at least a half-time teaching
             1535      contract.
             1536          (4) A retiree of an agency who is reemployed on a full-time basis by the same agency
             1537      within six months of the date of retirement is subject to the following:
             1538          (a) the agency shall immediately notify the office;
             1539          (b) the office shall cancel the retiree's allowance and reinstate the retiree to active member
             1540      status;
             1541          (c) the allowance calculations and reinstatement to active member status is effective on
             1542      the first day of the month following the date of reemployment;
             1543          (d) the reinstated retiree may not retire again with a recalculated benefit for a two-year
             1544      period from the date of cancellation of the original allowance, and if the retiree retires again within
             1545      the two-year period, the original allowance shall be resumed; and
             1546          (e) a reinstated retiree shall be credited with the service credit in the retiree's account at


             1547      the time of the first retirement and from that time shall be treated as a member of a system,
             1548      including the accrual of additional service credit, but subject to recalculation of the allowance
             1549      under Subsection (9).
             1550          (5) A retiree of an agency who is reemployed within six months of retirement on a less
             1551      than full-time basis by the same agency is subject to the following:
             1552          (a) the retiree may earn, without penalty, compensation from that position which is not in
             1553      excess of the exempt earnings permitted by Social Security;
             1554          (b) if a retiree receives compensation in a calendar year in excess of the Social Security
             1555      limitation, 25% of the allowance shall be suspended for the remainder of the six-month period;
             1556          (c) the effective date of a suspension and reinstatement of an allowance shall be set by the
             1557      office; and
             1558          (d) any suspension of a retiree's allowance under this Subsection (5) shall be applied on
             1559      a calendar year basis.
             1560          (6) For six months immediately following retirement, the retiree and participating
             1561      employer shall:
             1562          (a) maintain an accurate record of gross earnings in employment;
             1563          (b) report the gross earnings at least monthly to the office;
             1564          (c) immediately notify the office in writing of any postretirement earnings under
             1565      Subsection (4); and
             1566          (d) immediately notify the office in writing whether postretirement earnings equal or
             1567      exceed the exempt earnings under Subsection (5).
             1568          (7) A retiree of an agency who is reemployed by the same agency after six months from
             1569      the retirement date is not subject to any postretirement penalties under this title and may not earn
             1570      additional service credit.
             1571          (8) If a participating employer hires a retiree that may not earn additional service credit
             1572      under this section, the participating employer shall contribute the same percentage of a retiree's
             1573      salary that the participating employer would have been required to contribute if the retiree were
             1574      an active member, up to the amount allowed by federal law, to a retiree designated:
             1575          (a) defined contribution plan administered by the board, if the participating employer
             1576      participates in the defined contribution plan administered by the board; or
             1577          (b) defined contribution plan offered by the participating employer if the participating


             1578      employer does not participate in a defined contribution plan administered by the board.
             1579          (9) Notwithstanding any other provision of this section, a retiree who has returned to work,
             1580      accrued additional service credit, and again retires shall have the retiree's allowance recalculated
             1581      using:
             1582          (a) the formula in effect at the date of the retiree's original retirement for all service credit
             1583      accrued prior to that date; and
             1584          (b) the formula in effect at the date of the subsequent retirement for all service credit
             1585      accrued between the first and subsequent retirement dates.
             1586          (10) This section does not apply to elected positions.
             1587          [(6)] (11) The board may make rules to implement this section.
             1588          Section 24. Section 49-11-601 , which is renumbered from Section 49-1-601 is renumbered
             1589      and amended to read:
             1590     
Part 6. Procedures and Records

             1591           [49-1-601].     49-11-601. Payment of employer contributions -- Penalties for failure
             1592      to comply -- Adjustments to be made.
             1593          (1) The employer contributions, fees, [and] premium taxes, contribution adjustments, and
             1594      other required payments shall be paid to the [fund] office by the participating employer [in
             1595      accordance with rules adopted by the board] as determined by the executive director.
             1596          (2) [Any employing unit] A participating employer that fails to withhold the amount of any
             1597      [employee] member contributions [is required to pay the contribution, together with any employer
             1598      contribution, fee, or premium tax, to the fund, if necessary, out of its own funds], as soon as
             1599      administratively possible, shall also pay the member contributions to the office out of its own
             1600      funds.
             1601          (3) [(a)] If [an employing unit] a participating employer does not make the [payments]
             1602      contributions required by this title [as the payments become due, there is added as part of the
             1603      amounts due, except for corrections in the amounts of contributions, fees, and premium taxes
             1604      arising out of error in computation, interest established under this title.] within 60 days of the end
             1605      of the pay period, the participating employer is liable to the office as provided in Section
             1606      49-11-604 for:
             1607          (a) delinquent contributions;
             1608          (b) refund interest on the delinquent contributions; and


             1609          (c) a 12% per annum penalty on delinquent contributions.
             1610          [(b)] (4) The [board] executive director may waive all or any part of the interest, penalties,
             1611      expenses, and fees if the [board] executive director finds there were extenuating circumstances
             1612      surrounding [any delinquencies] the participating employer's failure to comply with this section.
             1613          [(4) If more or less than the correct amount of contributions, fees, and premium taxes
             1614      required by this title is deducted with respect to any payment of compensation, the employer shall
             1615      make the necessary adjustment with or without interest as required by the board.]
             1616          (5) Contributions made in error will be refunded to the participating employer or member
             1617      that made the contributions.
             1618          Section 25. Section 49-11-602 , which is renumbered from Section 49-1-602 is renumbered
             1619      and amended to read:
             1620           [49-1-602].     49-11-602. Participating employer to maintain records -- Time limit --
             1621      Penalties for failure to comply.
             1622          (1) [Each employing unit] A participating employer shall maintain records [and file reports
             1623      relating to compensation, employees, service, and other factors relating to the proper
             1624      administration of this title under rules adopted by the board] necessary to calculate benefits under
             1625      this title and other records necessary for proper administration of this title as required by the office.
             1626          [(2) A penalty of 1% of the covered unit's last monthly employer contribution to the
             1627      system may be assessed by the board for each week a required payroll report of members' earnings
             1628      and employer contributions is delinquent beyond a 60-day grace period beginning with the month
             1629      after the month in which the report is due.]
             1630          (2) A participating employer shall maintain the records required under Subsection (1) until
             1631      three years after the latest of:
             1632          (a) the date of retirement of the employee from a system or plan; or
             1633          (b) the date of death of the employee.
             1634          (3) A participating employer shall be liable to the office for:
             1635          (a) any liabilities and expenses, including administrative expenses and the cost of
             1636      increased benefits to members, resulting from the participating employer's failure to maintain
             1637      records under this section; and
             1638          (b) 12% per annum penalty of those liabilities and expenses.
             1639          (4) The executive director may waive all or any part of the interest, penalties, expenses,


             1640      and fees if the executive director finds there were extenuating circumstances surrounding the
             1641      participating employer's failure to comply with this section.
             1642          (5) The executive director may estimate the length of service, compensation, or age of any
             1643      member, if that information is not contained in the records.
             1644          Section 26. Section 49-11-603 is enacted to read:
             1645          49-11-603. Participating employer to report and certify -- Time limit -- Penalties for
             1646      failure to comply.
             1647          (1) As soon as administratively possible, but in no event later than 60 days after the end
             1648      of each pay period, a participating employer shall report and certify to the office:
             1649          (a) the eligibility for service credit accrual of:
             1650          (i) all current members;
             1651          (ii) each new member as they begin employment; and
             1652          (iii) any changes to eligibility for service credit accrual of each member.
             1653          (b) the compensation of each current member eligible for service credit; and
             1654          (c) other factors relating to the proper administration of this title as required by the
             1655      executive director.
             1656          (2) Each participating employer shall submit the reports required under Subsection (1) in
             1657      a form approved by the office.
             1658          (3) A participating employer shall be liable to the office for:
             1659          (a) any liabilities and expenses, including administrative expenses and the cost of
             1660      increased benefits to members, resulting from the participating employer's failure to correctly
             1661      report and certify records under this section;
             1662          (b) 12% per annum penalty of those liabilities and expenses; and
             1663          (c) attorneys' fees.
             1664          (4) The executive director may waive all or any part of the interest, penalties, expenses,
             1665      and fees if the executive director finds there were extenuating circumstances surrounding the
             1666      participating employer's failure to comply with this section.
             1667          (5) The executive director may estimate the length of service, compensation, or age of any
             1668      member, if that information is not contained in the records.
             1669          Section 27. Section 49-11-604 is enacted to read:
             1670          49-11-604. Office audits of participating employers -- Penalties for failure to comply.


             1671          (1) (a) The office may perform on-site compliance audits of participating employers to
             1672      determine compliance with reporting, contribution, and certification requirements under this title.
             1673          (b) The office may request records to be provided by the participating employer at the time
             1674      of the audit.
             1675          (c) Audits shall be conducted at the sole discretion of the office after reasonable notice to
             1676      the participating employer of at least five working days.
             1677          (d) The participating employer shall extract and provide records as requested by the office
             1678      in an appropriate, organized, and usable format.
             1679          (e) Failure of a participating employer to allow access, provide records, or comply in any
             1680      way with an office audit shall result in the participating employer being liable to the office for:
             1681          (i) any liabilities and expenses, including administrative expenses and travel expenses,
             1682      resulting from the participating employer's failure to comply with the audit; and
             1683          (ii) a 1% penalty of the participating employer's last month's contributions.
             1684          (2) If the audit reveals a participating employer's failure to make contributions as required
             1685      under Section 49-11-601 , a failure to maintain records as required under Section 49-11-602 , or a
             1686      failure to correctly report or certify eligibility as required under Section 49-11-603 , the
             1687      participating employer shall reimburse the office for the cost of the audit.
             1688          (3) If the audit reveals that an incorrect benefit has been paid by the office to a member,
             1689      participant, alternate payee, or beneficiary due to a participating employer's failure to comply with
             1690      the requirements of Section 49-11-601 , 49-11-602 , or 49-11-603 , in addition to the liabilities
             1691      contained in Subsection (2), the participating employer shall be liable to the office for the
             1692      following:
             1693          (a) the actuarial cost of correcting the incorrect benefit; and
             1694          (b) administrative expenses.
             1695          (4) The executive director may waive all or any part of the interest, penalties, expenses,
             1696      and fees if the executive director finds there were extenuating circumstances surrounding the
             1697      participating employer's failure to comply with this section.
             1698          Section 28. Section 49-11-605 is enacted to read:
             1699          49-11-605. Notification and correction of violations.
             1700          If a participating employer discovers that it has violated Section 49-11-601 , 49-11-602, or
             1701      49-11-603 prior to the office becoming aware of the violation, notifies the office of the violation


             1702      in writing, and corrects the violation within a period agreed to by the office, the penalties under
             1703      those sections shall be waived.
             1704          Section 29. Section 49-11-606 is enacted to read:
             1705          49-11-606. Full participation.
             1706          Except as provided in Sections 49-12-203 , 49-12-204 , 49-13-203 , 49-13-204 , 49-14-203 ,
             1707      and 49-15-203 , participating employers shall cover all employees eligible for service credit under
             1708      this title.
             1709          Section 30. Section 49-11-607 , which is renumbered from Section 49-1-603 is renumbered
             1710      and amended to read:
             1711           [49-1-603].     49-11-607. Determination of benefits -- Errors in records or
             1712      calculations -- Correction of errors by the office.
             1713          (1) After the [date of] retirement date, which shall be set by a member in the member's
             1714      application for retirement, no alteration, addition, or cancellation of a benefit may be made except
             1715      as provided in Subsections (2), (3), and (4) or other law.
             1716          (2) (a) Errors in the records or in the calculations of the [retirement] office which result
             1717      in an incorrect benefit to any member, retiree, participant, insured, alternate payee, or beneficiary
             1718      [receiving more or less than the member or beneficiary is entitled to receive] shall be corrected by
             1719      the [administrator] office.
             1720          (b) Future payments shall be made to any member, retiree, participant, insured, alternate
             1721      payee, or beneficiary[, insofar as practicable, on an actuarially equivalent basis so as] to:
             1722          [(a)] (i) pay the benefit to which the member or beneficiary was entitled; or
             1723          [(b)] (ii) recover any overpayment.
             1724          [(3) When it is documented that an incorrect calculation by an employing unit has resulted
             1725      in a decreased benefit to a retirant, and the incorrect calculation is due to a bona fide error in
             1726      employer records, the error may be corrected by the administrator, if the employing unit makes the
             1727      calculation adjustment required by the administrator to keep the retirement system affected
             1728      actuarially sound.]
             1729          (3) (a) Errors in the records or calculation of a participating employer which result in an
             1730      incorrect benefit to a member, retiree, participant, insured, alternate payee, or beneficiary shall be
             1731      corrected by the participating employer.
             1732          (b) If insufficient employer contributions have been received by the office, the


             1733      participating employer shall pay any delinquent employer contributions, plus interest under Section
             1734      49-11-503 , required by the office to maintain the system, plan, or program affected on an
             1735      actuarially sound basis.
             1736          (c) If excess contributions have been received by the office, the contributions shall be
             1737      refunded to the participating employer or member which paid the contributions.
             1738          (4) If a [salary] dispute exists between [an employing unit] a participating employer and
             1739      [an employee] a member at the time of the [employee's] member's retirement which will affect the
             1740      [employee's retirement] member's benefit calculation, and notice of the dispute is given to the
             1741      [retirement] office prior to the calculation of a member's benefit, the benefit may be paid based on
             1742      the member's [stated] retirement date and [on] the records available [at that time] and then
             1743      recalculated upon settlement of the dispute [according to Subsection (2)].
             1744          Section 31. Section 49-11-608 , which is renumbered from Section 49-1-604 is renumbered
             1745      and amended to read:
             1746           [49-1-604].     49-11-608. False statements or records -- Unlawfully cashing benefit
             1747      checks.
             1748          (1) [Any] A person who knowingly makes any false statement, or who falsifies or permits
             1749      to be falsified any record necessary for carrying out the intent of this title is in violation of Section
             1750      76-6-504 .
             1751          (2) [Any] A person cashing a benefit check to which that person is not entitled is in
             1752      violation of Section 76-6-501 .
             1753          Section 32. Section 49-11-609 , which is renumbered from Section 49-1-606 is renumbered
             1754      and amended to read:
             1755           [49-1-606].     49-11-609. Beneficiary designations -- Revocation of beneficiary
             1756      designation -- Procedure -- Beneficiary not designated -- Payment to survivors in order
             1757      established under the Uniform Probate Code -- Restrictions on payment -- Payment of
             1758      deceased's expenses.
             1759          (1) As used in this section, "member" includes a member, retiree, participant, insured, a
             1760      spouse of a retiree participating in the insurance benefits created by Sections 49-12-404 and
             1761      49-13-404 , or an alternate payee under a domestic relations order dividing a defined contribution
             1762      account.
             1763          [(1)] (2) The most recent beneficiary [designation in a member's file at the retirement


             1764      office] designations contained in office records, including electronic records, at the time of the
             1765      member's death [is] are binding in the payment of any benefits due under this title.
             1766          [(2) A] (3) (a) Except where an optional continuing benefit is chosen, or the law makes
             1767      a specific benefit designation to a dependent spouse, a member may revoke a beneficiary
             1768      designation [of beneficiary] at any time and may execute and file a different beneficiary
             1769      designation [by executing and filing with the retirement office a written beneficiary designation
             1770      on forms provided by the retirement office, except where an optional continuing plan is chosen,
             1771      or the law makes a specific benefit designation to a dependent spouse, in which case the
             1772      beneficiary designation may not be revoked.] with the office.
             1773          (b) A change of beneficiary designation shall be completed on forms provided by the
             1774      office.
             1775          (4) (a) All benefits payable by the office may be paid or applied to the benefit of the
             1776      surviving next of kin of the deceased in the order of precedence established under Title 75, Chapter
             1777      2, Intestate Succession and Wills, if:
             1778          [(3) If] (i) no beneficiary is designated[, all benefits payable from the retirement system
             1779      may be paid or applied to the benefit of the surviving next of kin of the deceased in the order of
             1780      precedence established under Title 75, Chapter 2, Intestate Succession and Wills.];
             1781          (ii) the location of the beneficiary cannot be ascertained by the office within 12 months
             1782      of the date beneficiaries are provided with the forms; or
             1783          (iii) the beneficiary has not completed the forms necessary to pay the benefits within six
             1784      months of the date beneficiaries are provided the forms.
             1785          [(4) No] (b) (i) A payment may not be made to [persons] a person included in any of
             1786      [these] the groups referred to in Subsection (3)(a) if at the date of payment there [are] is a living
             1787      [persons] person in any of the groups preceding it.
             1788          (ii) Payment to [the persons] a person in any group based upon receipt from [those
             1789      persons] the person of an affidavit in a form satisfactory to the [administrator] office that:
             1790          [(a)] (A) there are no living individuals in the group preceding it;
             1791          [(b) that] (B) the probate of the estate of the deceased has not been commenced; and
             1792          [(c) that] (C) more than three months have elapsed since the date of death of the
             1793      decedent[,].
             1794          (5) Benefits paid under this section shall be [in]:


             1795          (a) a full satisfaction and discharge of all claims for benefits under this title; and
             1796          (b) payable by reason of the death of the decedent.
             1797          [(5) If the location of the nominated beneficiary cannot be ascertained or if the nominated
             1798      beneficiary is the estate of the deceased person, the administrator may pay the costs of the
             1799      deceased's last illness, convalescent care, and funeral expenses directly to the undertaking
             1800      establishment, hospital, doctor, or convalescent home which provided the service. The
             1801      administrator shall require verified statements of the charges before making partial or full payment.
             1802      The payment shall discharge the obligation of the system and of the fund up to the amount paid.]
             1803          Section 33. Section 49-11-610 , which is renumbered from Section 49-1-607 is renumbered
             1804      and amended to read:
             1805           [49-1-607].     49-11-610. Benefits payable in name of beneficiary -- Delivery.
             1806          (1) (a) Any benefits payable to a beneficiary [or dependent beneficiary] shall be made in
             1807      the name of [the beneficiary or beneficiaries] and delivered to the beneficiary or the lawfully
             1808      appointed guardian or conservator of the beneficiary, or delivered as otherwise ordered by a court
             1809      of competent jurisdiction [pursuant to] under Title 75, Utah Uniform Probate Code. [In those
             1810      cases where]
             1811          (b) If the benefit involves a payment not to exceed an amount authorized by the Utah
             1812      Uniform Probate Code to any one beneficiary, the [administrator] office may, without the
             1813      appointment of a guardian or conservator or the giving of a bond, pay the amount due to the
             1814      [beneficiaries themselves] beneficiary or to the [person,] persons[, or institutions] assuming their
             1815      support.
             1816          (c) The payment shall be in either a lump sum or in monthly amounts[, and the].
             1817          (d) The total of the payments [so] made under this section shall [be a full] fully discharge
             1818      and release [to] the [system] office from any further claims.
             1819          (2) All continuing monthly benefits payable to beneficiaries upon the death of [an active]
             1820      a member or participant shall be [paid] effective on the first day of the month following the date
             1821      of death of the member or participant.
             1822          Section 34. Section 49-11-611 , which is renumbered from Section 49-1-608 is renumbered
             1823      and amended to read:
             1824           [49-1-608].     49-11-611. Benefits and money in the fund exempt from taxation --
             1825      Exceptions.


             1826          [The] (1) Except as provided under Subsection (2), the benefits accrued or paid to any
             1827      beneficiary of any system or plan administered by the [retirement office] board and the
             1828      [accumulated] contributions, money, [and] securities, and other assets in the [fund] funds created
             1829      by this title are exempt from any state, county, or municipal tax[, except that the retirement].
             1830          (2) An allowance, a refund of member contributions, or other benefits that are subject to
             1831      [the] federal income tax, which [are] is received by a member, retiree, alternate payee, participant,
             1832      or beneficiary of any system or plan administered by the board and which [have] has not been
             1833      taxed is subject to Title 59, Chapter 10, Individual Income Tax Act.
             1834          Section 35. Section 49-11-612 , which is renumbered from Section 49-1-609 is renumbered
             1835      and amended to read:
             1836           [49-1-609].     49-11-612. Nonassignability of benefits or payments -- Exemption from
             1837      legal process.
             1838          (1) Except as provided in [Subsection] Subsections (2), (3), and (4), the right of any
             1839      member, retiree, participant, or beneficiary to any benefit, payment, or any other right accrued or
             1840      accruing [to any person] under this title and the assets of the [fund] funds created by this title are
             1841      not subject to alienation or assignment by the member, retiree, participant, or [beneficiary] their
             1842      beneficiaries and are not subject to attachment, execution, garnishment, or any other legal or
             1843      equitable process.
             1844          [(2) This section may not be construed to prohibit the administrator from deducting
             1845      medical or other insurance premiums from a retirant's allowance as requested by the retirant
             1846      providing that any request is within limitations and rules prescribed by the board.]
             1847          (2) The office may, upon the request of the retiree, deduct from the retiree's allowance
             1848      insurance premiums or other dues payable on behalf of the retiree, but only to those entities that
             1849      have received the deductions prior to February 1, 2002.
             1850          (3) (a) [Notwithstanding Subsection (1), the retirement board] The office shall provide for
             1851      the division of [a member's service retirement] an allowance, defined contribution account,
             1852      continuing monthly death benefit, or refund of member contributions upon termination to former
             1853      spouses and family members [pursuant to] under an order of a court of competent jurisdiction with
             1854      respect to domestic relations matters on file with the [retirement] office.
             1855          (b) The court order shall specify the manner in which the [retirement] allowance, defined
             1856      contribution account, continuing monthly death benefit, or refund of member contributions shall


             1857      be partitioned, whether as a fixed amount or as a percentage of the benefit.
             1858          [(c) The board may also provide for the division of a member's defined contribution
             1859      account.]
             1860          [(d) Once benefit payments under a domestic relations order begin, the period for which
             1861      the payment shall be made may not be altered.]
             1862          [(e) Benefit payments to an alternate payee shall begin at the time the member or
             1863      beneficiary begins receiving benefit payments.]
             1864          [(f) The alternate payee shall receive benefits in the same form as benefits are received by
             1865      the member.]
             1866          [(g) The board shall make rules to implement this section.]
             1867          (c) Allowances, continuing monthly death benefits, and refunds of member contributions
             1868      split under a domestic relations order are subject to the following:
             1869          (i) the period for which payments shall be made under the original domestic relations order
             1870      may not be altered;
             1871          (ii) payments to an alternate payee shall begin at the time the member or beneficiary begins
             1872      receiving payments; and
             1873          (iii) the alternate payee shall receive payments in the same form as payments received by
             1874      the member or beneficiary.
             1875          (4) In accordance with federal law, the board may deduct the required amount from any
             1876      benefit, payment, or other right accrued or accruing to any member of a system, plan, or program
             1877      under this title to offset any amount that member owes to a system, plan, or program administered
             1878      by the board.
             1879          (5) The board shall make rules to implement this section.
             1880          Section 36. Section 49-11-613 , which is renumbered from Section 49-1-610 is renumbered
             1881      and amended to read:
             1882           [49-1-610].     49-11-613. Appeals procedure -- Right of appeal to hearing officer --
             1883      Board reconsideration -- Judicial review.
             1884          (1) (a) All members, retirees, participants, alternative payees, or insureds of a system, plan,
             1885      or program under this title shall acquaint themselves with their rights and obligations [as members]
             1886      under this title.
             1887          (b) A [member shall] person who claims a benefit, legal right, or employment right under


             1888      this title shall request a ruling by the [administrator on any benefit claim or legal right under this
             1889      title] executive director.
             1890          (c) [Any] A person who is dissatisfied by a ruling of the [administrator] executive director
             1891      with respect to any benefit claim or legal right under any system, plan, or program under this title
             1892      shall request a review of that claim by a hearing officer.
             1893          [(d)] (2) The hearing officer shall:
             1894          [(i)] (a) be hired by the executive director after consultation [and review] with the
             1895      [membership council] board; [and]
             1896          [(ii)] (b) follow the procedures and requirements of Title 63, Chapter 46b, Administrative
             1897      Procedures Act[. (2) (a) (i) The hearing officer shall], except as specifically modified under this
             1898      title;
             1899          (c) hear and determine all facts pertaining to applications for benefits under any
             1900      [retirement] system, plan, or program under this title and all matters pertaining to the
             1901      administration of the [system.] office; and
             1902          [(ii) The membership council may examine the record of the hearing, provide a
             1903      recommendation to the board, and recommend any necessary changes in retirement policy or
             1904      procedure to the Legislature.]
             1905          [(b) (i) If the executive officer of the board cannot determine from the records or other
             1906      information available the length of service, compensation, or age of any member, the executive
             1907      officer may estimate, for the purpose of any determination required to be made, any of these
             1908      factors.]
             1909          (d) make conclusions of law in determining the person's rights under any system, plan, or
             1910      program under this title and matters pertaining to the administration of the office.
             1911          [(ii)] (3) The board shall review and approve or deny all decisions of the hearing officer
             1912      in accordance with rules adopted by the board.
             1913          [(3)] (4) The moving party in any proceeding brought under this section shall bear the
             1914      burden of proof.
             1915          [(4) Any applicant] (5) A party may file an application for reconsideration [according to
             1916      the procedures and requirements of Title 63, Chapter 46b, Administrative Procedures Act,] by the
             1917      board upon any of the following grounds:
             1918          (a) that the board acted in excess of its powers;


             1919          (b) that the order or award was procured by fraud;
             1920          (c) that the evidence does not justify the determination of the [board] hearing officer; or
             1921          (d) that the [applicant] party has discovered new material evidence that could not, with
             1922      reasonable diligence, have been discovered or procured [at] prior to the hearing.
             1923          (6) The board shall affirm, reverse, or modify the decision of the hearing officer, or
             1924      remand the application to the hearing officer for further consideration.
             1925          [(5)] (7) A [member] party aggrieved by the board's decision may obtain judicial review
             1926      by complying with the procedures and requirements of Title 63, Chapter 46b, Administrative
             1927      Procedures Act.
             1928          (8) The board may make rules to implement this section.
             1929          Section 37. Section 49-11-614 , which is renumbered from Section 49-1-613 is renumbered
             1930      and amended to read:
             1931           [49-1-613].     49-11-614. Vesting on termination of system or plan.
             1932          If any [retirement plan established under this title] system or the Utah Governors' and
             1933      Legislators' Retirement Plan is terminated, the accrued benefits of each member in the terminated
             1934      system or plan shall immediately become [100%] vested and nonforfeitable.
             1935          Section 38. Section 49-11-615 , which is renumbered from Section 49-1-614 is renumbered
             1936      and amended to read:
             1937           [49-1-614].     49-11-615. Election to grandfather -- Applicability of provisions.
             1938          (1) Notwithstanding any other provision of this title, the [retirement plan or program]
             1939      allowance payable to any person who becomes a member of any system, administered by the board
             1940      on or after January 1, 1990, may not exceed the limitation imposed by Section 415 of the Internal
             1941      Revenue Code of 1986, as amended, which is incorporated by reference.
             1942          (2) This constitutes an election of the grandfather provision under Section 415(b)(10)(C)
             1943      of the Internal Revenue Code.
             1944          Section 39. Section 49-11-616 , which is renumbered from Section 49-1-615 is renumbered
             1945      and amended to read:
             1946           [49-1-615].     49-11-616. Benefits information.
             1947          (1) The [retirement board] office shall provide [the following] written general
             1948      information[, by means of a form to be adopted by the board,] to each [employing unit]
             1949      participating [in a plan, program, or system administered by the board:] employer concerning


             1950      benefits available under this title.
             1951          [(a) all retirement benefits available to participants in a retirement system administered by
             1952      the board, including the right to participate in deferred compensation programs and rights upon
             1953      termination;]
             1954          [(b) all group health and dental insurance benefits available to participants, including
             1955      conversion and coverage rights upon termination;]
             1956          [(c) all group life insurance benefits and other death benefits, including conversion and
             1957      coverage rights upon termination;]
             1958          [(d) all long-term disability programs available to participants;]
             1959          [(e) any other benefits that the board may make available to eligible employers and their
             1960      employees; and]
             1961          [(f) the address and telephone number of the division of the retirement office responsible
             1962      for each of these plans, programs, and systems.]
             1963          (2) (a) [The] A participating [employing unit] employer shall provide the information
             1964      under Subsection (1) to each eligible employee immediately upon:
             1965          (i) termination of service[,];
             1966          (ii) leave of absence[, or];
             1967          (iii) commencement of long-term disability benefits; or
             1968          (iv) retirement.
             1969          (b) (i) Each participating employer shall maintain the records necessary to demonstrate that
             1970      each employee has received the information outlined in Subsection (1).
             1971          (ii) The records shall be made available to the office upon request.
             1972          [(3) Each eligible employee shall sign the form provided under Subsection (1), a]
             1973          (3) (a) The office shall provide each participating employer with a form to be signed by
             1974      each employee which verifies that the employee has been given the information required by this
             1975      section.
             1976          (b) A copy of [which] the signed form shall be immediately forwarded to the [retirement]
             1977      office [immediately] by the participating employer or the employee.
             1978          (4) The dissemination of information to the employer by the [board pursuant to] office
             1979      under this section constitutes presentment by the policyholder [pursuant to] under Title 31A,
             1980      Chapter 22, Contracts in Specific Lines, and other law.


             1981          Section 40. Section 49-11-617 , which is renumbered from Section 49-1-616 is renumbered
             1982      and amended to read:
             1983           [49-1-616].     49-11-617. Original documents.
             1984          [(1) The retirement office may treat any document received by facsimile as an original if
             1985      it pertains to member accounts and is forwarded by a member or employer.]
             1986          [(2) All records at the retirement office, filmed from facsimile or other sources, or
             1987      produced from optical imaging or other technology, have the same legal effect as the original
             1988      record.]
             1989          At the reasonable discretion of the office, any document relating to this title may be treated
             1990      as an original, whether created by photocopy, facsimile, e-mail, electronic transmission, imaging,
             1991      or other technology.
             1992          Section 41. Section 49-11-618 , which is renumbered from Section 49-1-403 is renumbered
             1993      and amended to read:
             1994           [49-1-403].     49-11-618. Members and beneficiaries subject to chapter -- Furnishing
             1995      of information -- Confidentiality of information.
             1996          (1) (a) Every member, retiree, participant, insured, alternate payee, and beneficiary is
             1997      subject to this chapter [and to all], rules [adopted] made by the board [under this chapter] or office,
             1998      board actions, resolutions, policies, and procedures adopted under this title.
             1999          (b) Each member, retiree, participant, insured, alternate payee, and beneficiary shall
             2000      furnish to the [retirement] office any information required [by the executive director affecting the
             2001      member's status as a member or beneficiary] to carry out the purposes of this title.
             2002          (2) (a) All data [filed with the retirement] in the possession of the office is confidential,
             2003      and [no information contained in any record pertaining to individual data] may not be divulged by
             2004      [any official or employee of] the office except as permitted by board action. [The information]
             2005          (b) All data in the possession of the office or divulged pursuant to board action shall be
             2006      used for the sole purpose of carrying into effect the provisions of this [chapter. The record may
             2007      not be open to inspection to any person except the board, the employees of the retirement office,
             2008      and the employing unit] title.
             2009          Section 42. Section 49-11-619 , which is renumbered from Section 49-1-405 is renumbered
             2010      and amended to read:
             2011           [49-1-405].     49-11-619. Permanent relinquishment of benefit -- Procedure.


             2012          [Any retired member or beneficiary receiving a continuing benefit who for any reason
             2013      desires to permanently relinquish that retirement benefit may do so at any time after the effective
             2014      date of retirement. The relinquishment of the benefit is irrevocable 30 days after the witnessed
             2015      signing of the waiver agreement by the member and the beneficiary.]
             2016          (1) (a) Except for defined contribution plans authorized by this title, a retiree or beneficiary
             2017      may permanently relinquish a benefit under this title by signing an irrevocable written
             2018      relinquishment.
             2019          (b) If the retiree has designated a beneficiary which is still living, the written
             2020      relinquishment must be signed by both the retiree and the beneficiary.
             2021          (2) The value of the benefit permanently relinquished under Subsection (1) shall remain
             2022      in the fund from which the benefit was relinquished and shall be used in the calculation of future
             2023      contribution rates.
             2024          (3) A designated beneficiary may disclaim beneficiary status and the benefit shall then be
             2025      payable first to any alternate designated beneficiary, then dispersed under Title 75, Chapter 2,
             2026      Intestate Succession and Wills, as applicable.
             2027          (4) The office is not required to recognize or accept any written relinquishment that
             2028      jeopardizes the tax qualified status of the systems, plans, or programs or otherwise violates federal
             2029      law.
             2030          Section 43. Section 49-11-620 is enacted to read:
             2031          49-11-620. Closing the retirement account -- Status of retirants and beneficiaries.
             2032          (1) The monthly benefit payable for the month a retiree, beneficiary, or alternate payee dies
             2033      shall be a full monthly benefit and shall be payable to the estate of the deceased.
             2034          (2) If more than one year has elapsed since the death of a retiree whose designated
             2035      beneficiary is deceased and whose account payable to the beneficiary amounts to $100 or less, the
             2036      account shall be closed and further payment may not be made.
             2037          Section 44. Section 49-11-701 , which is renumbered from Section 49-1-701 is renumbered
             2038      and amended to read:
             2039     
Part 7. Allowance Increase

             2040           [49-1-701].     49-11-701. Allowance increase to offset tax liability -- Administration.
             2041          (1) This section applies to members of any system administered by the board under this
             2042      title, whose retirement allowance remained exempt from the tax imposed under Title 59, Chapter


             2043      10, Individual Income Tax Act, pursuant to Section 2, Chapter 195, Laws of Utah 1988, but whose
             2044      allowance has subsequently become subject to that tax.
             2045          (2) Any member who meets the conditions established under Subsection (1) shall receive
             2046      the following:
             2047          (a) the administrator shall calculate the member's retirement allowance pursuant to the
             2048      formula governing the system from which the member retired;
             2049          (b) the administrator shall then increase the allowance calculated under Subsection (2)(a)
             2050      by 3%; and
             2051          (c) the adjusted retirement allowance under Subsection (2) (b) is the new basis upon which
             2052      any future adjustments to benefits are made.
             2053          (3) (a) For all members who retire or are receiving retirement allowances in calendar year
             2054      1989, the administrator shall apply the 3% adjustment under Subsection (2) to all retirement
             2055      allowances received in 1989, so that the period for which the allowance becomes subject to the tax
             2056      under Title 59, Chapter 10, Individual Income Tax Act, and the period for which the 3%
             2057      adjustment is given are the same.
             2058          (b) For all members who retire after December 31, 1989, and who meet the requirements
             2059      of Subsection (1), the administrator shall apply the 3% adjustment under Subsection (2) beginning
             2060      on the effective date of retirement.
             2061          (4) Any penalty or interest for underpayment of taxes under Title 59, Chapter 1, General
             2062      Taxation Policies, or 10, Individual Income Tax Act, shall be waived for members whose
             2063      noncompliance is attributable to Section [ 49-1-608 ] 49-11-611 and this section. This only applies
             2064      to tax year 1989.
             2065          (5) The administrator shall comply with Title 59, Chapter 10, Part 4, Withholding of Tax,
             2066      with respect to withholding of taxes.
             2067          (6) (a) The retirement board shall annually certify the contribution rate necessary for each
             2068      system to comply with this section and may adopt rules to administer this section.
             2069          (b) This contribution rate shall be reported separately from the total contribution rate
             2070      necessary to fund the systems on an actuarially sound basis and may not be used in comparative
             2071      studies of public employee benefits.
             2072          Section 45. Section 49-11-801 , which is renumbered from Section 49-1-611 is renumbered
             2073      and amended to read:


             2074     
Part 8. Defined Contribution Plans

             2075           [49-1-611].     49-11-801. Defined contribution plans authorized -- Subject to federal
             2076      and state laws -- Rules to implement this provision -- Costs of administration -- Limitations
             2077      on eligibility -- Protection of tax status.
             2078          (1) (a) The board may establish and administer [additional benefit] defined contribution
             2079      plans established under [Sections 401(k) and 457 of] the Internal Revenue Code. [Employee and
             2080      employer]
             2081          (b) Voluntary deferrals and nonelective contributions shall be permitted according to the
             2082      provisions of these plans as established by the board. [The amount of these accumulated
             2083      contributions, together with dividend or interest credits, are vested in the member, and are
             2084      nonforfeitable.]
             2085          (c) The defined contribution account balance is vested in the participant.
             2086          [(2) Earnings credited to accounts established as a result of this action shall be at a rate
             2087      fixed by the board. (3) Contributions]
             2088          (2) (a) Voluntary deferrals and nonelective contributions shall be [invested as provided by
             2089      contract in accordance with federal and state law] posted to the participant's account.
             2090          (b) Participants may direct the investment of their account in the investment options
             2091      established by the board and in accordance with federal and state law.
             2092          [(4) The] (3) (a) The board may [establish] make rules and create plan documents to
             2093      implement and administer this section.
             2094          (b) The board may adopt rules under which a participant may put money into a defined
             2095      contribution plan as permitted by federal law.
             2096          (c) The office may reject any payments if the office determines the tax status of the
             2097      systems, plans, or programs would be jeopardized by allowing the payment.
             2098          (d) Costs of administration [may] shall be paid [from the interest earnings of the funds
             2099      accrued as a result of deposits or as an assessment against each account, to be decided] as
             2100      established by the board. [All funds and deposits]
             2101          (4) Voluntary deferrals and nonelective contributions may be invested [as a separate
             2102      account or accounts in] separately or in conjunction with the Utah State Retirement Investment
             2103      Fund.
             2104          [(5) This supplemental program shall be limited to members who contract to participate


             2105      in the program a minimum of one year.]
             2106          [(6)] (5) The board or office may take [the] actions necessary to protect the tax qualified
             2107      status of the [plans,] systems, plans, and programs under its control, including the movement of
             2108      [members] individuals from defined contribution plans to defined benefit [plans] systems or the
             2109      creation of excess benefit plans authorized by federal law[, and shall report its actions to the
             2110      Legislature at the subsequent legislative session].
             2111          (6) The office may, at its sole discretion, correct errors made in the administration of its
             2112      defined contribution plans.
             2113          Section 46. Section 49-11-802 is enacted to read:
             2114          49-11-802. Permanent relinquishment of defined contribution benefit -- Procedure.
             2115          A participant or designated beneficiary under a defined contribution plan may permanently
             2116      relinquish the benefit by signing an irrevocable written relinquishment.
             2117          Section 47. Section 49-12-101 , which is renumbered from Section 49-2-101 is renumbered
             2118      and amended to read:
             2119     
CHAPTER 12. PUBLIC EMPLOYEES' CONTRIBUTORY RETIREMENT ACT

             2120     
Part 1. General Provisions

             2121           [49-2-101].     49-12-101. Title.
             2122          This chapter is known as the "Public Employees' Contributory Retirement Act."
             2123          Section 48. Section 49-12-102 , which is renumbered from Section 49-2-103 is renumbered
             2124      and amended to read:
             2125           [49-2-103].     49-12-102. Definitions.
             2126          As used in this chapter:
             2127          [(1) "Appointive officer" means an employee appointed to a position for a definite and
             2128      fixed term of office by official and duly recorded action of the governing body of an employing
             2129      unit who earns $500 or more per month over a 12-month period adjusted annually by the Bureau
             2130      of Labor Statistics Consumer Price Index.]
             2131          [(2) (a) "Compensation," "salary," or "wages" means the total amount of payments made
             2132      by an employer to an employee for services rendered to the employer, including:]
             2133          [(i) bonuses;]
             2134          [(ii) cost-of-living adjustments;]
             2135          [(iii) other payments currently includable in gross income and that are subject to Social


             2136      Security deductions, including any payments in excess of the maximum amount subject to
             2137      deduction under Social Security law; and]
             2138          [(iv) amounts that the employee authorizes to be deducted or reduced for salary deferral
             2139      or other benefit programs authorized by federal law.]
             2140          [(b) "Compensation" for purposes of this chapter may not exceed the amount allowed
             2141      under Internal Revenue Code Section 401(a)(17).]
             2142          [(c) "Compensation," "salary," or "wages" does not include:]
             2143          [(i) the monetary value of remuneration paid in kind, such as a residence or use of
             2144      equipment;]
             2145          [(ii) all contributions made by an employer under any plan for the benefit of a participant;]
             2146          [(iii) salary paid to an employee working under the minimum number of hours required
             2147      for membership;]
             2148          [(iv) salary paid to a temporary or exempt employee;]
             2149          [(v) any payments upon termination, including accumulated vacation, sick leave payments,
             2150      or any other special payments; or]
             2151          [(vi) uniform, travel, or similar allowances.]
             2152          [(3) "Educational institution" means a political subdivision or instrumentality of the state
             2153      or a combination thereof primarily engaged in educational activities or the administration or
             2154      servicing of educational activities, including:]
             2155          [(a) the State Board of Education and its instrumentalities;]
             2156          [(b) any institution of higher learning and its branches;]
             2157          [(c) any school district and its instrumentalities;]
             2158          [(d) any vocational and technical school; and]
             2159          [(e) any entity arising out of a consolidation agreement between entities under this
             2160      definition.]
             2161          [(4) (a) "Employee" or "regular employee" means any regular full-time employee whose
             2162      term of employment for an employer contemplates continued employment during a calendar or
             2163      school year and who performs covered service for one or more employers.]
             2164          [(b) "Employee" or "regular employee" means an officer, elective or appointive, who
             2165      receives as compensation from an employer $500 or more per month over a 12-month period
             2166      adjusted annually by the Bureau of Labor Statistics Consumer Price Index.]


             2167          [(5) "Employer" or "employing unit" means any department, educational institution,
             2168      political subdivision, or organization or agency financed in whole or in part by public funds for
             2169      which any employee or member performs services subject to this chapter.]
             2170          (1) (a) Except as provided in Subsection (1)(c),"compensation" means the total amount
             2171      of payments made by a participating employer to a member of this system for services rendered
             2172      to the participating employer, including:
             2173          (i) bonuses;
             2174          (ii) cost-of-living adjustments;
             2175          (iii) other payments currently includable in gross income and that are subject to Social
             2176      Security deductions, including any payments in excess of the maximum amount subject to
             2177      deduction under Social Security law;
             2178          (iv) amounts that the member authorizes to be deducted or reduced for salary deferral or
             2179      other benefits authorized by federal law; and
             2180          (v) member contributions.
             2181          (b) "Compensation" for purposes of this chapter may not exceed the amount allowed under
             2182      Internal Revenue Code, Section 401(a)(17).
             2183          (c) "Compensation" does not include:
             2184          (i) the monetary value of remuneration paid in kind, including a residence or use of
             2185      equipment;
             2186          (ii) the cost of any employment benefits paid for by the participating employer;
             2187          (iii) compensation paid to a temporary employee, an exempt employee, or an employee
             2188      otherwise ineligible for service credit;
             2189          (iv) any payments upon termination, including accumulated vacation, sick leave payments,
             2190      severance payments, compensatory time payments, or any other special payments; or
             2191          (v) any costs incurred by the member and reimbursed by the participating employer,
             2192      including automobile costs, uniform costs, travel costs, tuition costs, housing costs, insurance
             2193      costs, and dependent care costs.
             2194          (d) The executive director may determine if a payment not listed under this Subsection (1)
             2195      falls within the definition of compensation.
             2196          [(6)] (2) "Final average salary" means the amount computed by averaging the highest five
             2197      years of annual compensation preceding retirement subject to Subsections [(6)] (2)(a), (b), (c), and


             2198      (d).
             2199          (a) Except as provided in Subsection [(6)] (2)(b), the percentage increase in annual
             2200      compensation in any one of the years used may not exceed the previous year's [salary]
             2201      compensation by more than 10% plus a cost-of-living adjustment equal to the decrease in the
             2202      purchasing power of the dollar during the previous year, as measured by [the Consumer Price
             2203      Index prepared by the] a United States Bureau of Labor Statistics Consumer Price Index average
             2204      as determined by the board.
             2205          (b) In cases where the [employing unit] participating employer provides acceptable
             2206      documentation to the [board] office, the limitation in Subsection [(6)] (2)(a) may be exceeded if:
             2207          (i) the member has transferred from another [employing unit] agency; or
             2208          (ii) the member has been promoted to a new position.
             2209          (c) If the member retires more than six months from the date of termination of employment
             2210      [and for purposes of computing the member's final average salary only], the member is considered
             2211      to have been in service at the member's last [salary] rate of pay from the date of the termination
             2212      of employment to the effective date of retirement [becomes effective if the member so requests]
             2213      for purposes of computing the member's final average salary only.
             2214          (d) If [participating service is] the member has less than five years of service credit in this
             2215      system, final average salary means the average annual compensation paid to the member during
             2216      the full period of [participating] service credit.
             2217          [(7) "Normal retirement age" means the age of 65 years.]
             2218          [(8) "Organization or agency financed in whole or in part by public funds" means an
             2219      agency, association, or organization that receives public funds. The term does not include political
             2220      subdivisions, departments, or educational institutions.]
             2221          [(9) "Public funds" means those funds derived, either directly or indirectly, from public
             2222      taxes or public revenue, dues or contributions paid or donated by the membership of the
             2223      organization, used to finance an activity whose objective is to improve, on a nonprofit basis, the
             2224      governmental, educational, and social programs and systems of the state or its political
             2225      subdivisions.]
             2226          [(10) (a) "Regular full-time employee," in qualifying for membership and accrual of
             2227      service credit under this system, means an employee whose employment normally requires an
             2228      average of 20 hours or more per week, except as modified by the board, and who receives benefits


             2229      normally provided by the employing unit.]
             2230          [(b) "Regular full-time employee" includes:]
             2231          [(i) a teacher who teaches half-time or more, or a classified school employee who works
             2232      an average of 20 hours per week or more, regardless of benefits provided; and]
             2233          [(ii) an individual who otherwise meets the definition of this Subsection (10) who
             2234      performs services for a participating employer through an employee leasing or similar
             2235      arrangement.]
             2236          [(11) "Years of service" or "service years" means:]
             2237          [(a) the number of periods, each to consist of 12 full months as determined by the board;]
             2238          [(b) a period determined by the board, whether consecutive or not, during which an
             2239      employee performed services for an employer or employers, including any time the employee
             2240      rendered service in the armed forces of the United States before membership in the system or was
             2241      absent on a paid leave of absence granted by an employer or absent in the service of the United
             2242      States government on military duty as provided by this chapter; or]
             2243          [(c) for a teacher, school administrator, or other contract employee of an educational
             2244      institution, not less than eight months of full-time service constitutes a service year.]
             2245          (3) "Participating employer" means an employer which meets the participation
             2246      requirements of Section 49-12-201 .
             2247          (4) (a) "Regular full-time employee" means an employee whose term of employment for
             2248      a participating employer contemplates continued employment during a fiscal or calendar year and
             2249      whose employment normally requires an average of 20 hours or more per week, except as modified
             2250      by the board, and who receives benefits normally provided by the participating employer.
             2251          (b) "Regular full-time employee" includes:
             2252          (i) a teacher whose term of employment for a participating employer contemplates
             2253      continued employment during a school year and who teaches half-time or more or a classified
             2254      school employee who works an average of 20 hours per week or more for a participating employer,
             2255      regardless of benefits provided;
             2256          (ii) an officer, elective or appointive, who earns during the first full month of the term of
             2257      office $500 or more, indexed as of January 1, 1989, as provided in Section 49-12-407 ;
             2258          (iii) a faculty member or employee of an institution of higher education who is considered
             2259      full-time by that institution of higher education; and


             2260          (iv) an individual who otherwise meets the definition of this Subsection (4) who performs
             2261      services for a participating employer through an employee leasing or similar arrangement.
             2262          (5) "System" means the Public Employees' Contributory Retirement System created under
             2263      this chapter.
             2264          (6) "Years of service credit" means:
             2265          (a) a period, consisting of 12 full months as determined by the board;
             2266          (b) a period determined by the board, whether consecutive or not, during which a regular
             2267      full-time employee performed services for a participating employer, including any time the regular
             2268      full-time employee was absent on a paid leave of absence granted by a participating employer or
             2269      was absent in the service of the United States government on military duty as provided by this
             2270      chapter; or
             2271          (c) the regular school year consisting of not less than eight months of full-time service for
             2272      a regular full-time employee of an educational institution.
             2273          Section 49. Section 49-12-103 , which is renumbered from Section 49-2-201 is renumbered
             2274      and amended to read:
             2275           [49-2-201].     49-12-103. Creation of system.
             2276          There is created for [the employees of the state, its educational institutions, and political
             2277      subdivisions] members employed by a participating employer the "Public Employees' Contributory
             2278      Retirement System."
             2279          Section 50. Section 49-12-104 , which is renumbered from Section 49-2-202 is renumbered
             2280      and amended to read:
             2281           [49-2-202].     49-12-104. Creation of trust fund.
             2282          (1) There is created the "Public Employees' Contributory Retirement Trust Fund" for the
             2283      purpose of paying the benefits and costs of administering this system.
             2284          (2) The fund shall consist of all money paid into it, including interest, in accordance with
             2285      this chapter, whether in the form of cash, securities, or other assets, and of all money received from
             2286      any other source.
             2287          (3) Custody, management, and investment of the fund shall be governed by [Title 49,]
             2288      Chapter [1] 11, Utah State Retirement Systems Administration.
             2289          Section 51. Section 49-12-201 , which is renumbered from Section 49-2-203 is renumbered
             2290      and amended to read:


             2291     
Part 2. Membership Eligibility

             2292           [49-2-203].     49-12-201. System membership -- Eligibility.
             2293          [All employees, as defined under Section 49-2-103 , who perform covered services for any
             2294      employing unit, except as excluded by Section 49-2-205 , are members of the retirement system
             2295      as follows:]
             2296          [(1) Every employee who is employed to perform covered services for a department or
             2297      educational institution prior to July 1, 1986, shall become a member of the system effective on the
             2298      date of employment.]
             2299          [(2) Each employee engaged in performing covered services for a political subdivision on
             2300      the date the political subdivision becomes a participant in the system under Section 49-2-204 shall
             2301      become a member of the system as of the date of coverage. Each new employee of the covered
             2302      unit shall thereafter become a member of the system effective on the date of employment.]
             2303          (1) A regular full-time employee of a participating employer is eligible for service credit
             2304      in this system upon the later of:
             2305          (a) the date on which the participating employer began participating in this system; or
             2306          (b) the effective date of employment of the regular full-time employee with the
             2307      participating employer.
             2308          (2) Beginning July 1, 1986, a person entering employment with the state and its
             2309      educational institutions may not participate in this system.
             2310          Section 52. Section 49-12-202 , which is renumbered from Section 49-2-204 is renumbered
             2311      and amended to read:
             2312           [49-2-204].     49-12-202. Participation of employers -- Limitations -- Exclusions --
             2313      Admission requirements -- Exceptions -- Nondiscrimination requirements.
             2314          (1) (a) [All political subdivisions of the state, unless] Unless excluded under Subsection
             2315      (2), [are] an employer is a participating [employers in the system] employer and may not withdraw
             2316      from participation in [the] this system. [All departments and educational institutions are also
             2317      participating employers in the system and may not withdraw from participation in the system. As
             2318      participating employers, political subdivisions, departments, and educational institutions shall meet
             2319      all requirements for full participation in the system.]
             2320          (b) In addition to their participation in this system, participating employers may provide
             2321      or participate in public or private retirement, supplemental or defined contribution plan, either


             2322      directly or indirectly, for their employees.
             2323          (2) [(a) Any political subdivision] An employer not initially admitted or included as a
             2324      participating employer in [the] this system prior to January 1, 1982, may be excluded from
             2325      participation in [the] this system if:
             2326          [(i)] (a) the [political subdivision] employer elects not to provide or participate in any type
             2327      of private or public retirement, supplemental or [deferred income program] defined contribution
             2328      plan, either directly or indirectly, for its employees, except for social security; or
             2329          [(ii)] (b) the [political subdivision participated in] employer offers another collectively
             2330      bargained retirement [program] benefit and has continued to do so on an uninterrupted basis since
             2331      that date.
             2332          [(b) Any excluded political subdivision may by resolution of its governing body apply for
             2333      and receive admission to the system. Once admitted, the political subdivision may not withdraw
             2334      from participation and shall meet all requirements for full participation in the system. If an
             2335      excluded political subdivision elects at any time to provide or participate in any type of public or
             2336      private retirement, supplemental or deferred income program, either directly or indirectly, except
             2337      for social security, the political subdivision shall be required to be a participating employer in the
             2338      system. As a participating employer, the political subdivision may not withdraw from participation
             2339      and shall meet all requirements for full participation in the system.]
             2340          [(3) (a) Any organization or agency supported in whole or in part by state public funds,
             2341      which prior to application is not covered by this chapter, may by resolution of its governing body
             2342      apply for admission to the system. The board may refuse admission to any organization or agency
             2343      applying for admission upon a finding that it is not in the best interest of the participating
             2344      employers and employees.]
             2345          [(b) Upon approval of the board, the organization or agency shall become a participant in
             2346      the system if the board and the organization or agency agree upon:]
             2347          [(i) the terms by which its employees shall become members of the system, such as the
             2348      effective date of coverage;]
             2349          [(ii) the amount of prior service credit with which they may be credited, if any;]
             2350          [(iii) the amount of any contributions in addition to regular contributions that will be
             2351      required to provide any prior service credits or retroactive current service credits from either the
             2352      employing unit or its employees; and ]


             2353          [(iv) the manner in which retroactive current or prior service credits may be established,
             2354      if any.]
             2355          [(c) Once admitted to the system, an organization or agency may not withdraw from
             2356      participation, except as provided in Subsection (4), and shall meet all requirements for full
             2357      participation in the system.]
             2358          [(d) An organization or agency supported in whole or in part by public funds may not
             2359      apply for or receive admission to the system after the effective date of this Subsection (3)(d).]
             2360          [(4) (a) An organization or agency admitted to the system pursuant to Subsection (3) which
             2361      no longer receives public funds may withdraw from the system if:]
             2362          [(i) the organization or agency's governing body, by resolution, petitions the board for
             2363      withdrawal from the system; and]
             2364          [(ii) the board approves the withdrawal.]
             2365          [(b) Once approval to withdraw is granted, the organization or agency and its employees
             2366      shall be governed by Sections 49-1-502 and 49-1-503 .]
             2367          [(5) Except as provided in Sections 49-2-205 and 49-2-206 , no participating employer may
             2368      maintain full participation in the system by covering only part of its employees. The full
             2369      participation requirement is satisfied if a participating employer covers those of its employees
             2370      eligible for coverage under:]
             2371          [(a) Title 49, Chapter 4, Public Safety Retirement Act; or]
             2372          [(b) Title 49, Chapter 5, Firefighters' Retirement Act and its remaining employees under
             2373      either Title 49, Chapter 2, Public Employees' Retirement Act or Title 49, Chapter 3, Public
             2374      Employees' Noncontributory Retirement Act, whichever is applicable.]
             2375          [(6) In addition to their participation in the system, participating employers may provide
             2376      or participate in any additional public or private retirement, supplemental or deferred income
             2377      program, either directly or indirectly, for their employees.]
             2378          [(7) (a) Credit unions or private hospitals which are participating units in any system
             2379      administered by the board may withdraw from participation upon applying to the board. This
             2380      application shall be made between July 1, 2000, and December 31, 2000. The withdrawal is
             2381      effective the day after the last day the withdrawing unit pays retirement contributions on its
             2382      employees' salaries.]
             2383          [(b) Once the withdrawal of the credit union or private hospital is complete, the employees


             2384      of the withdrawing unit may apply to withdraw their vested contributions. Refunds shall then be
             2385      paid in accordance with Subsection 49-1-502 (3).]
             2386          [(c) Under no circumstance may a withdrawing unit receive the employer contributions
             2387      which have been made to the system.]
             2388          (3) An employer who did not become a participating employer in this system prior to July
             2389      1, 1986, may not participate in this system.
             2390          (4) If a participating employer purchases service credit on behalf of regular full-time
             2391      employees for service rendered prior to the participating employer's admission to this system, the
             2392      service credit shall be purchased in a nondiscriminatory manner on behalf of all current and former
             2393      regular full-time employees who were eligible for service credit at the time service was rendered.
             2394          Section 53. Section 49-12-203 , which is renumbered from Section 49-2-205 is renumbered
             2395      and amended to read:
             2396           [49-2-205].     49-12-203. Exclusions from membership in system.
             2397          (1) The following employees are [excluded from membership in the retirement] not
             2398      eligible for service credit in this system:
             2399          [(1)] (a) [Every] An employee whose employment status is temporary in nature due to the
             2400      nature or the type of work to be performed[.], provided that:
             2401          (i) if the term of employment exceeds six months[, then for that employee a regular
             2402      full-time status shall be assumed, and the employee shall be enrolled in the system] and the
             2403      employee otherwise qualifies for service credit in this system, the participating employer shall
             2404      report and certify to the office that the employee is a regular full-time employee effective the
             2405      beginning of the seventh month of employment[.]; or
             2406          (ii) if [the same] an employee, previously terminated prior to [enrollment as a member, is
             2407      again employed] being eligible for service credit in this system is reemployed within three months
             2408      of termination by the same participating employer, [the employee shall be immediately enrolled
             2409      as a member if the work constitutes full-time as defined in this chapter] the participating employer
             2410      shall report and certify that the member is a regular full-time employee when the total of the
             2411      periods of employment equals six months and the employee otherwise qualifies for service credit
             2412      in this system.
             2413          [(2)] (b) [Full-time students or] A full-time student, the spouse of a full-time student [and
             2414      persons], or a person employed in a trainee relationship [may be excluded from coverage by rules


             2415      adopted by the board] who files a formal request for exemption.
             2416          [(3)] (c) (i) [Every] A current or future employee of a two-year or four-year college or
             2417      university who holds, or is entitled to hold, [pursuant to] under Section [ 49-2-206 ] 49-12-204 , a
             2418      retirement annuity contract with the Teachers' Insurance and Annuity Association of America or
             2419      with any other public or private system, organization, or company during any period in which [that
             2420      employee has received] required contributions [toward the premiums required] based on
             2421      compensation [from the employing unit] have been paid on behalf of the employee by the
             2422      employer.
             2423          (ii) The employee, upon cessation of the participating employer contributions, shall
             2424      immediately become [a contributing member] eligible for service credit in this system.
             2425          [(4)] (d) [Every] An employee serving as an exchange employee from outside the state.
             2426          [(5)] (e) [Elected officials] An elected official who [file] files a formal request for
             2427      exemption.
             2428          [(6) Executive] (f) An executive department [heads] head of the state, [members] a
             2429      member of the State Tax Commission, the Public Service Commission, and [other members] a
             2430      member of a full-time or part-time [boards] board or [commissions] commission who [file] files
             2431      a formal request [to be excluded from coverage] for exemption.
             2432          [(7) (a) Employees of the Department of Employment Security who are covered under
             2433      another retirement system allowed under Title 35A, Chapter 4, Employment Security Act; or (b)
             2434      employees]
             2435          (g) An employee of the Department of Workforce Services [who were covered under
             2436      Subsection (a) and] who [are] is covered under another retirement system allowed under Title 35A,
             2437      Chapter 4, Employment Security Act.
             2438          [(8)] (h) (i) [Persons] A person appointed as a city [managers] manager or chief city
             2439      [administrators or other persons] administrator or another person employed by a [city, town]
             2440      municipality, county, or other political subdivision who [are] is not entitled to merit or civil service
             2441      protection. [Persons]
             2442          (ii) A person eligible for exclusion under [this] Subsection (1)(h)(i) shall file a formal
             2443      request for [exclusion from coverage] exemption and be employed in a position designated as
             2444      exempt under an employee exemption plan developed by the [city, town] municipality, county, or
             2445      political subdivision. [Employee exemption plans shall be subject to the following limitations:(a)


             2446      The total number of positions a city, town]
             2447          (2) (a) A municipality, county, or political subdivision may not exempt [may not exceed
             2448      the lesser of] more than 30 positions or a number equal to 10% of the employees of the [city, town]
             2449      municipality, county, or political subdivision[. However, every city, town] whichever is lesser.
             2450          (b) A municipality, county, or political subdivision [is entitled to a minimum exemption
             2451      of one eligible] may exempt at least one regular full-time employee.
             2452          [(b) Employee exemption plans shall be filed]
             2453          (3) Each participating employer shall:
             2454          (a) file employee exemptions annually with the [retirement] office[,]; and [the city, town,
             2455      county, or political subdivision shall]
             2456          (b) update the [exemption plan] employee exemptions in the event of any change.
             2457          [(c) The retirement]
             2458          (4) The office may [promulgate] make rules to implement this [subsection] section.
             2459          Section 54. Section 49-12-204 , which is renumbered from Section 49-2-206 is renumbered
             2460      and amended to read:
             2461           [49-2-206].     49-12-204. Higher education employees' eligibility requirements --
             2462      Election between different retirement plans -- Classification requirements -- Transfer
             2463      between systems -- Supplemental plans authorized.
             2464          (1) (a) [The faculty members and] Regular full-time employees of institutions of higher
             2465      education who are eligible to participate in either this system or in a retirement annuity contract
             2466      with the [Teacher's] Teachers' Insurance and Annuity Association of America or with any other
             2467      public or private system, organization, or company, designated by the Board of Regents, shall, not
             2468      later than January 1, 1979, elect to participate exclusively in this system or in an annuity contract
             2469      allowed under this Subsection (1).
             2470          (b) The election is final, and no right exists to make any further election.
             2471          (2) (a) A [faculty member or] regular full-time employee hired by an institution of higher
             2472      education after January 1, 1979, may participate only in the retirement plan which attaches to the
             2473      person's employment classification[, and each].
             2474          (b) Each institution of higher education [is directed to] shall prepare or amend existing
             2475      employment classifications, under the direction of the Board of Regents, so that each classification
             2476      is assigned with either:


             2477          (i) this system [or with];
             2478          (ii) the [Teacher's] Teachers' Insurance and Annuity Association of America; or [with any
             2479      other]
             2480          (iii) another public or private system, organization, or company designated by the Board
             2481      of Regents.
             2482          (3) A [faculty member or] regular full-time employee hired by an institution of higher
             2483      education after January 1, 1979, whose employment classification requires participation in [the
             2484      state retirement] this system may[,] elect to continue participation in this system upon change to
             2485      an employment classification which requires participation in:
             2486          (a) an annuity plan with the [Teacher's] Teachers' Insurance and Annuity Association of
             2487      America; or [with some other]
             2488          (b) another public or private system, organization, or company designated by the Board
             2489      of Regents[, finally elect to continue participation in the state retirement system].
             2490          (4) A [faculty member or] regular full-time employee hired by an institution of higher
             2491      education after January 1, 1979, whose employment classification requires participation in [such
             2492      an annuity plan, upon change to an employment classification which requires participation in this
             2493      system,] this system shall participate in this system.
             2494          [(5) Nothing contained in this section prohibits a faculty member or employee of an
             2495      institution of higher education from participating in a supplemental annuity plan, and the Board
             2496      of Regents shall promulgate rules governing permissible participation, but in no event may the
             2497      contribution by an institution for the purchase of an old age annuity or other approved investment
             2498      exceed 14.2% of the employee's or member's salary.]
             2499          [(6) The State Board of Education may assist its faculties and employees to purchase any
             2500      old age annuity plan or other approved investment by promulgating rules governing permissible
             2501      participation in a supplemental old age annuity plan or other approved investment, but such
             2502      assistance is limited to contracting with the employee to receive a reduced salary, and investing
             2503      the employee contribution towards the purchase of the annuity or other approved investment.]
             2504          Section 55. Section 49-12-301 , which is renumbered from Section 49-2-301 is renumbered
             2505      and amended to read:
             2506     
Part 3. Contributions

             2507           [49-2-301].     49-12-301. Contributions -- Two levels -- Election by a participating


             2508      employer to pay employee contributions -- Accounting for and vesting of member
             2509      contributions -- Deductions.
             2510          (1) [The system shall be maintained on a financially and actuarially sound basis by means
             2511      of contributions made jointly by the participating employer and by the active members of the
             2512      system.] Participating employers and members shall jointly pay the certified contribution rates to
             2513      the office to maintain this system on a financially and actuarially sound basis.
             2514          (2) For purposes of determining contribution rates, [the] this system is divided into two
             2515      levels according to participating employers[. The levels are] as follows:
             2516          (a) Level A includes the state [of Utah, the Utah State Retirement Office], its independent
             2517      agencies, independent entities, public corporations, and other instrumentalities, all participating
             2518      educational institutions, and all other participating employers whose activities are associated with
             2519      participating educational institutions.
             2520          (b) Level B includes all other participating employers in [the] this system.
             2521          [(2) Any] (3) (a) A participating employer may elect to pay all or part of [its members']
             2522      the required member contributions, in addition to the required participating employer
             2523      contributions.
             2524          (b) Any amount contributed by [an] a participating employer under this [subsection]
             2525      section shall vest to the member's benefit as though the member had made the contribution.
             2526          (c) The [member's] required [contribution] member contributions shall be reduced by the
             2527      amount that is paid by the participating employer.
             2528          [(3)] (4) (a) All member contributions are credited by the [retirement] office to the account
             2529      of the individual member.
             2530          (b) This amount, together with [regular] refund interest, is held in trust for the payment
             2531      of benefits to the member or the member's beneficiaries.
             2532          (c) All member contributions are [100%] vested and nonforfeitable.
             2533          [(4)] (5) (a) Each member is [deemed] considered to consent to [monthly] payroll
             2534      deductions of member contributions.
             2535          (b) The payment of compensation less [retirement] these payroll deductions is considered
             2536      full payment [of the employee's salary] for services rendered by the member.
             2537          [(5) The board shall report at least biennially to the governor, the Legislature, and each
             2538      employing unit under Division A or B the contribution rates and any adjustments necessary to


             2539      maintain the system on a financially and actuarially sound basis, and the employer and employee
             2540      shall pay the certified contribution rates. ]
             2541          Section 56. Section 49-12-302 is enacted to read:
             2542          49-12-302. Purchase of service credit.
             2543          Any member who works 20 or more hours per week for a participating employer
             2544      participating in this system, but does not meet other eligibility requirements for service credit, may
             2545      purchase the service credit in accordance with Section 49-11-403 .
             2546          Section 57. Section 49-12-401 , which is renumbered from Section 49-2-401 is renumbered
             2547      and amended to read:
             2548     
Part 4. Defined Benefit

             2549           [49-2-401].     49-12-401. Eligibility for an allowance -- Date of retirement --
             2550      Qualifications.
             2551          [(1) (a) Any member who qualifies for service retirement may retire by submitting to the
             2552      retirement office an application form notarized by a notary public. The application shall state the
             2553      proposed effective date of retirement, which may not be more than 90 days before or after the date
             2554      of application.]
             2555          [(b) The effective date shall be the 1st or 16th day of the month, as selected by the
             2556      member, but must be after the last day of actual work.]
             2557          [(c) The member shall actually terminate employment and provide evidence of
             2558      termination.]
             2559          [(2) The member is qualified to retire upon termination of services on or before the
             2560      effective date of retirement if one of the following requirements on that date is met:]
             2561          (1) A member is qualified to receive an allowance from this system when:
             2562          (a) the member ceases actual work for a participating employer in this system before the
             2563      member's retirement date and provides evidence of the termination;
             2564          (b) the member has submitted to the office a notarized retirement application form that
             2565      states the member's proposed retirement date; and
             2566          (c) one of the following conditions is met as of the member's retirement date:
             2567          [(a)] (i) the member has [been credited with] accrued at least four years of service credit
             2568      and has attained an age of 65 years [or more];
             2569          [(b)] (ii) the member has [been credited with] accrued at least ten years of service credit


             2570      and has attained an age of 62 years [or more];
             2571          [(c)] (iii) the member has [been credited with] accrued at least 20 years of service credit
             2572      and has attained an age of 60 years [or more]; or
             2573          [(d)] (iv) the member has [been credited with] accrued at least 30 years of service credit.
             2574          (2) (a) The member's retirement date shall be the 1st or the 16th day of the month, as
             2575      selected by the member, but the retirement date must be on or after the date of termination.
             2576          (b) The retirement date may not be more than 90 days before or after the date the
             2577      application is received by the office.
             2578          Section 58. Section 49-12-402 , which is renumbered from Section 49-2-402 is renumbered
             2579      and amended to read:
             2580           [49-2-402].     49-12-402. Service retirement plans -- Calculation of retirement
             2581      allowance -- Social Security limitations.
             2582          (1) (a) [There are six service retirement plans available to members of the system. Plan
             2583      One is as follows, with Plans Two, Three, Four, Five, and Six established under Section 49-2-403 .]
             2584      Except as provided under Section 49-12-701 , retirees of this system may choose from the six
             2585      retirement options described in this section.
             2586          (b) Options Two, Three, Four, Five, and Six are modifications of the Option One
             2587      calculation.
             2588          (2) [Except for members of this system who meet the requirements of Section 49-2-802 ,
             2589      upon the service retirement of a member under Section 49-2-401 , the member shall receive a
             2590      retirement allowance consisting of an annuity, a pension based on prior service and a pension
             2591      based on current service, the total of which is determined] The Option One benefit is an annual
             2592      allowance calculated as follows:
             2593          (a) If the [member has attained the age of] retiree is at least 65 years of age or has accrued
             2594      at least 30 years of service credit, the [retirement] allowance is:
             2595          [(i) (A) an amount equal to 1.10% of the member's final average monthly salary, multiplied
             2596      by the number of years of service credited for service rendered prior to July 1, 1967; plus]
             2597          [(B)] (i) an amount equal to 1.25% of the [member's] retiree's final average monthly salary
             2598      multiplied by the number of years of service [credited for service rendered on and after July 1,
             2599      1967, through June 30, 1975] credit accrued prior to July 1, 1975; plus
             2600          [(C)] (ii) an amount equal to 2% of the [member's] retiree's final average monthly salary


             2601      multiplied by the number of years of service [credited for service rendered] credit accrued on and
             2602      after July 1, 1975.
             2603          [(ii) In no case may that part of a retiring member's allowance, based upon prior service,
             2604      as provided in Subsection (2)(a)(i)(A) be less than 1.15% of that member's final average monthly
             2605      salary if the final average monthly salary is $500 or less, multiplied by the number of prior service
             2606      years standing to the member's credit at retirement.]
             2607          (b) If the [member] retiree is less than 65 years [old] of age, the [retirement] allowance
             2608      shall be reduced 3% for each year of retirement from age 60 to age 65, unless the member has 30
             2609      or more years of accrued credit in which event no reduction is made to the allowance.
             2610          [(3)] (c) (i) Years of service includes any fractions of years of service to which the
             2611      [member] retiree may be entitled. [Service amounting to 9/10 of one year constitutes a year of
             2612      service credit in the computation of a retirement benefit.]
             2613          (ii) At the time of retirement, if a retiree's combined years of actual, not purchased, service
             2614      credit is within 1/10 of one year of the total years of service credit required for retirement, the
             2615      retiree shall be considered to have the total years of service credit required for retirement.
             2616          (3) The allowance payable under Options Two, Three, Four, Five, and Six is calculated
             2617      by reducing an Option One benefit based on actuarial computations to provide the following:
             2618          (a) Option Two is a reduced allowance paid to and throughout the lifetime of the retiree,
             2619      and, if the retiree receives less in annuity payments than the amount of the retiree's member
             2620      contributions, the remaining balance of the retiree's member contributions shall be paid in
             2621      accordance with Sections 49-11-609 and 49-11-610 .
             2622          (b) Option Three is a reduced allowance paid to and throughout the lifetime of the retiree,
             2623      and, upon the death of the retiree, the same reduced allowance paid to and throughout the lifetime
             2624      of the retiree's lawful spouse at the time of retirement.
             2625          (c) Option Four is a reduced allowance paid to and throughout the lifetime of the retiree,
             2626      and upon the death of the retiree, an amount equal to 1/2 of the retiree's allowance paid to and
             2627      throughout the lifetime of the retiree's lawful spouse at the time of retirement.
             2628          (d) Option Five is a modification of Option Three so that if the lawful spouse at the time
             2629      of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time
             2630      of initial retirement under Option One shall be paid to the retiree for the remainder of the retiree's
             2631      life, beginning on the last day of the month following the month in which the lawful spouse dies.


             2632          (e) Option Six is a modification of Option Four so that if the lawful spouse at the time of
             2633      retirement predeceases the retiree, an allowance equivalent to the amount payable at the time of
             2634      initial retirement under Option One shall be paid to the retiree for the remainder of the retiree's life,
             2635      beginning on the last day of the month following the month in which the lawful spouse dies.
             2636          (4) (a) (i) The final average salary is limited in the computation of that part of [a member's
             2637      prior service retirement] an allowance based on service rendered prior to July 1, 1967, during a
             2638      period when the [member] retiree received employer contributions on a portion of compensation
             2639      from an educational institution toward the payment of the premium required on a retirement
             2640      annuity contract with the Teachers' Insurance and Annuity Association of America or with any
             2641      other public or private system, organization, or company to $4,800.
             2642          (ii) This limitation is not applicable to [members] retirees who elected to continue in the
             2643      [state retirement] this system by July 1, 1967.
             2644          (b) Periods of [service] employment which are exempt from this system under Subsection
             2645      [ 49-2-205 (3), not to exceed four years] 49-12-203 (1)(c), may be purchased by the member for the
             2646      purpose of retirement[.] only if all benefits from the Teachers' Insurance and Annuity Association
             2647      of America or any other public or private system or organization based on this period of
             2648      employment are forfeited.
             2649          (5) (a) If a retiree under Option One dies within 90 days after the retiree's retirement date,
             2650      the retirement is canceled and the death shall be considered as that of a member before retirement.
             2651          (b) Any payments made to the retiree shall be deducted from the amounts due to the
             2652      beneficiary.
             2653          (6) If a retiree retires under either Option Five or Six and subsequently divorces, the retiree
             2654      may elect to convert the benefit to a Option One benefit at the time of divorce, if there is no court
             2655      order filed in the matter.
             2656          Section 59. Section 49-12-403 , which is renumbered from Section 49-2-404 is renumbered
             2657      and amended to read:
             2658           [49-2-404].     49-12-403. Allowance payable by lump sum payment.
             2659          (1) If a [retiring member's monthly] retiree's allowance, as computed under [Section
             2660      49-2-402 ] this chapter, amounts to $25 or less, the [benefit claim] allowance may be settled by the
             2661      [administrator] office by making a lump-sum payment of an amount actuarially equivalent to the
             2662      [monthly] allowance. [Payment thus]


             2663          (2) A payment made under this section constitutes a full and complete settlement of the
             2664      [retiring member's] retiree's claim against [the] this system.
             2665          Section 60. Section 49-12-404 , which is renumbered from Section 49-2-405 is renumbered
             2666      and amended to read:
             2667           [49-2-405].     49-12-404. Lump-sum death benefit for retiree and spouse.
             2668          (1) (a) [A member, upon service] Upon retirement, a retiree may elect to have the
             2669      [administrator set aside in reserve from the member's retirement allowance a sufficient sum of
             2670      money, based upon age, sex, interest rate in effect, and the mortality rates for the member's group,]
             2671      office deduct an actuarially determined amount from the retiree's allowance to provide a lump-sum
             2672      benefit payable to a beneficiary upon the death of the [member after retirement, under an
             2673      agreement that will provide a reduced retirement allowance payable to the retirant throughout the
             2674      retirant's lifetime, plus the lump-sum amount at death] retiree.
             2675          (b) A retiree may also elect to have an actuarially determined amount deducted from the
             2676      retiree's allowance to provide a lump-sum death benefit payable to a beneficiary upon the death
             2677      of the retiree's lawful spouse at the time of retirement.
             2678          [(b) This] (c) The board may make rules for the administration of this lump-sum death
             2679      [benefit may be purchased in accordance with rules adopted by the board] benefit.
             2680          [(c) The spouse of a retiring member may also be covered with a death benefit upon the
             2681      request of the member.]
             2682          [(2) The lump-sum death benefit provided by this section may be chosen as a modification
             2683      of or deduction from the retirement allowance provided under Sections 49-2-402 and 49-2-403 ,
             2684      and is payable to the designated beneficiary chosen at the time of the member's retirement, to a
             2685      beneficiary subsequently designated, or to the retirant's estate under applicable conditions
             2686      established under Section 49-1-606 or 49-1-607 .]
             2687          [(3) If a retirant cancels retirement as permitted by this title, the lump-sum death benefit
             2688      under this section shall also be canceled, with the appropriate reserve, as determined by the
             2689      administrator, credited back to the member's contribution account.]
             2690          [(4) Payment of the lump-sum death benefit consists only of a refund of the retirant's
             2691      reserve or the amount determined by the board and set aside as provided in this section if death
             2692      occurs within three years from the date of retirement and is due to a health condition existing and
             2693      being treated at the time of retirement.]


             2694          [(5) The board may establish rules and adopt suitable mortality rates to protect the fund
             2695      against adverse selection of benefits by a retiring member under this section.]
             2696          (2) (a) For retirees who pay for a lump-sum death benefit under this section through a
             2697      reduction of an allowance, benefits shall be paid in accordance with Sections 49-11-609 and
             2698      49-11-610 .
             2699          (b) If the retiree chooses Option Three, Four, Five, or Six, and a lump-sum death benefit
             2700      is payable after the death of the retiree or the lawful spouse, the allowance shall be restored to its
             2701      original amount.
             2702          Section 61. Section 49-12-405 , which is renumbered from Section 49-2-406 is renumbered
             2703      and amended to read:
             2704           [49-2-406].     49-12-405. Death of married member -- Service retirement benefits to
             2705      surviving spouse.
             2706          (1) [(a) A member who has] Upon the request of the member's lawful spouse at the time
             2707      of death, a member is considered to be eligible to retire under Option Three on the first day of the
             2708      month following the month in which the member died if the following requirements are met:
             2709          (a) the member has:
             2710          (i) 25 or more years of [credited] service[,] credit;
             2711          (ii) attained age 60 with 20 or more years of [credited] service[,] credit;
             2712          (iii) attained age 62 with ten or more years of [credited] service[,] credit; or
             2713          (iv) attained age 65 with four or more years of [credited] service[, respectively, and who]
             2714      credit; and
             2715          (b) the member dies leaving a spouse to whom the member has been married at least six
             2716      months prior to the death date[, may, upon the request of the spouse, be considered to have retired
             2717      on the first day of the month following the month in which death occurred under Plan Number
             2718      Three].
             2719          [(b)] (2) The spouse who requests a benefit [pursuant to Subsection (1)(a)] under this
             2720      section shall apply in writing to the [retirement] office stating the proposed effective date to begin
             2721      receiving [a monthly retirement] an allowance, which may not be more than 90 days [before or]
             2722      after the date of application[, and which shall be effective on the 1st or 16th day of the month, as
             2723      selected by the spouse].
             2724          [(2)] (3) The [benefit] Option Three benefit calculation, when there are 25 or more years


             2725      of service credit, shall be calculated without [an actuarial] a reduction in allowance under Section
             2726      49-12-402 .
             2727          [(3) Benefits] (4) Except for a return of member contributions, benefits payable under this
             2728      section are [service] retirement benefits and shall be paid in addition to any payments made under
             2729      Section [ 49-2-701 , except for a return of accumulated contributions,] 49-12-501 and constitute a
             2730      full and final settlement of the claim of the spouse or any other beneficiary filing claim for benefits
             2731      under Section [ 49-2-701 ] 49-12-501 .
             2732          Section 62. Section 49-12-406 , which is renumbered from Section 49-2-409 is renumbered
             2733      and amended to read:
             2734           [49-2-409].     49-12-406. Part-time elective or appointive service -- Computation of
             2735      allowance.
             2736          [Elective] Notwithstanding any other provision of this title, elective or appointive service
             2737      rendered on a basis not considered full time by the [board,] office, unless otherwise provided by
             2738      this chapter, shall have a [retirement] separate allowance computed on the basis of compensation
             2739      actually received by the [official] member during the period of elective or appointive service.
             2740          Section 63. Section 49-12-407 , which is renumbered from Section 49-2-601 is renumbered
             2741      and amended to read:
             2742           [49-2-601].     49-12-407. Annual cost-of-living adjustment.
             2743          (1) [There shall be computed and paid by the retirement] The office[, upon the approval
             2744      of the board,] shall make an annual cost-of-living [allowance] adjustment to: [all retired members
             2745      of this system after the members have been retired one year. The adjustment shall be equal to the
             2746      decrease in the purchasing power of the dollar during the preceding year, as measured by the
             2747      Consumer Price Index, prepared by the United States Bureau of Labor Statistics, limited to a
             2748      maximum of 4% of the retirant's or beneficiary's original retirement allowance. Decreases in the
             2749      purchasing power of the dollar in excess of 4% annually shall be accumulated and used in
             2750      subsequent allowances when the cost-of-living adjustment is less than 4% annually.]
             2751          [(2) If the cost-of-living shows a decline of 4% or more during any period of time
             2752      extending longer than one year a reduction not to exceed the rate of 2% per year shall be made
             2753      based upon the original retirement allowance. Payments made under this section shall be a part
             2754      of the retired member's allowance. These payments and subsequent adjustments as prescribed for
             2755      the retirant shall also apply to the beneficiary who is paid an allowance under optional retirement


             2756      plans. Cost-of-living benefits granted prior to July 1, 1975, are not subject to adjustment.]
             2757          (a) an original allowance paid under Section 49-12-402 or 49-12-404 , if the allowance has
             2758      been paid for at least one year; and
             2759          (b) an original payment made to an alternate payee under a domestic relations order, if the
             2760      payment is to be paid as a percentage of the allowance rather than a specific dollar amount.
             2761          (2) (a) The original allowance shall be increased by the annual increase in the Consumer
             2762      Price Index up to a maximum of 4%.
             2763          (b) Annual increases in the Consumer Price Index in excess of 4% shall be accumulated
             2764      and used in subsequent adjustments when the annual increase in the Consumer Price Index is less
             2765      than 4%.
             2766          (3) The Consumer Price Index used in calculating adjustments shall be a United States
             2767      Bureau of Labor Statistics Consumer Price Index average as determined by the board.
             2768          (4) The cost-of-living adjustment made under this section may not decrease the allowance.
             2769          Section 64. Section 49-12-408 , which is renumbered from Section 49-2-602 is renumbered
             2770      and amended to read:
             2771           [49-2-602].     49-12-408. Minimum monthly allowance.
             2772          (1) [No member who retired] A retiree under this system may not receive less than $9 per
             2773      month for each year of service credit at the time of retirement.
             2774          (2) The increased allowance provided by this section may not exceed the allowance
             2775      payable under [Plan I] Option One under Section 49-12-402 , by more than 75%.
             2776          (3) The cost of providing this benefit shall be assumed within the contribution rate
             2777      established under Section [ 49-2-301 ] 49-12-301 .
             2778          Section 65. Section 49-12-501 , which is renumbered from Section 49-2-701 is renumbered
             2779      and amended to read:
             2780     
Part 5. Death Benefit

             2781           [49-2-701].     49-12-501. Death benefit by means of group insurance policy --
             2782      Eligibility for death benefit -- Benefit calculation -- Payment of claim -- Exclusion.
             2783          (1) The [board] office shall provide a death benefit through the purchase of a group
             2784      insurance policy for members of this system.
             2785          (2) The board shall make rules to [implement and] administer the death benefit provided
             2786      by this section and may, in accordance with federal law, establish:


             2787          (a) benefit levels [or];
             2788          (b) classes of [employees] members; and
             2789          [(b)] (c) a living benefit option.
             2790          [(2) Upon receipt of acceptable proof of death of a member of the system, either prior to
             2791      the effective date of the member's retirement, except as provided in Section 49-2-406 , or after the
             2792      date of retirement but under circumstances that Section 49-2-403 requires to be treated as the death
             2793      of member before retirement, the following death benefits, except those benefits already provided
             2794      to the member under a living benefit option, shall be paid to the beneficiary:]
             2795          [(a) the return of any accumulated contributions under this chapter; plus]
             2796          [(b) a percentage of the final average salary of the deceased member to be determined by
             2797      the board. This percentage shall be the highest percentage of final average salary obtainable by
             2798      the board through the purchase of a group insurance policy using the money contributed by the
             2799      employer under Subsection (3).]
             2800          (3) This death benefit is payable when:
             2801          (a) the member dies prior to the member's retirement date or dies under circumstances
             2802      which Section 49-12-402 requires to be treated as the death of a member before retirement;
             2803          (b) the office receives acceptable proof of death; and
             2804          (c) benefits are not payable under Section 49-12-404 .
             2805          (4) The death benefit payable to the beneficiary under this section is a lump-sum payment
             2806      consisting of:
             2807          (a) the return of any member contributions under this chapter; plus
             2808          (b) a percentage of the final average salary of the member to be determined by the board.
             2809          (5) Any amount of a living benefit option paid to the member prior to death shall be
             2810      deducted from the benefit payable to the beneficiary.
             2811          [(3)] (6) The cost of the death benefit shall be paid by the participating employer as a
             2812      portion of the contribution rate established under Section 49-12-301 .
             2813          [(4)] (7) The portion of the death benefit provided under Subsection [(2)] (4)(b)[, based
             2814      upon the member's past compensation,] may not be paid to the beneficiary of an inactive member
             2815      unless:
             2816          (a) that member has [credit for] ten or more years of accrued service credit prior to July
             2817      1, 1987; or


             2818          (b) the death of the member occurs either:
             2819          (i) within a period of 120 days after the last day of [service] work for which the person
             2820      received compensation; or
             2821          (ii) while the [person] member is still physically or mentally incapacitated from
             2822      performance of duties, if the incapacity has been continuous since the last day of [service] work
             2823      for which compensation [is] was received[; or].
             2824          [(iii) while that person is on military leave and has elected to remain in active contributing
             2825      membership status as provided in Section 49-1-402 .]
             2826          (8) The death benefit [may not be paid to any person except a beneficiary] provided under
             2827      Subsection (4)(b) shall be paid in accordance with Sections 49-11-609 and 49-11-610 .
             2828          [(5)] (9) The death benefit [for] paid to the beneficiary of an inactive member, except as
             2829      otherwise provided under Subsection [(4)] (7), is a lump-sum return of the [deceased] member's
             2830      [accumulated] member contributions.
             2831          [(6)] (10) Payment of the death benefit by the [retirement] office constitutes a full
             2832      settlement of any beneficiary's claim against the [system] office, and the [system] office is not
             2833      liable for any further or additional claims or assessments on behalf of the [deceased] member.
             2834          [(7)] (11) Unless otherwise specified in a written document filed [in] with the [retirement]
             2835      office, death benefits payable to beneficiaries shall be in accordance with the order of precedence
             2836      established under Title 75, Chapter 2, [Uniform Probate Code] Intestate Succession and Wills.
             2837          [(8) In the implementation of this section and for administrative purposes only, the State
             2838      Tax Commission shall provide pertinent information to the retirement administrator, upon request,
             2839      concerning dependents claimed by a deceased member on the income tax return covering the year
             2840      prior to the member's death.]
             2841          [(9)] (12) A death benefit under this section may not be paid to a [member who has retired]
             2842      beneficiary of a retiree under this system.
             2843          Section 66. Section 49-12-601 , which is renumbered from Section 49-2-503 is renumbered
             2844      and amended to read:
             2845     
Part 6. Disability

             2846           [49-2-503].     49-12-601. Disability retirement -- Medical examinations --
             2847      Reemployment of disabled retirant -- Cancellation of benefit -- Service credit -- Disabled
             2848      retirant engaging in gainful employment -- Reduction of allowance -- Refusal to submit to


             2849      medical examination.
             2850          (1) Only members of this system who became eligible for a disability retirement allowance
             2851      before January 1, 1983, are covered under this section.
             2852          [(1)] (2) (a) The board may, upon the recommendation of the administrator, require any
             2853      retirant who has been retired for disability and who has not attained the age of 60 years, to undergo
             2854      a medical examination by a physician or surgeon, appointed by the board, at the place of residence
             2855      of the retirant or other place mutually agreed upon.
             2856          (b) Upon the basis of the examination, the board shall determine whether the disabled
             2857      retirant is still incapacitated, physically or mentally, for service under this chapter.
             2858          (c) If the board determines that the retirant is not incapacitated, the retirement allowance
             2859      shall be cancelled and the retirant shall be reinstated immediately to a position of the same class
             2860      as that held by the retirant when retired for disability.
             2861          (d) If any employing unit is unable to reinstate the retirant, the board shall continue the
             2862      disability retirement allowance of the retirant until [such time as] employment is available.
             2863          [(2)] (3) (a) If a disabled retirant under this system reenters covered service and is eligible
             2864      for membership in the retirement system, the retirement allowance shall be cancelled and the
             2865      retirant shall immediately become a member of the retirement system.
             2866          (b) (i) The member's individual account shall be credited with an amount which is the
             2867      actuarial equivalent, at the time of reentry, based on a disabled life, of that portion of the member's
             2868      retirement allowance which was derived from the member's accumulated contributions[, but that].
             2869          (ii) The amount credited may not exceed the amount of accumulated contributions
             2870      standing at the time of retirement.
             2871          (c) Each member shall receive credit for the service [standing to] in the member's account
             2872      at the time of retirement.
             2873          [(3)] (4) If the retirement allowance of any disabled retirant is cancelled for any cause other
             2874      than reentry into service, the retirant shall be paid the accumulated contributions less the amounts
             2875      prescribed by Subsection [(5)] (6).
             2876          [(4)] (5) (a) If any member retired for disability engages in a gainful occupation prior to
             2877      attaining age 60, the administrator shall reduce the amount of the retirement [benefit] allowance
             2878      to an amount which, when added to the compensation earned monthly by the retirant in that
             2879      occupation, may not exceed the amount of the final average monthly salary on the basis of which


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

             2900           [49-2-802].     49-12-701. Early retirement incentive -- Eligibility -- Calculation of
             2901      benefit -- Payment of costs -- Savings to be appropriated by Legislature -- Restrictions on
             2902      reemployment.
             2903          (1) Any member of this system may retire and receive the [benefit] allowance allowed
             2904      under Subsection (2) if the member meets the following requirements as of the [effective date of]
             2905      member's retirement date:
             2906          (a) the member is eligible for retirement under Section [ 49-2-401 ] 49-12-401 , or
             2907      [otherwise] has 25 years of service credit;
             2908          (b) the member elects to forfeit any stipend for retirement offered by the [employing unit]
             2909      participating employer; and
             2910          (c) the member elects to retire from this system by applying for retirement by the date


             2911      established under Subsection (3)(a) or (3)(b).
             2912          (2) (a) A member who retires [pursuant to] under Subsection (1) shall receive 2% of that
             2913      member's final average salary for all years of service credit.
             2914          (b) An actuarial reduction may not be applied to the [benefit] allowance granted under this
             2915      section.
             2916          (3) In order to receive the [benefit] allowance allowed by this section, a member shall
             2917      submit an application to the [retirement] office as follows:
             2918          (a) (i) For state and school employees under Level A, the application shall be filed by May
             2919      31, 1987. The [effective date of] member's retirement date shall then be set by the [employee]
             2920      member on the [first] 1st or [sixteenth] 16th day of July, August, or September, 1987.
             2921          (ii) If a Level A [employee] member elects to retire, the [administrator] executive director
             2922      or participating employer may request the [employee] member to delay the [effective date of]
             2923      retirement date until a later date, but no later than June 30, 1988.
             2924          (iii) If the [employee] member agrees to delay the [effective] retirement date, the
             2925      [effective] retirement date shall be delayed, but [no] service credit may not be accrued after the
             2926      member's original [effective date of] retirement date elected by the [employee] member, and [no]
             2927      [salary] compensation earned after [that effective] the member's original retirement date date may
             2928      not be used in the calculation of the final average salary for determining the retirement [benefit]
             2929      allowance.
             2930          (b) (i) For political [subdivisions] subdivision employees under Level B, the application
             2931      shall be filed by September 30, 1987.
             2932          (ii) The [effective date of] retirement date shall then be set by the [employee] member on
             2933      the [first] 1st or [sixteenth] 16th day of July, August, September, October, November, or
             2934      December, 1987.
             2935          (4) (a) The cost of providing the [benefit] allowance under this section shall be funded in
             2936      fiscal year 1987-88 by a supplemental appropriation in the 1988 General Session based on the
             2937      retirement contribution rate increase established by the consulting actuary and approved by the
             2938      board.
             2939          (b) The cost of providing the [benefit] allowance under this section shall be funded
             2940      beginning July 1, 1988, by means of an increase in the retirement contribution rate established by
             2941      the consulting actuary and approved by the board.


             2942          (c) The rate increase under Subsections (4)(a) and (b) shall be funded:
             2943          (i) for state employees, by an appropriation from the account established by the Division
             2944      of Finance under Subsection (4)(d), which is funded by savings derived from this early retirement
             2945      incentive and a work force reduction;
             2946          (ii) for school employees, by direct contributions from the employing unit, which may not
             2947      be funded through an increase in the retirement contribution amount established in Title 53A,
             2948      Chapter 17a, Minimum School Program Act; and
             2949          (iii) for political subdivisions under Level B, by direct contributions by the [employing
             2950      unit] participating employer.
             2951          (d) (i) Each year, any excess savings derived from this early retirement incentive which
             2952      are above the costs of funding the increase and the costs of paying insurance, sick leave,
             2953      compensatory leave, and vacation leave under Subsections (4)(c)(i) and (c)(ii) shall be reported
             2954      to the Legislature and shall be appropriated as provided by law.
             2955          (ii) In the case of Subsection (4)(c)(i), the Division of Finance shall establish an account
             2956      into which all savings derived from this early retirement incentive shall be deposited as the savings
             2957      are realized.
             2958          (iii) In the case of Subsection (4)(c)(ii), the State Office of Education shall certify the
             2959      amount of savings derived from this early retirement incentive.
             2960          (iv) The State Office of Education and the [employing unit] participating employer may
             2961      not spend the savings until appropriated by the Legislature as provided by law.
             2962          (5) A member who retires under this section is subject to Section [ 49-1-505 ] 49-11-504 .
             2963          (6) The [retirement] board may adopt rules to [implement and] administer this section.
             2964          (7) The Legislative Auditor General shall perform an audit to ensure compliance with this
             2965      section.
             2966          Section 68. Section 49-13-101 , which is renumbered from Section 49-3-101 is renumbered
             2967      and amended to read:
             2968     
CHAPTER 13. PUBLIC EMPLOYEES' NONCONTRIBUTORY RETIREMENT ACT

             2969     
Part 1. General Provisions

             2970           [49-3-101].     49-13-101. Title.
             2971          This chapter is known as the "Public Employees' Noncontributory Retirement Act."
             2972          Section 69. Section 49-13-102 , which is renumbered from Section 49-3-103 is renumbered


             2973      and amended to read:
             2974           [49-3-103].     49-13-102. Definitions.
             2975          As used in this chapter:
             2976          [(1) "Appointive officer" means an employee appointed to a position for a definite and
             2977      fixed term of office by official and duly recorded action of the governing body of an employing
             2978      unit and who earns $500 or more per month over a 12-month period adjusted by the Bureau of
             2979      Labor Statistics Consumer Price Index.]
             2980          [(2) (a) "Compensation," "salary," or "wages" means the total amount of payments made
             2981      by an employer to an employee for services rendered to the employer, including:]
             2982          [(i) bonuses;]
             2983          [(ii) cost-of-living adjustments;]
             2984          [(iii) other payments currently includable in gross income and that are subject to Social
             2985      Security deductions, including any payments in excess of the maximum amount subject to
             2986      deduction under Social Security law; and]
             2987          [(iv) amounts that the employee authorizes to be deducted or reduced for salary deferral
             2988      or other benefit programs authorized by federal law.]
             2989          [(b) "Compensation" for purposes of this chapter may not exceed the amount allowed
             2990      under Internal Revenue Code Section 401(a)(17).]
             2991          [(c) "Compensation," "salary," or "wages" does not include:]
             2992          [(i) the monetary value of remuneration paid in kind, such as a residence or use of
             2993      equipment;]
             2994          [(ii) all contributions made by an employer under any plan for the benefit of a participant;]
             2995          [(iii) salary paid to an employee working under the minimum number of hours required
             2996      for membership;]
             2997          [(iv) salary paid to a temporary or exempt employee;]
             2998          [(v) any payments upon termination, including accumulated lump-sum vacation, sick leave
             2999      payments, or any other special payments; or]
             3000          [(vi) uniform, travel, or similar allowances.]
             3001          [(3) "Educational institution" means a political subdivision or instrumentality of the state
             3002      or a combination thereof primarily engaged in educational activities or the administration or
             3003      servicing of educational activities, including:]


             3004          [(a) the State Board of Education and its instrumentalities;]
             3005          [(b) any institution of higher learning and its branches;]
             3006          [(c) any school district and its instrumentalities;]
             3007          [(d) any vocational and technical school; and]
             3008          [(e) any entity arising out of a consolidation agreement between entities under this
             3009      definition.]
             3010          [(4) "Effective date" of the noncontributory system means 12:01 a.m., July 1, 1986.]
             3011          [(5) (a) "Employee" or "regular employee" means any regular full-time employee whose
             3012      term of employment for an employer contemplates continued employment during a calendar or
             3013      school year and who performs covered service for one or more employers.]
             3014          [(b) "Employee" or "regular employee" means an officer, elective or appointive, who
             3015      receives as compensation from an employer $500 or more per month over a 12-month period
             3016      adjusted by the Bureau of Labor Statistics Consumer Price Index.]
             3017          [(6) "Employer" or "employing unit" means any department, educational institution,
             3018      political subdivision, or eligible organization, or agency financed in whole or in part by public
             3019      funds for which any employee or member performs services subject to this chapter.]
             3020          (1) (a) Except as provided in Subsection (1)(c),"compensation" means the total amount
             3021      of payments made by a participating employer to a member of this system for services rendered
             3022      to the participating employer, including:
             3023          (i) bonuses;
             3024          (ii) cost-of-living adjustments;
             3025          (iii) other payments currently includable in gross income and that are subject to Social
             3026      Security deductions, including any payments in excess of the maximum amount subject to
             3027      deduction under Social Security law; and
             3028          (iv) amounts that the member authorizes to be deducted or reduced for salary deferral or
             3029      other benefits authorized by federal law.
             3030          (b) "Compensation" for purposes of this chapter may not exceed the amount allowed under
             3031      Internal Revenue Code, Section 401(a)(17).
             3032          (c) "Compensation" does not include:
             3033          (i) the monetary value of remuneration paid in kind, including a residence or use of
             3034      equipment;


             3035          (ii) the cost of any employment benefits paid for by the participating employer;
             3036          (iii) compensation paid to a temporary employee, an exempt employee, or an employee
             3037      otherwise ineligible for service credit;
             3038          (iv) any payments upon termination, including accumulated vacation, sick leave payments,
             3039      severance payments, compensatory time payments, or any other special payments; or
             3040          (v) any costs incurred by the member and reimbursed by the participating employer,
             3041      including automobile costs, uniform costs, travel costs, tuition costs, housing costs, insurance
             3042      costs, and dependent care costs.
             3043          (d) The executive director may determine if a payment not listed under this Subsection (1)
             3044      falls within the definition of compensation.
             3045          [(7)] (2) "Final average salary" means the amount computed by averaging the highest three
             3046      years of annual compensation preceding retirement subject to [Subsections (7)(a), (b), and (c).] the
             3047      following:
             3048          (a) Except as provided in Subsection [(7)] (2)(b), the percentage increase in annual
             3049      compensation in any one of the years used may not exceed the previous year's [salary]
             3050      compensation by more than 10% plus a cost-of-living adjustment equal to the decrease in the
             3051      purchasing power of the dollar during the previous year, as measured by [the Consumer Price
             3052      Index prepared by the] a United States Bureau of Labor Statistics Consumer Price Index average
             3053      as determined by the board.
             3054          (b) In cases where the [employing unit] participating employer provides acceptable
             3055      documentation to the [board] office, the limitation in Subsection (2)(a) may be exceeded if:
             3056          (i) the member has transferred from another [employing unit] agency; or
             3057          (ii) the member has been promoted to a new position.
             3058          (c) If the member retires more than six months from the date of termination of employment
             3059      and for purposes of computing the member's final average salary only, the member is considered
             3060      to have been in service at his last [salary] rate of pay from the date of the termination of
             3061      employment to the effective date of retirement [becomes effective if the member so requests].
             3062          [(8) "Normal retirement age" means the age of 65 years.]
             3063          [(9) "Organization or agency financed in whole or in part by public funds" means an
             3064      agency, association, or organization that receives public funds. The term does not include political
             3065      subdivisions, departments, or educational institutions.]


             3066          [(10) "Public funds" means those funds derived, either directly or indirectly, from public
             3067      taxes or public revenue, dues, or contributions paid or donated by the membership of the
             3068      organization used to finance an activity whose objective is to improve, on a nonprofit basis, the
             3069      governmental, educational, and social programs and systems of the state or its political
             3070      subdivisions.]
             3071          [(11) (a) "Regular full-time employee," in qualifying for membership and accrual of
             3072      service credit under this system, means an employee whose employment normally requires an
             3073      average of 20 hours or more per week, except as modified by the board, and who receives benefits
             3074      normally provided by the employing unit.]
             3075          [(b) "Regular full-time employee" includes:]
             3076          [(i) a teacher who teaches half-time or more or a classified school employee who works
             3077      an average of 20 hours per week or more, regardless of benefits provided; and]
             3078          [(ii) an individual who otherwise meets the definition of this Subsection (11) who
             3079      performs services for a participating employer through an employee leasing or similar
             3080      arrangement.]
             3081          [(12) "Years of service" or "service years" means:]
             3082          [(a) the number of periods, each to consist of 12 full months as determined by the board;]
             3083          [(b) a period determined by the board, whether consecutive or not, during which an
             3084      employee performed services for an employer or employers, including any time the employee
             3085      rendered service in the armed forces of the United States before membership in the system or was
             3086      absent on a paid leave of absence granted by an employer or absent in the service of the United
             3087      States government on military duty as provided by this chapter; or]
             3088          [(c) for a teacher, school administrator, or other contract employee of an educational
             3089      institution, not less than eight months of full-time service constitutes a service year.]
             3090          (3) "Participating employer" means an employer which meets the participation
             3091      requirements of Section 49-13-201 .
             3092          (4) (a) "Regular full-time employee" means an employee whose term of employment for
             3093      a participating employer contemplates continued employment during a fiscal or calendar year and
             3094      whose employment normally requires an average of 20 hours or more per week and who receives
             3095      benefits normally provided by the participating employer.
             3096          (b) "Regular full-time employee" includes:


             3097          (i) a teacher whose term of employment for a participating employer contemplates
             3098      continued employment during a school year and who teaches half-time or more or a classified
             3099      school employee who works an average of 20 hours per week or more for a participating employer,
             3100      regardless of benefits provided;
             3101          (ii) an officer, elective or appointive, who earns during the first full month of the term of
             3102      office $500 or more, indexed as of January 1, 1989, as provided in Section 49-13-407 ;
             3103          (iii) a faculty member or employee of an institution of higher education who is considered
             3104      full-time by that institution of higher education; and
             3105          (iv) an individual who otherwise meets the definition of this Subsection (4) who performs
             3106      services for a participating employer through an employee leasing or similar arrangement.
             3107          (5) "System" means the Public Employees' Noncontributory Retirement System.
             3108          (6) "Years of service credit" means:
             3109          (a) a period, consisting of 12 full months as determined by the board;
             3110          (b) a period determined by the board, whether consecutive or not, during which a regular
             3111      full-time employee performed services for a participating employer, including any time the regular
             3112      full-time employee was absent on a paid leave of absence granted by a participating employer or
             3113      was absent in the service of the United States government on military duty as provided by this
             3114      chapter; or
             3115          (c) the regular school year consisting of not less than eight months of full-time service for
             3116      a regular full-time employee of an educational institution.
             3117          Section 70. Section 49-13-103 , which is renumbered from Section 49-3-201 is renumbered
             3118      and amended to read:
             3119           [49-3-201].     49-13-103. Creation of system.
             3120          There is created for [the employees of the state, its educational institutions, and its political
             3121      subdivisions] members employed by a participating employer the "Public Employees'
             3122      Noncontributory Retirement System."
             3123          Section 71. Section 49-13-104 , which is renumbered from Section 49-3-202 is renumbered
             3124      and amended to read:
             3125           [49-3-202].     49-13-104. Creation of trust fund.
             3126          (1) There is created the "Public Employees' Noncontributory Retirement Trust Fund" for
             3127      the purpose of paying the benefits and costs of administering this system.


             3128          (2) The fund shall consist of all money paid into it, including interest, in accordance with
             3129      this chapter, whether in the form of cash, securities, or other assets, and of all money received from
             3130      any other source.
             3131          (3) Custody, management, and investment of the fund shall be governed by [Title 49,]
             3132      Chapter [1] 11, Utah State Retirement Systems Administration.
             3133          Section 72. Section 49-13-201 , which is renumbered from Section 49-3-203 is renumbered
             3134      and amended to read:
             3135     
Part 2. Membership Eligibility

             3136           [49-3-203].     49-13-201. System membership -- Eligibility.
             3137          (1) Beginning July 1, 1986, the state and its educational institutions shall participate in this
             3138      system.
             3139          [(1) Any] (a) A person entering regular full-time employment with the state or its
             3140      educational institutions after [the effective date of this chapter shall automatically become a
             3141      member of the noncontributory retirement] July 1, 1986, is eligible for service credit in this system.
             3142          [(2) Any person in] (b) A regular full-time [employment with] employee of the state or
             3143      its educational institutions prior to [the effective date of this system] July 1, 1986, may either
             3144      become [a member of this noncontributory] eligible for service credit in this system or remain [a
             3145      member of the Public Employees' Retirement System] eligible for service in the system established
             3146      under [Title 49,] Chapter [2,] 12, Public Employees' Contributory Retirement Act, by following
             3147      the procedures established by the board [pursuant to] in accordance with this chapter.
             3148          [(3) Membership in the noncontributory system is optional for political subdivisions,]
             3149          (2) An employer, other than the state and its educational institutions, may participate in
             3150      this system except that once [a political subdivision] an employer elects to participate in [the
             3151      noncontributory] this system, that election is [final and binding upon the political subdivision]
             3152      irrevocable. [Persons]
             3153          (a) A person entering regular full-time employment with [political subdivisions] a
             3154      participating employer which [elect] elects to participate in [the noncontributory] this system [after
             3155      the effective date of this chapter shall automatically become members of the noncontributory
             3156      retirement] is eligible for service credit in this system. [Any]
             3157          (b) A person in regular full-time employment with [the political subdivision] a
             3158      participating employer prior to [that] the participating employer's election to participate in this


             3159      system may either become [a member of the noncontributory retirement] eligible for service credit
             3160      in this system or remain [a member of the Public Employees' Retirement System] eligible for
             3161      service in the system established under [Title 49,] Chapter [2,] 12, Public Employees' Contributory
             3162      Retirement Act, by following the procedures established by the board [pursuant to] in accordance
             3163      with this chapter.
             3164          Section 73. Section 49-13-202 , which is renumbered from Section 49-3-204 is renumbered
             3165      and amended to read:
             3166           [49-3-204].     49-13-202. Participation of employers -- Limitations -- Exclusions --
             3167      Admission requirements -- Nondiscrimination requirements.
             3168          (1) (a) [All political subdivisions of the state, unless] Unless excluded under Subsection
             3169      (2), [are] an employer is a participating [employers in the system] employer and may not withdraw
             3170      from participation in [the] this system. [All departments and educational institutions are also
             3171      participating employers in the system and may not withdraw from participation in the system. As
             3172      participating employers, political subdivisions, departments, and educational institutions shall meet
             3173      all requirements for full participation in the system.]
             3174          (b) In addition to their participation in this system, participating employers may provide
             3175      or participate in any additional public or private retirement, supplemental or defined contribution
             3176      plan, either directly or indirectly, for their employees.
             3177          (2) [Any political subdivision] An employer not initially admitted or included as a
             3178      participating employer in [the] this system prior to January 1, 1982, may be excluded from
             3179      participation in [the] this system if the [political subdivision] employer elects not to provide or
             3180      participate in any type of private or public retirement, supplemental or [deferred income program]
             3181      defined contribution plan, either directly or indirectly, for its employees, except for Social Security.
             3182      [Any excluded political subdivision]
             3183          (3) If an employer elects at any time to provide or participate in any type of public or
             3184      private retirement, supplemental or defined contribution plan, either directly or indirectly, except
             3185      for social security, the employer shall be a participating employer in this system.
             3186          (4) (a) Any employer may by resolution of its governing body apply for [and receive]
             3187      admission to [the] this system. [Once admitted, the political subdivision may not withdraw from
             3188      participation and shall meet all requirements for full participation in the system. If an excluded
             3189      political subdivision elects at any time to provide or participate in any type of public or private


             3190      retirement, supplemental or deferred income program, either directly or indirectly, except for social
             3191      security, the political subdivision shall be required to be a participating employer in the system.
             3192      As a participating employer, the political subdivision may not withdraw from participation and
             3193      shall meet all requirements for full participation in the system.]
             3194          [(3) (a) Any organization or agency supported in whole or in part by state public funds,
             3195      which prior to application is not covered by this chapter, may by resolution of its governing body
             3196      apply for admission to the system. The board may refuse admission to any organization or agency
             3197      applying for admission upon a finding that it is not in the best interest of the participating
             3198      employers and employees.]
             3199          (b) Upon approval of the board, the [organization or agency shall become a participant in
             3200      the system if the board and the organization or agency agree upon:] employer is a participating
             3201      employer in this system and is subject to this title.
             3202          [(i) the terms by which its employees shall become members of the system, such as the
             3203      effective date of coverage;]
             3204          [(ii) the amount of prior service credit with which they may be credited, if any;]
             3205          [(iii) the amount of any contributions in addition to regular contributions that will be
             3206      required to provide any prior service credits or retroactive current service credits from either the
             3207      employing unit or its employees; and]
             3208          [(iv) the manner in which retroactive current or prior service credits may be established,
             3209      if any.]
             3210          [(c) Once admitted to the system, an organization or agency may not withdraw from
             3211      participation, except as provided in Subsection (4), and shall meet all requirements for full
             3212      participation in the system.]
             3213          [(d) An organization or agency supported in whole or in part by public funds may not
             3214      apply for or receive admission to the system after July 1, 1991.]
             3215          [(4) (a) An organization or agency admitted to the system pursuant to Subsection (3) which
             3216      no longer receives public funds may withdraw from the system if:]
             3217          [(i) the organization or agency's governing body by resolution petitions the board for
             3218      withdrawal from the system; and]
             3219          [(ii) the board approves the withdrawal.]
             3220          [(b) Once approval to withdraw is granted, the organization or agency and its employees


             3221      shall be governed by Sections 49-1-502 and 49-1-503 .]
             3222          [(5) Except as provided in Sections 49-3-206 and 49-3-207 , no participating employer may
             3223      maintain full participation in the system by covering only part of its employees. The full
             3224      participation requirement is satisfied if a participating employer covers those of its employees
             3225      eligible for coverage under:]
             3226          [(a) Title 49, Chapter 4, Public Safety Retirement Act; or]
             3227          [(b) Title 49, Chapter 5, Firefighters' Retirement Act and its remaining employees under
             3228      either Title 49, Chapter 2, Public Employees' Retirement Act or Title 49, Chapter 3, Public
             3229      Employees' Noncontributory Retirement Act, whichever is applicable.]
             3230          [(6) In addition to their participation in the system, participating employers may provide
             3231      or participate in any additional public or private retirement, supplemental or deferred income
             3232      program, either directly or indirectly, for their employees.]
             3233          [(7) (a) Credit unions or private hospitals which are participating units in any system
             3234      administered by the board may withdraw from participation upon applying to the board. This
             3235      application shall be made between July 1, 2000, and December 31, 2000. The withdrawal is
             3236      effective the day after the last day the withdrawing unit pays retirement contributions on its
             3237      employees' salaries.]
             3238          [(b) Once the withdrawal of the credit union or private hospital is complete, the employees
             3239      of the withdrawing unit may apply to withdraw their vested contributions. Refunds shall then be
             3240      paid in accordance with Subsection 49-1-502 (3).]
             3241          [(c) Under no circumstance may a withdrawing unit receive the employer contributions
             3242      which have been made to the system.]
             3243          (5) If a participating employer purchases service credit on behalf of regular full-time
             3244      employees for service rendered prior to the participating employer's admission to this system, the
             3245      service credit shall be purchased in a nondiscriminatory manner on behalf of all current and former
             3246      regular full-time employees who were eligible for service credit at the time service was rendered.
             3247          Section 74. Section 49-13-203 , which is renumbered from Section 49-3-206 is renumbered
             3248      and amended to read:
             3249           [49-3-206].     49-13-203. Exclusions from membership in system.
             3250          (1) The following employees are [excluded from membership in the retirement] not
             3251      eligible for service credit in this system:


             3252          [(1)] (a) [Every] An employee whose employment status is temporary in nature due to the
             3253      nature or the type of work to be performed[.], provided that:
             3254          (i) if the term of employment exceeds six months[, then for that employee a regular
             3255      full-time status shall be assumed, and the employee shall be enrolled in the system] and the
             3256      employee otherwise qualifies for service credit in this system, the participating employer shall
             3257      report and certify to the office that the employee is a regular full-time employee effective the
             3258      beginning of the seventh month of employment[.]; and
             3259          (ii) if [the same] an employee, previously terminated prior to [enrollment as a member, is
             3260      again employed] becoming eligible for service credit in this system, is reemployed within three
             3261      months of termination by the same participating employer, the [employee shall be immediately
             3262      enrolled as a member if the work constitutes full-time as defined in this chapter] participating
             3263      employer shall report and certify to the office and the member is a regular full-time employee when
             3264      the total of the periods of employment equals six months and the employee otherwise qualifies for
             3265      service credit in this system.
             3266          [(2)] (b) [Full-time students] A full-time student or the spouse of a full-time student and
             3267      [persons] another person employed in a trainee relationship [may be excluded from coverage by
             3268      rules adopted by the board] who file a formal request for exemption.
             3269          [(3)] (c) (i) [Every] A current or future employee of a two-year or four-year college or
             3270      university who holds, or is entitled to hold, [pursuant to] under Section [ 49-2-206 ] 49-13-204 , a
             3271      retirement annuity contract with the Teachers' Insurance and Annuity Association of America or
             3272      with any other public or private system, organization, or company during any period in which [that
             3273      employee has received] required contributions [toward the premiums required] based on
             3274      compensation [from the employing unit] have been paid on behalf of the employee by the
             3275      employer.
             3276          (ii) The employee, upon cessation of the participating employer contributions, shall
             3277      immediately become [a contributing member] eligible for service credit in this system.
             3278          [(4) Every] (d) An employee serving as an exchange employee from outside the state.
             3279          [(5) Elected officials] (e) An elected official who [file] files a formal request for
             3280      exemption.
             3281          [(6) Executive] (f) An executive department [heads] head of the state or a legislative
             3282      [directors] director, senior [executives] executive employed by the governor's office, [members]


             3283      a member of the State Tax Commission, a member of the Public Service Commission, the State
             3284      Olympic Officer, and [other members] a member of a full-time or part-time [boards or
             3285      commissions] board or commission who [file] files a formal request [to be excluded from
             3286      coverage] for exemption.
             3287          [(7) (a) Employees of the Department of Employment Security who are covered under
             3288      another retirement system allowed under Title 35A, Chapter 4, Employment Security Act; or (b)
             3289      employees]
             3290          (g) An employee of the Department of Workforce Services [who were covered under
             3291      Subsection (7)(a) and] who [are] is covered under another retirement system allowed under Title
             3292      35A, Chapter 4, Employment Security Act.
             3293          [(8)] (h) (i) [Persons] A person appointed as a city [managers] manager or chief city
             3294      [administrators] administrator or [other persons] another person employed by a [city, town],
             3295      municipality, county, or other political subdivision, who [are] is not entitled to merit or civil
             3296      service protection. [Persons]
             3297          (ii) A person eligible for exclusion under [this] Subsection (1)(h)(i) shall file a formal
             3298      request for [exclusion from coverage] exemption and be employed in a position designated as
             3299      exempt under an employee exemption plan developed by the [city, town] municipality, county, or
             3300      political subdivision. [Employee exemption plans shall be subject to the following limitations: (a)
             3301      The total number of positions a city, town]
             3302          (2) (a) A municipality, county, or political subdivision may not exempt [may not exceed
             3303      the lesser of] more than 30 positions or a number equal to 10% of the employees of the [city, town]
             3304      municipality, county, or political subdivision, whichever is lesser. [However, every city, town]
             3305          (b) A municipality, county, or political subdivision [is entitled to a minimum exemption
             3306      of one eligible] may exempt at least one regular full-time employee.
             3307          [(b) Employee exemption plans shall be filed]
             3308          (3) Each participating employer shall:
             3309          (a) file employee exemptions annually with the [retirement] office[,]; and [the city, town,
             3310      county, or political subdivision shall]
             3311          (b) update the [exemption plan] employee exemptions in the event of any change.
             3312          [(c) The retirement]
             3313          (4) The office may [promulgate] make rules to implement this section.


             3314          Section 75. Section 49-13-204 , which is renumbered from Section 49-3-207 is renumbered
             3315      and amended to read:
             3316           [49-3-207].     49-13-204. Higher education employees' eligibility requirements --
             3317      Election between different retirement plans -- Classification requirements -- Transfer
             3318      between systems -- Supplemental plans authorized.
             3319          (1) (a) [The faculty members and] Regular full-time employees of institutions of higher
             3320      education who are eligible to participate in either this system or in a retirement annuity contract
             3321      with the [Teacher's] Teachers' Insurance and Annuity Association of America or with any other
             3322      public or private system, organization, or company, designated by the Board of Regents, shall, not
             3323      later than January 1, 1979, elect to participate exclusively in this system or in an annuity contract
             3324      allowed under this Subsection (1)(a).
             3325          (b) The election is final, and no right exists to make any further election.
             3326          (2) (a) A [faculty member or] regular full-time employee hired by an institution of higher
             3327      education after January 1, 1979, may participate only in the retirement plan which attaches to the
             3328      person's employment classification[, and each].
             3329          (b) Each institution of higher education [is directed to] shall prepare or amend existing
             3330      employment classifications, under the direction of the Board of Regents, so that each classification
             3331      is assigned with either:
             3332          (i) this system [or with the Teacher's];
             3333          (ii) the Teachers' Insurance and Annuity Association of America; or [with any other]
             3334          (iii) another public or private system, organization, or company designated by the Board
             3335      of Regents.
             3336          (3) A [faculty member or] regular full-time employee hired by an institution of higher
             3337      education after January 1, 1979, whose employment classification requires participation in [the
             3338      state retirement] this system may[,] elect to continue participation in this system upon change to
             3339      an employment classification which requires participation in:
             3340          (a) an annuity plan with the [Teacher's] Teachers' Insurance and Annuity Association of
             3341      America; or [with some other]
             3342          (b) another public or private system, organization, or company designated by the Board
             3343      of Regents[, finally elect to continue participation in the state retirement system].
             3344          (4) A [faculty member or] regular full-time employee hired by an institution of higher


             3345      education after January 1, 1979, whose employment classification requires participation in [such
             3346      an annuity plan, upon change to an employment classification which requires participation in this
             3347      system,] this system shall participate in this system.
             3348          [(5) Nothing contained in this section prohibits a faculty member or employee of an
             3349      institution of higher education from participating in a supplemental annuity plan, and the Board
             3350      of Regents shall promulgate rules governing permissible participation, but in no event may the
             3351      contribution by an institution for the purchase of an old age annuity or other approved investment
             3352      exceed 14.2% of the employee's or member's salary.]
             3353          [(6) The State Board of Education may assist its faculties and employees to purchase any
             3354      old age annuity plan or other approved investment by promulgating rules governing permissible
             3355      participation in a supplemental old age annuity plan or other approved investment, but such
             3356      assistance is limited to contracting with the employee to receive a reduced salary, and investing
             3357      the employee contribution towards the purchase of the annuity or other approved investment.]
             3358          Section 76. Section 49-13-205 , which is renumbered from Section 49-3-205 is renumbered
             3359      and amended to read:
             3360           [49-3-205].     49-13-205. Conversion to system -- Time schedule -- Conversion
             3361      windows.
             3362          [The following laws govern conversion to the Public Employees' Noncontributory
             3363      Retirement System:]
             3364          (1) [For persons governed by Subsection 49-3-203 (2),] An employee governed under
             3365      Section 49-13-201 shall make the election to participate in [the noncontributory] this system [shall
             3366      be made] within six months of [the effective date of this chapter] July 1, 1986.
             3367          (2) (a) (i) [For political subdivisions governed by Subsection 49-3-203 (3),] An employer
             3368      governed under Sections 49-13-201 and 49-13-202 shall make the election to participate [as a local
             3369      government unit shall be made] in this system within six months of [the effective date of this
             3370      chapter] July 1, 1986.
             3371          (ii) The [political subdivision] employer shall indicate whether or not it elects to
             3372      participate by enacting a resolution or ordinance to that effect.
             3373          (iii) Prior to the enactment of the resolution or ordinance, a hearing shall be held by the
             3374      [political subdivision] employer, at which all employees of the political subdivision shall be given
             3375      an opportunity to be heard on the question of participating in this [noncontributory retirement]


             3376      system.
             3377          (iv) Notice of the hearing shall be mailed to all employees within 30 days of the hearing
             3378      and shall contain the time, place, and purpose of the hearing.
             3379          (b) A [person in] regular full-time [employment with a political subdivision prior to its
             3380      election to participate] employee has six months from the date the [political subdivision] employer
             3381      elects to participate in this system in which to [elect to] make the election to participate in this
             3382      system and become [a member of the noncontributory] eligible for service credit in this system.
             3383          (3) Subsections (1) and (2) shall be used to provide a second time period of conversion to
             3384      this system beginning July 1, 1990.
             3385          (4) Subsections (1) and (2) shall be used to provide a third time period of conversion to
             3386      this system beginning July 1, 1995.
             3387          Section 77. Section 49-13-301 , which is renumbered from Section 49-3-301 is renumbered
             3388      and amended to read:
             3389     
Part 3. Contributions

             3390           [49-3-301].     49-13-301. Contributions -- Two levels -- Report.
             3391          (1) [The system shall be maintained on a financially and actuarially sound basis by means
             3392      of contributions by the participating employer] Participating employers shall pay the certified
             3393      contribution rates to the office to maintain this system on a financially and actuarially sound basis.
             3394          (2) For purposes of determining contribution rates, [the] this system is divided into two
             3395      levels according to participating employers[. The levels are] as follows:
             3396          (a) Level A includes the state [of Utah, the Utah State Retirement Office,], its independent
             3397      agencies, independent entities, public corporations, and other instrumentalities, all participating
             3398      educational institutions, and all other participating employers whose activities are associated with
             3399      participating educational institutions.
             3400          (b) Level B includes all other participating employers in [the] this system.
             3401          [(2) The board shall report at least biennially to the governor, the Legislature, and each
             3402      employing unit under Division A or B the contribution rates and any adjustments necessary to
             3403      maintain the system on a financially and actuarially sound basis, and the employer shall pay the
             3404      certified contribution rates.]
             3405          Section 78. Section 49-13-302 is enacted to read:
             3406          49-13-302. Purchase of service credit.


             3407          Any member who works 20 or more hours per week for a participating employer
             3408      participating in this system, but does not meet other eligibility requirements for service credit, may
             3409      purchase such service credit in accordance with Section 49-11-403 .
             3410          Section 79. Section 49-13-303 , which is renumbered from Section 49-3-302 is renumbered
             3411      and amended to read:
             3412           [49-3-302].     49-13-303. Supplemental benefit established -- Defined contribution
             3413      plan options -- Contribution by employer and employee -- Immediate vesting of
             3414      contributions -- Plans to be separate -- Tax-qualified status of plans.
             3415          [(1) There is established a supplemental deferred compensation benefit for members of
             3416      this system.]
             3417          [(a) (i) For members of]
             3418          (1) (a) Participating employers in Level A under Section [ 49-3-301 ] 49-13-301 , which are
             3419      participating educational institutions or participating employers whose activities are associated
             3420      with participating educational institutions, [the employer] shall [contribute] make a nonelective
             3421      contribution on behalf of each of its regular full-time employees who are members of this system
             3422      an amount equal to at least 1.5% of the [employee's salary to a deferred compensation] member's
             3423      compensation to a defined contribution plan qualified under Section 401(k) of the Internal
             3424      Revenue Code which is selected by the regular full-time employee and which is sponsored by the
             3425      board, by that Level A employer, or by a group of similar Level A employers, and which has been
             3426      grandfathered under Section 1116 of the Federal Tax Reform Act of 1986.
             3427          [(ii) For all] (b) All other [members of] Level A participating employers under Section
             3428      [ 49-3-301 , the employer] 49-13-301 shall [contribute] make a nonelective contribution on behalf
             3429      of each of its regular full-time employees who are members of this system an amount equal to at
             3430      least 1.5% of the [employee's salary] member's compensation to the [deferred compensation]
             3431      defined contribution plan qualified under Section 401(k) of the Internal Revenue Code which is
             3432      sponsored by the board.
             3433          [(iii)] (c) The [employee] member or participating employer may [also] make [elective
             3434      contributions] additional payments to either the qualified 401(k) plan which receives the 1.5%
             3435      employer contribution described in this Subsection [(i)] (1), or to any other [deferred
             3436      compensation] defined contribution plan qualified under Section 401(k) of the Internal Revenue
             3437      Code which is selected by the [employee] member and sponsored by the board, that Level A


             3438      employer, or a group of similar Level A employers, and which has been grandfathered under
             3439      Section 1116 of the Federal Tax Reform Act of 1986[, but only up to an amount permitted by
             3440      federal law].
             3441          [(b) (i) For members of]
             3442          (2) (a) Participating employers in Level B under Section [ 49-3-301 , the participating
             3443      employer] 49-13-301 may [contribute] make nonelective contributions on behalf of each of its
             3444      regular full-time employees [any amount to the deferred compensation plan qualified under Section
             3445      401(k) of the Internal Revenue Code which is] who are members of this system to the 401(k)
             3446      defined contribution plan sponsored by the board or to a qualified plan sponsored by the
             3447      participating employer which has been grandfathered under Section 1116 of the Federal Tax
             3448      Reform Act of 1986.
             3449          [(ii)] (b) The [employee] member may also [contribute] make voluntary deferrals to the
             3450      same [qualified] 401(k) plan which the [employee] member selected to receive the employer
             3451      contribution described in Subsection [(i), but only up to an amount permitted by federal law]
             3452      (2)(a).
             3453          (3) Each qualified defined contribution 401(k) plan is separate and distinct from any other
             3454      qualified defined contribution 401(k) plan for all purposes, including purposes of fiduciary liability
             3455      and plan administration.
             3456          [(c) The employee]     (4) A member may not make [elective contributions] voluntary
             3457      deferrals to any other qualified 401(k) plan sponsored by a state or local government.
             3458          [(2)] (5) The total amount contributed by the participating employer and the member under
             3459      Subsection (1)[(a)] or [(b)] (2) vests to the [employee's] member's benefit immediately and is
             3460      nonforfeitable.
             3461          [(3) Each qualified deferred compensation 401(k) plan is separate and distinct from any
             3462      other qualified deferred compensation 401(k) plan for all purposes including, but not limited to,
             3463      purposes of fiduciary liability and plan administration.]
             3464          (6) The board may request from any other qualified 401(k) plan under Subsection
             3465      (1)[(a)(iii)] or (2) any relevant information pertaining to the maintenance of its tax qualification
             3466      under the Internal Revenue Code [and may request indemnification from such other plan to the
             3467      extent it performs testing functions for that plan].
             3468          [(4) Prior to January 1 of each calendar year, each employee of an employing unit specified


             3469      in Subsection (1)(a)(i) shall notify the employing unit which qualified deferred compensation
             3470      401(k) plan the employee has selected to receive the employer and employee contributions
             3471      described in Subsections (1)(a) and (b) for that calendar year. This election may be changed only
             3472      in accordance with procedures established by the employing unit. Notwithstanding this section,
             3473      the]
             3474          (7) The board may take any action which in its judgment is necessary to maintain the
             3475      tax-qualified status of its 401(k) [deferred compensation] defined contribution plan [pursuant to]
             3476      under federal law. [The board shall submit findings of fact and its conclusions prior to taking any
             3477      such action.]
             3478          Section 80. Section 49-13-401 , which is renumbered from Section 49-3-401 is renumbered
             3479      and amended to read:
             3480     
Part 4. Defined Benefit

             3481           [49-3-401].     49-13-401. Eligibility for an allowance -- Date of retirement --
             3482      Qualifications.
             3483          [(1) (a) Any member who qualifies for service retirement may retire by submitting to the
             3484      retirement office an application form notarized by a notary public. The application shall state the
             3485      proposed effective date of retirement, which may not be more than 90 days before or after the date
             3486      of application.]
             3487          [(b) The effective date shall be the 1st or 16th day of the month, as selected by the
             3488      member, but must be after the last day of actual work.]
             3489          [(c) The member shall actually terminate employment and provide evidence of
             3490      termination.]
             3491          [(2) The member is qualified to retire upon termination of services on or before the
             3492      effective date of retirement if one of the following requirements on that date is met:]
             3493          (1) A member is qualified to receive an allowance from this system when:
             3494          (a) the member ceases actual work for a participating employer in this system before the
             3495      member's retirement date and provides evidence of the termination;
             3496          (b) the member has submitted to the office a notarized retirement application form that
             3497      states the member's proposed retirement date; and
             3498          (c) one of the following conditions is met as of the member's retirement date:
             3499          [(a)] (i) the member has [been credited with] accrued at least four years of service credit


             3500      and has attained an age of 65 years [or more];
             3501          [(b)] (ii) the member has [been credited with] accrued at least ten years of service credit
             3502      and has attained an age of 62 years [or more];
             3503          [(c)] (iii) the member has [been credited with] accrued at least 20 years of service credit
             3504      and has attained an age of 60 years [or more];
             3505          [(d)] (iv) the member has [been credited with] accrued at least 30 years of service credit;
             3506      or
             3507          [(e)] (v) the member [is credited with] has accrued at least 25 years of service credit, in
             3508      which case the member shall be subject to the reduction [set out] under Subsection [ 49-3-402 ]
             3509      49-13-402 (2)(b).
             3510          (2) (a) The member's retirement date shall be the 1st or the 16th day of the month, as
             3511      selected by the member, but the retirement date must be on or after the date of termination.
             3512          (b) The retirement date may not be more than 90 days before or after the date the
             3513      application is received by the office.
             3514          Section 81. Section 49-13-402 , which is renumbered from Section 49-3-402 is renumbered
             3515      and amended to read:
             3516           [49-3-402].     49-13-402. Service retirement plans -- Calculation of retirement
             3517      allowance -- Social Security limitations.
             3518          (1) (a) [There are six service retirement plans available to members of the system. Plan
             3519      One is as follows, with Plans Two, Three, Four, Five, and Six established under Section 49-3-403 ]
             3520      Except as provided under Section 49-13-701 , retirees of this system may choose from the six
             3521      retirement options described in this section.
             3522          (b) Options Two, Three, Four, Five, and Six are modifications of the Option One
             3523      calculation.
             3524          (2) [Except for members of this system who meet the requirements of Section 49-3-802 ,
             3525      upon the service retirement of a member under Section 49-3-401 , the member shall receive a
             3526      retirement allowance consisting of a pension based on service determined] The Option One benefit
             3527      is an allowance calculated as follows:
             3528          (a) If the [member has attained the age of] retiree is at least 65 years of age or has accrued
             3529      at least 30 years of service credit, the [retirement] allowance is an amount equal to 2% of the
             3530      retiree's final average monthly salary multiplied by the number of years of service [credited to the


             3531      member] credit accrued.
             3532          (b) If the [member] retiree is less than 65 years [old,] of age, the [retirement] allowance
             3533      shall be reduced 3% for each year of retirement from age 60 to age 65, plus a full actuarial
             3534      reduction for each year of retirement prior to age 60, unless the member has 30 or more years of
             3535      accrued credit, in which event no reduction is made to the allowance.
             3536          [(3)] (c) (i) Years of service include any fractions of years of service to which the
             3537      [member] retiree may be entitled. [Service amounting to 9/10 of one year constitutes a year of
             3538      service credit in the computation of a retirement benefit.]
             3539          (ii) At the time of retirement, if a retiree's combined years of actual, not purchased, service
             3540      credit is within 1/10 of one year of the total years of service credit required for retirement, the
             3541      retiree shall be considered to have the total years of service credit required for retirement.
             3542          (3) The allowance payable under Options Two, Three, Four, Five, and Six is calculated
             3543      by reducing an Option One benefit based on actuarial computations to provide the following:
             3544          (a) Option Two is a reduced allowance paid to and throughout the lifetime of the retiree,
             3545      and, if the retiree receives less in annuity payments than the amount of the retiree's member
             3546      contributions, the remaining balance of the retiree's member contributions shall be paid in
             3547      accordance with Sections 49-11-609 and 49-11-610 .
             3548          (b) Option Three is a reduced allowance paid to and throughout the lifetime of the retiree,
             3549      and, upon the death of the retiree, the same reduced allowance paid to and throughout the lifetime
             3550      of the retiree's lawful spouse at the time of retirement.
             3551          (c) Option Four is a reduced allowance paid to and throughout the lifetime of the retiree,
             3552      and upon the death of the retiree, an amount equal to 1/2 of the retiree's allowance paid to and
             3553      throughout the lifetime of the retiree's lawful spouse at the time of retirement.
             3554          (d) Option Five is a modification of Option Three so that if the lawful spouse at the time
             3555      of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time
             3556      of initial retirement under Option One shall be paid to the retiree for the remainder of the retiree's
             3557      life, beginning on the last day of the month following the month in which the lawful spouse dies.
             3558          (e) Option Six is a modification of Option Four so that if the lawful spouse at the time of
             3559      retirement predeceases the retiree, an allowance equivalent to the amount payable at the time of
             3560      initial retirement under Option One shall be paid to the retiree for the remainder of the retiree's life,
             3561      beginning on the last day of the month following the month in which the lawful spouse dies.


             3562          (4) (a) (i) The final average salary is limited in the computation of that part of [a member's
             3563      prior service retirement] an allowance based on service rendered prior to July 1, 1967, during a
             3564      period when the [member] retiree received employer contributions on a portion of compensation
             3565      from an educational institution toward the payment of the premium required on a retirement
             3566      annuity contract with the Teachers' Insurance and Annuity Association of America or with any
             3567      other public or private system, organization, or company to $4,800.
             3568          (ii) This limitation is not applicable to [members] retirees who elected to continue in the
             3569      [state retirement system] Public Employees' Contributory Retirement System by July 1, 1967.
             3570          (b) Periods of [service] employment which are exempt from this system as permitted under
             3571      Subsection [ 49-3-206 (3), not to exceed four years,] 49-13-203 (1)(c) may be purchased by the
             3572      member for the purpose of retirement only if all benefits from the Teachers' Insurance and
             3573      Annuity Association of America or any other public or private system or organization based on this
             3574      period of employment are forfeited.
             3575          (5) (a) If a retiree under Option One dies within 90 days after the retiree's retirement date,
             3576      the retirement is canceled and the death shall be considered as that of a member before retirement.
             3577          (b) Any payments made to the retiree shall be deducted from the amounts due to the
             3578      beneficiary.
             3579          (6) If a retiree retires under either Option Five or Six and subsequently divorces, the retiree
             3580      may elect to convert the benefit to an Option One benefit at the time of divorce, if there is no court
             3581      order filed in the matter.
             3582          Section 82. Section 49-13-403 , which is renumbered from Section 49-3-404 is renumbered
             3583      and amended to read:
             3584           [49-3-404].     49-13-403. Allowance payable by lump-sum payment.
             3585          (1) If a [retiring member's monthly] retiree's allowance, as computed under [Section
             3586      49-3-402 ] this section, amounts to $25 or less, the [benefit claim] allowance may be settled by the
             3587      [administrator] office by making a lump-sum payment of an amount actuarially equivalent to the
             3588      [monthly] allowance. [Payment thus]
             3589          (2) A payment made under this section constitutes a full and complete settlement of the
             3590      [retiring member's] retiree's claim against [the] this system.
             3591          Section 83. Section 49-13-404 , which is renumbered from Section 49-3-405 is renumbered
             3592      and amended to read:


             3593           [49-3-405].     49-13-404. Lump-sum death benefit for retiree and spouse.
             3594          (1) (a) [A member, upon] Upon retirement, a retiree may elect to have the [administrator
             3595      set aside in reserve from the member's retirement] office deduct an actuarially determined amount
             3596      from the retiree's allowance [a sufficient sum of money, based upon age, sex, interest rate in effect,
             3597      and the mortality rates for the member's group,] to provide a lump-sum benefit payable to a
             3598      beneficiary upon the death of the [member after retirement, under an agreement that will provide
             3599      a reduced retirement allowance payable to the retirant throughout the retirant's lifetime, plus the
             3600      lump-sum amount at death] retiree.
             3601          (b) A retiree may also elect to have an actuarially determined amount deducted from the
             3602      retiree's allowance to provide a lump-sum death benefit payable to a beneficiary upon the death
             3603      of the retiree's lawful spouse at the time of retirement.
             3604          [(b)] (c) The board shall make rules for the administration of this lump-sum death benefit
             3605      [may be purchased in accordance with rules adopted by the board].
             3606          [(c) The spouse of a retiring member may also be covered with a death benefit upon the
             3607      request of the member.]
             3608          [(2) The lump-sum death benefit provided by this section may be chosen as a modification
             3609      of or deduction from the retirement allowance provided under Section 49-3-402 or 49-3-403 , and
             3610      is payable to the designated beneficiary chosen at the time of the member's retirement, to a
             3611      beneficiary subsequently designated, or to the retirant's estate under applicable conditions
             3612      established under Section 49-1-606 or 49-1-607 .]
             3613          [(3) If a retirant cancels retirement as permitted by this title, the lump-sum death benefit
             3614      under this section shall also be canceled, with the appropriate reserve, as determined by the
             3615      administrator, credited back to the member's contribution account.]
             3616          [(4) Payment of the lump-sum death benefit consists only of a refund of the retirant's
             3617      reserve or the amount determined by the board and set aside as provided in this section if death
             3618      occurs within three years from the date of retirement and is due to a health condition existing and
             3619      being treated at the time of retirement.]
             3620          [(5) The board may establish rules and adopt suitable mortality rates to protect the fund
             3621      against adverse selection of benefits by a retiring member under this section.]
             3622          (2) (a) For retirees who pay for a lump-sum death benefit under this section through a
             3623      reduction of an allowance, benefits shall be paid in accordance with Sections 49-11-609 and


             3624      49-11-610 .
             3625          (b) If the retiree chooses Option Three, Four, Five, or Six, and a lump-sum death benefit
             3626      is payable after the death of the retiree or the lawful spouse, the allowance shall be restored to its
             3627      original amount.
             3628          Section 84. Section 49-13-405 , which is renumbered from Section 49-3-406 is renumbered
             3629      and amended to read:
             3630           [49-3-406].     49-13-405. Death of married members -- Service retirement benefits
             3631      to surviving spouse.
             3632          (1) As used in this section, "member's full allowance" means [the benefit calculated using
             3633      the formula] an Option Three allowance calculated under Subsection [ 49-3-402 ] 49-13-402 (2)(a)
             3634      without an actuarial reduction.
             3635          (2) [(a) Beginning January 1, 1997, a] Upon the request of the member's lawful spouse at
             3636      the time of death, a member is considered to be eligible to retire under Option Three on the first
             3637      day of the month following the month in which the member died if the following requirements are
             3638      met:
             3639          (a) the member [who] has:
             3640          (i) 15 or more years of [credited] service[, age 60 with 20 or more years of credited
             3641      service,] credit;
             3642          (ii) attained age 62 with ten or more years of [credited] service[,] credit; or
             3643          (iii) attained age 65 with four or more years of [credited] service[, respectively, and who]
             3644      credit; and
             3645          (b) the member dies leaving a spouse to whom the member has been married at least six
             3646      months prior to the death date[, may, upon the request of the spouse, be considered to have retired
             3647      on the first day of the month following the month in which death occurred and retired under Plan
             3648      Three].
             3649          [(b)] (3) The spouse who requests a benefit [pursuant to Subsection (2)(a)] under this
             3650      section shall apply in writing to the [retirement] office stating the proposed effective date to begin
             3651      receiving [a monthly retirement] an allowance, which may not be more than 90 days [before or]
             3652      after the date of application[, and which shall be effective on the 1st or 16th day of the month, as
             3653      selected by the spouse].
             3654          [(3)] (4) The [retirement benefit] allowance payable to a surviving spouse under


             3655      Subsection (2) is:
             3656          (a) if the member has 25 or more years of [credited] service credit at the time of death, the
             3657      surviving spouse shall receive the member's full allowance;
             3658          (b) if the member has between 20-24 years of [credited] service credit and is not age 60
             3659      or older at the time of death, the surviving spouse shall receive two-thirds of the member's full
             3660      allowance;
             3661          (c) if the member has between 15-19 years of [credited] service credit and is not age 62
             3662      or older at the time of death, the surviving spouse shall receive one-third of the member's full
             3663      allowance; or
             3664          (d) if the member is age 60 or older with 20 or more years of [credited] service credit, age
             3665      62 or older with 10 or more years of [credited] service credit, or age 65 or older with four or more
             3666      years of [credited] service credit at the time of death, the surviving spouse shall receive [the benefit
             3667      calculated using the formula and the actuarial reduction under Subsections 49-3-402 (2)(a) and
             3668      (2)(b)] an Option Three benefit with actuarial reductions.
             3669          [(4) Benefits] (5) Except for a return of member contributions, benefits payable under this
             3670      section are [service] retirement benefits and shall be paid in addition to any other payments made
             3671      under Section [49-3-701 , except for a return of accumulated contributions,] 49-13-501 and shall
             3672      constitute a full and final settlement of the claim of the spouse or any other beneficiary filing a
             3673      claim for benefits under Section [ 49-3-701 ] 49-13-501 .
             3674          Section 85. Section 49-13-406 , which is renumbered from Section 49-3-409 is renumbered
             3675      and amended to read:
             3676           [49-3-409].     49-13-406. Part-time elective or appointive service -- Computation of
             3677      allowance.
             3678          [Elective] Notwithstanding any other provisions of this title, elective or appointive service
             3679      rendered on a basis not considered full time by the [board,] office, unless otherwise provided by
             3680      this chapter, shall have a [retirement] separate allowance computed on the basis of compensation
             3681      actually received by the [official] member during the period of elective or appointive service.
             3682          Section 86. Section 49-13-407 , which is renumbered from Section 49-3-601 is renumbered
             3683      and amended to read:
             3684           [49-3-601].     49-13-407. Annual cost-of-living adjustment.
             3685          (1) [There shall be computed and paid by the retirement] The office[, upon the approval


             3686      of the board,] shall make an annual cost-of-living [allowance] adjustment to: [all retired members
             3687      of this system after the members have been retired one year. The adjustment shall be equal to the
             3688      decrease in the purchasing power of the dollar during the preceding year, as measured by the
             3689      Consumer Price Index, prepared by the United States Bureau of Labor Statistics, limited to a
             3690      maximum of 4% of the retirants' or beneficiaries' original retirement allowance. Decreases in the
             3691      purchasing power of the dollar in excess of 4% annually shall be accumulated and used in
             3692      subsequent allowances when the cost-of-living adjustment is less than 4% annually.]
             3693          [(2) If the cost-of-living shows a decline of 4% or more during any period of time
             3694      extending longer than one year, a reduction not to exceed the rate of 2% per year shall be made
             3695      based upon the original retirement allowance. Payments made under this section shall be a part
             3696      of the retired member's allowance. The payments and subsequent adjustments as prescribed for
             3697      the retirant shall likewise apply to the beneficiary who is paid an allowance under optional
             3698      retirement plans.]
             3699          (a) an original allowance paid under Section 49-13-402 or 49-13-405 , if the allowance has
             3700      been paid for at least one year; and
             3701          (b) an original payment made to an alternate payee under a domestic relations order, if the
             3702      payment is to be paid as a percentage of the allowance rather than a specific dollar amount.
             3703          (2) (a) The original allowance shall be increased by the annual increase in the Consumer
             3704      Price Index up to a maximum of 4%.
             3705          (b) Annual increases in the Consumer Price Index in excess of 4% shall be accumulated
             3706      and used in subsequent adjustments when the annual increase in the Consumer Price Index is less
             3707      than 4%.
             3708          (3) The Consumer Price Index used in calculating adjustments may be a United States
             3709      Bureau of Labor Statistics Consumer Price Index average as determined by the board.
             3710          (4) The cost-of-living adjustment made under this section may not decrease the allowance.
             3711          Section 87. Section 49-13-408 , which is renumbered from Section 49-3-410 is renumbered
             3712      and amended to read:
             3713           [49-3-410].     49-13-408. Purchase of service credit -- Conditions -- Cost --
             3714      Nondiscrimination policy.
             3715          [(1) Any member of this system may receive retirement service credit in accordance with
             3716      Subsection (2).]


             3717          [(2)] (1) (a) A member may purchase or a member and [an employing unit] a participating
             3718      employer may jointly purchase a [combined] maximum [total] of five years of [retirement] service
             3719      credit which [is not] cannot otherwise [purchasable] be purchased under this chapter.
             3720          [(b) The number of years of retirement service credit purchased may exceed the number
             3721      of years or age required by the member to retire with no actuarial reduction.]
             3722          [(c) The purchase of retirement]
             3723          (b) At a minimum, the years of service credit [must] purchased shall be sufficient to allow
             3724      the member to meet the retirement eligibility requirements of this system with no actuarial
             3725      reduction.
             3726          [(d)] (c) The [member must retire effective] member's retirement date shall be immediately
             3727      after the purchase of [retirement] years of service credit [is made].
             3728          [(e)] (d) The member shall pay at least 5% of the cost of the purchase.
             3729          [(3)] (2) The purchase price for the [retirement] years of service credit shall be calculated
             3730      and paid for as provided in Section [ 49-1-407 ] 49-11-403 .
             3731          [(4) (a) The employing unit may elect to purchase retirement service credit for a member
             3732      under Subsection (2) while the member is on an unpaid leave of absence.]
             3733          [(b) If the member is on an unpaid leave of absence, the employing unit may make
             3734      installment payments towards the purchase in amounts fixed by the administrator.]
             3735          [(c) The member shall retire when the purchase obligations are fulfilled.]
             3736          [(5) A member who retires after the employer purchases retirement service credit under
             3737      this section shall be subject to the provisions of Section 49-1-505 .]
             3738          [(6)] (3) Prior to making any purchase of years of service credit under this section, [an
             3739      employing unit] a participating employer shall adopt a purchase policy that includes
             3740      nondiscriminatory participation standards for all regular full-time employees.
             3741          Section 88. Section 49-13-501 , which is renumbered from Section 49-3-701 is renumbered
             3742      and amended to read:
             3743     
Part 5. Death Benefit

             3744           [49-3-701].     49-13-501. Death benefit by means of group insurance policy --
             3745      Eligibility for death benefit -- Benefit calculation -- Payment of claim.
             3746          (1) The [board] office shall provide a death benefit through the purchase of a group
             3747      insurance policy for members of this system.


             3748          (2) The board shall make rules to [implement and] administer the death benefit provided
             3749      by this section and may, in accordance with federal law, establish:
             3750          (a) benefit levels [or];
             3751          (b) classes of [employees] members; and
             3752          [(b)] (c) a living benefit option.
             3753          [(2) Upon receipt of acceptable proof of death of a member of the system, either prior to
             3754      the effective date of the member's retirement, except as provided in Section 49-3-406 , or after the
             3755      date of retirement but under circumstances that Section 49-3-403 requires to be treated as the death
             3756      of the member before retirement, the following death benefits, except those benefits already
             3757      provided to the member under a living benefit option, shall be paid to the beneficiary:]
             3758          [(a) the return of any accumulated contributions under this chapter; plus]
             3759          [(b) a percentage of the final average salary of the deceased member to be determined by
             3760      the board. This percentage shall be the highest percentage of final average salary obtainable by
             3761      the board through the purchase of a group insurance policy using the money contributed by the
             3762      employer under Subsection (3).]
             3763          (3) This death benefit is payable when:
             3764          (a) the member dies prior to the member's retirement date or dies under circumstances
             3765      which Section 49-13-402 requires to be treated as the death of a member before retirement;
             3766          (b) the office receives acceptable proof of death; and
             3767          (c) benefits are not payable under Section 49-13-404 .
             3768          (4) The death benefit payable to the beneficiary under this section is a lump-sum payment
             3769      consisting of:
             3770          (a) the return of any member contributions under this chapter; plus
             3771          (b) a percentage of the final average salary of the member to be determined by the board.
             3772          (5) Any amount of a living benefit option paid to the member prior to death shall be
             3773      deducted from the benefit payable to the beneficiary.
             3774          [(3)] (6) The cost of the death benefit shall be paid by the participating employer as a
             3775      portion of the contribution rate established under Section 49-13-301 .
             3776          [(4)] (7) The portion of the death benefit provided under Subsection [(2)] (4)(b), [based
             3777      upon the member's past compensation,] may not be paid to the beneficiary of an inactive member
             3778      unless:


             3779          (a) that member has [credit for] ten or more years of service credit prior to July 1, 1987;
             3780      or
             3781          (b) the death of the member occurs either:
             3782          (i) within a period of 120 days after the last day of [service] work for which the person
             3783      received compensation; or
             3784          (ii) while the [person] member is still physically or mentally incapacitated from
             3785      performance of duties, if the incapacity has been continuous since the last day of [service] work
             3786      for which compensation [is] was received[; or].
             3787          [(iii) that person is on military leave and has elected to remain in active contributing
             3788      membership status as provided in Section 49-1-402 .]
             3789          [(5)] (8) The death benefit [may not be paid to any person except a beneficiary] provided
             3790      under Subsection (4)(b) shall be paid in accordance with Sections 49-11-609 and 49-11-610 .
             3791          [(6)] (9) The death benefit [for] paid to the beneficiary of an inactive member, except as
             3792      otherwise provided under Subsection [(4)] (7), is a lump-sum return of the [deceased] member's
             3793      [accumulated] member contributions.
             3794          [(7)] (10) Payment of the death benefit by the [retirement] office constitutes a full
             3795      settlement of any beneficiary's claim against the [system,] office and the [system] office is not
             3796      liable for any further or additional claims or assessments on behalf of the [deceased] member.
             3797          [(8)] (11) Unless otherwise specified in a written document filed [in the retirement] with
             3798      the office, death benefits payable to beneficiaries shall be in accordance with the order of
             3799      precedence established under Title 75, Chapter 2, [Uniform Probate Code] Intestate Succession
             3800      and Wills.
             3801          [(9) In the implementation of this section and for administrative purposes only, the State
             3802      Tax Commission shall provide pertinent information to the retirement administrator, upon request,
             3803      concerning dependents claimed by a deceased member on the income tax return covering the year
             3804      prior to the member's death.]
             3805          [(10)] (12) A death benefit under this section may not be paid [to] on behalf of a [member
             3806      who has retired] retiree under this system.
             3807          Section 89. Section 49-13-701 , which is renumbered from Section 49-3-802 is renumbered
             3808      and amended to read:
             3809     
Part 6. Reserved


             3810     
Part 7. Early Retirement Incentive

             3811           [49-3-802].     49-13-701. Early retirement incentive -- Eligibility -- Calculation of
             3812      benefit -- Payment of costs -- Savings to be appropriated by Legislature -- Restrictions on
             3813      reemployment.
             3814          (1) Any member of this system may retire and receive the [benefit] allowance allowed
             3815      under Subsection (2) if the member meets the following requirements as of the [effective date of]
             3816      member's retirement:
             3817          (a) the member is eligible for retirement under Section [ 49-3-401 ] 49-13-401 , or
             3818      [otherwise] has 25 years of service credit;
             3819          (b) the member elects to forfeit any stipend for retirement offered by the [employing unit]
             3820      participating employer; and
             3821          (c) the member elects to retire from this system by applying for retirement by the date
             3822      established under Subsection (3)(a) or (3) (b).
             3823          (2) (a) A member who retires [pursuant to] under Subsection (1) shall receive 2% of that
             3824      member's final average salary for all years of service credit.
             3825          (b) No actuarial reduction may be applied to the [benefit] allowance granted under this
             3826      section.
             3827          (3) In order to receive the [benefit] allowance allowed by this section, a member shall
             3828      submit an application to the [retirement] office as follows:
             3829          (a) (i) For state and school employees under Level A, the application shall be filed by May
             3830      31, 1987. The [effective date of] member's retirement date shall then be set by the [employee]
             3831      member on the 1st or 16th day of July, August, or September, 1987.
             3832          (ii) If a Level A [employee] member elects to retire, the [administrator] executive director
             3833      or participating employer may request the [employee] member to delay the [effective date of]
             3834      retirement date until a later date, but no later than June 30, 1988.
             3835          (iii) If the [employee] member agrees to delay the [effective] retirement date, the
             3836      [effective] retirement date shall be delayed, but [no] service credit may not be accrued after the
             3837      member's original [effective date of] retirement date elected by the [employee] member, and [no
             3838      salary] compensation earned after [that effective] the member's original retirement date may not
             3839      be used in the calculation of the final average salary for determining the retirement [benefit]
             3840      allowance.


             3841          (b) (i) For political [subdivisions] subdivision employees under Level B, the application
             3842      shall be filed by September 30, 1987.
             3843          (ii) The [effective date of] member's retirement date shall then be set by the [employee]
             3844      member on the 1st or 16th day of July, August, September, October, November, or December,
             3845      1987.
             3846          (4) (a) The cost of providing the [benefit] allowance under this section shall be funded in
             3847      fiscal year 1987-88 by a supplemental appropriation in the 1988 General Session based on the
             3848      retirement contribution rate increase established by the consulting actuary and approved by the
             3849      board.
             3850          (b) The cost of providing the [benefit] allowance under this section shall be funded
             3851      beginning July 1, 1988, by means of an increase in the retirement contribution rate established by
             3852      the consulting actuary and approved by the board.
             3853          (c) The rate increase under Subsections (4)(a) and (b) shall be funded:
             3854          (i) for state employees, by an appropriation from the account established by the Division
             3855      of Finance under Subsection (4)(d), which is funded by savings derived from this early retirement
             3856      incentive and a work force reduction;
             3857          (ii) for school employees, by direct contributions from the employing unit, which may not
             3858      be funded through an increase in the retirement contribution amount established in Title 53A,
             3859      Chapter 17a, Minimum School Program Act; and
             3860          (iii) for political subdivisions under Level B, by direct contributions by the [employing
             3861      unit] participating employer.
             3862          (d) (i) Each year, any excess savings derived from this early retirement incentive which
             3863      are above the costs of funding the increase and the costs of paying insurance, sick leave,
             3864      compensatory leave, and vacation leave under Subsections (4)(c)(i) and (c)(ii) shall be reported
             3865      to the Legislature and shall be appropriated as provided by law.
             3866          (ii) In the case of Subsection (4)(c)(i), the Division of Finance shall establish an account
             3867      into which all savings derived from this early retirement incentive shall be deposited as the savings
             3868      are realized.
             3869          (iii) In the case of Subsection (4)(c)(ii), the State Office of Education shall certify the
             3870      amount of savings derived from this early retirement incentive.
             3871          (iv) The State Office of Education and the [employing unit] participating employer may


             3872      not spend the savings until appropriated by the Legislature as provided by law.
             3873          (5) A member who retires under this section is subject to Section [ 49-1-505 ] 49-11-504 .
             3874          (6) The [retirement] board may [adopt] make rules to [implement and] administer this
             3875      section.
             3876          (7) The Legislative Auditor General shall perform an audit to ensure compliance with this
             3877      section.
             3878          Section 90. Section 49-14-101 , which is renumbered from Section 49-4-101 is renumbered
             3879      and amended to read:
             3880     
CHAPTER 14. PUBLIC SAFETY CONTRIBUTORY RETIREMENT ACT

             3881     
Part 1. General Provisions

             3882           [49-4-101].     49-14-101. Title.
             3883          This chapter is known as the "Public Safety Contributory Retirement Act."
             3884          Section 91. Section 49-14-102 , which is renumbered from Section 49-4-103 is renumbered
             3885      and amended to read:
             3886           [49-4-103].     49-14-102. Definitions.
             3887          As used in this chapter:
             3888          (1) [(a)] "Compensation[,]" ["salary," or "wages" means the total amount of payments
             3889      which are currently includable in gross income made by an employer to an employee covered
             3890      under the retirement system for services rendered to the employer as base income] means the total
             3891      amount of payments that are includable in gross income which are received by a public safety
             3892      service employee as base income for the regularly scheduled work period. The participating
             3893      employer shall establish the regularly scheduled work period. Base income shall be determined
             3894      prior to [any salary deductions or reductions for any] the deduction of member contributions or any
             3895      amounts the public safety service employee authorizes to be deducted for salary deferral or [pretax
             3896      benefit programs] other benefits authorized by federal law.
             3897          (b) "Compensation" includes performance-based bonuses and cost-of-living adjustments.
             3898          (c) "Compensation" does not include:
             3899          (i) overtime;
             3900          (ii) sick pay incentives;
             3901          (iii) retirement pay incentives;
             3902          (iv) the monetary value of remuneration paid in kind, [such as] including a residence, use


             3903      of equipment or uniform [or], travel [allowances], or similar payments;
             3904          (v) a lump-sum payment or special payments covering accumulated leave; and
             3905          (vi) all contributions made by [an] a participating employer under this [plan] system or
             3906      under any other employee benefit system or plan maintained by [an] a participating employer for
             3907      the benefit of a member or participant.
             3908          (d) "Compensation" for purposes of this chapter may not exceed the amount allowed under
             3909      Internal Revenue Code Section 401(a)(17).
             3910          (2) "Final average salary" means the amount computed by averaging the highest three years
             3911      of annual compensation preceding retirement, subject to Subsections (2)(a) and (b).
             3912          (a) Except as provided in Subsection (2)(b), the percentage increase in annual
             3913      compensation in any one of the years used may not exceed the previous year's [salary]
             3914      compensation by more than 10% plus a cost-of-living adjustment equal to the decrease in the
             3915      purchasing power of the dollar during the previous year, as measured by [the Consumer Price
             3916      Index prepared by the] a United States Bureau of Labor Statistics Consumer Price Index average
             3917      as determined by the board.
             3918          (b) In cases where the [employing unit] participating employer provides acceptable
             3919      documentation to the [board] office, the limitation in Subsection (2)(a) may be exceeded if:
             3920          (i) the [member] public safety service employee has transferred from another [employing
             3921      unit] agency; or
             3922          (ii) the [member] public safety service employee has been promoted to a new position.
             3923          [(3) "Full-time service" means 2,080 hours a year.]
             3924          [(4)] (3) "Line-of-duty death" means a death resulting from external force, violence, or
             3925      disease occasioned by an act of duty as a [peace officer or other] public safety [member] service
             3926      employee.
             3927          [(5) (a) "Participating service" means public safety service rendered during which a person
             3928      was a member of this system as well as any of the terminated systems during which the person was
             3929      paid compensation upon which member contributions were taken.]
             3930          [(b) Participating service also means public safety service rendered for an employer
             3931      covered by the retirement system and standing to the credit of a member as of June 30, 1969, who
             3932      transferred to coverage under the public safety retirement system on July 1, 1969.]
             3933          (4) "Participating employer" means an employer which meets the participation


             3934      requirements of Section 49-14-201 .
             3935          [(6)] (5) (a) "Public safety service" means [full-time paid service] at least 2,080 hours of
             3936      regularly scheduled compensated employment per year rendered by a member who is a:
             3937          (i) law enforcement [officers] officer in accordance with Section 53-13-103 ;
             3938          (ii) correctional [officers] officer in accordance with Section 53-13-104 ; and
             3939          (iii) special function [officers] officer approved in accordance with [Section 49-4-203 ]
             3940      Sections 49-14-201 and [Section] 53-13-105 .
             3941          [(b) Subsection (6)(a) does not]
             3942          (b) "Public safety service" also requires that in the course of employment the employee's
             3943      life or personal safety is at risk.
             3944          (c) Except for the minimum hour requirement, Subsections (5)(a) and (b) do not apply to
             3945      any person who [became a member of the] was eligible for service credit in this system prior to
             3946      January 1, 1984.
             3947          (6) "Public safety service employee" means an employee of a participating employer who
             3948      performs public safety service under this chapter.
             3949          (7) "System" means the Public Safety Contributory Retirement System created under this
             3950      chapter.
             3951          [(7)] (8) "Years of service credit" [or "service years"] means the number of periods, each
             3952      to consist of 12 full months as determined by the board, whether consecutive or not, during which
             3953      [an] a public safety service employee [performed services for an] was employed by a participating
             3954      employer [or employers], including time the public safety service employee was absent in the
             3955      service of the United States government on military duty.
             3956          Section 92. Section 49-14-103 , which is renumbered from Section 49-4-201 is renumbered
             3957      and amended to read:
             3958           [49-4-201].     49-14-103. Creation of system.
             3959          There is created for [public safety personnel of the state and its political subdivisions]
             3960      members performing public safety service and who are employed by a participating employer the
             3961      "Public Safety Contributory Retirement System."
             3962          Section 93. Section 49-14-104 , which is renumbered from Section 49-4-202 is renumbered
             3963      and amended to read:
             3964           [49-4-202].     49-14-104. Creation of trust fund.


             3965          (1) There is created the "Public Safety Contributory Retirement Trust Fund" for the
             3966      purpose of paying the benefits and the costs of administering this system.
             3967          (2) The fund shall consist of a number of individual trust accounts created as needed to
             3968      receive the money and assets transferred into them from the respective terminated systems, all
             3969      money paid into them, including interest, in accordance with this chapter, whether in the form of
             3970      cash, securities, or other assets, and of all money received from any other source.
             3971          (3) Custody, management, and investment of the fund shall be governed by [Title 49,]
             3972      Chapter [1] 11, Utah State Retirement Systems Administration.
             3973          Section 94. Section 49-14-201 , which is renumbered from Section 49-4-203 is renumbered
             3974      and amended to read:
             3975     
Part 2. Membership Eligibility

             3976           [49-4-203].     49-14-201. System membership -- Eligibility.
             3977          [All employees who perform covered public safety services for any employing unit, except
             3978      those withdrawing from coverage as provided by this chapter, shall become members of the
             3979      retirement system as follows:]
             3980          [(1) Any employee who is employed to perform public safety services for an employer
             3981      covered by this chapter on or after July 1, 1969, shall become a member of the system effective
             3982      on the date of employment.]
             3983          [(2) (a) Any employee engaged in performing public safety services for a department or
             3984      political subdivision on the date it becomes a participant in the system under this chapter shall
             3985      become a member of the system as of the date of coverage. Each new public safety employee of
             3986      the covered unit shall thereafter become a member of the system effective on the date of
             3987      employment. (b) In cities, counties, or other employing units of government]
             3988          (1) Except as provided in Section 49-15-201 , a public safety service employee of a
             3989      participating employer participating in this system is eligible for service credit in this system at the
             3990      earliest of:
             3991          (a) July 1, 1969, if the public safety service employee was employed by the participating
             3992      employer on July 1, 1969, and the participating employer was participating in this system on that
             3993      date;
             3994          (b) the date the participating employer begins participating in this system if the public
             3995      safety service employee was employed by the participating employer on that date; or


             3996          (c) the date the public safety service employee is employed by the participating employer
             3997      and is eligible to perform public safety service.
             3998          (2) (a) (i) A participating employer that [have] has public safety service and [fire fighter
             3999      personnel where] firefighter service employees that require cross-training and duty [is required,
             4000      the employing unit may] shall enroll those dual purpose [personnel] employees in the [retirement]
             4001      system in which the greatest amount of [duty] time is [contemplated and] actually worked.
             4002          (ii) The [personnel] employees shall either be full-time public safety service or [fire
             4003      fighter] full-time firefighter service employees of the [employing unit] participating employer.
             4004          (b) (i) Prior to transferring a dual purpose employee from one system to another, the
             4005      participating employer shall receive written permission from the office.
             4006          (ii) The office may request documentation to verify the appropriateness of the transfer.
             4007          [(3) (a) The board may by rule establish other peace officer groups for purposes of:]
             4008          [(i) recommending eligibility for coverage under this system; and]
             4009          [(ii) recommending contribution rates.]
             4010          (3) The board may combine or segregate the actuarial experience of participating
             4011      employers in this system for the purpose of setting contribution rates.
             4012          [(b) (i)] (4) (a) (i) Each [employing unit covered by] participating employer participating
             4013      in this system shall annually submit to the [retirement] office a schedule indicating the positions
             4014      to be covered under this system in accordance with [Section 49-4-103 ] this chapter.
             4015          (ii) The [retirement] office may require documentation to justify the inclusion of any
             4016      position under this system.
             4017          [(ii)] (b) If there is a dispute between the [retirement] office and [an employing unit] a
             4018      participating employer or employee over any position to be covered, the disputed position shall be
             4019      submitted to the Peace Officer Standards and Training Council established under Section 53-6-106
             4020      for determination.
             4021          [(iii) (A)] (c) (i) The Peace Officer Standards and Training Council's authority to decide
             4022      eligibility [questions] for [peace officers] public safety service credit is limited to claims for
             4023      coverage under [the Public Safety Retirement System] this system for time periods [subsequent
             4024      to] after July 1, 1989.
             4025          [(B)] (ii) A decision of the Peace Officer Standards and Training Council may not be
             4026      applied to service credit earned in another system prior to July 1, 1989.


             4027          [(C)] (iii) Except as provided under Subsection [(3)(b)(iii)(D)] (4)(c)(iv), a decision of the
             4028      Peace Officer Standards and Training Council granting [an individual or] a position coverage
             4029      under [the Public Safety Retirement System] this system may only be applied prospectively from
             4030      the date of that decision.
             4031          [(D)] (iv) A decision of the Peace Officer Standards and Training Council granting [an
             4032      individual or] a position coverage under [the Public Safety Retirement System] this system may
             4033      be applied retroactively only if:
             4034          [(I)] (A) the [employing unit] participating employer covered other similarly situated
             4035      [employees] positions under [the Public Safety Retirement System] this system during the time
             4036      period in question; and
             4037          [(II)] (B) the [employee] position otherwise meets all eligibility requirements for
             4038      [membership in the Public Safety Retirement System] receiving service credit in this system during
             4039      the period for which service credit is to be granted.
             4040          [(c) (i)] (5) The Peace Officer Standards and Training Council may use a subcommittee
             4041      to provide a recommendation to the council in determining disputes between the [retirement] office
             4042      and [an employing unit] a participating employer or employee over a position to be covered under
             4043      this system.
             4044          [(ii)] (6) The Peace Officer Standards and Training Council shall comply with Title 63,
             4045      Chapter 46b, Administrative Procedures Act, in [conducting adjudicative proceedings] resolving
             4046      coverage disputes in this system.
             4047          [(4) Employees who have performed public safety service and who then transfer or are]
             4048          (7) A public safety employee who is transferred or promoted to an administration
             4049      [positions] position not covered by this system shall continue to earn public safety service credit
             4050      [under this chapter] in this system as long as [they remain] the employee remains employed in the
             4051      same department.
             4052          [(5) Unless the Legislature fails to provide funding in the appropriations act for the
             4053      inclusion of special function officers in the contributory system, special function officers shall be
             4054      eligible for membership in the contributory system if approved by the Peace Officer Standards and
             4055      Training Council.]
             4056          (8) Any employee who is transferred to the Division of Information Technology Services
             4057      from the Department of Public Safety prior to January 1, 1992, and who was a member of this


             4058      system, shall be entitled to remain a member of this system regardless of whether or not the
             4059      employee's current position is covered by this system.
             4060          [(6)] (9) (a) [The] To determine that a position is covered under this system, the office and,
             4061      if a coverage dispute arises, the Peace Officer Standards and Training Council[, in determining
             4062      disputes between the retirement office and an employing unit or employee over a position to be
             4063      covered under this system, shall determine that to be eligible for membership in this system] shall
             4064      find that the position requires the employee to:
             4065          (i) [is required as a duty of employment to serve in a position that may] place the
             4066      [employee at risk to] employee's life [and] or personal safety at risk; and
             4067          (ii) [is required to] complete training as provided in Section 53-13-103 , 53-13-104 , or
             4068      53-13-105 .
             4069          (b) If [an employee] a position satisfies the requirements of Subsection [(6)] (9)(a), the
             4070      office and the Peace Officer Standards and Training Council shall consider[, in determining
             4071      eligibility for membership in the system,] whether or not the [employee] position requires the
             4072      employee to:
             4073          (i) [performs] perform duties that consist primarily of actively preventing or detecting
             4074      crime and enforcing criminal statutes or ordinances of this state or any of its political subdivisions;
             4075          (ii) [performs] perform duties that consist primarily of providing community protection;
             4076      and
             4077          (iii) [is required to] respond to situations involving threats to public safety and make
             4078      emergency decisions affecting the lives and health of others.
             4079          [(7)] (10) If a subcommittee is used to recommend the determination of disputes to the
             4080      Peace Officer Standards and Training Council, the subcommittee shall comply with the
             4081      requirements of Subsection [(6)] (9) in making its recommendation.
             4082          [(8)] (11) A final order of the Peace Officer Standards and Training Council regarding a
             4083      dispute is a final agency action for purposes of Title 63, Chapter 46b, Administrative Procedures
             4084      Act.
             4085          [(9)] (12) If a [local law enforcement agency's law enforcement officers are not included
             4086      in the Public Safety Retirement System under Title 49, Chapter 4, Public Safety Retirement Act,
             4087      or Title 49,] participating employer's public safety service employees are not covered by this
             4088      system or under Chapter [4a] 15, Public Safety Noncontributory Retirement Act, as of January 1,


             4089      1998, those [officers] public safety service employees who may otherwise qualify for membership
             4090      in [the] this system shall, at the discretion of the [respective municipality] participating employer,
             4091      remain in their current retirement system.
             4092          Section 95. Section 49-14-202 , which is renumbered from Section 49-4-204 is renumbered
             4093      and amended to read:
             4094           [49-4-204].     49-14-202. Participation of employers -- Requirements -- Supplemental
             4095      programs -- Full participation in system.
             4096          (1) [Any political subdivision, department, or educational institution which] An employer
             4097      that employs public safety service employees [to perform public safety services] and is required
             4098      by Section [ 49-2-204 ] 49-12-202 or [ 49-3-204 ] 49-13-202 to be a participating [employee]
             4099      employer in the Public Employees' Contributory Retirement System or the Public Employees'
             4100      Noncontributory Retirement System shall cover all its public safety service employees under
             4101      [either (a) the Public Employees' Retirement System; or (b) the Public Safety Retirement System.
             4102      As a participating employer, the political subdivision shall meet all requirements for full
             4103      participation in the system.] one of the following systems:
             4104          (a) Chapter 12, Public Employees' Contributory Retirement Act;
             4105          (b) Chapter 13, Public Employees' Noncontributory Retirement Act;
             4106          (c) Chapter 14, Public Safety Contributory Retirement Act; or
             4107          (d) Chapter 15, Public Safety Noncontributory Retirement Act.
             4108          [(2) Any organization or agency supported in whole or in part by Utah public funds which
             4109      is not or may not prior to application have been covered by this act may by resolution of its
             4110      governing body apply for coverage of its public safety officers and employees by the system. Upon
             4111      approval of the board, the organization or agency shall become a participant in the system provided
             4112      that the board and the political subdivision, or the organization or agency shall agree upon (a) the
             4113      terms pursuant to which its public safety employees shall become members of the system, such as
             4114      the effective date of coverage, (b) the amount of prior service credit with which they may be
             4115      credited, if any, (c) the amount of any contributions in addition to regular contributions that will
             4116      be required to provide any prior service credits or retroactive current service credits from either
             4117      the employing unit or its employees, and (d) the manner in which retroactive current or prior
             4118      service credits may be established, if any. Once admitted to the system, an organization or agency
             4119      may not withdraw from participation, except as provided in Subsection (3), and shall meet all


             4120      requirements for full participation in the system.]
             4121          [(3) An organization or agency admitted to the system pursuant to Subsection (2), which
             4122      no longer receives public funds, may withdraw from the system if:]
             4123          [(a) the organization or agency's governing body by resolution petitions the board for
             4124      withdrawal from the system; and]
             4125          [(b) the board approves the withdrawal. Once approval to withdraw is granted, the
             4126      organization or agency and its employees shall be governed by Sections 49-1-502 and 49-1-503 .]
             4127          [(4) No participating employer may maintain full participation in the system by covering
             4128      only part of its public safety employees.]
             4129          (2) An employer that covers its public safety service employees under Subsection (1)(c)
             4130      is a participating employer in this system.
             4131          (3) If a participating employer under Subsection (1) covers any of its public safety service
             4132      employees under the Public Safety Contributory Retirement System or the Public Safety
             4133      Noncontributory Retirement System, that participating employer shall cover all of its public safety
             4134      service employees under one of those systems.
             4135          (4) A participating employer may not withdraw from this system.
             4136          (5) In addition to their participation in the system, participating employers may provide
             4137      or participate in any additional public or private retirement, supplemental or defined contribution
             4138      plan, either directly or indirectly, for their employees.
             4139          (6) An employer may not elect to participate in this system after July 1, 1989.
             4140          Section 96. Section 49-14-203 , which is renumbered from Section 49-4-205 is renumbered
             4141      and amended to read:
             4142           [49-4-205].     49-14-203. Exemption of certain employees from coverage.
             4143          (1) [(a)] A public safety service employee serving as the Commissioner of Public Safety,
             4144      or as the elected or appointed sheriff or chief of police of a public safety organization, is excluded
             4145      from coverage under this system if that public safety service employee files a formal written
             4146      request seeking [exclusion from coverage] exemption.
             4147          [(b)] (2) Except as provided in Subsection [(1)(c)] (3), the public safety service employee
             4148      may not continue employment [in the same covered employer unit] with the same participating
             4149      employer and receive [payment from the retirement office] an allowance from the office based on
             4150      public safety service at the same time.


             4151          [(c)] (3) An elected sheriff who is eligible to retire under Section [ 49-4-401 ] 49-14-401
             4152      may:
             4153          [(i)] (a) retire from [the] this system and receive [a retirement payment] an allowance;
             4154          [(ii)] (b) continue in the elected [office] position; and
             4155          [(iii)] (c) file for the [exclusion] exemption under Subsection (1)[(a)].
             4156          [(2) Any member of the system or any newly hired employee who is eligible for coverage
             4157      and who is drawing a military pension may, by application to the retirement administrator, be
             4158      exempted from participating in the system.]
             4159          Section 97. Section 49-14-301 , which is renumbered from Section 49-4-301 is renumbered
             4160      and amended to read:
             4161     
Part 3. Contributions

             4162           [49-4-301].     49-14-301. Contributions -- Two divisions -- Election by employer to
             4163      pay employee contributions -- Accounting for and vesting of member contributions --
             4164      Deductions.
             4165          (1) [The system shall be maintained on a financially and actuarially sound basis by means
             4166      of joint contributions by the employing units and the active members of the system.] Participating
             4167      employers and members shall jointly pay the certified contribution rates to the office to maintain
             4168      this system on a financially and actuarially sound basis.
             4169          (2) For purposes of determining contribution rates, [the] this system is divided into two
             4170      divisions according to Social Security coverage[. Public safety employees] as follows:
             4171          (a) members of this system with on-the-job Social Security coverage are in Division A
             4172      [and public safety employees]; and
             4173          (b) members of this system without on-the-job Social Security coverage are in Division
             4174      B.
             4175          [(2) Any employing unit]
             4176          (3) (a) A participating employer may elect to pay all or part of [its members'] the required
             4177      member contributions, in addition to the required participating employer contributions.
             4178          (b) Any amount contributed by [an] a participating employer under this [subsection]
             4179      section shall vest to the member's benefit as though the member had made the contribution.
             4180          (c) The [member's] required [contribution] member contributions shall be reduced by the
             4181      amount that is paid by the participating employer.


             4182          [(3)] (4) (a) All member contributions are credited by the [retirement] office to the account
             4183      of the individual member. [The]
             4184          (b) This amount, plus [regular] refund interest, is held in trust for the payment of benefits
             4185      to the member or the member's beneficiaries.
             4186          (c) All member contributions are [100%] vested and nonforfeitable. [If a member seeks
             4187      a refund of contributions upon termination of services, interest at a rate determined by the board
             4188      shall be added to the member's vested contributions.]
             4189          [(4)] (5) (a) Each member is [deemed] considered to consent to [monthly] payroll
             4190      deductions of member contributions.
             4191          (b) The payment of compensation less [retirement] these payroll deductions is considered
             4192      full payment [of the employee's salary] for services rendered by the member.
             4193          [(5) The board shall report to the governor, the Legislature, and each employing unit under
             4194      Division A or B the contribution rates and any adjustments necessary to maintain the system on
             4195      a financially and actuarially sound basis, and the employer and employee shall pay the certified
             4196      contribution rates.]
             4197          Section 98. Section 49-14-401 , which is renumbered from Section 49-4-401 is renumbered
             4198      and amended to read:
             4199     
Part 4. Defined Benefit

             4200           [49-4-401].     49-14-401. Eligibility for service retirement -- Date of retirement --
             4201      Qualifications.
             4202          [(1) (a) Any member who qualifies for service retirement may retire by submitting to the
             4203      retirement office an application form notarized by a notary public. The application shall state the
             4204      proposed effective date of retirement, which may not be more than 90 days before or after the date
             4205      of application.]
             4206          [(b) The effective date shall be the 1st or 16th day of the month, as selected by the
             4207      member, but must be after the last day of actual work.]
             4208          [(c) The member shall actually terminate employment and provide evidence of
             4209      termination.]
             4210          [(2) The member is qualified to retire upon termination of services on or before the
             4211      effective date of retirement if one of the following requirements on that date is met:]
             4212          (1) A member is qualified to receive an allowance from this system when:


             4213          (a) the member ceases actual work for a participating employer in this system before the
             4214      member's retirement date and provides evidence of the termination;
             4215          (b) the member has submitted to the office a notarized retirement application form that
             4216      states the member's proposed retirement date; and
             4217          (c) one of the following conditions is met as of the member's retirement date:
             4218          [(a)] (i) the member has [been credited with] accrued at least 20 years of service credit;
             4219          [(b)] (ii) the member has [been credited with] accrued at least ten years of service credit
             4220      and has attained an age of 60 years [or more]; or
             4221          [(c)] (iii) the member has [been credited with] accrued at least four years of service credit
             4222      and has attained an age of 65 years [or more].
             4223          (2) (a) The member's retirement date shall be the 1st or the 16th day of the month, as
             4224      selected by the member, but the retirement date must be on or after the date of termination.
             4225          (b) The retirement date may not be more than 90 days after the date the application is
             4226      received by the office.
             4227          Section 99. Section 49-14-402 , which is renumbered from Section 49-4-402 is renumbered
             4228      and amended to read:
             4229           [49-4-402].     49-14-402. Calculation of retirement allowance.
             4230          [Upon the service retirement of a member under Section 49-4-401 , the members shall
             4231      receive a retirement allowance determined as follows:]
             4232          [(1) If the member has 20 or more years of public safety service credit, the retirement
             4233      allowance is a monthly amount equal to:]
             4234          [(a) 2-1/2% of final average monthly salary multiplied by the number of years of public
             4235      safety service credited, limited to 20 years, plus]
             4236          [(b) 2% of final average monthly salary multiplied by the number of years of public safety
             4237      service credited in excess of 20 years, up to a maximum of 70%.]
             4238          [(2) If the member has attained age 60 years but less than age 65 years, and has ten years
             4239      but less than 20 years of public safety service credit, the retirement allowance is computed the
             4240      same as under Subsection (1).]
             4241          [(3) If the member has attained age 65 or older and has four or more years of public safety
             4242      service credit the retirement allowance shall be a monthly amount equal to 2-1/2% of final average
             4243      monthly salary multiplied by the number of years of public safety service credited, limited to 20


             4244      years, plus 2% of final average monthly salary multiplied by the number of years of public safety
             4245      service credit in excess of 20 years.]
             4246          [(4) Years of service include any fractions of years of service to which the member may
             4247      be entitled. Notwithstanding the formula for computing the service retirement allowance for
             4248      members participating in the program, the board shall, in as far as practical, adjust the percentage
             4249      factor used in the service retirement allowance formula, in its application to the years of service
             4250      of a retiring member to a percentage amount not less than 1-1/2% nor more than 2-1/2% per year
             4251      of service, limited to the first 20 years. The foregoing adjustment when made shall maintain the
             4252      retirement trust account on an actuarially sound basis if the employer contributions, member
             4253      contributions, and earnings of the fund are insufficient to fund the benefits provided for members
             4254      participating in the program.]
             4255          (1) A retiree under this system shall receive an allowance equal to:
             4256          (a) 2.5% of final average monthly salary multiplied by the number of years of service
             4257      credit, limited to 20 years; plus
             4258          (b) 2% of final average monthly salary, multiplied by the number of years of service credit
             4259      in excess of 20 years.
             4260          (2) Except as modified by cost-of-living adjustments, an allowance under this system may
             4261      not exceed 70% of a retiree's final average monthly salary.
             4262          Section 100. Section 49-14-403 , which is renumbered from Section 49-4-601 is
             4263      renumbered and amended to read:
             4264           [49-4-601].     49-14-403. Annual cost-of-living adjustment.
             4265          (1) The [retirement] office shall [compute and pay, upon approval by the board,] make an
             4266      annual cost-of-living adjustment to: [all retired members after the members have been retired one
             4267      year. The adjustment shall be equal to the decrease in the purchasing power of the dollar during
             4268      the preceding year, as measured by the Consumer Price Index, U.S. City Average, prepared by the
             4269      United States Bureau of Labor Statistics, and shall be limited to a maximum of 2.5% of the
             4270      retirant's or beneficiary's retirement allowance at the time of retirement. Decreases in the
             4271      purchasing power of the dollar exceeding 2.5% annually shall be accumulated and used in
             4272      subsequent allowances when the cost-of-living adjustment is less than 2.5%.]
             4273          [(2) The cost-of-living adjustment shall be reduced if the index shows a decline of 4% or
             4274      more during any period of more than one year. These reductions may not exceed 2% per year


             4275      based upon the original retirement allowance. Payments made under this section shall be a part
             4276      of the retired member's allowance. Payments and adjustments for the retirant shall also apply to
             4277      the beneficiary.]
             4278          (a) an original allowance paid under Section 49-14-402 and Part 5, Death Benefit, of this
             4279      chapter if the allowance has been paid for at least one year; and
             4280          (b) an original payment made to an alternate payee under a domestic relations order, if the
             4281      payment is to be paid as a percentage of the allowance rather than a specific dollar amount.
             4282          (2) (a) The original allowance shall be increased by the annual increase in the Consumer
             4283      Price Index up to a maximum of 2.5%.
             4284          (b) Annual increases in the Consumer Price Index in excess of 2.5% shall be accumulated
             4285      and used in subsequent adjustments when the annual increase in the Consumer Price Index is less
             4286      than 2.5%.
             4287          (3) The Consumer Price Index used in calculating adjustments shall be a United States
             4288      Bureau of Labor Statistics Consumer Price Index average as determined by the board.
             4289          (4) The cost-of-living adjustment made under this section may not decrease the allowance.
             4290          Section 101. Section 49-14-501 , which is renumbered from Section 49-4-701 is
             4291      renumbered and amended to read:
             4292     
Part 5. Death Benefit

             4293           [49-4-701].     49-14-501. Death of active member in Division A -- Payment of
             4294      benefits.
             4295          (1) If an active member of [the] this system enrolled in Division A under Section
             4296      [ 49-4-301 ] 49-14-301 dies, [the following] benefits are payable [according to the conditions
             4297      stipulated] as follows:
             4298          [(1)] (a) If the death is classified by the office as a line-of-duty death, the [dependent]
             4299      spouse at the time of death shall receive a lump sum of $1,000 and [a monthly] an allowance equal
             4300      to 30% of the deceased member's final average monthly salary.
             4301          [(2)] (b) If the death is not classified by the office as a line-of-duty death, [the following]
             4302      benefits are payable as follows:
             4303          [(a)] (i) If the member has accrued less than ten years of public safety service credit [at the
             4304      time of death], the beneficiary shall receive the sum of $1,000 or a refund of the member's member
             4305      contributions, whichever [amount] is greater.


             4306          [(b)] (ii) If the member has accrued ten or more years of public safety service credit at the
             4307      time of death, the [dependent] spouse at the time of death shall receive the sum of $500, plus [a
             4308      monthly] an allowance equal to 2% of the [deceased] member's final average monthly salary[,] for
             4309      each year of service credit [standing to the member's account, with a] accrued by the member up
             4310      to a maximum of 30% [allowed] of the member's final average monthly salary.
             4311          [(3) No benefits] (2) Benefits are not payable to minor children of members covered under
             4312      Division A.
             4313          [(4)] (3) If [the] a benefit is not distributed under this section, and [there is] the member
             4314      has designated a beneficiary, the [vested contribution] member's member contributions shall be
             4315      paid to the beneficiary.
             4316          Section 102. Section 49-14-502 , which is renumbered from Section 49-4-702 is
             4317      renumbered and amended to read:
             4318           [49-4-702].     49-14-502. Death of active member in Division B -- Payment of benefits.
             4319          (1) If an active member of [the] this system enrolled in Division B under Section
             4320      [ 49-4-301 ] 49-14-301 dies, [the following] benefits are payable [according to the conditions
             4321      stipulated] as follows:
             4322          [(1)] (a) If the member has accrued less than 20 years of public safety service credit and
             4323      if the death is classified by the office as a line-of-duty death, the [dependent] spouse at the time
             4324      of death shall receive a lump sum of $1,500 and [a monthly] an allowance equal to [37-1/2%]
             4325      37.5% of the [deceased] member's final average monthly salary.
             4326          [(2)] (b) If the death is not classified by the office as a line-of-duty death, [and] benefits
             4327      are payable as follows:
             4328          (i) If the [deceased] member has accrued two or more years of public safety service credit
             4329      at the time of death, the death is considered a line-of-duty death and the benefit [payable is the
             4330      same] shall be paid as provided under Subsection (1)(a).
             4331          [(3)] (ii) If [the death is not classified as line-of-duty death and the deceased] the member
             4332      has accrued less than two years of public safety service credit at the time of death, the [benefit
             4333      payable is] spouse at the time of death shall receive a refund of the [deceased] member's member
             4334      contributions, plus 50% of the member's most recent 12 months' [regular salary] compensation.
             4335          [(4)] (c) (i) If the [deceased] member has accrued two or more years of public safety
             4336      service credit at the time of death, [the benefit payable to] each of the member's unmarried children


             4337      to age 18 [is] or dependent unmarried mentally or physically disabled children shall receive a
             4338      monthly allowance of $50.
             4339          (ii) Payments shall be made to the surviving parent or to a duly appointed guardian, or as
             4340      otherwise provided under [Title 49, Chapter 1] Sections 49-11-609 and 49-11-610 .
             4341          [(5)] (2) In the event of the death of both parents, the spouse's benefit shall be prorated and
             4342      paid to each of the member's unmarried children to age 18.
             4343          [(6)] (3) If [the] a benefit is not distributed under [this section] the previous subsections,
             4344      and [there is] the member has designated a beneficiary, the [vested contribution ] member's
             4345      member contributions shall be paid to the beneficiary.
             4346          [(7)] (4) The [total monthly] combined annual payments [to be] made [on behalf of any
             4347      one deceased member's account] to the beneficiaries of any member under this section may not
             4348      exceed 75% of the member's final average monthly salary.
             4349          Section 103. Section 49-14-503 , which is renumbered from Section 49-4-703 is
             4350      renumbered and amended to read:
             4351           [49-4-703].     49-14-503. Benefits payable upon death of inactive member.
             4352          [(1) The death benefit payable on behalf of an active or an inactive member who dies and
             4353      has no spouse or minor children as a beneficiary is 100% of the deceased member's contributions
             4354      or $500, whichever amount is larger.]
             4355          [(2) (a) The death benefit payable on behalf of an inactive member who dies and is
             4356      survived by a spouse to whom that member was married at the time of death is a monthly pension
             4357      if that member had 20 or more years of public safety service at the time of death.]
             4358          [(b) The pension payable to the spouse is]
             4359          (1) If an inactive member who has less than 20 years of public safety service credit dies,
             4360      the designated beneficiary shall receive a refund of the member's member contributions or $500,
             4361      whichever is greater.
             4362          (2) (a) If an inactive member with 20 or more years of public safety service credit dies, the
             4363      spouse at the time of death shall receive an allowance in an amount of 50% of the amount the
             4364      member would have received had retirement occurred on the first of the month in which the death
             4365      occurred[, the benefit being].
             4366          (b) This allowance shall be based [upon] on years of service credit and final average
             4367      monthly salary under Section [ 49-4-402 ] 49-14-402 , reduced actuarially from age 50 to the age [at]


             4368      of the member at the time of death if the member is under age 50 at the time of death.
             4369          [(3) The death benefit payable upon the death of an inactive member who has less than 20
             4370      years of public safety service and who leaves a spouse or minor children as the beneficiary is a
             4371      100% refund of the deceased member's contributions or $500, whichever is larger.]
             4372          Section 104. Section 49-14-504 , which is renumbered from Section 49-4-704 is
             4373      renumbered and amended to read:
             4374           [49-4-704].     49-14-504. Benefits payable upon death of retired member.
             4375          (1) If [the member] a retiree who retired under either Division A or Division B[, the death
             4376      benefit payable to the dependent spouse after the death of the retired member of this system is a
             4377      monthly amount] dies, the retiree's spouse at the time of death shall receive an allowance equal
             4378      to 65% of the allowance that was being paid to the [retired member] retiree at the time of death.
             4379          (2) [(a)] If the [member] retiree retired solely under Division B [or] and dies leaving
             4380      [dependent] unmarried children under the age of 18 or dependent unmarried mentally or physically
             4381      disabled children, the children shall qualify for a benefit as prescribed for children under [Section
             4382      49-4-702 , with the total being paid as limited by that section. (b) The effective date of accrual of
             4383      this pension is] Subsection 49-14-502 (1)(c) which is payable on the first day of the month
             4384      following the month in which the [retirant] retiree died.
             4385          [(c) Payment of the full pension for this latter month shall be made to the dependent
             4386      beneficiary in lieu of the deceased member.]
             4387          Section 105. Section 49-14-505 is enacted to read:
             4388          49-14-505. Benefits for surviving spouse under Division A or Division B.
             4389          The spouse at the time of death, if eligible, shall receive a benefit computed under either
             4390      Division A or Division B, whichever provides the larger benefit, but may not receive a benefit
             4391      under both divisions if it would result in a duplicate benefit.
             4392          Section 106. Section 49-15-101 , which is renumbered from Section 49-4a-101 is
             4393      renumbered and amended to read:
             4394     
CHAPTER 15. PUBLIC SAFETY NONCONTRIBUTORY RETIREMENT ACT

             4395     
Part 1. General Provisions

             4396           [49-4a-101].     49-15-101. Title.
             4397          This chapter is known as the "Public Safety Noncontributory Retirement Act."
             4398          Section 107. Section 49-15-102 , which is renumbered from Section 49-4a-103 is


             4399      renumbered and amended to read:
             4400           [49-4a-103].     49-15-102. Definitions.
             4401          As used in this chapter:
             4402          (1) (a) "Compensation[,]" ["salary," or "wages"] means the total amount of payments
             4403      [which] that are [currently] includable in gross income [made by an employer to an employee for
             4404      services rendered to the employer as base income for the position covered under the retirement
             4405      system] received by a public safety service employee as base income for the regularly scheduled
             4406      work period. The participating employer shall establish the regularly scheduled work period. Base
             4407      income shall be determined prior to [any salary deductions or reductions for any] the deduction of
             4408      any amounts the public safety service employee authorizes to be deducted for salary deferral or
             4409      [pretax benefit programs] other benefits authorized by federal law.
             4410          (b) "Compensation" includes performance-based bonuses and cost-of-living adjustments.
             4411          (c) "Compensation" does not include:
             4412          (i) overtime;
             4413          (ii) sick pay incentives;
             4414          (iii) retirement pay incentives;
             4415          (iv) the monetary value of remuneration paid in kind, as in a residence, use of equipment
             4416      or uniform [or], travel [allowances], or similar payments;
             4417          (v) a lump-sum payment or special payment covering accumulated leave; and
             4418          (vi) all contributions made by [an] a participating employer under this [plan] system or
             4419      under any other employee benefit system or plan maintained by [an] a participating employer for
             4420      the benefit of a member or participant.
             4421          (d) "Compensation" for purposes of this chapter may not exceed the amount allowed under
             4422      Internal Revenue Code Section 401(a)(17).
             4423          (2) "Final average salary" means the amount computed by averaging the highest three years
             4424      of annual compensation preceding retirement subject to Subsections (2)(a) and (b).
             4425          (a) Except as provided in Subsection (2)(b), the percentage increase in annual
             4426      compensation in any one of the years used may not exceed the previous year's [salary]
             4427      compensation by more than 10% plus a cost-of-living adjustment equal to the decrease in the
             4428      purchasing power of the dollar during the previous year, as measured by [the Consumer Price
             4429      Index prepared by the] a United States Bureau of Labor Statistics Consumer Price Index average


             4430      as determined by the board.
             4431          (b) In cases where the [employing unit] participating employer provides acceptable
             4432      documentation to the [board] office, the limitation in Subsection [(2)] (3)(a) may be exceeded if:
             4433          (i) the [member] public safety service employee has transferred from another [employing
             4434      unit] agency; or
             4435          (ii) the [member] public safety service employee has been promoted to a new position.
             4436          [(3) "Full-time service" means 2,080 hours a year.]
             4437          [(4)] (3) "Line-of-duty death" means a death resulting from external force, violence, or
             4438      disease occasioned by an act of duty as a [peace officer or other] public safety [member] service
             4439      employee.
             4440          (4) "Participating employer" means an employer which meets the participation
             4441      requirements of Section 49-15-201 .
             4442          (5) (a) "Public safety service" means [full-time paid service] at least 2,080 hours of
             4443      regularly scheduled compensated employment per year rendered by a member who is a:
             4444          [(a)] (i) law enforcement [officers] officer in accordance with Section 53-13-103 ;
             4445          [(b)] (ii) correctional [officers] officer in accordance with Section 53-13-104 ; and
             4446          [(c)] (iii) special function [officers] officer approved in accordance with Section 49-4a-203
             4447      and Section 53-13-105 .
             4448          (b) "Public safety service" also requires that in the course of employment the employee's
             4449      life or personal safety is at risk.
             4450          (6) "Public safety service employee" means an employee of a participating employer who
             4451      performs public safety service under this chapter.
             4452          (7) "System" means the Public Safety Noncontributory Retirement System created under
             4453      this chapter.
             4454          [(6)] (8) "Years of service credit" [or "service years"] means the number of periods, each
             4455      to consist of 12 full months as determined by the board, whether consecutive or not, during which
             4456      [an] a public safety service employee [performed services for an] was employed by a participating
             4457      employer [or employers], including time the public safety service employee was absent in the
             4458      service of the United States government on military duty.
             4459          Section 108. Section 49-15-103 , which is renumbered from Section 49-4a-201 is
             4460      renumbered and amended to read:


             4461           [49-4a-201].     49-15-103. Creation of system.
             4462          There is created for [public safety personnel of the state and its political subdivisions]
             4463      members performing public safety service and who are employed by a participating employer the
             4464      "Public Safety Noncontributory Retirement System."
             4465          Section 109. Section 49-15-104 , which is renumbered from Section 49-4a-202 is
             4466      renumbered and amended to read:
             4467           [49-4a-202].     49-15-104. Creation of trust fund.
             4468          (1) There is created the "Public Safety Noncontributory Retirement Trust Fund" for the
             4469      purpose of paying the benefits and the costs of administering this system.
             4470          (2) The fund shall consist of a number of individual trust accounts created as needed to
             4471      receive the money and assets transferred into them from the respective terminated systems, all
             4472      money paid into them, including interest, in accordance with this chapter, whether in the form of
             4473      cash, securities, or other assets, and of all money received from any other source.
             4474          (3) Custody, management, and investment of the fund shall be governed by [Title 49,]
             4475      Chapter [1] 11, Utah State Retirement Systems Administration.
             4476          Section 110. Section 49-15-201 , which is renumbered from Section 49-4a-203 is
             4477      renumbered and amended to read:
             4478     
Part 2. Membership Eligibility

             4479           [49-4a-203].     49-15-201. System membership -- Eligibility.
             4480          [(1) Any person entering full-time employment in a state public safety position after the
             4481      effective date of this chapter shall automatically become a member of the noncontributory
             4482      retirement system.]
             4483          (1) (a) A public safety service employee employed by the state after July 1, 1989, is
             4484      eligible for service credit in this system.
             4485          [(2) Any person in full-time employment in a state public safety position prior to the
             4486      effective date of this system may either become a member of this noncontributory system or
             4487      remain a member of the Public Safety Retirement System]
             4488          (b) A public safety service employee employed by the state prior to July 1, 1989, may
             4489      either elect to receive service credit in this system or continue to receive service credit under the
             4490      system established under [Title 49,] Chapter [4] 14, Public Safety Contributory Retirement Act,
             4491      by following the procedures established by the board [pursuant to] under this chapter.


             4492          [(3) (a) Membership in the noncontributory system is optional for political subdivisions,
             4493      except that once a political subdivision elects to participate in the noncontributory system that
             4494      election is final and binding upon the political subdivision.]
             4495          [(b) Persons entering public safety employment with political subdivisions that elect to
             4496      participate in the noncontributory system after the effective date of this chapter shall automatically
             4497      become members of the noncontributory retirement system.]
             4498          [(c) Any person in full-time employment with the political subdivision prior to that
             4499      election to participate in this system may either become a member of the noncontributory
             4500      retirement system or remain a member of the Public Safety Retirement System established under
             4501      Title 49, Chapter 4, by following the procedures established by the board pursuant to this chapter.]
             4502          (2) (a) Public safety service employees of a participating employer other than the state that
             4503      elected on or before July 1, 1989, to remain in the Public Safety Contributory Retirement System
             4504      shall be eligible only for service credit in that system.
             4505          (b) (i) A participating employer other than the state that elected on or before July 1, 1989,
             4506      to participate in this system shall, have allowed, prior to July 1, 1989, a public safety service
             4507      employee to elect to participate in either this system or the Public Safety Contributory Retirement
             4508      System.
             4509          (ii) Except as expressly allowed by this title, the election of the public safety service
             4510      employee is final and may not be changed.
             4511          (c) A public safety service employee hired by a participating employer other than the state
             4512      after July 1, 1989, shall become a member in this system.
             4513          (d) A public safety service employee of a participating employer other than the state who
             4514      began participation in this system after July 1, 1989, is only eligible for service credit in this
             4515      system,
             4516          [(4) In cities, counties, or other employing units of government]
             4517          (3) (a) (i) A participating employer that [have] has public safety service and [fire fighter
             4518      personnel where] firefighter service employees that require cross-training and duty [is required,
             4519      the employing unit may] shall enroll those dual purpose [personnel] employees in the [retirement]
             4520      system in which the greatest amount of [duty] time is [contemplated and] actually worked [in
             4521      accordance with Subsection (3)].
             4522          (ii) The [personnel] employees shall either be full-time public safety service or [fire


             4523      fighter] full-time firefighter service employees of the [employing unit. New public safety
             4524      employing units after July 1, 1989, are covered under this chapter] participating employer.
             4525          (b) (i) Prior to transferring a dual purpose employee from one system to another, the
             4526      participating employer shall receive written permission from the office.
             4527          (ii) The office may request documentation to verify the appropriateness of the transfer.
             4528          [(5) (a) The board may by rule establish other peace officer groups for purposes of:]
             4529          [(i) recommending eligibility for coverage under this system; and]
             4530          [(ii) recommending contribution rates.]
             4531          (4) The board may combine or segregate the actuarial experience of participating
             4532      employers in this system for the purpose of setting contribution rates.
             4533          [(b) (i)] (5) (a) (i) Each [employing unit covered by] participating employer participating
             4534      in this system shall annually submit to the [retirement] office a schedule indicating the positions
             4535      to be covered under this system in accordance with [Section 49-4a-103 ] this chapter.
             4536          (ii) The [retirement] office may require documentation to justify the inclusion of any
             4537      position under this system.
             4538          [(ii)] (b) If there is a dispute between the [retirement] office and [an employing unit] a
             4539      participating employer or employee over any position to be covered, the disputed position shall be
             4540      submitted to the Peace Officer Standards and Training Council established under Section 53-6-106
             4541      for determination.
             4542          [(iii) (A)] (c) (i) The Peace Officer Standards and Training Council's authority to decide
             4543      eligibility [questions for peace officers] for public safety service credit is limited to claims for
             4544      coverage under [the Public Safety Retirement System] this system for time periods [subsequent
             4545      to] after July 1, 1989.
             4546          [(B)] (ii) A decision of the Peace Officer Standards and Training Council may not be
             4547      applied to service credit earned in another system prior to July 1, 1989.
             4548          [(C)] (iii) Except as provided under Subsection [(5)(b)(iii)(D)] (5)(c)(iv), a decision of the
             4549      Peace Officer Standards and Training Council granting [an individual or] a position coverage
             4550      under [the Public Safety Retirement System] this system may only be applied prospectively from
             4551      the date of that decision.
             4552          [(D)] (iv) A decision of the Peace Officer Standards and Training Council granting [an
             4553      individual or] a position coverage under [the Public Safety Retirement System] this system may


             4554      be applied retroactively only if:
             4555          [(I)] (A) the [employing unit] participating employer covered other similarly situated
             4556      [employees under the Public Safety Retirement System] positions under this system during the
             4557      time period in question; and
             4558          [(II)] (B) the [employee] position otherwise meets all eligibility requirements for
             4559      [membership in the Public Safety Retirement System] receiving service credit in this system during
             4560      the period for which service credit is to be granted.
             4561          [(c) (i)] (6) The Peace Officer Standards and Training Council may use a subcommittee
             4562      to provide a recommendation to the council in determining disputes between the [retirement] office
             4563      and [an employing unit] a participating employer or employee over a position to be covered under
             4564      this system.
             4565          [(ii)] (7) The Peace Officer Standards and Training Council shall comply with Title 63,
             4566      Chapter 46b, Administrative Procedures Act, in [conducting adjudicative proceedings] resolving
             4567      coverage disputes in this system.
             4568          [(6) Employees who have performed public safety service and who then transfer or are]
             4569          (8) A public safety service employee who is transferred or promoted to an administration
             4570      [positions] position not covered by this system shall continue to earn public safety service credit
             4571      [under this chapter] in this system as long as [they remain] the employee remains employed in the
             4572      same department.
             4573          [(7) Unless the Legislature fails to provide funding in the appropriations act for the
             4574      inclusion of special function officers in the noncontributory system, special function officers shall
             4575      be eligible for membership in the noncontributory system if approved by the Peace Officers
             4576      Standards and Training Council.]
             4577          (9) Any employee who is transferred to the Division of Information Technology Services
             4578      from the Department of Public Safety prior to January 1, 1992, and who was a member in this
             4579      system, shall be entitled to remain a member in this system regardless of whether or not the
             4580      employee's current position is covered by this system.
             4581          [(8)] (10) (a) [The] To determine that a position is covered under this system, the office
             4582      and, if a coverage dispute arises, the Peace Officer Standards and Training Council[, in
             4583      determining disputes between the retirement office and an employing unit or employee over a
             4584      position to be covered under this system, shall determine that to be eligible for membership in this


             4585      system] shall find that the position requires the employee to:
             4586          (i) [is required as a duty of employment to serve in a position that may] place the
             4587      [employee at risk to] employee's life [and] or personal safety at risk; and
             4588          (ii) [is required to] complete training as provided in Section 53-13-103 , 53-13-104 , or
             4589      53-13-105 .
             4590          (b) If [an employee] a position satisfies the requirements of Subsection [(8)] (10)(a), the
             4591      office and Peace Officer Standards and Training Council shall consider[, in determining eligibility
             4592      for membership in the system,] whether the position requires the employee to:
             4593          (i) [performs] perform duties that consist primarily of actively preventing or detecting
             4594      crime and enforcing criminal statutes or ordinances of this state or any of its political subdivisions;
             4595          (ii) [performs] perform duties that consist primarily of providing community protection;
             4596      and
             4597          (iii) [is required to] respond to situations involving threats to public safety and make
             4598      emergency decisions affecting the lives and health of others.
             4599          [(9)] (11) If a subcommittee is used to recommend the determination of disputes to the
             4600      Peace Officer Standards and Training Council, the subcommittee shall comply with the
             4601      requirements of Subsection [(8)] (10) in making its recommendation.
             4602          [(10)] (12) A final order of the Peace Officer Standards and Training Council regarding
             4603      a dispute is a final agency action for purposes of Title 63, Chapter 46b, Administrative Procedures
             4604      Act.
             4605          (13) If a participating employer's public safety service employees are not covered by this
             4606      system under Chapter 14, Public Safety Contributory Retirement Act, as of January 1, 1998, those
             4607      public safety service employees who may otherwise qualify for membership in this system shall,
             4608      at the discretion of the participating employer, remain in their current retirement system.
             4609          Section 111. Section 49-15-202 , which is renumbered from Section 49-4a-204 is
             4610      renumbered and amended to read:
             4611           [49-4a-204].     49-15-202. Participation of employers -- Requirements --
             4612      Admission -- Full participation in system -- Supplemental programs authorized.
             4613          (1) [Any political subdivision, department, or educational institution which] An employer
             4614      that employs public safety service employees [to perform public safety services] and is required
             4615      by Section [ 49-2-204 ] 49-12-202 or [ 49-3-204 ] 49-13-202 to be a participating [employee]


             4616      employer in the Public Employees' Contributory Retirement System or the Public Employees'
             4617      Noncontributory Retirement System shall cover all its public safety service employees under
             4618      [either] one of the following systems:
             4619          (a) [the] Chapter 12, Public Employees' Contributory Retirement [System] Act; [or]
             4620          [(b) the Public Safety Retirement System. As a participating employer, the political
             4621      subdivision shall meet all requirements for full participation in the system.]
             4622          (b) Chapter 13, Public Employees' Noncontributory Retirement Act;
             4623          (c) Chapter 14, Public Safety Contributory Retirement Act; or
             4624          (d) Chapter 15, Public Safety Noncontributory Retirement Act.
             4625          [(2) (a) Any organization or agency supported in whole or in part by Utah public funds
             4626      which is not or may not prior to application have been covered by this act]
             4627          (2) An employer that covers its public safety employees under Subsection (1)(d) is a
             4628      participating employer in this system.
             4629          (3) If a participating employer under Subsection (1) covers any of its public safety service
             4630      employees under the Public Safety Contributory Retirement System or the Public Safety
             4631      Noncontributory Retirement System, that participating employer shall cover all of its public safety
             4632      service employees under one of those systems.
             4633          (4) (a) An employer that is not participating in this system may by resolution of its
             4634      governing body apply for coverage of its public safety [officers and] service employees by [the]
             4635      this system. [Upon approval of the board, the organization or agency shall become a participant
             4636      in the system provided that the board and the political subdivision, or the organization or agency
             4637      shall agree upon:]
             4638          [(i) the terms pursuant to which its public safety employees shall become members of the
             4639      system, such as the effective date of coverage;]
             4640          [(ii) the amount of prior service credit with which they may be credited, if any;]
             4641          [(iii) the amount of any contributions in addition to regular contributions that will be
             4642      required to provide any prior service credits or retroactive current service credits from either the
             4643      employing unit or its employees; and]
             4644          [(iv) the manner in which retroactive current or prior service credits may be established,
             4645      if any.]
             4646          [(b) Once admitted to the system, an organization or agency may not withdraw from


             4647      participation, except as provided in Subsection (3), and shall meet all requirements for full
             4648      participation in the system.]
             4649          [(3) An organization or agency admitted to the system pursuant to Subsection (2), which
             4650      no longer receives public funds, may withdraw from the system if:]
             4651          [(a) the organization or agency's governing body by resolution petitions the board for
             4652      withdrawal from the system; and]
             4653          [(b) the board approves the withdrawal.]
             4654          [(4) Once approval to withdraw is granted, the organization or agency and its employees
             4655      shall be governed by Sections 49-1-502 and 49-1-503 .]
             4656          [(5) No participating employer may maintain full participation in the system by covering
             4657      only part of its public safety employees.]
             4658          (b) Upon approval of the board, the employer shall become a participating employer in this
             4659      system subject to this title.
             4660          (5) If a participating employer purchases service credit on behalf of employees for service
             4661      rendered prior to the participating employer's admission to this system, the service credit must be
             4662      purchased in a nondiscriminatory manner on behalf of all current and former employees who were
             4663      eligible for service credit at the time service was rendered.
             4664          (6) A participating employer may not withdraw from this system.
             4665          (7) In addition to their participation in the system, participating employers may provide
             4666      or participate in any additional public or private retirement, supplemental or defined contribution
             4667      plan, either directly or indirectly, for their employees.
             4668          Section 112. Section 49-15-203 , which is renumbered from Section 49-4a-206 is
             4669      renumbered and amended to read:
             4670           [49-4a-206].     49-15-203. Exemption of certain employees from coverage.
             4671          (1) [(a)] A public safety service employee serving as the Commissioner of Public Safety,
             4672      or as the elected or appointed sheriff or chief of police of a public safety organization, is excluded
             4673      from coverage under this system if that public safety service employee files a formal written
             4674      request seeking [exclusion from coverage] exemption.
             4675          [(b)] (2) Except as provided in Subsection [(1)(c)] (3), the public safety service employee
             4676      may not continue employment [in] with the same [covered] participating employer [unit] and
             4677      receive [payment from the retirement office] an allowance from the office based on public safety


             4678      service at the same time.
             4679          [(c)] (3) An elected sheriff who is eligible to retire under Section [ 49-4a-401 ] 49-15-401
             4680      may:
             4681          [(i)] (a) retire from [the] this system and receive [a retirement payment] an allowance;
             4682          [(ii)] (b) continue in the elected [office] position; and
             4683          [(iii)] (c) file for the [exclusion] exemption under Subsection (1)[(a)].
             4684          [(2) Any member of the system or any newly hired employee who is eligible for coverage
             4685      and who is drawing a military pension may, by application to the retirement administrator, be
             4686      exempted from participating in the system.]
             4687          Section 113. Section 49-15-204 , which is renumbered from Section 49-4a-205 is
             4688      renumbered and amended to read:
             4689           [49-4a-205].     49-15-204. Conversion to system -- Time schedule.
             4690          The following laws govern conversion to the Public Safety Noncontributory Retirement
             4691      System:
             4692          (1) For [persons] an employee governed by Subsection [ 49-4a-203 (2)] 49-15-201 (1)(a),
             4693      the election to participate in [the noncontributory] this system shall be made within six months of
             4694      [the effective date of this chapter] July 1, 1989.
             4695          (2) (a) (i) For [political subdivisions] an employer governed by Subsection [ 49-4a-203 (3)]
             4696      49-15-201 (2)(a), the election to participate [as a local government unit] in this system shall be
             4697      made within six months of [the effective date of this chapter] July 1, 1989.
             4698          (ii) The [political subdivision] employer shall indicate whether or not it elects to
             4699      participate by enacting a resolution or ordinance to that effect.
             4700          (iii) Prior to the enactment of the resolution or ordinance, a hearing shall be held by the
             4701      [political subdivision] employer, at which all public safety service employees of the [political
             4702      subdivision] employer shall be given an opportunity to be heard on the question of participating
             4703      in this [noncontributory retirement] system.
             4704          (iv) Notice of the hearing shall be mailed to all public safety service employees within 30
             4705      days of the hearing and shall contain the time, place, and purpose of the hearing.
             4706          (b) A [person in full-time employment with a political subdivision ] public safety service
             4707      employee of an employer, prior to its election to participate, has six months from the date the
             4708      [political subdivision] employer elects to participate in which to elect to become [a member of the


             4709      noncontributory] eligible for service credit in this system.
             4710          (3) (a) Subsections (1) and (2) shall be used to provide a time period of conversion to the
             4711      Public Safety Noncontributory Retirement System beginning July 1, 1998, and ending December
             4712      31, 1998.
             4713          (b) A person converting to the system during this time period [shall be] is subject to all the
             4714      rights, limitations, terms, and conditions of [Title 49,] Chapter [4a] 15, Public Safety
             4715      Noncontributory Retirement Act.
             4716          Section 114. Section 49-15-301 , which is renumbered from Section 49-4a-301 is
             4717      renumbered and amended to read:
             4718     
Part 3. Contributions

             4719           [49-4a-301].     49-15-301. Contributions -- Two divisions -- Report.
             4720          [(1) The system shall be maintained on a financially and actuarially sound basis by means
             4721      of contributions by the participating employer.]
             4722          (1) Participating employers shall pay the certified contribution rates to the office to
             4723      maintain this system on a financially and actuarially sound basis.
             4724          (2) For purposes of determining contribution rates, [the] this system is divided into two
             4725      divisions according to Social Security coverage.
             4726          (a) [Public safety employees] Members of this system with on-the-job Social Security
             4727      coverage are Division A. [These are the state, Bountiful , and Division A other peace officer
             4728      units.]
             4729          (b) [Public safety employees] Members of this system without on-the-job Social Security
             4730      coverage are in Division B. [These are Logan, Ogden, Provo, Salt Lake City, and Division B
             4731      other peace officer units.]
             4732          [(2) The board shall report to the governor, the Legislature, and each employing unit under
             4733      Division A or B the contribution rates and any adjustments necessary to maintain the system on
             4734      a financially and actuarially sound basis, and the employer shall pay the certified contribution
             4735      rates.]
             4736          Section 115. Section 49-15-401 , which is renumbered from Section 49-4a-401 is
             4737      renumbered and amended to read:
             4738     
Part 4. Defined Benefit

             4739           [49-4a-401].     49-15-401. Eligibility for service retirement -- Date of retirement


             4740      -- Qualifications.
             4741          [(1) (a) Any member who qualifies for service retirement may retire by submitting to the
             4742      retirement office an application form notarized by a notary public. The application shall state the
             4743      proposed effective date of retirement, which may not be more than 90 days before or after the date
             4744      of application.]
             4745          [(b) The effective date shall be the 1st or 16th day of the month, as selected by the
             4746      member, but must be after the last day of actual work.]
             4747          [(c) The member shall actually terminate employment and provide evidence of
             4748      termination.]
             4749          [(2) The member is qualified to retire upon termination of services on or before the
             4750      effective date of retirement if one of the following requirements on that date is met:]
             4751          (1) A member is qualified to receive an allowance from this system when:
             4752          (a) the member ceases actual work for a participating employer in this system before the
             4753      member's retirement date and provides evidence of the termination;
             4754          (b) the member has submitted to the office a notarized retirement application form that
             4755      states the member's proposed retirement date; and
             4756          (c) one of the following conditions is met as of the member's retirement date:
             4757          [(a)] (i) the member has [been credited with] accrued at least 20 years of service credit;
             4758          [(b)] (ii) the member has [been credited with] accrued at least ten years of service credit
             4759      and has attained an age of 60 years [or more]; or
             4760          [(c)] (iii) the member has [been credited with] accrued at least four years of service and
             4761      has attained an age of 65 years [or more].
             4762          (2) (a) The member's retirement date shall be the 1st or the 16th day of the month, as
             4763      selected by the member, but the retirement date must be on or after the date of termination.
             4764          (b) The retirement date may not be more than 90 days before or after the date the
             4765      application is received by the office.
             4766          Section 116. Section 49-15-402 , which is renumbered from Section 49-4a-402 is
             4767      renumbered and amended to read:
             4768           [49-4a-402].     49-15-402. Calculation of retirement benefit.
             4769          [Upon the service retirement of a member under Section 49-4a-401 , the member shall
             4770      receive a retirement allowance determined as follows:]


             4771          [(1) If the member has 20 or more years of public safety service credit, the retirement
             4772      allowance is a monthly amount equal to:]
             4773          [(a) 2-1/2% of final average monthly salary multiplied by the number of years of public
             4774      safety service credited, limited to 20 years, plus]
             4775          [(b) 2% of final average monthly salary multiplied by the number of years of public safety
             4776      service credited in excess of 20 years, up to a maximum of 70%.]
             4777          [(2) If the member has attained age 60 years but less than age 65 years, and has ten years
             4778      but less than 20 years of public safety service credit, the retirement allowance is computed the
             4779      same as under Subsection (1).]
             4780          [(3) If the member has attained age 65 or older and has four or more years of public safety
             4781      service credit the retirement allowance shall be a monthly amount equal to 2-1/2% of final average
             4782      monthly salary multiplied by the number of years of public safety service credited, limited to 20
             4783      years, plus 2% of final average monthly salary multiplied by the number of years of public safety
             4784      service credit in excess of 20 years.]
             4785          [(4) Years of service include any fractions of years of service to which the member may
             4786      be entitled.]
             4787          (1) A retiree under this system shall receive an allowance equal to:
             4788          (a) 2.5% of final average monthly salary multiplied by the number of years of service
             4789      credit, limited to 20 years; plus
             4790          (b) 2% of final average monthly salary, multiplied by the number of years of service credit
             4791      in excess of 20 years.
             4792          (2) Except as modified by cost-of-living adjustments, an allowance under this system may
             4793      not exceed 70% of a retiree's final average monthly salary.
             4794          Section 117. Section 49-15-403 , which is renumbered from Section 49-4a-601 is
             4795      renumbered and amended to read:
             4796           [49-4a-601].     49-15-403. Annual cost-of-living adjustment.
             4797          [(1) The retirement office shall compute and pay, upon approval by the board, an annual
             4798      cost-of-living adjustment to all retired members after the members have been retired one year. The
             4799      adjustment shall be equal to the decrease in the purchasing power of the dollar during the
             4800      preceding year, as measured by the Consumer Price Index, U.S. City Average, prepared by the
             4801      United States Bureau of Labor Statistics, and shall be limited to a maximum of 2.5% of the


             4802      retirant's or beneficiary's retirement allowance at the time of retirement. Decreases in the
             4803      purchasing power of the dollar exceeding 2.5% annually shall be accumulated and used in
             4804      subsequent allowances when the cost-of-living adjustment is less than 2.5%.]
             4805          [(2) The cost-of-living adjustment shall be reduced if the index shows a decline of 4% or
             4806      more during any period of more than one year. These reductions may not exceed 2% per year
             4807      based upon the original retirement allowance. Payments made under this section shall be a part
             4808      of the retired member's allowance. Payments and adjustments for the retirant shall also apply to
             4809      the beneficiary.]
             4810          (1) The office shall make an annual cost-of-living adjustment to:
             4811          (a) an original allowance paid under Section 49-15-402 and Part 5, Death Benefit, of this
             4812      chapter if the allowance has been paid for at least one year; and
             4813          (b) an original payment made to an alternate payee under a domestic relations order if the
             4814      payment is to be paid as a percentage of the allowance rather than a specific dollar amount.
             4815          (2) (a) The original allowance shall be increased by the annual increase in the Consumer
             4816      Price Index up to a maximum of 2.5%.
             4817          (b) Annual increases in the Consumer Price Index in excess of 2.5% shall be accumulated
             4818      and used in subsequent adjustments when the annual increase in the Consumer Price Index is less
             4819      than 2.5%.
             4820          (3) The Consumer Price Index used in calculating adjustments shall be a United States
             4821      Bureau of Labor Statistics Consumer Price Index average as determined by the board.
             4822          (4) The cost-of-living adjustment made under this section may not decrease the allowance.
             4823          Section 118. Section 49-15-501 , which is renumbered from Section 49-4a-701 is
             4824      renumbered and amended to read:
             4825     
Part 5. Death Benefit

             4826           [49-4a-701].     49-15-501. Death of active member in Division A -- Payment of
             4827      benefits.
             4828          (1) If an active member of [the] this system enrolled in Division A under Section
             4829      [ 49-4a-301 ] 49-15-301 dies, [the following] benefits are payable [according to the conditions
             4830      stipulated] as follows:
             4831          [(1)](a) [Except as provided in Subsection (1)(b), if] If the death is classified by the office
             4832      as a line-of-duty death, [the dependent] benefits are payable as follows:


             4833          (i) If the member has accrued less than 20 years of public safety service credit, the spouse
             4834      at the time of death shall receive a lump sum of $1,000 and [a monthly] an allowance equal to 30%
             4835      of the [deceased] member's final average monthly salary.
             4836          [(b)] (ii) If the member has accrued 20 or more years of public safety service credit, the
             4837      member shall be considered to have retired with [a monthly] an allowance calculated under
             4838      [Subsection 49-4a-402 (1)] Section 49-15-402 and the [dependent] spouse at the time of death shall
             4839      receive the death benefit payable to a [dependent] spouse at the time of death under [Subsection
             4840      49-4a-704 (1)] Section 49-15-504 .
             4841          [(2)] (b) If the death is not classified as a line-of-duty death by the office, [the following]
             4842      benefits are payable as follows:
             4843          [(a)] (i) If the member has accrued less than ten years of public safety service credit [at the
             4844      time of death], the beneficiary shall receive the sum of $1,000 or a refund of the member's member
             4845      contributions, whichever [amount] is greater.
             4846          [(b)] (ii) If the member has accrued ten or more years, but less than 20 years of public
             4847      safety service credit at the time of death, the [dependent] spouse at the time of death shall receive
             4848      the sum of $500, plus [a monthly] an allowance equal to 2% of the [deceased] member's final
             4849      average monthly salary[,] for each year of service credit [standing to the member's account, with]
             4850      accrued by the member up to a maximum of 30% [allowed] of the member's final average monthly
             4851      salary.
             4852          [(c)] (iii) If the member has accrued 20 or more years of public safety service credit, the
             4853      benefit shall be calculated as provided in Subsection (1)[(b)](a)(ii).
             4854          [(3) No benefits] (2) Benefits are not payable to minor children under Division A.
             4855          [(4)] (3) If [the] a benefit is not distributed under this section, and [there is] the member
             4856      has designated a beneficiary, the [vested] member's member contribution shall be paid to the
             4857      beneficiary.
             4858          Section 119. Section 49-15-502 , which is renumbered from Section 49-4a-702 is
             4859      renumbered and amended to read:
             4860           [49-4a-702].     49-15-502. Death of active member in Division B -- Payment of
             4861      benefits.
             4862          (1) If an active member of [the] this system enrolled in Division B under Section
             4863      [ 49-4a-301 ] 49-15-301 dies, [the following] benefits are payable [according to the conditions


             4864      stipulated] as follows:
             4865          [(1)] (a) If the member has accrued less than 20 years of public safety service credit and
             4866      if the death is classified by the office as a line-of-duty death, the [dependent] spouse at the time
             4867      of death shall receive a lump sum of $1,500 and [a monthly] an allowance equal to [37-1/2%]
             4868      37.5% of the [deceased] member's final average monthly salary.
             4869          [(2)] (b) If the death is not classified by the office as a line-of-duty death, and the
             4870      [deceased] member has accrued two or more years of public safety service credit at the time of
             4871      death, the death is considered line-of-duty and the benefit [payable is the same] shall be paid as
             4872      provided under Subsection (1)(a).
             4873          [(3)] (c) If the death is not classified by the office as a line-of-duty death, and the
             4874      [deceased] member has accrued less than two years of public safety service credit at the time of
             4875      death, the [benefit payable is] spouse at the time of death shall receive a refund of the [deceased]
             4876      member's member contributions, plus 50% of the member's most recent 12 months' [regular salary]
             4877      compensation.
             4878          [(4)] (d) (i) If the [deceased] member has accrued two or more years of public safety
             4879      service credit at the time of death, [the benefit payable to] each of the member's unmarried children
             4880      to age 18 [is a monthly] or dependent unmarried mentally or physically disabled children shall
             4881      receive an allowance of $50.
             4882          (ii) Payments shall be made to the surviving parent or to a duly appointed guardian, or as
             4883      otherwise provided under [Title 49, Chapter 1] Section 49-11-609 or 49-11-610 .
             4884          [(5)] (2) In the event of the death of both parents, the spouse's benefit shall be prorated and
             4885      paid to each of the member's unmarried children to age 18.
             4886          [(6)] (3) If [the] a benefit is not distributed under [this section, and there is] the previous
             4887      subsections, and the member has designated a beneficiary, the [vested contribution] member's
             4888      member contributions shall be paid to the beneficiary.
             4889          [(7)] (4) The [total monthly] combined payments [to be made on behalf of any one
             4890      deceased member's account] to beneficiaries of any member under this section may not exceed
             4891      75% of the member's final average monthly salary.
             4892          Section 120. Section 49-15-503 , which is renumbered from Section 49-4a-703 is
             4893      renumbered and amended to read:
             4894           [49-4a-703].     49-15-503. Benefits payable upon death of inactive member.


             4895          [(1) The death benefit payable on behalf of an active or an inactive member who dies and
             4896      has no spouse or minor children as a beneficiary is 100% of the deceased member's contributions
             4897      or $500, whichever amount is greater.]
             4898          [(2) (a) The death benefit payable on behalf of an inactive member who dies and is
             4899      survived by a spouse to whom that member was married at the time of death is a monthly pension
             4900      if that member had 20 or more years of public safety service at the time of death.]
             4901          [(b) The pension payable to the spouse is]
             4902          (1) If an inactive member who has less than 20 years of public safety service credit dies,
             4903      the designated beneficiary shall receive a refund of the member's member contributions or $500,
             4904      whichever is greater.
             4905          (2) (a) If an inactive member with 20 or more years of public safety service credit dies, the
             4906      spouse at the time of death shall receive an allowance in an amount of 50% of the amount the
             4907      member would have received had retirement occurred on the first of the month in which the death
             4908      occurred[, the benefit being].
             4909          (b) This allowance shall be based [upon] on years of service credit and final average
             4910      monthly salary under Section [ 49-4a-402 ] 49-15-402 , reduced actuarially from age 50 to the age
             4911      of the member at the time of death [if the member is under age 50 at the time of death].
             4912          [(3) The death benefit payable upon the death of an inactive member who has less than 20
             4913      years of public safety service and who leaves a spouse or minor children as the beneficiary is a
             4914      100% refund of the deceased member's contributions or $500, whichever is greater.]
             4915          Section 121. Section 49-15-504 , which is renumbered from Section 49-4a-704 is
             4916      renumbered and amended to read:
             4917           [49-4a-704].     49-15-504. Benefits payable upon death of retired member.
             4918          (1) If [the member] a retiree who retired under either Division A or Division B[, the death
             4919      benefit payable to the dependent spouse after the death of the retired member of this system is a
             4920      monthly amount] dies, the retiree's spouse at the time of death shall receive an allowance equal to
             4921      65% of the allowance that was being paid to the [retired member] retiree at the time of death.
             4922          (2) [(a)] If the [member] retiree retired solely under Division B [or] and dies leaving
             4923      [dependent] unmarried children under the age of 18 or dependent unmarried mentally or physically
             4924      disabled children, the children shall qualify for a benefit as prescribed [for children] under [Section
             4925      49-4a-702 , with the total being paid as limited by that section. (b) The effective date of accrual of


             4926      this pension is] Subsection 49-15-502 (1)(c) which is payable on the first day of the month
             4927      following the month in which the [retirant] retiree died.
             4928          [(c) Payment of the full pension for this latter month shall be made to the dependent
             4929      beneficiary in lieu of the deceased member.]
             4930          Section 122. Section 49-15-505 is enacted to read:
             4931          49-15-505. Benefits for surviving spouse under Division A or Division B.
             4932          The spouse at the time of death, if eligible, shall receive a benefit computed under either
             4933      Division A or Division B, whichever provides the larger benefit, but may not receive a benefit
             4934      under both divisions if it would result in a duplicate benefit.
             4935          Section 123. Section 49-16-101 , which is renumbered from Section 49-5-101 is
             4936      renumbered and amended to read:
             4937     
CHAPTER 16. FIREFIGHTERS' RETIREMENT ACT

             4938     
Part 1. General Provisions

             4939           [49-5-101].     49-16-101. Title.
             4940          This chapter is known as the "Firefighters' Retirement Act."
             4941          Section 124. Section 49-16-102 , which is renumbered from Section 49-5-103 is
             4942      renumbered and amended to read:
             4943           [49-5-103].     49-16-102. Definitions.
             4944          As used in this chapter:
             4945          (1) (a) "Compensation[,]" ["salary," or "wages"] means the total amount of payments that
             4946      are [currently] includable [in ] as gross income [made by an employer to an employee for services
             4947      rendered to the employer as base income] which are received by a firefighter service employee
             4948      as base income for the regularly scheduled work period. The participating employer shall establish
             4949      the regularly scheduled work period. Base income shall be determined prior to [any salary
             4950      deductions or reductions ] the deduction of member contributions or any amounts the firefighter
             4951      service employee authorizes to be deducted for [any] salary deferral or [pretax benefit programs
             4952      ] other benefits authorized by federal law[, for the position covered under the retirement system].
             4953          (b) "Compensation" includes performance-based bonuses and cost-of-living adjustments.
             4954          (c) "Compensation" does not include:
             4955          (i) overtime;
             4956          (ii) sick pay incentives;


             4957          (iii) retirement pay incentives;
             4958          (iv) remuneration paid in kind such as a residence, use of equipment, uniforms, [or] travel
             4959      [allowances], or similar payments;
             4960          (v) a lump-sum payment or special payments covering accumulated leave; and
             4961          (vi) all contributions made by [an] a participating employer under this [plan] system or
             4962      under any other employee benefit system or plan maintained by [an] a participating employer for
             4963      the benefit of a member or participant.
             4964          (d) "Compensation" for purposes of this chapter may not exceed the amount allowed under
             4965      Internal Revenue Code Section 401(a)(17).
             4966          (2) (a) "Disability" means a physical or mental condition that, in the judgment of the
             4967      [board] office, is total and presumably permanent, prevents a member from fulfilling the
             4968      responsibilities of the member's [assignment] position, and prevents the member from performing
             4969      satisfactorily in some other [assignment] position of the same general class.
             4970          (b) The determination of disability is based upon medical and other evidence satisfactory
             4971      to the [board] office.
             4972          [(3) "Employer" or "employing unit" means any regularly constituted fire department of
             4973      a political subdivision for which any employee or member performs services subject to this
             4974      chapter.]
             4975          [(4)] (3) "Final average salary" means the amount computed by averaging the highest three
             4976      years of annual compensation preceding retirement[, but not including overtime or lump-sum or
             4977      special salary adjustments received instead of uniform or other allowances or expenses or other
             4978      payments made covering accumulated leave] subject to Subsections (3)(a) and (b).
             4979          (a) Except as provided in Subsection [(4)] (3)(b), the percentage increase in annual
             4980      compensation in any one of the years used may not exceed the previous year's [salary]
             4981      compensation by more than 10% plus a cost-of-living adjustment equal to the decrease in the
             4982      purchasing power of the dollar during the previous year, as measured by [the Consumer Price
             4983      Index prepared by the] a United States Bureau of Labor Statistics Consumer Price Index average
             4984      as determined by the board.
             4985          (b) In cases where the [employing unit] participating employer provides acceptable
             4986      documentation to the [board] office the limitation in Subsection [(4)] (3)(a) may be exceeded if:
             4987          (i) the member has transferred from another [employing unit] agency; or


             4988          (ii) the member has been promoted to a new position.
             4989          [(5)] (4) "Firefighter service" means [full-time paid service rendered as an individual or
             4990      as a member of a group of firefighters regularly assigned to] at least 2,080 hours of regularly
             4991      scheduled compensated employment per year rendered by a member who is a firefighter service
             4992      employee trained in firefighter techniques and assigned to a position of hazardous duty with a
             4993      regularly constituted fire department, but does not include secretarial staff or other similar
             4994      employees.
             4995          (5) "Firefighter service employee" means an employee of a participating employer who
             4996      provides firefighter service under this chapter. An employee of a regularly constituted fire
             4997      department who does not perform firefighter service is not a firefighter service employee.
             4998          [(6) "Full-time service" means 2,080 hours per year.]
             4999          [(7) "Inactive member" means a member who has received no compensation for a period
             5000      of longer than four months.]
             5001          [(8)] (6) "Line-of-duty death or disability" means a death or any physical or mental
             5002      disability resulting from external force, violence, or disease [occasioned by an act of duty as a
             5003      firefighter and includes for a paid firefighter, after five years of credited service, any death or
             5004      disability resulting from heart disease, lung disease, or respiratory tract, but if a firefighter ceases
             5005      to be a contributing member because of personal illness or service-connected disability, neither of
             5006      which is related to] directly resulting from firefighter service.
             5007          (a) A paid firefighter who has five years of firefighter service credit is eligible for a
             5008      line-of-duty death or disability resulting from heart [or] disease, lung disease [nor the], or
             5009      respiratory tract condition.
             5010          (b) A paid firefighter who receives a service connected disability benefit for [a period of]
             5011      more than six months [or more and then again becomes a contributing member, the provision
             5012      relating to death or disability resulting from] due to violence or illness other than heart disease,
             5013      lung disease, or respiratory [disease does not apply until the member again becomes a contributing
             5014      member for a period of not less than two years or] tract condition, and then returns to paid
             5015      firefighter service, may not be eligible for a line-of-duty death or disability benefit due to heart
             5016      disease, lung disease, or respiratory tract condition for two years after the firefighter returned to
             5017      work unless clear and [precise] convincing evidence is presented that the heart disease, lung
             5018      disease, or respiratory [disease] tract condition was[, in fact, occasioned in the line-of-duty]


             5019      directly a result of firefighter service.
             5020          [(9) (a) "Member" means any person included in the membership of the retirement
             5021      system.]
             5022          [(b) A person is a member if the person has contributions on deposit with the retirement
             5023      system.]
             5024          [(c) A person hired on or after July 1, 1971, in a fire department, who is assigned directly
             5025      to a clerical position, and because of lack of training in fire fighting techniques, is not subject to
             5026      reassignment into positions of hazardous duty, is not eligible for membership in this system.]
             5027          [(i) The person in a clerical position shall become a contributing member of the
             5028      appropriate retirement system.]
             5029          [(ii) The required employer contributions shall be paid by the fire department.]
             5030          [(iii) This membership exclusion may not be interpreted to prohibit the assignment of a
             5031      disabled or partially disabled firefighter to that position.]
             5032          [(iv) If Subsection (9)(c)(iii) applies, the firefighter retains status as a contributing member
             5033      of this system and continues to accrue service credits while so employed.]
             5034          (7) "Participating employer" means an employer which meets the participation
             5035      requirements of Section 49-16-201 .
             5036          [(10)] (8) "Regularly constituted fire department" means a fire department that employs
             5037      a [full-time] fire chief [and promulgates rules] who performs firefighter service for at least 2,080
             5038      hours of regularly scheduled paid employment per year.
             5039          [(11) (a) "Service" or "covered service" means firefighter service rendered an employer
             5040      for compensation included in computations relating to membership status or benefit rights under
             5041      this chapter.]
             5042          [(b) A retirement allowance or other benefit may not be granted under this system that is
             5043      based upon the same service for retirement benefits under some other retirement system
             5044      administered by the board.]
             5045          (9) "System" means the Firefighters' Retirement System created under this chapter.
             5046          [(12)] (10) (a) "Volunteer firefighter" means any individual that is not regularly employed
             5047      as a firefighter service employee, but who is on the rolls of a regularly constituted fire department.
             5048          (b) An individual that volunteers assistance but is not a regularly enrolled firefighter is not
             5049      a volunteer firefighter.


             5050          [(c) Service as a volunteer firefighter is not creditable towards qualifying for a service
             5051      retirement allowance.]
             5052          [(13)] (11) "Years of service credit" [or "service years"] means the number of periods
             5053      [consisting], each to consist of 12 full months as determined by the board, whether consecutive
             5054      or not, during which [an] a firefighter service employee [performed services for an] was employed
             5055      by a participating employer or received full-time pay while on sick leave, including any time the
             5056      firefighter service employee was absent in the service of the United States on military duty.
             5057          Section 125. Section 49-16-103 , which is renumbered from Section 49-5-201 is
             5058      renumbered and amended to read:
             5059           [49-5-201].     49-16-103. Creation of system.
             5060          There is created for [firefighters in this state] members performing firefighter service and
             5061      who are employed by a participating employer the "Firefighters' Retirement System."
             5062          Section 126. Section 49-16-104 , which is renumbered from Section 49-5-202 is
             5063      renumbered and amended to read:
             5064           [49-5-202].     49-16-104. Creation of trust fund.
             5065          (1) There is created the "Firefighters' Retirement Trust Fund" for the purpose of paying
             5066      the benefits and costs of administering this system.
             5067          (2) The fund shall consist of all money and assets transferred to it from any terminated
             5068      system, all money paid into it, including interest, in accordance with this chapter, whether in the
             5069      form of cash, securities, or other assets, and of all money received from any other source.
             5070          (3) The custody, management, and investment of the fund shall be governed by [Title 49,]
             5071      Chapter [1] 11, Utah State Retirement Systems Administration.
             5072          Section 127. Section 49-16-201 , which is renumbered from Section 49-5-203 is
             5073      renumbered and amended to read:
             5074     
Part 2. Membership Eligibility

             5075           [49-5-203].     49-16-201. System membership -- Eligibility.
             5076          [(1) Any employee who performs covered services for any political subdivision after the
             5077      effective date of this system shall become a member of this retirement system.]
             5078          [(2) (a) Any new employee engaged to perform covered services for an agency or political
             5079      subdivision after the effective date of this chapter shall undergo a physical examination to
             5080      determine the employee's fitness for employment, and file a membership form with the retirement


             5081      office. The employer shall notify the administrator of the employee's employment within 30 days
             5082      of employment.]
             5083          [(b) In political subdivisions with]
             5084          (1) A firefighter service employee who performs firefighter service for an employer
             5085      participating in this system is eligible for service credit in this system upon the earliest of:
             5086          (a) July 1, 1971, if the firefighter service employee was employed by the participating
             5087      employer on July 1, 1971, and the participating employer was participating in this system on that
             5088      date;
             5089          (b) the date the participating employer begins participating in this system if the firefighter
             5090      service employee was employed by the participating employer on that date; or
             5091          (c) the date the firefighter service employee is hired to perform firefighter services for a
             5092      participating employer.
             5093          (2) (a) (i) A participating employer that has public safety service and firefighter [personnel
             5094      where] service employees that require cross-training and duty [is required, the employing unit may]
             5095      shall enroll the dual purpose [personnel] employees in the [retirement] system in which the greatest
             5096      amount of [duty] time is [contemplated and] actually worked.
             5097          (ii) The [personnel] employees shall either be full-time public safety service or full-time
             5098      firefighter service employees of the [employing unit] participating employer.
             5099          (b) (i) Prior to transferring a dual purpose employee from one system to another, the
             5100      participating employer shall receive written permission from the office.
             5101          (ii) The office may request documentation to verify the appropriateness of the transfer.
             5102          (3) (a) A person hired by a regularly constituted fire department on or after July 1, 1971,
             5103      who does not perform firefighter service is not eligible for service credit in this system.
             5104          (b) The nonfirefighter service employee shall become a member of the system for which
             5105      the nonfirefighter service employee qualifies for service credit.
             5106          (c) The service credit exclusion under this Subsection (3) may not be interpreted to
             5107      prohibit the assignment of a disabled or partially disabled firefighter to a nonfirefighter service
             5108      position.
             5109          (d) If Subsection (3)(c) applies, the firefighter service employee remains eligible for
             5110      service credit in this system.
             5111          (4) An allowance or other benefit may not be granted under this system that is based upon


             5112      the same service for benefits received under some other system.
             5113          (5) Service as a volunteer firefighter is not eligible for service credit in this system.
             5114          Section 128. Section 49-16-202 , which is renumbered from Section 49-5-204 is
             5115      renumbered and amended to read:
             5116           [49-5-204].     49-16-202. Participation of employers -- Full participation in system
             5117      -- Supplemental programs authorized.
             5118          [(1) All political subdivisions are participating employers in the system and may not
             5119      withdraw from participation in the system. As participating employers, political subdivisions shall
             5120      meet all requirements for full participation in the system.]
             5121          [(2) No participating employer may maintain participation in the system by covering only
             5122      part of its eligible employees, but the chief of any fire department may elect not to participate in
             5123      the system, but cannot continue employment in the same covered employer unit and receive
             5124      payment from the retirement office at the same time.]
             5125          (1) An employer that employs firefighter service employees and is required by Section
             5126      49-12-202 or 49-13-202 to be a participating employer in the Public Employees' Contributory
             5127      Retirement System or the Public Employees' Noncontributory Retirement System shall cover all
             5128      of its firefighter service employees under one of the following systems:
             5129          (a) Chapter 12, Public Employees' Contributory Retirement Act;
             5130          (b) Chapter 13, Public Employees' Noncontributory Retirement Act; or
             5131          (c) Chapter 16, Firefighters' Retirement Act.
             5132          (2) Any employer that covers its firefighter service employees under Subsection (1)(c) is
             5133      a participating employer in this system.
             5134          (3) If a participating employer under Subsection (1) covers any of its firefighter service
             5135      employees under the Firefighters' Retirement System, that participating employer shall cover all
             5136      of its firefighter service employees under that system.
             5137          (4) A participating employer may not withdraw from this system.
             5138          [(3)] (5) In addition to their participation in the system, participating employers may
             5139      provide or participate in any additional public or private retirement, supplemental or [deferred
             5140      income program] defined contribution plan, either directly or indirectly, for their firefighter service
             5141      employees.
             5142          Section 129. Section 49-16-203 is enacted to read:


             5143          49-16-203. Exemption of certain employees from coverage -- Exception.
             5144          (1) A firefighter service employee serving as the chief of any fire department or district
             5145      is excluded from coverage under this system if that firefighter service employee files a formal
             5146      written request seeking exemption.
             5147          (2) A firefighter service employee serving as the chief of any fire department or district
             5148      may not continue employment with the same participating employer and receive an allowance from
             5149      the office based on firefighter service at the same time.
             5150          Section 130. Section 49-16-301 , which is renumbered from Section 49-5-301 is
             5151      renumbered and amended to read:
             5152     
Part 3. Contributions

             5153           [49-5-301].     49-16-301. Contributions -- Two divisions -- Election by employer to
             5154      pay employee contributions -- Accounting for and vesting of worker contributions --
             5155      Deductions.
             5156          (1) [The system shall be maintained on a financially and actuarially sound basis by means
             5157      of contributions made by the state, the employing units, and the active members of the system] In
             5158      addition to the monies paid to this system under Subsection (6), participating employers and
             5159      firefighter service employees shall jointly pay the certified contribution rates to the office to
             5160      maintain this system on a financially and actuarially sound basis.
             5161          (2) For purposes of determining contribution rates [and benefits, the], this system is
             5162      divided into two divisions according to Social Security coverage[. Firefighters] as follows:
             5163          (a) members of this system with on-the-job Social Security coverage are in Division A[,
             5164      and firefighters]; and
             5165          (b) members of this system without on-the-job Social Security coverage are in Division
             5166      B.
             5167          [(2) Any city, town, special district, or county]
             5168          (3) (a) A participating employer may elect to pay all or part of [its members'] the required
             5169      member contributions, in addition to the required participating employer contributions.
             5170          (b) Any amount contributed by [a city, town, or county] a participating employer under this
             5171      [subsection] section shall vest to the member's [credit] benefit as though the member had made the
             5172      contribution.
             5173          (c) The [member's] required [contribution] member contributions shall be reduced by the


             5174      amount that is paid by the participating employer.
             5175          [(3)] (4) (a) All member contributions are credited by the office to the account of the
             5176      individual [and] member.
             5177          (b) This amount is held in trust for the payment of benefits to the member or the member's
             5178      beneficiaries.
             5179          (c) All member contributions are [100%] vested and nonforfeitable.
             5180          [(4)] (5) (a) Each member is considered to consent to [monthly] payroll deductions of
             5181      member contributions.
             5182          (b) The payment of compensation less [retirement] these payroll deductions is considered
             5183      to be full payment [of the salary of the employee] for services rendered by the member.
             5184          [(5) The board shall report to the governor, the Legislature, and each employing unit under
             5185      Division A or B the contribution rates and any adjustments necessary to maintain the system on
             5186      a financially and actuarially sound basis, and the employer and employee shall pay the certified
             5187      contribution rates.]
             5188          (6) (a) In addition to contribution rates described under this section, there shall be paid to
             5189      the Firefighters' Retirement Trust Fund created under Section 49-16-104 :
             5190          [(a)] (i) 50% of the annual tax [for each year that is] levied, assessed, and collected under
             5191      Title 59, Chapter 9, Taxation of Admitted Insurers, upon property insurance premiums, as defined
             5192      [by] under Section 31A-1-301 , and as applied to fire and allied lines insurance collected by
             5193      insurance companies within the state; and
             5194          [(b)] (ii) 10% of all money assessed and collected under Title 59, Chapter 9, Taxation of
             5195      Admitted Insurers, upon life insurance premiums as defined in Section 31A-1-301 within the state.
             5196          (b) Payments to the fund shall be made annually until the service liability is liquidated,
             5197      after which the tax revenue provided in this subsection for the Firefighters' Retirement Trust Fund
             5198      ceases.
             5199          Section 131. Section 49-16-401 , which is renumbered from Section 49-5-401 is
             5200      renumbered and amended to read:
             5201     
Part 4. Defined Benefit

             5202           [49-5-401].     49-16-401. Eligibility for service retirement -- Date of retirement --
             5203      Qualifications.
             5204          [(1) (a) Any member who qualifies for service retirement may retire by submitting to the


             5205      retirement office an application form notarized by a notary public. The application shall state the
             5206      proposed effective date of retirement, which may not be more than 90 days before or after the date
             5207      of application.]
             5208          [(b) The effective date shall be the 1st or 16th day of the month, as selected by the
             5209      member, but must follow the last day of actual work.]
             5210          [(c) The member shall actually terminate employment and provide evidence of
             5211      termination.]
             5212          [(2) The member is qualified to retire upon termination of service on or before the
             5213      effective date of retirement if one of the following requirements on that date is met:]
             5214          (1) A member is qualified to receive an allowance from this system when:
             5215          (a) the member ceases actual work for a participating employer in this system before the
             5216      member's retirement date and provides evidence of the termination;
             5217          (b) the member has submitted to the office a notarized retirement application form that
             5218      states the member's proposed retirement date; and
             5219          (c) one of the following conditions is met as of the member's retirement date:
             5220          [(a)] (i) the member [is credited with] has accrued at least 20 years of service credit;
             5221          [(b)] (ii) the member [is credited with] has accrued at least ten years of service credit and
             5222      [is] has attained an age of 60 years [of age or more]; or
             5223          [(c)] (iii) the member [is credited with] has accrued at least four years of service credit and
             5224      [is] has attained an age of 65 years [of age or more].
             5225          (2) (a) The member's retirement date shall be the 1st or the 16th day of the month, as
             5226      selected by the firefighter service employee, but the retirement date must be on or after the date
             5227      of termination.
             5228          (b) The retirement date may not be more than 90 days after the date the application is
             5229      received by the office.
             5230          Section 132. Section 49-16-402 , which is renumbered from Section 49-5-402 is
             5231      renumbered and amended to read:
             5232           [49-5-402].     49-16-402. Calculation of retirement allowance.
             5233          [Upon retirement as provided in Section 49-5-401 , the member shall receive a retirement
             5234      allowance as follows:]
             5235          [(1) If the member is a participant in Division A or B and has 20 or more years of service


             5236      credit, the monthly retirement allowance is equal to:]
             5237          [(a) 2-1/2% of the member's final average monthly salary multiplied by the number of
             5238      years of service credited the member, limited to 20 years; plus]
             5239          [(b) 2% of the member's final average monthly salary multiplied by the number of service
             5240      credit years credited the member in excess of 20 years.]
             5241          [(2) If the member is a participant in Division A or B and is 60 but less than 65 years of
             5242      age and has ten but less than 20 years of service credit, the monthly retirement allowance is an
             5243      amount equal to 2-1/2% of the member's final average monthly salary multiplied by the number
             5244      of years of service credit.]
             5245          [(3) If the member is a participant in Division A or B and is 65 years of age or older and
             5246      has four years of service credit or more, the monthly retirement allowance is an amount equal to:]
             5247          [(a) 2-1/2% of the member's final average monthly salary multiplied by the number of
             5248      years of service credit, limited to 20 years; plus]
             5249          [(b) 2% of the final average monthly salary multiplied by the number of years of service
             5250      credit in excess of 20 years.]
             5251          [(4) The monthly service retirement allowance as calculated under this section may not
             5252      exceed 70% of the member's final average monthly salary.]
             5253          [(5) Years of service include any fractions of years of service to which the member may
             5254      be entitled. Notwithstanding the formula for computing the service retirement allowance under
             5255      this section for members participating in the program, the board shall, in as far as practical, adjust
             5256      the percentage factor used in the service retirement allowance formula, in its application to the
             5257      years of service of a retiring member, to a percentage amount not less than 1-1/2%, nor more than
             5258      2-1/2% per year of service, limited to the first 25 years. This adjustment when made shall maintain
             5259      the retirement trust account on an actuarially sound basis if the employer contributions, member
             5260      contributions, insurance fees, and earnings of the fund are insufficient to fund the benefits provided
             5261      for members participating in the program.]
             5262          (1) A retiree under this system shall receive an allowance equal to:
             5263          (a) 2.5% of final average monthly salary multiplied by the number of years of service
             5264      credit, limited to 20 years; plus
             5265          (b) 2% of final average monthly salary, multiplied by the number of years of service credit
             5266      in excess of 20 years.


             5267          (2) The minimum annual allowance payable under this section is $500.
             5268          (3) Except as modified by cost-of-living adjustments, an allowance under this system may
             5269      not exceed 70% of a firefighter service employee's final average monthly salary.
             5270          Section 133. Section 49-16-403 , which is renumbered from Section 49-5-601 is
             5271      renumbered and amended to read:
             5272           [49-5-601].     49-16-403. Annual cost-of-living adjustment.
             5273          (1) [(a)] The [retirement] office shall [compute and pay, upon approval by the board,]
             5274      make an annual cost-of-living adjustment to [all retired members after those members have been
             5275      retired for one year.]:
             5276          [(b) The adjustment is equal to the decrease in the purchasing power of the dollar during
             5277      the preceding year, as measured by the Consumer Price Index, United States City Average,
             5278      prepared by the United States Bureau of Labor Statistics, and is limited to a maximum of 4% of
             5279      the retirant's or beneficiary's original retirement allowance.]
             5280          [(c) Decreases in the purchasing power of the dollar exceeding 4% annually are
             5281      accumulated and used in subsequent allowances when the cost-of-living adjustment is less than
             5282      4% annually.]
             5283          [(2) (a) The cost-of-living adjustment shall be reduced if the index shows a decline of 4%
             5284      or more during any period of more than one year.]
             5285          [(b) These reductions may not exceed 2% per year based upon the original retirement
             5286      allowance.]
             5287          [(c) Payments made under this section are a part of the retired member's allowance.]
             5288          [(d) Payments and adjustments for the retirant also apply to the beneficiary.]
             5289          [(e) The net cost of increasing the cost-of-living adjustment from 2-1/2% to 4% annually
             5290      under this section, after recognizing the decrease in the contribution rates for actuarial expense,
             5291      is 1.74% for Division A firefighters and 1.9% for Division B firefighters. The net cost shall be
             5292      added to the employee contribution rate in Division A and Division B.]
             5293          (a) an original allowance paid under Section 49-16-402 , Part 5, Death Benefit, and Part
             5294      6, Disability Benefit, of this chapter if the allowance has been paid for at least one year; and
             5295          (b) an original payment made to an alternate payee under a domestic relations order, if the
             5296      payment is to be paid as a percentage of the allowance rather than a specific dollar amount.
             5297          (2) (a) The original allowance shall be increased by the annual increase in the Consumer


             5298      Price Index up to a maximum of 4%.
             5299          (b) Annual increases in the Consumer Price Index in excess of 4% shall be accumulated
             5300      and used in subsequent adjustments when the annual increase in the Consumer Price Index is less
             5301      than 4%.
             5302          (3) The Consumer Price Index used in calculating adjustments shall be a United States
             5303      Bureau of Labor Statistics Consumer Price Index average as determined by the board.
             5304          (4) The cost-of-living adjustment made under this section may not decrease the allowance.
             5305          Section 134. Section 49-16-501 , which is renumbered from Section 49-5-701 is
             5306      renumbered and amended to read:
             5307     
Part 5. Death Benefit

             5308           [49-5-701].     49-16-501. Death of active member in Division A -- Payment of
             5309      benefits.
             5310          (1) If an active member of [the] this system enrolled in Division A under Section
             5311      49-16-301 dies, [the following] benefits are payable as follows:
             5312          [(1) (a) Except as provided in Subsection (1)(b), if]
             5313          (a) If the death is classified by the office as a line-of-duty[, the dependent spouse receives]
             5314      death, benefits are payable as follows:
             5315          (i) If the member has accrued less than 20 years of firefighter service credit, the spouse at
             5316      the time of death shall receive a lump sum of $1,500 and [a monthly] an allowance equal to 30%
             5317      of the [deceased] member's final average monthly salary.
             5318          [(b)] (ii) If the member has accrued 20 or more years of firefighter service credit, the
             5319      member shall be considered to have retired with [a monthly] an allowance calculated under
             5320      [Subsection 49-5-402 (1)] Section 49-16-402 and the [dependent] spouse at the time of death shall
             5321      receive the death benefit payable to a [dependent] spouse under Section [ 49-5-704 ] 49-16-504 .
             5322          [(2)] (b) If the death is not classified as a line-of-duty[, the benefit is] death by the office,
             5323      benefits are payable as follows:
             5324          [(a)] (i) If the member has accrued less than ten years of firefighter service credit, [at the
             5325      time of death,] the [member's] beneficiary [receives] shall receive a sum of $1,000 or a refund of
             5326      the member's member contributions, whichever is greater.
             5327          [(b)] (ii) If the member has accrued ten or more years of firefighter service credit the
             5328      [dependent] spouse [receives] at the time of death shall receive a sum of $500, plus [a monthly]


             5329      an allowance equal to 2% of the member's final average monthly salary [of the deceased member]
             5330      for each year of service credit [with a] accrued by the member up to a maximum of 30% [allowed]
             5331      of the member's final average monthly salary.
             5332          [(3) In the event of the death of the member and there is no spouse,]
             5333          (2) (a) If the member dies without a current spouse, the spouse's benefit shall be equally
             5334      divided and paid to each unmarried child until the child reaches age 21.
             5335          (b) The payment shall be made to a duly appointed guardian or as provided under Sections
             5336      49-11-609 and 49-11-610 .
             5337          [(4)] (3) If the benefit is not distributed under this section, [and there is] and the member
             5338      has designated a beneficiary, the [vested contribution] member's member contributions shall be
             5339      paid to the beneficiary.
             5340          Section 135. Section 49-16-502 , which is renumbered from Section 49-5-702 is
             5341      renumbered and amended to read:
             5342           [49-5-702].     49-16-502. Death of active member in Division B -- Payment of benefits.
             5343          (1) If an active member of [the] this system enrolled in Division B under Section
             5344      49-16-301 dies, [the following] benefits are payable as follows:
             5345          [(1)] (a) If the death is classified by the office as a line-of-duty[, the dependent spouse
             5346      receives] death, benefits are payable as follows:
             5347          (i) If the member has accrued less than 20 years of firefighter service credit, the spouse at
             5348      the time of death shall receive a lump sum of $1,500 and [a monthly] an allowance equal to
             5349      [37-1/2%] 37.5% of the [deceased] member's final average monthly salary[, subject to Section
             5350      49-5-503 ].
             5351          [(2)] (ii) If [death is classified as line-of-duty, and] the member has accrued 20 or more
             5352      years of firefighter service credit, the member shall be considered to have retired with an allowance
             5353      calculated under Subsection 49-16-402 and the [dependent] spouse at the time of death shall
             5354      receive the death benefit payable to a [retired member] spouse under Section [ 49-5-704 ]
             5355      49-16-504 .
             5356          [(3)] (b) If the death is not classified by the office as a line-of-duty [and the deceased]
             5357      death, the benefits are payable as follows:
             5358          (i) If the member has accrued five or more years of firefighter service credit, the death is
             5359      considered line-of-duty and the same benefits are payable as established under Subsection (1) [or


             5360      (2)] (a).
             5361          [(4)] (ii) If [death is not classified as line-of-duty and the deceased] the member has
             5362      accrued less than five years of firefighter service credit, the [benefit is] spouse at the time of death
             5363      shall receive a refund of the [deceased] member's contributions, plus 50% of the member's most
             5364      recent 12 months [regular salary] compensation.
             5365          [(5)] (c) If the [deceased] member has accrued five or more years of firefighter service
             5366      credit, the member's unmarried children[,] until they reach age 21[,] or dependent unmarried
             5367      mentally or physically disabled children, shall receive a monthly allowance of $75.
             5368          (2) (a) In the event of the death of the member and spouse, the spouse's benefits are equally
             5369      divided and paid to each unmarried child until the child reaches age 21.
             5370          (b) The payments shall be made to the surviving parent or duly appointed guardian or
             5371      [pursuant to Section 49-1-607 ] as provided under Sections 49-11-609 and 49-11-610 .
             5372          [(6)] (3) If [the] a benefit is not distributed under [this section, and there is] the previous
             5373      subsections, and the member has designated a beneficiary, the [vested contribution] member's
             5374      member contributions shall be paid to the beneficiary.
             5375          [(7)] (4) The [total monthly] combined monthly payments made [on behalf of any one
             5376      deceased member's account] to the beneficiaries of any member under this section may not exceed
             5377      75% of the member's final average monthly salary.
             5378          Section 136. Section 49-16-503 , which is renumbered from Section 49-5-703 is
             5379      renumbered and amended to read:
             5380           [49-5-703].     49-16-503. Benefits payable upon death of inactive member.
             5381          [(1) The death settlement payable on behalf of an active or inactive member who dies
             5382      without spouse or minor children is 100% of the employee's contributions or $500, whichever is
             5383      larger.]
             5384          [(2) The death benefit payable monthly on behalf of an inactive member who dies and is
             5385      survived by a spouse to whom the member was married at the time of death is]
             5386          (1) If an inactive member who has less than 20 years of firefighter service credit dies, the
             5387      designated beneficiary shall receive a refund of the member's member contributions or $500,
             5388      whichever is greater.
             5389          (2) (a) If an inactive member with 20 or more years of firefighter service credit dies, the
             5390      spouse at the time of death shall receive an allowance in the amount of 50% of the amount the


             5391      member would have received had [the member retired] retirement occurred on the first [day] of
             5392      the month following the month in which the death occurred[, the computation being based upon].
             5393          (b) This allowance shall be based on years of service credit and final average monthly
             5394      salary under Section 49-16-402 , reduced actuarially from age 50 to the age of the member at the
             5395      time of death[, if the member was not 50 years of age when death occurred].
             5396          [(3) No monthly pension may be paid under this section unless the member had 20 years
             5397      of service credit at the time of death.]
             5398          Section 137. Section 49-16-504 , which is renumbered from Section 49-5-704 is
             5399      renumbered and amended to read:
             5400           [49-5-704].     49-16-504. Benefits payable upon death of retired member.
             5401          [(1) (a) The death benefit payable to a dependent spouse after death of the retirant is a
             5402      monthly amount equal to 75% of the allowance being paid to the retirant at the time of death.]
             5403          [(b) The effective date of accrual of this pension is]
             5404          (1) If a retiree who retired under either Division A or Division B dies, the retiree's spouse
             5405      at the time of death shall receive an allowance equal to 75% of the allowance that was being paid
             5406      to the retiree at the time of death.
             5407          (2) If the retiree retired solely under Division B and dies leaving unmarried children under
             5408      the age of 18 or dependent unmarried mentally or physically disabled children, the children shall
             5409      qualify for a benefit as prescribed under Subsection 49-16-502 (1)(c) which is payable on the first
             5410      day of the month following the month in which the [retirant] retiree died.
             5411          [(c) Payment of the full pension for this latter month shall be made to the dependent
             5412      beneficiary instead of the deceased member.]
             5413          [(2) If the member retires under Division B and dies leaving dependent children, they
             5414      qualify for benefits prescribed for children under Section 49-5-701 or 49-5-702 .]
             5415          Section 138. Section 49-16-505 is enacted to read:
             5416          49-16-505. Benefits for surviving spouse under Division A or Division B.
             5417          The spouse at the time of death, if eligible, shall receive a benefit computed under either
             5418      Division A or Division B, whichever provides the larger benefit, but may not receive a benefit
             5419      under both divisions if it would result in a duplicate benefit.
             5420          Section 139. Section 49-16-506 is enacted to read:
             5421          49-16-506. Minimum allowance for spouse.


             5422          The minimum allowance payable to the spouse who qualifies for an allowance under
             5423      Section 49-16-501 , 49-16-502 , 49-16-503 or 49-16-504 , shall be $350 per month.
             5424          Section 140. Section 49-16-601 , which is renumbered from Section 49-5-501 is
             5425      renumbered and amended to read:
             5426     
Part 6. Disability Benefit

             5427           [49-5-501].     49-16-601. Disability benefit -- Line-of-duty disability -- Benefits --
             5428      Monthly allowance.
             5429           [Any] (1) An active member of this system who [becomes disabled] is unable to perform
             5430      firefighter service due to a physical or mental condition may apply to the [retirement] office for
             5431      a disability retirement benefit subject to the following provisions:
             5432          [(1)] (a) If the [disability] condition is classified by the office as a line-of-duty disability,
             5433      the member shall [retire on disability and] be granted a disability [allowance] retirement benefit
             5434      subject to Section [ 49-5-502 ] 49-16-602 .
             5435          [(b) If the member is a participant in Division A or B, the monthly disability allowance is
             5436      an amount equal to 50% of the member's final average monthly salary.]
             5437          (b) If the condition is classified by the office as a nonline-of-duty disability and if the
             5438      member has less than five years of service credit in this system, disability benefits are not payable.
             5439          [(2) (a)] (c) If the [disability] condition is classified by the office as [ordinary disability
             5440      and not incurred in the line-of-duty] a nonline-of-duty disability and if the member has five or
             5441      more years of service credit in this system, the member shall [retire on disability and] be granted
             5442      a disability [allowance] retirement benefit subject to Section [ 49-5-502 ] 49-16-602 .
             5443          [(b) If the member is a participant in Division A or B, the monthly]
             5444          (2) The monthly disability [allowance] retirement benefit is [an amount equal to] 50% of
             5445      the member's final average monthly salary.
             5446          Section 141. Section 49-16-602 , which is renumbered from Section 49-5-502 is
             5447      renumbered and amended to read:
             5448           [49-5-502].     49-16-602. Disability retirement -- Disability allowance eligibility --
             5449      Conversion to service retirement -- Examinations -- Reemployment.
             5450          [The following rules apply to all members applying for disability retirement under this
             5451      part:]
             5452          (1) [Any] A member of this system who applies and is qualified for disability retirement


             5453      shall receive a disability [allowance] retirement benefit until the earlier of:
             5454          (a) the date the member of this system is no longer disabled;
             5455          (b) the date the member of this system has accumulated 20 years of service credit,
             5456      including years earned while disabled; or
             5457          (c) the date the member of this system has received disability retirement benefits for the
             5458      following time periods:
             5459          (i) if the member is under age 60 or the date of disability, the disability [allowance]
             5460      retirement benefit is payable until age 65;
             5461          (ii) if the member is 60[-] or 61 years of age on the date of disability, the disability
             5462      [allowance] retirement benefit is payable for five years;
             5463          (iii) if the member is 62[-] or 63 years of age on the date of disability, the disability
             5464      [allowance] retirement benefit is payable for four years;
             5465          (iv) if the member is 64[-] or 65 years of age on the date of disability, the disability
             5466      [allowance] retirement benefit is payable for three years;
             5467          (v) if the member is 66[-], 67, or 68 years of age on the date of disability, the disability
             5468      [allowance] retirement benefit is payable for two years; and
             5469          (vi) if the member is [age] 69 [or older] years of age or older on the date of disability, the
             5470      disability retirement benefit is payable for one year.
             5471          (2) (a) (i) The [member] disability retiree shall receive service credit in this system during
             5472      the period of disability. [However, if the member]
             5473          (ii) If the disability retiree is employed by a participating employer during the period of
             5474      disability, the [member] disability retiree may not receive service credit for that employment.
             5475          (b) The disability retirement shall be converted to a service retirement at the time the
             5476      disability retirement benefits terminate.
             5477          (3) The [board] office shall approve or disapprove applications for disability retirement
             5478      benefits based upon [both]:
             5479          (a) the evaluation and recommendations of one or more treating physicians along with
             5480      medical records relating to the [disability which may, at the board's option, be reviewed by an
             5481      independent medical examiner selected by the board, to the effect that the member is mentally or
             5482      physically totally disabled; and] condition;
             5483          (b) the evaluation and recommendations of one or more independent physicians selected


             5484      by the office; and
             5485          [(b)] (c) receipt of [proof] documentation by the [board] office from the participating
             5486      employer that the member [has become totally disabled] is mentally or physically unable to
             5487      perform firefighter service.
             5488          [(4) Any disability retirant who regains health and is regularly employed shall have the
             5489      disability allowance reduced or suspended as the retirant's earnings justify.]
             5490          [(5)] (4) (a) [Members receiving] A disability retiree who receives benefits under this
             5491      section shall, upon request of the [administrator] executive director, submit to a medical
             5492      examination by one or more physicians as directed by the [board] office.
             5493          [(b) If the member resides outside the state and is requested to submit to an examination,
             5494      the member shall be examined under the same rules in the area in which the member resides.]
             5495          [(c)] (b) If, after an examination, the examiners report that the [retirant] disability retiree
             5496      is physically able and capable of resuming firefighter service employment, the [retirant] disability
             5497      retiree shall be reinstated by the participating employer for which the disability retiree last worked
             5498      at the [retirant's] disability retiree's former classification and rank, and the disability [benefits]
             5499      retirement benefit shall terminate.
             5500          [(d) Examinations] (c) A disability retiree may not be required to submit to an
             5501      examination under this Subsection (4) more than once every year.
             5502          [(e)] (d) A [retirant] disability retiree who returns to firefighter service employment with
             5503      a participating employer in this system shall immediately [commence] begin accruing service
             5504      credit that shall be added to that service credit that has been previously accrued [by virtue of
             5505      previous service], including service [credited] credit while disabled.
             5506          [(6) Retired members are] (5) A disability retiree is not subject to medical examinations
             5507      after reaching age 55.
             5508          [(7)] (6) Refusal or neglect of a member to submit to an examination as requested by the
             5509      office either before or after a decision regarding disability benefits has been made is sufficient
             5510      cause for denial, suspension, or discontinuance of benefits and if the refusal or neglect continues
             5511      for one year, the member's or disability retiree's rights to [all] disability retirement benefits may
             5512      be revoked by the [board] office.
             5513          [(8) Retirants] (7) (a) A disability retiree who [receive] receives benefits under this part
             5514      shall file a sworn statement with the [retirement] office on or before January 15 of each year for


             5515      the first five years a [retirant] disability retiree receives benefits.
             5516          (b) The sworn statement shall indicate whether or not the [retirant] disability retiree
             5517      engaged in any [gainful] employment during the preceding year and, if so, the amount of earnings
             5518      received during the calendar year.
             5519          [(a) If the retirant has been gainfully employed, the retirant's benefit payments shall be
             5520      reduced in the year following employment so that the total payments, when added to the
             5521      compensation received for employment, do not exceed]
             5522          (c) If the total amount received in one year by a disability retiree for disability retirement
             5523      benefits and gross earnings from other employment exceeds 125% of the disability retiree's final
             5524      average salary, the office shall offset the disability retirement benefit paid the following year by
             5525      the amount in excess of 125% of the [retirant's] disability retiree's final average salary.
             5526          [(b)] (d) (i) If [any retirant] a disability retiree refuses or neglects to file a sworn statement
             5527      as required under this Subsection (7), the [administrator] executive director may suspend payment
             5528      of any and all benefits pending receipt of the statement.
             5529          (ii) Upon filing the statement, the [retirant's] disability retiree's payments shall be resumed.
             5530          [(9)] (8) The disability [allowance] retirement benefit shall be improved by the annual
             5531      cost-of-living increase factor applied to [retired members] retirees of the system that covered the
             5532      firefighter service employee at the time of disability.
             5533          [(10)] (9) A line of duty disability allowance paid on or after January 1, 2002, under
             5534      [Subsection 49-5-501 (1)] Section 49-16-601 is exempt from taxation to the extent permitted under
             5535      federal law.
             5536          (10) (a) An active member of this system with five or more years of firefighter service
             5537      credit shall be eligible for a line-of-duty death or disability benefit resulting from heart disease,
             5538      lung disease, or respiratory tract disease.
             5539          (b) An active member of this system who receives a line-of-duty disability benefit for more
             5540      than six months due to violence or illness other than heart disease, lung disease, or respiratory tract
             5541      disease, and then returns to paid firefighter service, is not eligible for a line-of-duty death or
             5542      disability benefit due to those diseases for two years after the member returned to paid firefighter
             5543      service unless clear and convincing evidence is presented that the heart, lung, or respiratory tract
             5544      disease was directly a result of firefighter service.
             5545          Section 142. Section 49-16-603 , which is renumbered from Section 49-5-503 is


             5546      renumbered and amended to read:
             5547           [49-5-503].     49-16-603. Suspension of benefit upon settlement of workers'
             5548      compensation claim.
             5549          (1) Settlement of a claim for workers' compensation for injury or disability shall suspend
             5550      [payments] disability retirement benefits granted under this part, except for the initial three months,
             5551      to a member granted [disability] the benefits until workers' compensation payments terminate.
             5552          (2) If there is a lump-sum settlement of the workers' compensation claim, the
             5553      [administrator] office shall suspend the [allowance] disability retirement benefit until the total of
             5554      suspended [payments] benefits is equal to 75% of the settlement received from workers'
             5555      compensation. [If death is in the line of duty, the surviving spouse is eligible for a firefighter's
             5556      pension on the first day of the month following the date of death. Settlement with workers'
             5557      compensation has no effect on the spouse's retirement allowance, nor do other benefits paid at the
             5558      member's death have any effect on the spouse's allowance.]
             5559          Section 143. Section 49-16-701 , which is renumbered from Section 49-5-802 is
             5560      renumbered and amended to read:
             5561     
Part 7. Volunteer Firefighters

             5562           [49-5-802].     49-16-701. Volunteer firefighters eligible for line-of-duty death and
             5563      disability benefits in Division A -- Computation of benefit.
             5564          [Volunteer firefighters are considered members of the system but are]
             5565          (1) A volunteer firefighter is only eligible for line-of-duty death and line-of-duty
             5566      disability benefits provided for firefighters enrolled in Division A, subject to Section [ 49-5-503 ]
             5567      49-16-603 .
             5568          (2) The lowest monthly [salary] compensation of firefighters of a city of the first class in
             5569      this state at the time of death or disability shall be [the basis for computing] considered to be the
             5570      final average monthly salary [payable to] of a volunteer firefighter[, the surviving spouse, and
             5571      children] for purposes of computing these benefits.
             5572          Section 144. Section 49-17-101 , which is renumbered from Section 49-6-101 is
             5573      renumbered and amended to read:
             5574     
CHAPTER 17. JUDGES' CONTRIBUTORY RETIREMENT ACT

             5575     
Part 1. General Provisions

             5576           [49-6-101].     49-17-101. Title.


             5577          This chapter is known as the "Judges' Contributory Retirement Act."
             5578          Section 145. Section 49-17-102 , which is renumbered from Section 49-6-103 is
             5579      renumbered and amended to read:
             5580           [49-6-103].     49-17-102. Definitions.
             5581          As used in this chapter:
             5582          (1) (a) "Compensation[,]" ["salary," or "wages"] means the total amount of payments
             5583      which are currently includable in gross income made by [an] a participating employer to [an
             5584      employee] a member of this system for services rendered to the participating employer.
             5585          (b) "Compensation" includes:
             5586          (i) performance-based bonuses;
             5587          (ii) cost-of-living adjustments;
             5588          (iii) payments subject to Social Security deductions;
             5589          (iv) any payments in excess of the maximum amount subject to deduction under Social
             5590      Security law; [and]
             5591          (v) amounts which the [employee] member authorizes to be deducted or reduced for salary
             5592      deferral or other [authorized benefit programs.] benefits authorized by federal law; and
             5593          (vi) member contributions.
             5594          (c) "Compensation" for purposes of this chapter may not exceed the amount allowed under
             5595      Internal Revenue Code Section 401(a)(17).
             5596          (d) "Compensation," ["salary," or "wages"] does not include:
             5597          (i) the monetary value of remuneration paid in kind, such as a residence or use of
             5598      equipment;
             5599          (ii) all contributions made by [an] a participating employer under any system or plan for
             5600      the benefit of a member or participant;
             5601          [(iii) salary paid to an employee working under the minimum number of hours required
             5602      for membership;]
             5603          [(iv)] (iii) salary paid to a temporary or exempt employee;
             5604          [(v)] (iv) payments upon termination or any other special payments including early
             5605      retirement inducements; or
             5606          [(vi)] (v) uniform, travel, or similar [allowances] payments.
             5607          (2) "Final average salary" means the amount computed by averaging the highest two years


             5608      of annual compensation preceding retirement, subject to Subsections (2)(a) and (b).
             5609          (a) Except as provided in Subsection (2)(b), the percentage increase in annual
             5610      compensation in any one of the years used may not exceed the previous year's [salary]
             5611      compensation by more than 10% plus a cost-of-living adjustment equal to the decrease in the
             5612      purchasing power of the dollar during the previous year, as measured by [the Consumer Price
             5613      Index prepared by the] a United States Bureau of Labor Statistics Consumer Price Index average
             5614      as determined by the board.
             5615          (b) In cases where the [employing unit] participating employer provides acceptable
             5616      documentation to the board, the limitation in Subsection (2)(a) may be exceeded if:
             5617          (i) the member has transferred from another [employing unit] participating employer; or
             5618          (ii) the member has been promoted to a new position.
             5619          [(3) "Normal retirement age" means the age of 65 years.]
             5620          (3) "Judge" means a judge or justice of the courts of record as enumerated in Section
             5621      78-1-1 .
             5622          (4) "Participating employer" means the state.
             5623          (5) "System" means the Judges' Contributory Retirement System created under this
             5624      chapter.
             5625          [(4)] (6) "Years of service credit" [or "service years"] means the number of periods, each
             5626      to consist of 12 full months as determined by the board, whether consecutive or not, during which
             5627      a [member] judge was employed [to perform services for the] by a participating employer.
             5628          Section 146. Section 49-17-103 , which is renumbered from Section 49-6-201 is
             5629      renumbered and amended to read:
             5630           [49-6-201].     49-17-103. Creation of system.
             5631          There is created for [justices and] judges [of the courts of record,] the "Judges' Contributory
             5632      Retirement System."
             5633          Section 147. Section 49-17-104 , which is renumbered from Section 49-6-202 is
             5634      renumbered and amended to read:
             5635           [49-6-202].     49-17-104. Creation of trust fund.
             5636          (1) There is created the "Judges' Contributory Retirement Trust Fund" for the purpose of
             5637      paying the benefits and costs of administering this system.
             5638          (2) The fund shall consist of all money, including interest, and assets transferred to it under


             5639      any terminated system, the money paid into it under this system, whether in the form of cash,
             5640      securities, or other assets, and of all money received from any other source.
             5641          (3) Custody, management, and investment of the fund shall be governed by [Title 49,]
             5642      Chapter [1] 11, Utah State Retirement Systems Administration.
             5643          Section 148. Section 49-17-201 , which is renumbered from Section 49-6-203 is
             5644      renumbered and amended to read:
             5645     
Part 2. Membership Eligibility

             5646           [49-6-203].     49-17-201. System membership -- Eligibility.
             5647          [Justices and judges of the courts of record shall become members of this system.] Except
             5648      as provided in Section 49-18-201 , judges are members of and are eligible for service credit in this
             5649      system.
             5650          Section 149. Section 49-17-301 , which is renumbered from Section 49-6-301 is
             5651      renumbered and amended to read:
             5652     
Part 3. Contributions

             5653           [49-6-301].     49-17-301. Contributions by members and participating employers --
             5654      Retirement fees -- Deductions.
             5655          (1) [The system shall be maintained] In addition to the monies paid to this system under
             5656      Subsection (3), participating employers and members shall jointly pay the certified contribution
             5657      rates to the office to maintain this system on a financially and actuarially sound basis [by means
             5658      of contributions made jointly by the employer and by the active members of the system].
             5659          (2) The participating employer may make contributions on behalf of [justices and judges
             5660      of the courts of record] members of this system in addition to the contribution required of the
             5661      [state] participating employer, except [for] that 2% of [covered salary, which] compensation shall
             5662      be paid by the member. [All contributions paid on behalf of the member vest to the member's
             5663      credit. These contributions shall begin upon agreement between an employer and the board.
             5664      Payment of members' contributions under this section by the employer does not include the
             5665      cost-of-living contribution provided under Section 49-6-601 .]
             5666          [(3) Fees and contributions shall be remitted monthly to the retirement office.]
             5667          (3) Fees collected under Subsection 78-7-35 (1)(i) shall be paid monthly to the office to
             5668      maintain this system and the system established under Chapter 18, Judges' Noncontributory
             5669      Retirement Act.


             5670          (4) (a) All member contributions are credited by the [retirement] office to the account of
             5671      the individual member.
             5672          (b) This amount, [together with regular] plus refund interest, is held in trust for the
             5673      payment of benefits to the member or the member's beneficiaries.
             5674          (c) All member contributions are [100%] vested and nonforfeitable.
             5675          (5) (a) Each member is [deemed] considered to consent to [monthly] payroll deductions
             5676      of the member contributions.
             5677          (b) The payment of compensation less [retirement] these payroll deductions is considered
             5678      [a] full payment [of member's salary] for services rendered by the member.
             5679          [(6) The board shall report to the governor, the Legislature, and the employing unit the
             5680      contribution rates and any adjustments necessary to maintain the system on a financially and
             5681      actuarially sound basis, and the employer and employee shall pay the certified contribution rates.]
             5682          Section 150. Section 49-17-401 , which is renumbered from Section 49-6-401 is
             5683      renumbered and amended to read:
             5684     
Part 4. Defined Benefit

             5685           [49-6-401].     49-17-401. Eligibility for an allowance -- Date of retirement --
             5686      Qualifications.
             5687          [(1) (a) Any judge who qualifies for service retirement may retire by submitting to the
             5688      retirement office an application form notarized by a notary public. The application shall state the
             5689      proposed effective date of retirement, which may not be more than 90 days before or after the date
             5690      of application.]
             5691          [(b) The effective date shall be the 1st or 16th day of the month, as selected by the
             5692      member, but must be after the last day of actual work.]
             5693          [(c) The member shall actually terminate employment and provide evidence of
             5694      termination.]
             5695          [(2) The member is qualified to retire upon termination of services on or before the
             5696      effective date of retirement if one of the following requirements on that date is met:]
             5697          (1) A member is qualified to receive an allowance when:
             5698          (a) the member ceases actual work for a participating employer in this system before the
             5699      member's retirement date and provides evidence of the termination;
             5700          (b) the member has submitted to the office a notarized retirement application form that


             5701      states the member's proposed retirement date; and
             5702          (c) one of the following conditions is met as of the member's retirement date:
             5703          [(a)] (i) the member has [been credited with] accrued at least six years of service credit and
             5704      has attained an age of 70 years [or more];
             5705          [(b)] (ii) the member has [been credited with] accrued at least ten years of service credit
             5706      and has attained an age of 62 years [or more];
             5707          [(c)] (iii) the member has [been credited with] accrued at least 20 years of service credit
             5708      and has attained an age of 55 years [or more]; or
             5709          [(d)] (iv) the member has [been credited with] accrued at least 25 years of service credit.
             5710          (2) (a) The member's retirement date shall be the 1st or the 16th day of the month, as
             5711      selected by the member, but the retirement date must be on or after the date of termination.
             5712          (b) The retirement date may not be more than 90 days after the date the application is
             5713      received by the office.
             5714          Section 151. Section 49-17-402 , which is renumbered from Section 49-6-402 is
             5715      renumbered and amended to read:
             5716           [49-6-402].     49-17-402. Calculation of retirement allowance.
             5717          [Upon the service retirement of a justice or judge under Section 49-6-401 , the justice or
             5718      judge shall receive a retirement allowance determined as follows:]
             5719          [(1) If the justice or judge has attained the age of 62 years and has ten or more years of
             5720      judicial service credit, the retirement allowance is a monthly amount equal to:]
             5721          (1) A retiree under this system shall receive an allowance equal to:
             5722          (a) 5% of the final average monthly salary multiplied by the number of years of [judicial]
             5723      service [credited, limited] credit, limited to ten years[,]; plus
             5724          (b) 2.25% of the final average monthly salary multiplied by the number of years of
             5725      [judicial] service [credited] credit in excess of ten years [but less than] and up to and including 20
             5726      years[,]; plus
             5727          (c) 1% of the final average monthly salary multiplied by the number of years of [judicial]
             5728      service [credited] credit in excess of 20 years. [Total monthly retirement allowance to which a
             5729      justice or judge is entitled may not exceed 75% of the final average monthly salary.]
             5730          [(2) If the justice or judge has attained age 70 years and has six years or more of judicial
             5731      service credit, the retirement allowance is the same as computed under Subsection (1).]


             5732          [(3) If the justice or judge has 25 years or more of judicial service credit, the retirement
             5733      allowance is the same as computed under Subsection (1).]
             5734          (2) Except as modified by cost-of-living adjustments, an allowance under this system may
             5735      not exceed 75% of the member's final average monthly salary.
             5736          [(4)] (3) If the [justice or judge] retiree has attained the age of 55 years and has 20 years
             5737      or more of [judicial] service credit, the [retirement allowance is the same as computed under
             5738      Subsection (1) reduced to an amount payable monthly for life which would be the same actuarial
             5739      equivalent based on the justice's or judge's age at retirement as would be the value of the retirement
             5740      pay based on life expectancy if the justice or judge were 65 years of age] retiree shall receive an
             5741      early retirement reduction to the allowance based on an actuarial calculation assuming a normal
             5742      retirement age of 65 years.
             5743          [(5) All members and their beneficiaries, as of July 1, 1983, shall receive an increase in
             5744      monthly benefits in the amount of $120 for each member or $60 for each beneficiary. The cost of
             5745      implementing this subsection shall be shared equally between the employer and employee.]
             5746          [(6) Years of service include any fractions of years of service to which the members may
             5747      be entitled. Notwithstanding the formula for computing the service retirement allowance for
             5748      members participating in the program, the board shall, in as far as practical, adjust the percentage
             5749      factor used in the service retirement allowance formula, in its application to the years of service
             5750      of a retiring member to a percentage amount which maintains the retirement trust account on an
             5751      actuarially sound basis if the employer contributions, members' contributions, retirement court
             5752      fees, and earnings of the fund are insufficient to fund the benefits provided for members
             5753      participating in the program.]
             5754          Section 152. Section 49-17-403 is enacted to read:
             5755          49-17-403. Minimum allowance.
             5756          Beginning July 1, 1990, all retirees or beneficiaries under this chapter who receive an
             5757      allowance less than $1,000 per month shall have the allowance increased 10%, but the increased
             5758      allowance may not equal more than $1,000.
             5759          Section 153. Section 49-17-404 , which is renumbered from Section 49-6-404 is
             5760      renumbered and amended to read:
             5761           [49-6-404].     49-17-404. Temporary retirement window for 20 years of service.
             5762          (1) If a member qualified to retire under [Subsection 49-6-401 (2)] Section 49-17-401 or


             5763      a member of this system of any age [credited] with at least 20 years of service credit or a member
             5764      [who is credited] of this system with at least six years of service credit and has attained an age of
             5765      65 years or older retires on or after July 1, 1992, and on or before December 31, 1992, the
             5766      retirement allowance shall be the same as calculated in [Subsection 49-6-402 (1)] Section
             5767      49-17-402 , except that the final average monthly salary shall be calculated upon the member's final
             5768      year of service.
             5769          (2) (a) Nominations for appointments resulting from this section shall be presented to the
             5770      governor not later than October 15, 1992.
             5771          (b) To qualify, the member shall give notice of intent to retire under this section to the
             5772      Administrative Office of the Courts no later than February 28, 1992.
             5773          (c) Notice of intent to retire under this section may not be revoked.
             5774          (d) The Administrative Office of the Courts shall provide the member's application to
             5775      retire to the [retirement] office as required by Section [ 49-6-401 ] 49-17-401 .
             5776          Section 154. Section 49-17-405 , which is renumbered from Section 49-6-601 is
             5777      renumbered and amended to read:
             5778           [49-6-601].     49-17-405. Annual cost-of-living adjustment.
             5779          [(1) Beginning in 1975, in a month selected by the board, there shall be computed and paid
             5780      from the Judges' Retirement Fund an annual cost-of-living allowance adjustment to all retired
             5781      members after one year of retirement equal to the decrease in the purchasing power of the dollar
             5782      during the preceding year measured by the Consumers Price Index. The cost-of-living adjustment
             5783      shall be limited each year to a maximum of 4% of the retired member's or beneficiary's monthly
             5784      retirement allowance. Decreases in the purchasing power of the dollar in excess of 4% annually
             5785      shall be accumulated over two or more years and used in whole or in part in making subsequent
             5786      annual adjustments when the cost-of-living adjustment is less than 4%.]
             5787          [(2) The cost-of-living adjustment is based upon the retirant's or beneficiary's allowance
             5788      as of July 1, 1973, and is subject to reduction if the cost of living shows a decline of 4% for more
             5789      than one year and applies to any cost-of-living increases made after January 1, 1975. These
             5790      reductions may not exceed the rate of 2% per year based upon the established retirement allowance
             5791      base. Payments made under this section are a part of the retired member's allowance. The
             5792      payments and subsequent adjustments as prescribed for the retirant shall likewise apply to any
             5793      beneficiary who is paid an allowance. Cost-of-living benefits granted prior to January 1, 1975, are


             5794      not subject to adjustment.]
             5795          [(3) Funds for the benefits provided by this section shall be obtained from contributions
             5796      paid on covered salaries.]
             5797          (1) The office shall make an annual cost-of-living adjustment to:
             5798          (a) an allowance paid under Section 49-17-402 and Part 5, Death Benefit, of this chapter
             5799      if the benefit has been paid for at least one year; and
             5800          (b) a payment made to an alternate payee under a domestic relations order, if the payment
             5801      is to be paid as a percentage of the allowance rather than a specific dollar amount.
             5802          (2) (a) The allowance shall be increased by the annual increase in the Consumer Price
             5803      Index up to a maximum of 4%.
             5804          (b) Annual increases in the Consumer Price Index in excess of 4% shall be accumulated
             5805      and used in subsequent adjustments when the annual increase in the Consumer Price Index is less
             5806      than 4%.
             5807          (3) The Consumer Price Index used in calculating adjustments shall be a United States
             5808      Bureau of Labor Statistics Consumer Price Index average as determined by the board.
             5809          (4) The cost-of-living adjustment made under this section may not decrease the allowance.
             5810          Section 155. Section 49-17-501 , which is renumbered from Section 49-6-701 is
             5811      renumbered and amended to read:
             5812     
Part 5. Death Benefit

             5813           [49-6-701].     49-17-501. Death benefit for members before retirement --
             5814      Computation.
             5815          (1) Upon the receipt of acceptable proof of death of a member [or an inactive member]
             5816      before the [effective date of] member's retirement date, the [dependent] member's spouse at the
             5817      time of death shall have the choice of the following death benefits:
             5818          [(1)] (a) a refund of [accumulated] the member's member contributions, including refund
             5819      interest, plus 65% of the [judge's final average salary on a yearly rate] member's most recent 12
             5820      months' compensation prior to death; or
             5821          [(2) a monthly] (b) an allowance equal to 65% of the [monthly] allowance computed [on
             5822      the basis of the service retirement allowance formula, based upon the years of service and final
             5823      average salary] in accordance with Section 49-17-402 , but disregarding early retirement reductions.
             5824      [The pension may not exceed an amount which would have been paid if the deceased judge served


             5825      to age 70 and had the retirement allowance then computed on the basis of final average salary
             5826      under Section 49-6-402 .]
             5827          [(3)] (2) [Where] If there is no [dependent] spouse[, accumulated] to whom the member
             5828      is married at the time of death, member contributions, including refund interest, shall be refunded
             5829      to a [designated] beneficiary, in accordance with [Section 49-1-607 ] Sections 49-11-609 and
             5830      49-11-610 .
             5831          Section 156. Section 49-17-502 , which is renumbered from Section 49-6-702 is
             5832      renumbered and amended to read:
             5833           [49-6-702].     49-17-502. Benefits payable upon death of retired member.
             5834          (1) (a) The death benefit payable to a [dependent] retiree's spouse [after the death of a
             5835      retired member of this system is a monthly amount] at the time of death is an allowance equal to
             5836      65% of the allowance which was being paid to the [retired member] retiree at the time of death.
             5837          (b) The effective date of the accrual of this [pension] allowance is the first day of the
             5838      month following the month in which the [retirant] retiree died. [Payment of the full pension for
             5839      this latter month shall be made to the dependent beneficiary in lieu of the deceased member.]
             5840          (2) [A member] (a) At the time of retirement, a retiree may elect to increase the [surviving
             5841      spouse's monthly allowance] spousal death benefit up to 75% of [a monthly] an allowance
             5842      computed [on the basis of the service retirement allowance formula under] in accordance with
             5843      Section [ 49-6-402 ] 49-17-402 .
             5844          (b) The [amount payable to the member upon retirement would be reduced to an amount
             5845      payable monthly for life, which would] member's allowance shall be reduced to reflect the
             5846      actuarial equivalent necessary to [fund] pay for the increased [percentage for the surviving spouse]
             5847      spousal death benefit above 65%.
             5848          Section 157. Section 49-17-701 , which is renumbered from Section 49-6-801 is
             5849      renumbered and amended to read:
             5850     
Part 6. Reserved

             5851     
Part 7. Early Retirement Incentive

             5852           [49-6-801].     49-17-701. Judges' mandatory retirement age.
             5853          (1) Except as provided in Subsection (2), a [justice or] judge [who qualifies as a member
             5854      of this system under Section 49-6-203 ] shall retire upon attaining the age of 75 years.
             5855          (2) A [justice or] judge serving on July 1, 1996, who is 75 years of age or older on July


             5856      1, 1996, or who attains 75 years of age prior to the [justice or] judge's next retention election may
             5857      not be a candidate in that retention election and shall retire on or before December 31 of the year
             5858      in which the [justice or] judge would have been subject to a retention election.
             5859          Section 158. Section 49-18-101 , which is renumbered from Section 49-6a-101 is
             5860      renumbered and amended to read:
             5861     
CHAPTER 18. JUDGES' NONCONTRIBUTORY RETIREMENT ACT

             5862     
Part 1. General Provisions

             5863           [49-6a-101].     49-18-101. Title.
             5864          This chapter is known as the "Judges' Noncontributory Retirement Act."
             5865          Section 159. Section 49-18-102 , which is renumbered from Section 49-6a-103 is
             5866      renumbered and amended to read:
             5867           [49-6a-103].     49-18-102. Definitions.
             5868          As used in this chapter:
             5869          (1) (a) "Compensation[,]" ["salary," or "wages"] means the total amount of payments
             5870      which are currently includable in gross income made by [an] a participating employer to [an
             5871      employee] a member of this system for services rendered to the participating employer.
             5872          (b) "Compensation" includes:
             5873          (i) performance-based bonuses;
             5874          (ii) cost-of-living adjustments;
             5875          (iii) payments subject to Social Security deductions;
             5876          (iv) any payments in excess of the maximum amount subject to deduction under Social
             5877      Security law; and
             5878          (v) amounts which the [employee] member authorizes to be deducted or reduced for salary
             5879      deferral or other [authorized benefit programs] benefits authorized by federal law.
             5880          (c) "Compensation" for purposes of this chapter may not exceed the amount allowed under
             5881      Internal Revenue Code Section 401(a)(17).
             5882          (d) "Compensation[,]" ["salary," or "wages"] does not include:
             5883          (i) the monetary value of remuneration paid in kind, such as a residence or use of
             5884      equipment;
             5885          (ii) all contributions made by [an] a participating employer under [any] a system or plan
             5886      for the benefit of a member or participant;


             5887          [(iii) salary paid to an employee working under the minimum number of hours required
             5888      for membership;]
             5889          [(iv)] (iii) salary paid to a temporary or exempt employee;
             5890          [(v)] (iv) payments upon termination or any other special payments including early
             5891      retirement inducements; or
             5892          [(vi)] (v) uniform, travel, or similar [allowances] payments.
             5893          [(2)] (2) "Final average salary" means the amount computed by averaging the highest two
             5894      years of annual compensation preceding retirement, subject to Subsections (2)(a) and (b).
             5895          (a) Except as provided in Subsection (2)(b), the percentage increase in annual
             5896      compensation in any one of the years used may not exceed the previous year's [salary]
             5897      compensation by more than 10% plus a cost-of-living adjustment equal to the decrease in the
             5898      purchasing power of the dollar during the previous year, as measured by [the Consumer Price
             5899      Index prepared by the] a United States Bureau of Labor Statistics Consumer Price Index average
             5900      as determined by the board.
             5901          (b) In cases where the [employing unit] participating employer provides acceptable
             5902      documentation to the board, the limitation in Subsection (2)(a) may be exceeded if:
             5903          (i) the member has transferred from another [employing unit] agency; or
             5904          (ii) the member has been promoted to a new position.
             5905          [(3) "Normal retirement age" means the age of 65 years.]
             5906          (3) "Judge" means a judge or justice of the courts of record as enumerated in Section
             5907      78-1-1 .
             5908          (4) "Participating employer" means the state.
             5909          (5) "System" means the Judges' Noncontributory Retirement System created under this
             5910      chapter.
             5911          [(4)] (6) "Years of service credit" [or "service years" mean] means the number of periods,
             5912      each to consist of 12 full months or as determined by the board, whether consecutive or not, during
             5913      which a [member] judge was employed [to perform services for the] by a participating employer.
             5914          Section 160. Section 49-18-103 , which is renumbered from Section 49-6a-201 is
             5915      renumbered and amended to read:
             5916           [49-6a-201].     49-18-103. Creation of system.
             5917          There is created for [justices and] judges [of courts of record,] the "Judges' Noncontributory


             5918      Retirement System."
             5919          Section 161. Section 49-18-104 , which is renumbered from Section 49-6a-202 is
             5920      renumbered and amended to read:
             5921           [49-6a-202].     49-18-104. Creation of trust fund.
             5922          (1) There is created the "Judges' Noncontributory Retirement Trust Fund" for the purpose
             5923      of paying the benefits and costs of administering this system.
             5924          (2) The fund shall consist of all money, including interest, and assets transferred to it under
             5925      any terminated system, the money paid into it under this system, whether in the form of cash,
             5926      securities, or other assets, and of all money received from any other source.
             5927          (3) Custody, management, and investment of the fund shall be governed by [Title 49,]
             5928      Chapter [1] 11, Utah State Retirement Systems Administration.
             5929          Section 162. Section 49-18-201 , which is renumbered from Section 49-6a-203 is
             5930      renumbered and amended to read:
             5931     
Part 2. Membership Eligibility

             5932           [49-6a-203].     49-18-201. System membership -- Eligibility.
             5933          (1) [Justices and judges of courts of record] Judges appointed after July 1, 1997, [shall
             5934      automatically become] are members of [this system] and are eligible for service credit in this
             5935      system.
             5936          (2) (a) Any [justice or] judge appointed prior to July 1, 1997, may either become a member
             5937      of [this noncontributory system] the Judges' Noncontributory Retirement System or remain a
             5938      member of the Judges' Contributory Retirement System established under [Title 49,] Chapter [6]
             5939      17, Judges' Contributory Retirement Act, by following the procedures established by the board
             5940      pursuant to this chapter.
             5941          [(3) Justices and judges] (b) Judges may only elect to participate in [the noncontributory]
             5942      this system under Subsection (2) prior to January 1, 1998.
             5943          Section 163. Section 49-18-301 , which is renumbered from Section 49-6a-301 is
             5944      renumbered and amended to read:
             5945     
Part 3. Contributions

             5946           [49-6a-301].     49-18-301. Contributions by employees and employers --
             5947      Retirement fees.
             5948          (1) [The system shall be maintained] In addition to the monies paid to this system under


             5949      Subsection (2), participating employers shall pay the certified contribution rates to the office to
             5950      maintain this system on a financially and actuarially sound basis [by means of contributions and
             5951      fees made entirely by the employer].
             5952          [(2) Fees and contributions shall be remitted monthly to the retirement office.]
             5953          [(3) The board shall report to the governor, the Legislature, and the employing unit the
             5954      contribution rates and any adjustments necessary to maintain the system on a financially and
             5955      actuarially sound basis, and the employer shall pay the certified contribution rates.]
             5956          (2) Fees collected under Subsection 78-7-35 (1)(i) shall be paid monthly to the office to
             5957      maintain this system and the system established under Chapter 17, Judges' Contributory Retirement
             5958      Act.
             5959          Section 164. Section 49-18-401 , which is renumbered from Section 49-6a-401 is
             5960      renumbered and amended to read:
             5961     
Part 4. Defined Benefit

             5962           [49-6a-401].     49-18-401. Eligibility for an allowance -- Date of retirement --
             5963      Qualifications.
             5964          [(1) (a) Any judge who qualifies for service retirement may retire by submitting to the
             5965      retirement office an application form notarized by a notary public. The application shall state the
             5966      proposed effective date of retirement, which may not be more than 90 days before or after the date
             5967      of application.]
             5968          [(b) The effective date shall be the 1st or 16th day of the month, as selected by the
             5969      member, but must be after the last day of actual work.]
             5970          [(c) The member shall actually terminate employment and provide evidence of
             5971      termination.]
             5972          [(2) The member is qualified to retire upon termination of services on or before the
             5973      effective date of retirement if one of the following requirements on that date is met:]
             5974          (1) A member is qualified to receive an allowance when:
             5975          (a) the member ceases actual work for a participating employer in this system before the
             5976      member's retirement date and provides evidence of the termination;
             5977          (b) the member has submitted to the office a notarized retirement application form that
             5978      states the member's proposed retirement date; and
             5979          (c) one of the following conditions is met as of the member's retirement date:


             5980          [(a)] (i) the member has [been credited with] accrued at least six years of service credit and
             5981      has attained an age of 70 years [or more];
             5982          [(b)] (ii) the member has [been credited with] accrued at least ten years of service credit
             5983      and has attained an age of 62 years [or more];
             5984          [(c)] (iii) the member has [been credited with] accrued at least 20 years of service credit
             5985      and has attained an age of 55 years [or more]; or
             5986          [(d)] (iv) the member has [been credited with] accrued at least 25 years of service credit.
             5987          (2) (a) The member's retirement date shall be the 1st or the 16th day of the month, as
             5988      selected by the member, but the retirement date must be on or after the date of termination.
             5989          (b) The retirement date may not be more than 90 days after the date the application is
             5990      received by the office.
             5991          Section 165. Section 49-18-402 , which is renumbered from Section 49-6a-402 is
             5992      renumbered and amended to read:
             5993           [49-6a-402].     49-18-402. Calculation of retirement allowance.
             5994          [Upon the service retirement of a justice or judge under Section 49-6a-401 , the justice or
             5995      judge shall receive a retirement allowance determined as follows:]
             5996          [(1) If the justice or judge has attained the age of 62 years and has ten or more years of
             5997      judicial service credit, the retirement allowance is a monthly amount equal to:]
             5998          (1) A retiree under this system shall receive an allowance equal to:
             5999          (a) 5% of the final average monthly salary multiplied by the number of years of [judicial]
             6000      service [credited, limited] credit, limited to ten years[,]; plus
             6001          (b) 2.25% of the final average monthly salary multiplied by the number of years of
             6002      [judicial] service [credited] credit in excess of ten years [but less than] and up to and including 20
             6003      years[,]; plus
             6004          (c) 1% of the final average monthly salary multiplied by the number of years of [judicial]
             6005      service [credited] credit in excess of 20 years. [Total monthly retirement allowance to which a
             6006      justice or judge is entitled may not exceed 75% of the final average monthly salary.]
             6007          [(2) If the justice or judge has attained the age of 70 years and has six years or more of
             6008      judicial service credit, the retirement allowance is the same as computed under Subsection (1).]
             6009          [(3) If the justice or judge has 25 years or more of judicial service credit, the retirement
             6010      allowance is the same as computed under Subsection (1).]


             6011          (2) Except as modified by cost-of-living adjustments, an allowance under this system may
             6012      not exceed 75% of the member's final average monthly salary.
             6013          [(4)] (3) If the [justice or judge] retiree has attained the age of 55 years and has 20 years
             6014      or more of [judicial] service credit, the [retirement allowance is the same as computed under
             6015      Subsection (1) reduced to an amount payable monthly for life which would be the same actuarial
             6016      equivalent based on the justice's or judge's age at retirement as would be the value of the retirement
             6017      pay based on life expectancy if the justice or judge were 65 years of age] retiree shall receive an
             6018      early retirement reduction to the allowance based on an actuarial calculation assuming a normal
             6019      retirement age of 65 years.
             6020          [(5) All members and their beneficiaries, as of July 1, 1983, shall receive an increase in
             6021      monthly benefits in the amount of $120 for each member or $60 for each beneficiary. The cost of
             6022      implementing this subsection shall be shared equally between the employer and employee.]
             6023          [(6) Years of service include any fractions of years of service to which the members may
             6024      be entitled. Notwithstanding the formula for computing the service retirement allowance for
             6025      members participating in the program, the board shall, in as far as practical, adjust the percentage
             6026      factor used in the service retirement allowance formula, in its application to the years of service
             6027      of a retiring member to a percentage amount which maintains the retirement trust account on an
             6028      actuarially sound basis if the employer contributions, retirement court fees, and earnings of the
             6029      fund are insufficient to fund the benefits provided for members participating in the program.]
             6030          Section 166. Section 49-18-403 , which is renumbered from Section 49-6a-501 is
             6031      renumbered and amended to read:
             6032           [49-6a-501].     49-18-403. Annual cost-of-living adjustment.
             6033          [(1) There shall be computed and paid from the Judges' Noncontributory Retirement Fund
             6034      an annual cost-of-living allowance adjustment to all retired members after one year of retirement
             6035      equal to the decrease in the purchasing power of the dollar during the preceding year measured by
             6036      the Consumers Price Index. The cost-of-living adjustment shall be limited each year to a
             6037      maximum of 4% of the retired member's or beneficiary's monthly retirement allowance. Decreases
             6038      in the purchasing power of the dollar in excess of 4% annually shall be accumulated over two or
             6039      more years and used in whole or in part in making subsequent annual adjustments when the
             6040      cost-of-living adjustment is less than 4%.]
             6041          [(2) The cost-of-living adjustment is based upon the retirant's or beneficiary's allowance,


             6042      is subject to reduction if the cost-of-living shows a decline of 4% for more than one year, and
             6043      applies to any cost-of-living increase. These reductions may not exceed the rate of 2% per year
             6044      based upon the established retirement allowance base. Payments made under this section are a part
             6045      of the retired member's allowance. The payments and subsequent adjustments as prescribed for
             6046      the retirant shall likewise apply to any beneficiary who is paid an allowance.]
             6047          [(3) Funds for the benefits provided by this section shall be obtained from contributions
             6048      and fees paid on covered salaries.]
             6049          (1) The office shall make an annual cost-of-living adjustment to:
             6050          (a) an allowance paid under Section 49-18-402 and Part 5, Death Benefit, of this chapter
             6051      if the benefit has been paid for at least one year; and
             6052          (b) a payment made to an alternate payee under a domestic relations order, if the payment
             6053      is to be paid as a percentage of the allowance rather than a specific dollar amount.
             6054          (2) (a) The allowance shall be increased by the annual increase in the Consumer Price
             6055      Index up to a maximum of 4%.
             6056          (b) Annual increases in the Consumer Price Index in excess of 4% shall be accumulated
             6057      and used in subsequent adjustments when the increase in the Consumer Price Index is less than
             6058      4%.
             6059          (3) The Consumer Price Index used in calculating adjustments shall be a United States
             6060      Bureau of Labor Statistics Consumer Price Index average as determined by the board.
             6061          (4) The cost-of-living adjustment made under this section may not decrease the allowance.
             6062          Section 167. Section 49-18-501 , which is renumbered from Section 49-6a-601 is
             6063      renumbered and amended to read:
             6064     
Part 5. Death Benefit

             6065           [49-6a-601].     49-18-501. Death benefit for members before retirement --
             6066      Computation.
             6067          [(1)] Upon the receipt of acceptable proof of death of a member [or an inactive member]
             6068      before the [effective date of] member's retirement date, the [dependent] member's spouse at the
             6069      time of death shall have the choice of the following death benefits:
             6070          [(a)] (1) a refund of [accumulated] the member's member contributions, if any, including
             6071      refund interest, plus 65% of the [judge's final average salary on a yearly rate] member's most recent
             6072      12 months' compensation prior to death; or


             6073          [(b) a monthly] (2) an allowance equal to 65% of the [monthly] allowance computed [on
             6074      the basis of the service retirement allowance formula, based upon the years of service and final
             6075      average salary] in accordance with Section 49-18-402 , but disregarding early retirement reductions.
             6076          [(2) The pension may not exceed an amount which would have been paid if the deceased
             6077      judge served to age 70 and had the retirement allowance then computed on the basis of final
             6078      average salary under Section 49-6a-402 .]
             6079          Section 168. Section 49-18-502 , which is renumbered from Section 49-6a-602 is
             6080      renumbered and amended to read:
             6081           [49-6a-602].     49-18-502. Benefits payable upon death of retired member.
             6082          (1) (a) The death benefit payable to a [dependent] retiree's spouse [after the death of a
             6083      retired member of this system is a monthly amount] at the time of death is an allowance equal to
             6084      65% of the allowance which was being paid to the [retired member] retiree at the time of death.
             6085          (b) The effective date of the accrual of this [pension] allowance is the first day of the
             6086      month following the month in which the [retirant] retiree died. [Payment of the full pension for
             6087      this latter month shall be made to the dependent beneficiary in lieu of the deceased member.]
             6088          (2) [A member] (a) At the time of retirement, a retiree may elect to increase the [surviving
             6089      spouse's monthly allowance] spousal death benefit up to 75% of [a monthly] an allowance
             6090      computed [on the basis of the service retirement allowance formula under] in accordance with
             6091      Section [ 49-6a-402 ] 49-18-402.
             6092          (b) The [amount payable to the member upon retirement would] member's allowance shall
             6093      be reduced to an amount payable monthly for life[, which would] to reflect the actuarial equivalent
             6094      necessary to [fund] pay for the increased [percentage for the surviving spouse] spousal death
             6095      benefit above 65%.
             6096          Section 169. Section 49-18-701 , which is renumbered from Section 49-6a-701 is
             6097      renumbered and amended to read:
             6098     
Part 6. Reserved

             6099     
Part 7. Early Retirement Incentive

             6100           [49-6a-701].     49-18-701. Judges' mandatory retirement age.
             6101          (1) Except as provided in Subsection (2), a [justice or] judge [who qualifies as a member
             6102      of this system under Section 49-6a-203 ] shall retire upon attaining the age of 75 years.
             6103          (2) A [justice or] judge serving on July 1, 1996, who is 75 years of age or older on July


             6104      1, 1996, or who attains 75 years of age prior to the [justice or] judge's next retention election may
             6105      not be a candidate in that retention election and shall retire on or before December 31 of the year
             6106      in which the [justice or] judge would have been subject to a retention election.
             6107          Section 170. Section 49-19-101 , which is renumbered from Section 49-7-101 is
             6108      renumbered and amended to read:
             6109     
CHAPTER 19. UTAH GOVERNORS' AND

             6110     
LEGISLATORS' RETIREMENT ACT

             6111     
Part 1. General Provisions

             6112           [49-7-101].     49-19-101. Title.
             6113          This chapter is known as the "[Governor's and Legislative Service Pension] Utah
             6114      Governors' and Legislators' Retirement Act."
             6115          Section 171. Section 49-19-102 is enacted to read:
             6116          49-19-102. Definitions.
             6117          As used in this chapter:
             6118          (1) "Governor" includes former governors.
             6119          (2) "Legislator" includes former legislators.
             6120          (3) "Plan" means the Utah Governors' and Legislators' Retirement Plan created under this
             6121      chapter.
             6122          Section 172. Section 49-19-103 , which is renumbered from Section 49-7-201 is
             6123      renumbered and amended to read:
             6124           [49-7-201].     49-19-103. Creation of plan.
             6125          There is created for Utah governors[,] and legislators[, and legislative employees
             6126      enumerated under this chapter] the "[Governor's and Legislative Service Pension] Utah Governors'
             6127      and Legislators' Retirement Plan."
             6128          Section 173. Section 49-19-104 , which is renumbered from Section 49-7-202 is
             6129      renumbered and amended to read:
             6130           [49-7-202].     49-19-104. Creation of trust fund.
             6131          (1) There is created the "[Governor's and Legislative Service Pension] Utah Governors'
             6132      and Legislators' Retirement Trust Fund" for the purpose of paying the benefits and costs of
             6133      administering this [pension] plan.
             6134          (2) The fund shall consist of all money paid into it, including interest, in accordance with


             6135      this chapter, whether in the form of cash, securities, or other assets, and of all money received from
             6136      any other source.
             6137          (3) Custody, management, and investment of the fund shall be governed by [Title 49,]
             6138      Chapter [1] 11, Utah State Retirement Systems Administration.
             6139          Section 174. Section 49-19-201 , which is renumbered from Section 49-7-203 is
             6140      renumbered and amended to read:
             6141     
Part 2. Membership Eligibility

             6142           [49-7-203].     49-19-201. Plan participation -- Eligibility.
             6143          [The following persons are eligible for benefits from this pension plan:]
             6144          [(1) former governors of the state who reach age 65, who serve at least one term, and who
             6145      apply for the pension benefit to the retirement office; and]
             6146          [(2) legislators with four or more years of service in the Utah Legislature.]
             6147          Governors and legislators are eligible for service credit in this plan during their term of
             6148      service in their elected position.
             6149          Section 175. Section 49-19-301 , which is renumbered from Section 49-7-301 is
             6150      renumbered and amended to read:
             6151     
Part 3. Contribution

             6152           [49-7-301].     49-19-301. Contribution rate -- Annual legislative appropriation.
             6153          (1) [The pension plan shall be maintained] The Legislature, by means of annual
             6154      appropriations, shall maintain this plan on a financially and actuarially sound basis [by means of
             6155      annual appropriations by the Legislature].
             6156          [(2) The board shall certify to the director of the Division of Finance the amount necessary
             6157      to fund the cost of the pension provided under this chapter, plus any liability which may have
             6158      accrued. The director of the Division of Finance shall then pay the trust fund the certified and
             6159      appropriated amount.]
             6160          (2) The Legislature shall cause the appropriate amount to be paid to the office.
             6161          Section 176. Section 49-19-401 , which is renumbered from Section 49-7-401 is
             6162      renumbered and amended to read:
             6163     
Part 4. Defined Benefit

             6164           [49-7-401].     49-19-401. Eligibility for an allowance -- Governor -- Legislator.
             6165          [(1) Upon reaching age 65, each former governor of Utah is eligible, upon application, to


             6166      receive a lifetime monthly pension of $500 per term. Payments under this lifetime pension cease
             6167      during any period that a former governor holds an office of profit or trust with the government of
             6168      United States, this state, or a political subdivision of the state paying more than the retirant is
             6169      entitled to receive per month under this section.]
             6170          [(2) Upon reaching age 65, and upon application, a legislative pension shall be paid to a
             6171      member who has four or more years of service as a legislator in the Utah Legislature. The pension
             6172      is $10 per month for each year of service as a member of the Legislature. If the retired member
             6173      is elected to another term in the Legislature or continues to serve in the Legislature after reaching
             6174      age 65, the legislative allowance ceases at the beginning of each session under rules established
             6175      by the board, but is restored at the same amount at the end of the session. Members receiving an
             6176      allowance while serving as legislators are eligible for additional service credits and allowance
             6177      adjustments at the end of each two-year term of office if they continue as contributing members
             6178      during their service as legislators.]
             6179          [(3) A member who is eligible for a pension under this section, may apply for an allowance
             6180      at age 62, if the member has ten or more years of service credit, and receive a reduced allowance.]
             6181          [(4) The allowance provided for former governors, legislators, and their beneficiaries shall
             6182      include any normal retirement benefits accrued in any system administered by the board by reason
             6183      of their contributions and service as a governor or legislator in the system.]
             6184          (1) A governor is qualified to receive an allowance when:
             6185          (a) the governor has submitted to the office a notarized retirement application form that
             6186      states the proposed retirement date; and
             6187          (b) one of the following conditions is met as of the retirement date:
             6188          (i) the governor has completed at least one full term in office and has attained an age of
             6189      65 years; or
             6190          (ii) the governor has served as governor of the state for at least ten years and has attained
             6191      an age of 62 years.
             6192          (2) A legislator is qualified to receive an allowance when:
             6193          (a) the legislator has submitted to the office a notarized retirement application form that
             6194      states the proposed retirement date; and
             6195          (b) one of the following conditions is met as of the retirement date:
             6196          (i) the legislator has completed at least four years in the Legislature and has attained an age


             6197      of 65 years; or
             6198          (ii) the legislator has completed at least ten years in the Legislature and has attained an age
             6199      of 62 years.
             6200          (3) (a) The retirement date shall be the 1st or the 16th day of the month as selected by the
             6201      member.
             6202          (b) The retirement date may not be more than 90 days after the date the application is
             6203      received by the office.
             6204          (4) A member who retires and continues to serve in office may not receive an additional
             6205      increase to the allowance from that service.
             6206          (5) A [withdrawal of] member who withdraws member contributions [by a governor,
             6207      legislator, or legislative employee] shall forfeit all [pensions and] allowances [provided under this
             6208      chapter] based on those contributions.
             6209          Section 177. Section 49-19-402 is enacted to read:
             6210          49-19-402. Calculation of allowance -- Reduction for early retirement.
             6211          (1) (a) The base retirement amount for a governor under this plan is $500 per term,
             6212      adjusted as provided in Section 49-19-404 since 1973.
             6213          (b) A governor's allowance shall be calculated by multiplying the base retirement amount
             6214      at the end of the governor's service by the number of terms the governor served, including fractions
             6215      of terms.
             6216          (2) (a) The base retirement amount for a legislator under this plan is $10 per year of service
             6217      in the Legislature, adjusted as provided in Section 49-19-404 , since 1967.
             6218          (b) A legislator's allowance shall be calculated by multiplying the base retirement amount
             6219      at the end of the legislator's service by the number of years the legislator served, including fractions
             6220      of years.
             6221          (3) If a governor or legislator retires prior to age 65, the allowance shall be reduced by 3%
             6222      for each year of retirement between age 62 and age 65.
             6223          Section 178. Section 49-19-403 is enacted to read:
             6224          49-19-403. Retirement option.
             6225          A governor or legislator may elect to forfeit the allowance provided by this chapter and in
             6226      lieu thereof participate, on the same basis as other state elected and appointed officers under Title
             6227      67, Chapter 22, State Officer Compensation, in a defined contribution plan administered by the


             6228      office, in accordance with Section 49-11-801 and in accordance with federal law.
             6229          Section 179. Section 49-19-404 is enacted to read:
             6230          49-19-404. Annual cost-of-living adjustment.
             6231          (1) The office shall make an annual cost-of-living adjustment to:
             6232          (a) an original allowance paid under Section 49-19-402 and Part 5, Death Benefit, of this
             6233      chapter if the benefit has been paid for at least one year;
             6234          (b) an original payment made to an alternate payee under a domestic relations order, if the
             6235      payment is to be paid as a percentage of the allowance rather than a specific dollar amount; and
             6236          (c) the base retirement amount for governors and legislators under Section 49-19-402 .
             6237          (2) (a) The original allowance shall be increased by the annual increase in the Consumer
             6238      Price Index up to a maximum of 4%.
             6239          (b) Annual increases in the Consumer Price Index in excess of 4% shall be accumulated
             6240      and used in subsequent adjustments when the increase in the Consumer Price Index is less than
             6241      4%.
             6242          (3) The Consumer Price Index used in calculating adjustments shall be a United States
             6243      Bureau of Labor Statistics Consumer Price Index average as determined by the board.
             6244          (4) The cost-of-living adjustment made under this section may not decrease the allowance.
             6245          Section 180. Section 49-19-501 , which is renumbered from Section 49-7-403 is
             6246      renumbered and amended to read:
             6247     
Part 5. Death Benefit

             6248           [49-7-403].     49-19-501. Death of member or retiree -- Surviving spouse benefit.
             6249          (1) Upon the death of a [member or retiree having] governor or legislator who has not yet
             6250      retired and who has completed four or more years [of service as a governor or legislator, there is
             6251      paid to the surviving spouse a monthly pension] in the elected office, the member's spouse shall
             6252      receive an allowance equal to 50% of the [retirement] allowance [paid, or] to which the [retiree
             6253      or member] governor or legislator would have been entitled upon reaching age 65, if the [deceased
             6254      member or retiree] governor or legislator and surviving spouse had been married at least six
             6255      months.
             6256          (2) Upon the death of a governor or legislator receiving an allowance under this plan, the
             6257      member's spouse is entitled to an allowance equal to 50% of the allowance being paid to the
             6258      member at the time of death.


             6259          Section 181. Section 49-20-101 , which is renumbered from Section 49-8-101 is
             6260      renumbered and amended to read:
             6261     
CHAPTER 20. PUBLIC EMPLOYEES' INSURANCE PROGRAM ACT

             6262     
Part 1. General Provisions

             6263           [49-8-101].     49-20-101. Title.
             6264          This chapter is known as the "[Group] Public Employees' Insurance Program Act."
             6265          Section 182. Section 49-20-102 , which is renumbered from Section 49-8-103 is
             6266      renumbered and amended to read:
             6267           [49-8-103].     49-20-102. Definitions.
             6268          As used in this chapter[,]:
             6269          (1) "Employee [group] Benefit Plans" means any group health, dental, medical, disability,
             6270      life insurance, medicare supplement, conversion coverage, cafeteria, flex plans, or other program
             6271      for [employees] insureds administered by the [board and approved by the Legislature] Public
             6272      Employees' Insurance Program.
             6273          (2) "Employer" means any department, educational institution, or political subdivision of
             6274      the state eligible to participate in a government-sponsored retirement system under federal law and
             6275      may also include an agency financed in whole or in part by public funds as allowed under Chapter
             6276      12, Public Employees' Contributory Retirement Act, or Chapter 13, Public Employees'
             6277      Noncontributory Retirement Act.
             6278          (3) "Insurance" means coverage under an employee benefit plan offered under this chapter.
             6279          (4) "Insured" means an individual eligible for insurance under this chapter.
             6280          (5) "Insuring employer" means an employer as defined in Section 49-11-102 that offers
             6281      employee benefit plans under this chapter to its employees.
             6282          (6) "Program" means the Public Employees' Insurance Program.
             6283          Section 183. Section 49-20-103 , which is renumbered from Section 49-8-201 is
             6284      renumbered and amended to read:
             6285           [49-8-201].     49-20-103. Creation of insurance program.
             6286          There is created for the employees of the state, its educational institutions, and political
             6287      subdivisions the "[Group Insurance] Public Employees' Insurance Program[.]" within the office.
             6288          Section 184. Section 49-20-104 , which is renumbered from Section 49-8-202 is
             6289      renumbered and amended to read:


             6290           [49-8-202].     49-20-104. Creation of fund.
             6291          (1) There is created the "[Group Insurance] Public Employees' Trust Fund" for the purpose
             6292      of paying the benefits and the costs of administering this program.
             6293          (2) The fund shall consist of all money and interest paid into it in accordance with this
             6294      chapter, whether in the form of cash, securities, or other assets, and of all money received from any
             6295      other source.
             6296          (3) Custody, management, and investment of the fund shall be governed by [Title 49,]
             6297      Chapter [1] 11, Utah State Retirement Systems Administration.
             6298          Section 185. Section 49-20-105 , which is renumbered from Section 49-8-102 is
             6299      renumbered and amended to read:
             6300           [49-8-102].     49-20-105. Purpose.
             6301          The purpose of this chapter is to provide a mechanism [whereby the state, its educational
             6302      institutions, and political subdivisions may provide their employees] for insuring employers to
             6303      provide insureds with group health, dental, medical, disability, life insurance, medicare
             6304      supplement, conversion coverage, cafeteria, flex plan, and other programs requested by the state
             6305      or political subdivisions in the most efficient and economical manner.
             6306          Section 186. Section 49-20-201 , which is renumbered from Section 49-8-203 is
             6307      renumbered and amended to read:
             6308     
Part 2. Membership Eligibility

             6309           [49-8-203].     49-20-201. Program participation -- Eligibility -- Optional for certain
             6310      groups.
             6311          (1) (a) [All employers of the state, its educational institutions, and political subdivisions
             6312      are] The state shall participate in the program.
             6313          (b) Other employers are eligible, but are not required, to participate in [this] the program[,
             6314      but this section does not require political subdivisions, school districts, or institutions of higher
             6315      education, including technical colleges, to participate in the program].
             6316          (2) (a) The Department of Health may participate in [this] the program for the purpose of
             6317      providing [program] health and dental benefits to children enrolled in the Utah Children's Health
             6318      Insurance Program created in Title 26, Chapter 40, Utah Children's Health Insurance Act, if the
             6319      provisions in Subsection 26-40-110 (4) occur.
             6320          (b) If the Department of Health participates in the program under the provisions of this


             6321      Subsection (2), all insurance risk associated with the Children's Health Insurance Program shall
             6322      be the responsibility of the Department of Health and not the [group insurance division or the
             6323      retirement] program or the office.
             6324          (3) An insured covered under a medical employee benefit plan shall be eligible for
             6325      coverage after termination of employment under rules adopted by the board.
             6326          (4) Retirees, members, participants, and their current spouses are eligible for Medicare
             6327      supplement coverage under this chapter upon becoming eligible for Medicare Part A and Part B
             6328      coverage.
             6329          Section 187. Section 49-20-202 , which is renumbered from Section 49-8-204 is
             6330      renumbered and amended to read:
             6331           [49-8-204].     49-20-202. Establishment of separate risk pools.
             6332          (1) The [group insurance division] program shall establish[: (1)] separate risk pools for:
             6333          (a) state employees[, political subdivisions, and, if applicable, children enrolled in]; and
             6334          (b) the Utah Children's Health Insurance Program[, created in Title 26, Chapter 40, for
             6335      purposes of providing the benefits permitted by this chapter; and (2) rules and procedures
             6336      governing the admission of political subdivisions to the program].
             6337          (2) The program shall create risk pools for other insuring employers as determined by the
             6338      program.
             6339          Section 188. Section 49-20-301 , which is renumbered from Section 49-8-301 is
             6340      renumbered and amended to read:
             6341     
Part 3. Premiums

             6342           [49-8-301].     49-20-301. Premiums paid by employer and employee.
             6343          The [self-funded] program shall be maintained on a financially and actuarially sound basis
             6344      by means of [contributions] premiums paid by the insuring employer and the [employee] insured.
             6345          Section 189. Section 49-20-401 , which is renumbered from Section 49-8-401 is
             6346      renumbered and amended to read:
             6347     
Part 4. Insurance Program

             6348           [49-8-401].     49-20-401. Program -- Powers and duties.
             6349          (1) The [group insurance division of the retirement office] program shall:
             6350          (a) act as a self-insurer of employee [group] benefit plans and administer those plans;
             6351          (b) enter into contracts with private insurers to underwrite employee [group] benefit plans


             6352      [and to reinsure any appropriate self-insured plans] as considered appropriate by the program;
             6353          (c) reinsure or purchase commercial reinsurance as considered appropriate by the program;
             6354          [(c)] (d) [publish and disseminate] provide descriptions of all employee benefit plans under
             6355      this chapter in cooperation with [the Department of Human Resource Management and political
             6356      subdivisions] insuring employers;
             6357          [(d)] (e) [administer the] process [of] claims [administration of] for all employee benefit
             6358      plans under this chapter or enter into contracts[, after competitive bids are taken,] with other
             6359      benefit administrators to provide for the administration of the claims process;
             6360          [(e)] (f) obtain an annual actuarial [evaluation] review of all [self-insured] health and
             6361      dental benefit plans and [prepare an annual report for the governor and the Legislature describing
             6362      the employee benefit plans being administered by the retirement office detailing historical and
             6363      projected program costs and the status of reserve funds] a periodic review of all other employee
             6364      benefit plans;
             6365          [(f)] (g) consult with the [Department of Human Resource Management and the executive
             6366      bodies of other political subdivisions] insuring employers to evaluate employee benefit plans and
             6367      develop recommendations for [new or improved] benefit [plans] changes;
             6368          [(g)] (h) annually submit [annually] a budget and financial reports to the governor and
             6369      Legislature which includes total projected benefit costs and administrative costs;
             6370          [(h)] (i) maintain reserves sufficient to liquidate the unrevealed claims liability and other
             6371      liabilities of the [self-funded] employee [group] benefit plans as estimated by the [board's]
             6372      program's consulting actuary;
             6373          [(i)] (j) submit its recommended benefit adjustments for state employees [upon approval
             6374      of the board] to the director of the state Department of Human Resource Management[. The
             6375      Department of Human Resource Management shall include the benefit adjustments in the total
             6376      compensation plan recommended to the governor required by Subsection 67-19-12 (6)(a)];
             6377          [(j) adjust benefits, upon approval of the board, and upon appropriate notice to the state,
             6378      its educational institutions, and political subdivisions;]
             6379          [(k) for the purposes of stimulating competition, establishing better geographical
             6380      distribution of medical care services, and providing alternative health and dental plan coverage for
             6381      both active and retired employees,]
             6382          (k) determine benefits and rates, upon approval of the board, for multiemployer risk pools,


             6383      retiree coverage, and conversion coverage;
             6384          (l) determine benefits and premiums, upon approval of the board and the Legislature, for
             6385      state employees;
             6386          (m) administer benefits and premiums, upon ratification of the board, for single employer
             6387      risk pools;
             6388          (n) request proposals for [alternative health and dental coverage] provider networks or
             6389      benefit plans administered by third party carriers at least once every three years[, proposals] or
             6390      renegotiate rates with existing provider networks annually for the purposes of:
             6391          (i) stimulating competition for the benefit of insureds;
             6392          (ii) establishing better geographical distribution of medical care services; and
             6393          (iii) providing insurance coverage for both active and retired insureds;
             6394          (o) offer proposals which meet the criteria specified in [the request shall be offered] a
             6395      request for proposals and accepted by the program to active and retired state [employees and may
             6396      be offered] insureds and which may be offered to active and retired [employees of political
             6397      subdivisions] insureds of other insuring employers at the option of the [political subdivision; and]
             6398      insuring employer;
             6399          [(l)] (p) perform the same functions established in Subsections (1)(a), (b), [(d)] (e), and
             6400      [(g)] (h) for the Department of Health if the group insurance division provides program benefits
             6401      to children enrolled in the Utah Children's Health Insurance Program created in Title 26, Chapter
             6402      40[.], Utah Children's Health Insurance Act;
             6403          (q) establish rules and procedures governing the admission of political subdivisions or
             6404      educational institutions and their employees to the program; and
             6405          (r) contract directly with medical providers to provide services for insureds.
             6406          (2) (a) Funds budgeted and expended shall accrue from premiums paid by the [various]
             6407      insuring employers and insureds.
             6408          (b) Administrative costs [may not exceed that percentage of premium income which is
             6409      recommended] shall be approved by the board and [approved by] reported to the governor and the
             6410      Legislature.
             6411          (3) The Department of Human Resource Management shall include the benefit adjustments
             6412      described in Subsection (1)(j) in the total compensation plan recommended to the governor
             6413      required under Subsection 67-19-12 (6)(a).


             6414          Section 190. Section 49-20-402 , which is renumbered from Section 49-8-402 is
             6415      renumbered and amended to read:
             6416           [49-8-402].     49-20-402. Reserves to be held -- Refunds.
             6417          [In no case may the average total]
             6418          (1) The reserves in a risk pool in a given fiscal year [fall below the level of two months'
             6419      premiums] shall be maintained at the level recommended by the program's consulting actuary and
             6420      approved or ratified by the board. If the reserves drop below that level, insuring employers in the
             6421      risk pool are required to cure any deficiency in the reserve.
             6422          (2) If substantial excess reserves are accrued above those required by this chapter, and the
             6423      board determines that a refund is appropriate, [refunds] a refund shall be made to [an employer and
             6424      employee] insuring employers which shall then make a refund to employees on the basis of the
             6425      contribution of each to the plan. [The board may make a full refund to any employer, other than
             6426      the state, and the employer is responsible for refunding employee contributions in accordance with
             6427      this section.]
             6428          Section 191. Section 49-20-403 is enacted to read:
             6429          49-20-403. Assistance to members in purchase of life, health, dental, and medical
             6430      insurance after retirement -- Employment of personnel to administer section.
             6431          (1) The program may assist active and retired insureds and inactive insureds of the insuring
             6432      employers to purchase life, health, dental, and medical insurance on a group basis which can be
             6433      continued after retirement under rules adopted by the board.
             6434          (2) The executive director may employ any personnel, including consultants, to administer
             6435      this section.
             6436          Section 192. Section 49-20-404 , which is renumbered from Section 49-8-403 is
             6437      renumbered and amended to read:
             6438           [49-8-403].     49-20-404. Governors' and legislative benefit.
             6439          [(1) (a) The board may assist active and retired members and beneficiaries and inactive
             6440      members of the various retirement systems administered under its direction, to purchase life,
             6441      health, dental, and medical insurance on a group basis which can be continued after retirement
             6442      under rules adopted by the board.]
             6443          [(b) The executive director may employ any personnel, including consultants, to administer
             6444      this section.]


             6445          [(2) (a)] (1) The [board shall annually report and the] state shall pay the percentage
             6446      described in Subsection [(2)(c)] (3) of the cost of providing a paid-up group health insurance
             6447      policy for members and their surviving spouses covered under [Title 49,] Chapter [7, Governor's
             6448      and Legislative Service Pension] 19, Utah Governors' and Legislators' Retirement Act who:
             6449          [(i)] (a) retire after January 1, 1998;
             6450          [(ii)] (b) are at least 62 but less than 65 years of age;
             6451          [(iii)] (c) elect to receive and apply for this benefit to the [group insurance division]
             6452      program; and
             6453          [(iv)] (d) are active members at the time of retirement or have retired and continued
             6454      insurance coverage with the group insurance division until the date of eligibility for the benefit
             6455      under this Subsection [(2)] (1).
             6456          [(b)] (2) The [board shall annually report and the] state shall pay the percentage described
             6457      in Subsection [(2)(c)] (3) of the cost of providing Medicare supplemental insurance for members
             6458      and their surviving spouses covered under [Title 49,] Chapter [7, Governor's and Legislative
             6459      Service Pension] 19, Utah Governors' and Legislators' Retirement Act who:
             6460          [(i)] (a) retire after January 1, 1998;
             6461          [(ii)] (b) are at least 65 years of age; and
             6462          [(iii)] (c) elect to receive and apply for this benefit to the [group insurance division]
             6463      program.
             6464          [(c)] (3) The following percentages apply to the benefit described in Subsections [(2)(a)]
             6465      (1) and [(b)] (2):
             6466          [(i)] (a) 100% if the member has accrued 10 or more years of service credit;
             6467          [(ii)] (b) 80% if the member has accrued 8 or more years of service credit;
             6468          [(iii)] (c) 60% if the member has accrued 6 or more years of service credit; and
             6469          [(iv)] (d) 40% if the member has accrued 4 or more years of service credit.
             6470          Section 193. Section 49-20-405 , which is renumbered from Section 49-8-404 is
             6471      renumbered and amended to read:
             6472           [49-8-404].     49-20-405. Audit required -- Report to governor and Legislature.
             6473          The Insurance Department shall biennially audit [all funds] the Public Employees' Trust
             6474      Fund and programs authorized under this chapter and report its findings to the governor and the
             6475      Legislature, but the commissioner may accept the annual audited statement of the programs under


             6476      this chapter in lieu of the biennial audit requirement.
             6477          Section 194. Section 49-20-406 , which is renumbered from Section 49-8-405 is
             6478      renumbered and amended to read:
             6479           [49-8-405].     49-20-406. Insurance benefits for employees' beneficiaries.
             6480          (1) As used in this section:
             6481          (a) "Children" includes stepchildren and legally adopted children.
             6482          (b) "Line-of-duty death" means a death resulting from external force or violence
             6483      occasioned by an act of duty as an employee.
             6484          (2) The beneficiary of an [employee] insured who is employed by the state and who dies
             6485      in the line of duty shall receive:
             6486          (a) the proceeds of a group term life insurance policy in the amount of $50,000 to be
             6487      purchased by the [division] program and paid for by the [employing unit] state; and
             6488          (b) a group health insurance policy paid for by the [employing unit] state that covers the
             6489      [employee's] insured's:
             6490          (i) surviving spouse until remarriage or becoming eligible for Medicare, whichever comes
             6491      first; and
             6492          (ii) unmarried children up to the age of 26.
             6493          (3) Any [political subdivision] insuring employer may provide the benefit under
             6494      Subsection (2).
             6495          Section 195. Section 49-21-101 , which is renumbered from Section 49-9-101 is
             6496      renumbered and amended to read:
             6497     
CHAPTER 21. PUBLIC EMPLOYEES' LONG-TERM DISABILITY ACT

             6498     
Part 1. General Provisions

             6499           [49-9-101].     49-21-101. Title.
             6500          This chapter is known as the "[Utah] Public Employees' Long-Term Disability Act."
             6501          Section 196. Section 49-21-102 , which is renumbered from Section 49-9-103 is
             6502      renumbered and amended to read:
             6503           [49-9-103].     49-21-102. Definitions.
             6504          As used in this chapter:
             6505          (1) "Date of disability" means the date on which a period of continuous disability
             6506      commences, and may not commence on or before the last day of actual work.


             6507          [(2) "Educational institution" means a political subdivision or an instrumentality of a
             6508      political subdivision, an instrumentality of the state, or any combination of these entities, which
             6509      is primarily engaged in educational activities or the administration or servicing of educational
             6510      activities. The term includes the State Board of Education and any instrumentality of the State
             6511      Board of Education, institutions of higher education and their branches, school districts, and
             6512      vocational and technical schools.]
             6513          [(3)] (2) "Elimination period" means the three months at the beginning of each continuous
             6514      period of total disability for which no benefit will be paid and commences with the date of
             6515      disability.
             6516          [(4) "Employee"]
             6517          (3) (a) "Eligible employee" means:
             6518          (i) any regular full-time employee [of an employer who participates in any system
             6519      administered by the board, except those employees exempt from coverage under Section
             6520      49-9-102 .] as defined under Section 49-12-102 or 49-13-102 , public safety service employee as
             6521      defined under Section 49-14-102 or 49-15-102 , or judge as defined under Section 49-17-102 or
             6522      49-18-102 , whose employer provides coverage under this chapter, or the governor of the state; and
             6523          (ii) an employee who is covered by a retirement program offered by the Teachers'
             6524      Insurance and Annuity Association of America, if the employee's employer provides coverage
             6525      under this chapter; and
             6526          (b) "Eligible employee" does not include any employee that is exempt from coverage under
             6527      Section 49-21-201 .
             6528          [(5)] (4) "Maximum benefit period" means the maximum period of time the monthly
             6529      disability income benefit will be paid under Section 49-21-403 for any continuous period of total
             6530      disability.
             6531          [(6) "Medically determinable impairment" means an impairment that results from
             6532      anatomical, physiological, or psychological abnormalities which can be shown by medically
             6533      acceptable clinical and laboratory diagnostic techniques. A physical or mental impairment must
             6534      be established by medical evidence consisting of signs, symptoms, and laboratory findings, not
             6535      only by the individual's statement of symptoms.]
             6536          (5) "Monthly disability benefit" means the monthly payments and accrual of service credit
             6537      under Section 49-21-401 and health insurance reimbursements paid under Section 49-21-408 , or


             6538      any combination of them.
             6539          (6) "Objective medical impairment" means an impairment resulting from an injury or
             6540      illness which is diagnosed by a physician and which is based on accepted objective medical tests
             6541      or findings rather than subjective complaints.
             6542          (7) "Physician" means a [legally qualified] licensed physician.
             6543          (8) "Regular monthly salary" means the amount certified by the participating employer as
             6544      the monthly salary of the eligible employee, unless there is a discrepancy between the certified
             6545      amount and the amount actually paid, in which case the office shall determine the regular monthly
             6546      salary.
             6547          (9) "Regular occupation" means either the primary duties performed by the eligible
             6548      employee for the twelve months preceding the date of disability, or a permanent assignment of
             6549      duty to the eligible employee.
             6550          [(8)] (10) "Rehabilitative employment" means any [board-approved] occupation or
             6551      employment for wage or profit, for which the eligible employee is reasonably qualified [by] to
             6552      perform based on education, training, or experience[, in which the employee engages] while unable
             6553      to perform [his] the employee's regular occupation [as a result of injury or illness].
             6554          [(9)] (11) (a) "Total disability" or "totally disabled" means the complete inability, due to
             6555      [medically determinable physical or mental] objective medical impairment, whether physical or
             6556      mental, to engage in the eligible employee's regular occupation during the elimination period and
             6557      the first 24 months of disability benefits. [Thereafter, "total]
             6558          (b) "Total disability" means, after the elimination period and the first 24 months of
             6559      disability benefits, the complete inability, based solely on [medically determinable physical]
             6560      physical objective medical impairment, to engage in any gainful occupation which is reasonable,
             6561      considering the eligible employee's education, training, and experience. ["Total disability" exists
             6562      only if during any period of "total disability" the employee is under the regular care of a physician
             6563      other than the employee.]
             6564          Section 197. Section 49-21-103 , which is renumbered from Section 49-9-201 is
             6565      renumbered and amended to read:
             6566           [49-9-201].     49-21-103. Creation of program.
             6567          There is created for eligible employees [of employers participating in any system
             6568      administered by the board, unless otherwise exempted under this chapter,] the "Public Employees'


             6569      Long-Term Disability Program."
             6570          Section 198. Section 49-21-104 , which is renumbered from Section 49-9-202 is
             6571      renumbered and amended to read:
             6572           [49-9-202].     49-21-104. Creation of trust fund.
             6573          (1) There is created the "Public Employees' Long-Term Disability Trust Fund" for the
             6574      purpose of paying the benefits and costs of administering this program.
             6575          (2) The fund shall consist of all money and interest paid into it in accordance with this
             6576      chapter, whether in the form of cash, securities, or other assets, and of all money received from any
             6577      other source.
             6578          (3) Custody, management, and investment of the fund shall be governed by [Title 49,]
             6579      Chapter [1] 11, Utah State Retirement Systems Administration.
             6580          Section 199. Section 49-21-105 , which is renumbered from Section 49-9-102 is
             6581      renumbered and amended to read:
             6582           [49-9-102].     49-21-105. Purpose.
             6583          (1) The purpose of this chapter is to provide long-term disability benefits for eligible
             6584      employees [of employers participating in any system administered by the board except employees
             6585      covered under the Firefighters' Retirement Act, or employees covered under the Public Safety
             6586      Retirement Act who are covered under a long-term disability program offered by a political
             6587      subdivision which is substantially equivalent to the program offered by the state under this
             6588      chapter].
             6589          (2) The program shall be administered by the [executive officer of the board through the
             6590      retirement] office, under [the] policies and rules [promulgated] adopted by the board.
             6591          Section 200. Section 49-21-201 , which is renumbered from Section 49-9-203 is
             6592      renumbered and amended to read:
             6593     
Part 2. Membership Eligibility

             6594           [49-9-203].     49-21-201. Program membership -- Eligibility.
             6595          [(1) All] (1) The state shall cover all of its eligible employees under this chapter.
             6596          (2) Except as provided under Subsections (5), (6), and (7), all other employers
             6597      [participating in any system administered by the board may cover their] may provide coverage for
             6598      their eligible employees under this chapter[, except employees covered under the Firefighters'
             6599      Retirement Act].


             6600          [(2)] (3) If an employer elects to cover any of [his] its eligible employees under this
             6601      chapter, all of [those] its eligible employees shall be covered[, except employees covered under
             6602      the Firefighters' Retirement Act].
             6603          [(3)] (4) Nothing in this chapter requires any [political subdivision or educational
             6604      institution to be covered by] employer other than the state to cover its eligible employees under
             6605      this chapter.
             6606          (5) Firefighter service employees, as defined under Section 49-16-102 , are not eligible for
             6607      coverage under this chapter.
             6608          (6) Public safety service employees, as defined in Sections 49-14-102 and 49-15-102 , who
             6609      are covered under a long-term disability program offered by an employer which is substantially
             6610      similar to this program are not eligible for coverage under this chapter.
             6611          (7) Legislators are not eligible for coverage under this chapter.
             6612          Section 201. Section 49-21-301 , which is renumbered from Section 49-9-301 is
             6613      renumbered and amended to read:
             6614     
Part 3. Contributions

             6615           [49-9-301].     49-21-301. Contributions to fund program -- Adjustment of premium
             6616      rate.
             6617          (1) During each legislative session, the board shall certify to the Legislature the employer
             6618      paid premium rate expressed as a percentage of salary which is required to fund the Public
             6619      Employees' Long-Term Disability Trust Fund.
             6620          (2) Upon the board's recommendation, the Legislature shall adjust the premium rate to
             6621      maintain adequate funding for the [disability trust fund] Public Employees' Long-Term Disability
             6622      Trust Fund.
             6623          Section 202. Section 49-21-401 , which is renumbered from Section 49-9-401 is
             6624      renumbered and amended to read:
             6625     
Part 4. Disability Benefits

             6626           [49-9-401].     49-21-401. Disability Benefits -- Application -- Eligibility.
             6627          [(1) Upon receipt of proof by the board from the employer that an employee has become
             6628      totally disabled as a result of:]
             6629          [(a) accidental bodily injury which is the sole cause of disability and is sustained while this
             6630      chapter is in force;]


             6631          [(b) disease or illness causing total disability commencing while this chapter is in force;
             6632      or]
             6633          [(c) physical injury resulting from external force or violence as a result of the performance
             6634      of duty, the fund will pay to the employee a monthly disability benefit for each month the total
             6635      disability continues beyond the elimination period, not to exceed the maximum benefit period.]
             6636          (1) An eligible employee shall apply for long-term disability benefits under this chapter
             6637      by:
             6638          (a) completing an application form prepared by the office;
             6639          (b) signing a consent form allowing the office access to the eligible employee's medical
             6640      records; and
             6641          (c) providing any documentation or information reasonably requested by the office.
             6642          (2) Upon request by the office, the participating employer of the eligible employee shall
             6643      provide to the office documentation and information concerning the eligible employee.
             6644          (3) The office shall review all relevant information and determine whether or not the
             6645      eligible employee is totally disabled.
             6646          (4) If the office determines that the eligible employee is totally disabled due to accidental
             6647      bodily injury or physical illness which is not the result of the performance of an employment duty,
             6648      the eligible employee shall receive a monthly disability benefit equal to 2/3 of the eligible
             6649      employee's regular monthly salary, for each month the total disability continues beyond the
             6650      elimination period, not to exceed the maximum benefit period.
             6651          (5) If the office determines that the eligible employee is totally disabled due to psychiatric
             6652      illness, the eligible employee shall receive:
             6653          (a) a maximum of two years of monthly disability benefits equal to 2/3 of the eligible
             6654      employee's regular monthly salary for each month the total disability continues beyond the
             6655      elimination period;
             6656          (b) a maximum of $10,000 for psychiatric expenses, including rehabilitation expenses
             6657      approved by the office's consultants, paid during the period of monthly disability benefits; and
             6658          (c) payment of monthly disability benefits according to contractual provisions for a period
             6659      not to exceed five years if the eligible employee is institutionalized due to psychiatric illness.
             6660          (6) If the office determines that the eligible employee is totally disabled due to a physical
             6661      injury resulting from external force or violence as a result of the performance of an employment


             6662      duty, the eligible employee shall receive a monthly disability benefit equal to 100% of the eligible
             6663      employee's regular monthly salary, for each month the total disability continues beyond the
             6664      elimination period, not to exceed the maximum benefit period.
             6665          [(2)] (7) (a) Successive periods of disability [which: (a) result] are considered as a
             6666      continuous period of disability if the period of disability:
             6667          (i) results from the same or related causes[, (b) are];
             6668          (ii) is separated by less than six months of continuous full-time work at the individual's
             6669      usual place of employment[,]; and [(c) commence]
             6670          (iii) commences while the individual is an eligible employee covered by this chapter[, shall
             6671      be considered as a single period of disability].
             6672          (b) The inability to work for a period of less than 15 consecutive days [may not be] is not
             6673      considered as a period of disability. [Otherwise, successive]
             6674          (c) If Subsection (7)(a) or (b) does not apply, successive periods of disability [shall be] are
             6675      considered as separate periods of disability.
             6676          [(3)] (8) The [board] office may, at any time, have any eligible employee claiming
             6677      disability examined by a physician chosen by the [board] office to determine if the eligible
             6678      employee is totally disabled[, and if so, the extent of the disability].
             6679          [(4) (a) Except as provided in Subsection (4)(b), any]
             6680          (9) A claim brought by an eligible employee for long-term disability benefits under the
             6681      Public Employee's Long-Term Disability Program is barred if it is not commenced within one year
             6682      from the eligible employee's date of disability[. (b) If an employee fails to commence a claim for
             6683      long-term disability benefits within the time limitations prescribed by Subsection (4)(a), the board
             6684      may permit an employee to commence a claim for long-term disability benefits if the employee
             6685      demonstrates that], unless the office determines that under the surrounding facts and
             6686      circumstances, the eligible employee's failure to comply with the time limitations was reasonable.
             6687          [(5) Benefits for disability based primarily on psychopathy shall be determined in
             6688      accordance with Section 49-9-406 .]
             6689          [(6)] (10) Medical or [psychological] psychiatric conditions which existed prior to
             6690      enrollment [shall] may not be a basis for disability benefits until the eligible employee has had one
             6691      year of continuous enrollment in the Public Employees Long-Term Disability Program.
             6692          (11) If there is a valid benefit protection contract, service credit shall accrue during the


             6693      period of total disability, unless the disabled eligible employee is exempted from a system, or is
             6694      otherwise ineligible for service credit.
             6695          Section 203. Section 49-21-402 , which is renumbered from Section 49-9-402 is
             6696      renumbered and amended to read:
             6697           [49-9-402].     49-21-402. Reduction of benefit -- Circumstances -- Application for
             6698      other benefits required.
             6699          [(1) (a) The monthly income disability benefit is two-thirds of the regular monthly salary
             6700      paid as of the last day of actual service for the disabilities defined in Subsections 49-9-401 (1)(a)
             6701      and (b) and 100% of the regular monthly salary paid as of the last day of actual service for the
             6702      disabilities defined in Subsection 49-9-401 (1)(c).]
             6703          [(b) Payments may]
             6704          (1) A monthly disability benefit may not be [made by the fund] paid for any period of total
             6705      disability unless the eligible employee is under the [regular] ongoing care and treatment of a
             6706      physician other than the eligible employee.
             6707          (2) The monthly disability [income] benefit shall be reduced by any amount received by,
             6708      or [due] payable to, the eligible employee from the following sources for the same period of time
             6709      during which the eligible employee is entitled to receive [the] a monthly disability benefit:
             6710          (a) Social Security disability benefits, including all benefits received by the eligible
             6711      employee, the eligible employee's spouse, and the eligible employee's dependent children[, except
             6712      that if Social Security benefits are increased to compensate for a change in the Consumer Price
             6713      Index, the monthly disability income benefit may not be further reduced, but shall only be offset
             6714      by benefits determined at the level in effect at the time of the commencement of benefits];
             6715          (b) workers' compensation indemnity benefits;
             6716          [(c) armed services retirement or disability programs;]
             6717          [(d) civil service retirement or disability programs;]
             6718          [(e) disability benefits under any group insurance plan providing disability income benefits
             6719      for which contributions or payroll deductions are made by the employer;]
             6720          [(f) any employer-paid public or private retirement or disability program for which the
             6721      employee is eligible;]
             6722          [(g)] (c) any monies received by judgment, legal action, or settlement from a third party
             6723      liable to the employee for the disability; [and]


             6724          [(h)] (d) unemployment compensation benefits[.];
             6725          (e) automobile no-fault, medical payments, or similar insurance payments; and
             6726          (f) any other disability benefits resulting from the disability for which benefits are being
             6727      received under this chapter.
             6728          (3) The monthly disability benefit shall be reduced by any amount in excess of 1/3 of the
             6729      eligible employee's regular monthly salary received by, or payable to, the eligible employee from
             6730      the following sources for the same period of time during which the eligible employee is entitled
             6731      to receive a monthly disability benefit:
             6732          (a) any employer-sponsored retirement programs; and
             6733          (b) any disability benefit resulting from the disability for which benefits are being received
             6734      under this chapter.
             6735          (4) Cost-of-living increases to any of the benefits listed in Subsection (2) may not be
             6736      considered in calculating a reduction to the monthly disability benefit.
             6737          [(3)] (5) Any amounts [received by, or] payable to[,] the eligible employee from one or
             6738      more of the sources under Subsection (2) [shall be] are considered as amounts received [by the
             6739      employee] whether or not the amounts were actually received by the eligible employee.
             6740          [(4)] (6) (a) [In order to be eligible for benefits under this chapter the] An eligible
             6741      employee shall first apply for all disability benefits from governmental entities under Subsection
             6742      (2) to which the eligible employee is or may be entitled, and provide to the office evidence of the
             6743      applications.
             6744          (b) The eligible employee shall also first apply at the earliest eligible age for all unreduced
             6745      retirement benefits to which the eligible employee is or may be entitled, and provide to the office
             6746      evidence of the application.
             6747          [(c) If the employee fails to apply, the board may apply on behalf of the employee.]
             6748          (c) If the eligible employee fails to make application under Subsection (6)(a) or (b), the
             6749      monthly disability benefit shall be suspended.
             6750          [(d) The board may treat as income any amount the employee is entitled to receive but does
             6751      not receive because application for benefits is not made by the employee and may reduce the
             6752      monthly disability accordingly.]
             6753          Section 204. Section 49-21-403 , which is renumbered from Section 49-9-403 is
             6754      renumbered and amended to read:


             6755           [49-9-403].     49-21-403. Termination of disability benefits -- Calculation of
             6756      retirement benefit.
             6757          (1) [Any member] An eligible employee covered by this chapter and eligible for service
             6758      credit under a system, including an eligible employee who relinquishes rights to retirement benefits
             6759      [pursuant to] under Section [ 49-1-405 ] 49-11-619 , who applies and is qualified for a monthly
             6760      disability [benefits] benefit shall receive a monthly disability [allowance] benefit until the earlier
             6761      of:
             6762          (a) the date the [member or] eligible employee [who relinquishes rights to retirement
             6763      benefits] has accumulated:
             6764          (i) 20 years of service credit if the [member] eligible employee is covered by [Chapters
             6765      4 or 4a,] Chapter 14, Public Safety Contributory Retirement [and] Act, or Chapter 15, Public
             6766      Safety Noncontributory Retirement [Acts] Act;
             6767          (ii) 25 years of service credit if the [member] eligible employee is covered by Chapter [6]
             6768      17, Judges' Contributory Retirement Act, or Chapter 18, Judges' Noncontributory Retirement Act;
             6769      or
             6770          (iii) 30 years of service credit if the [member] eligible employee is covered by [Chapters
             6771      2 or 3] Chapter 12, Public Employees' Contributory Retirement [and] Act, or Chapter 13, Public
             6772      Employees' Noncontributory Retirement [Acts] Act; or
             6773          (b) the [member] date the eligible employee has received a monthly disability [benefits]
             6774      benefit for the following applicable time periods:
             6775          (i) if the [member] eligible employee is under age 60, the monthly disability [allowance]
             6776      benefit is payable until age 65;
             6777          (ii) if the [member] eligible employee is 60[-] or 61 years of age on the date of disability,
             6778      the monthly disability [allowance] benefit is payable for five years;
             6779          (iii) if the [member] eligible employee is 62[-] or 63 years of age on the date of disability,
             6780      the monthly disability [allowance] benefit is payable for four years;
             6781          (iv) if the [member] eligible employee is 64[-] or 65 years of age on the date of disability,
             6782      the monthly disability [allowance] benefit is payable for three years;
             6783          (v) if the [member] eligible employee is 66[-], 67, or 68 years of age on the date of
             6784      disability, the monthly disability [allowance] benefit is payable for two years; and
             6785          (vi) if the [member] eligible employee is [age] 69 years of age or older on the date of


             6786      disability, the monthly disability benefit is payable for one year.
             6787          (2) (a) Upon termination of a monthly disability [benefits, the disabled] benefit, an eligible
             6788      employee [shall] eligible for service credit under a system may retire under the [retirement] system
             6789      which covered the eligible employee [at the time] on the date of disability.
             6790          (b) The final average salary used in the calculation of the [retirement benefit] allowance
             6791      shall be based on the annual rate of pay [at the time] on the date of disability, improved by the
             6792      annual cost-of-living increase factor applied to [retired participants in] retirees of the system which
             6793      covered the eligible employee [at the time] on the date of disability. [Retirement credit shall accrue
             6794      during the period of disability unless the disabled employee is exempted from the system.]
             6795          (3) An eligible employee who is [in a position covered by a system administered by the
             6796      board] eligible for service credit in a system, but has relinquished rights to [retirement benefits
             6797      pursuant to] an allowance under Section [ 49-1-405 ] 49-11-619 , may receive the [benefit] benefits
             6798      the eligible employee would have received by [full participation] being eligible for service credit
             6799      in the system covering the eligible employee on the date of disability, except for the accrual of
             6800      service credit, in accordance with this title.
             6801          (4) An eligible employee receiving a monthly disability [benefits] benefit who has [years
             6802      of] service credit from two or more systems [or plans administered by the board] may not combine
             6803      [these] service credits under Section [ 49-1-406 ] 49-11-405 in [determining eligibility] qualifying
             6804      for retirement, unless the eligible employee would receive a greater [retirement benefit] allowance
             6805      by combining [such] the service credits.
             6806          (5) A monthly disability benefit payable to an eligible employee who is not eligible for
             6807      service credit under a system shall terminate at the earliest of:
             6808          (a) the date the eligible employee is eligible for an unreduced retirement benefit; or
             6809          (b) the date the eligible employee has received a monthly disability benefit for the
             6810      applicable time period as set forth in Subsection (1)(b).
             6811          Section 205. Section 49-21-404 , which is renumbered from Section 49-9-404 is
             6812      renumbered and amended to read:
             6813           [49-9-404].     49-21-404. Annual adjustment to disability benefit.
             6814          (1) (a) An eligible employee receiving a monthly disability [benefits] benefit shall receive
             6815      an annual adjustment on the [employee's anniversary] date following the end of the elimination
             6816      period to reflect [changes] annual changes in the [Consumer Price Index as computed by the]


             6817      United States Bureau of Labor Statistics Consumer Price Index average as determined by the
             6818      board. [The]
             6819          (b) This adjustment [shall be approved by the board and] may not exceed adjustments
             6820      made to [retirants] retirees under the system which covered the eligible employee [at the time] on
             6821      the date of disability.
             6822          (2) If an employee is not eligible for service credit under a system, the annual adjustment
             6823      shall be equal to the adjustment calculated under Section 49-13-407 .
             6824          Section 206. Section 49-21-405 , which is renumbered from Section 49-9-405 is
             6825      renumbered and amended to read:
             6826           [49-9-405].     49-21-405. Disability benefit -- Exclusions.
             6827          [The disability trust fund does not cover any loss resulting from] A monthly disability
             6828      benefit is not payable for the following:
             6829          (1) self-inflicted injury;
             6830          [(2) war or any act of war, or suffering while in military or naval services of any country
             6831      at war;]
             6832          [(3)] (2) alcoholism;
             6833          [(4) drug addiction; or]
             6834          (3) substance abuse;
             6835          [(5)] (4) disability arising from or caused by acts of aggression committed by the eligible
             6836      employee[,]; or
             6837          (5) the eligible employee committing or attempting to commit a felony or other illegal act.
             6838          Section 207. Section 49-21-406 , which is renumbered from Section 49-9-407 is
             6839      renumbered and amended to read:
             6840           [49-9-407].     49-21-406. Rehabilitative employment -- Interview by disability
             6841      specialist -- Maintaining eligibility -- Additional treatment and care.
             6842          (1) (a) If an eligible employee, following a period of total disability for which the monthly
             6843      disability benefit is payable, engages in approved rehabilitative employment, the monthly disability
             6844      benefit otherwise payable shall be reduced by an amount equal to 50% of the [wages or profits]
             6845      income to which the eligible employee is entitled for the employment during the month.
             6846          (b) This benefit [will be] is payable for up to [24 months] two years or to the end of the
             6847      maximum benefit period, whichever occurs first.


             6848          (2) (a) Each [disabled] eligible employee receiving a monthly disability benefit shall be
             6849      interviewed [by a disability specialist employed] by the [board] office. [The disability specialist
             6850      shall prepare a written rehabilitation plan for the employee. If it appears that the employee cannot
             6851      return to his regular occupation, other vocational alternatives shall be sought whenever feasible.
             6852      These alternatives include, but are not limited to, training courses needed to qualify for a new
             6853      occupation, aids to mobility and job performance, and job placement assistance.]
             6854          [(3) Each disabled employee, in order to maintain eligibility for benefits, shall engage
             6855      actively in a rehabilitation program if it is determined by a physician, or by a majority of a panel
             6856      of licensed physicians, that a rehabilitation program would reasonably ensure that the employee
             6857      would become capable of holding regular employment in any occupation. Failure on the part of
             6858      the employee to participate reasonably in a board-approved rehabilitation program shall result in
             6859      forfeiture of the monthly benefit.]
             6860          (b) The office may refer the eligible employee to a disability specialist for a review of the
             6861      eligible employee's condition and a written rehabilitation plan.
             6862          (3) If an eligible employee receiving a monthly disability benefit fails to participate in an
             6863      office-approved rehabilitation program within the limitations set forth by a physician, the monthly
             6864      disability benefit may be suspended or terminated.
             6865          (4) The [board] office may, as a condition of [making any payment under this chapter]
             6866      paying a monthly disability benefit, require that the eligible employee receive [additional] medical
             6867      care and treatment [including, but not limited to, therapy, psychoanalysis, and regular medication,]
             6868      if that treatment is reasonable or usual according to current medical practices.
             6869          Section 208. Section 49-21-407 , which is renumbered from Section 49-9-409 is
             6870      renumbered and amended to read:
             6871           [49-9-409].     49-21-407. Health insurance reimbursements for persons with a
             6872      disability -- Limitations.
             6873          [(1) The fund created under Section 49-9-202 shall pay the costs of health insurance
             6874      coverage for each member receiving a disability benefit under this chapter beginning on the 25th
             6875      month following the date of disability.]
             6876          [(2) Payments made from the fund for health insurance coverage may not exceed the
             6877      amount the member and the employer would have paid by participating in the Preferred Care
             6878      Program offered by the group insurance division to the member's employer pursuant to Title 49,


             6879      Chapter 8, Group Insurance Program Act, at the time of disability.]
             6880          Beginning on the 25th month following the date of disability, the Public Employees'
             6881      Long-Term Disability Trust Fund shall pay the cost of the health insurance coverage in effect at
             6882      the time of disability up to the amount the state would have paid by participating in the Preferred
             6883      Care Program offered by the Group Insurance Division under Chapter 20, Public Employees'
             6884      Insurance Program Act.
             6885          Section 209. Section 51-7-4 is amended to read:
             6886           51-7-4. Transfer of functions, powers, and duties relating to public funds to state
             6887      treasurer -- Exceptions -- Deposit of income from investment of state money.
             6888          (1) Unless otherwise required by the Utah Constitution or applicable federal law, the
             6889      functions, powers, and duties vested by law in each and every state officer, board, commission,
             6890      institution, department, division, agency, and other similar instrumentalities relating to the deposit,
             6891      investment, or reinvestment of public funds, and the purchase, sale, or exchange of any
             6892      investments or securities of or for any funds or accounts under the control and management of
             6893      these instrumentalities, are transferred to and shall be exercised by the state treasurer, except:
             6894          (a) funds assigned to the Utah State Retirement Board for investment under Section
             6895      [ 49-1-302 ] 49-11-302 ;
             6896          (b) funds of member institutions of the state system of higher education:
             6897          (i) acquired by gift, devise, or bequest, or by federal or private contract or grant;
             6898          (ii) derived from student fees or from income from operations of auxiliary enterprises,
             6899      which fees and income are pledged or otherwise dedicated to the payment of interest and principal
             6900      of bonds issued by such institutions; and
             6901          (iii) any other funds which are not included in the institution's work program as approved
             6902      by the State Board of Regents;
             6903          (c) funds of the Utah Technology Finance Corporation;
             6904          (d) inmate funds as provided in Section 64-13-23 or in Title 64, Chapter 9b, Work
             6905      Programs for Prisoners;
             6906          (e) trust funds established by judicial order;
             6907          (f) funds of the Workers' Compensation Fund; and
             6908          (g) funds of the Utah Housing Finance Agency.
             6909          (2) All public funds held or administered by the state or any of its boards, commissions,


             6910      institutions, departments, divisions, agencies, or similar instrumentalities and not transferred to the
             6911      state treasurer as provided by this section shall be:
             6912          (a) deposited and invested by the custodian in accordance with this chapter, unless
             6913      otherwise required by statute or by applicable federal law; and
             6914          (b) reported to the state treasurer in a form prescribed by the state treasurer.
             6915          (3) Unless otherwise provided by the constitution or laws of this state or by contractual
             6916      obligation, the income derived from the investment of state money by the state treasurer shall be
             6917      deposited in and become part of the General Fund.
             6918          Section 210. Section 53-6-107 is amended to read:
             6919           53-6-107. General duties of council.
             6920          (1) The council shall:
             6921          (a) advise the director regarding:
             6922          (i) the approval, certification, or revocation of certification of any certified academy
             6923      established in the state;
             6924          (ii) the refusal, suspension, or revocation of certification of a peace officer;
             6925          (iii) minimum courses of study, attendance requirements, and the equipment and facilities
             6926      to be required at a certified academy;
             6927          (iv) minimum qualifications for instructors at a certified academy;
             6928          (v) the minimum basic training requirements that peace officers shall complete before
             6929      receiving certification;
             6930          (vi) the minimum basic training requirements that dispatchers shall complete before
             6931      receiving certification; and
             6932          (vii) categories or classifications of advanced in-service training programs and minimum
             6933      courses of study and attendance requirements for the categories or classifications;
             6934          (b) recommend that studies, surveys, or reports, or all of them be made by the director
             6935      concerning the implementation of the objectives and purposes of this chapter;
             6936          (c) make recommendations and reports to the commissioner and governor from time to
             6937      time; and
             6938          (d) perform other acts as necessary to carry out the duties of the council in this chapter.
             6939          (2) The council may approve special function officers for membership in the Public Safety
             6940      Retirement System in accordance with Sections [ 49-4-203 ] 49-14-201 and [ 49-4a-203 ] 49-15-201.


             6941          Section 211. Section 53-7-105 is amended to read:
             6942           53-7-105. State fire marshal, deputies, and investigators -- Status of law enforcement
             6943      officers -- Inclusion in Public Safety Retirement -- Training.
             6944          (1) The state fire marshal, his deputies, and investigators, for the purpose of enforcing and
             6945      investigating violations of fire related statutes and ordinances, have the status of law enforcement
             6946      officers.
             6947          (2) Inclusion under Title 49, Chapter [4] 14, Public Safety Contributory Retirement Act,
             6948      or Title 49, Chapter [4a] 15, Public Safety Noncontributory Retirement Act, is not authorized by
             6949      Subsection (1) except as provided in those chapters.
             6950          (3) The commissioner, with the concurrence of the Peace Officer Standards and Training
             6951      Advisory Board may require peace officer standards and training for the state fire marshal, his
             6952      deputies, and investigators.
             6953          Section 212. Section 53-13-108 is amended to read:
             6954           53-13-108. Retirement.
             6955          Eligibility for coverage under the Public Safety Contributory Retirement System or Public
             6956      Safety Noncontributory Retirement System for persons and political subdivisions included in this
             6957      chapter is governed by Title 49, Chapter [4] 14, Public Safety Contributory Retirement Act, and
             6958      Chapter [4a] 15, Public Safety Noncontributory Retirement Act.
             6959          Section 213. Section 53A-17a-125 is amended to read:
             6960           53A-17a-125. Appropriation for retirement and Social Security.
             6961          (1) There is appropriated to the State Board of Education for the fiscal year beginning July
             6962      1, 2001, $214,685,479 for retirement and Social Security costs.
             6963          (2) The employee's retirement contribution shall be 1% for employees who are under the
             6964      state's contributory retirement program.
             6965          (3) The employer's contribution under the state's contributory retirement program is
             6966      determined under Section [ 49-2-301 ] 49-12-301 , subject to the 1% contribution under Subsection
             6967      (2).
             6968          (4) The employer-employee contribution rate for employees who are under the state's
             6969      noncontributory retirement program is determined under Section [ 49-3-301 ] 49-13-301 .
             6970          Section 214. Section 63-95-102 is amended to read:
             6971           63-95-102. Definitions.


             6972          For purposes of this chapter:
             6973          (1) "Asset" means property of all kind, real and personal, tangible and intangible, and
             6974      includes:
             6975          (a) cash, except reasonable compensation or salary for services rendered;
             6976          (b) stock or other investments;
             6977          (c) goodwill;
             6978          (d) real property;
             6979          (e) an ownership interest;
             6980          (f) a license;
             6981          (g) a cause of action; and
             6982          (h) any similar property.
             6983          (2) "Authorizing statutes" means the statutes creating an entity as a quasi-governmental
             6984      entity.
             6985          (3) "Business interest" means:
             6986          (a) holding the position of trustee, director, officer, or other similar position with a
             6987      business entity; or
             6988          (b) the ownership, either legally or equitably, of at least 10% of the outstanding shares of
             6989      a corporation or 10% interest in any other business entity, being held by:
             6990          (i) an individual;
             6991          (ii) the individual's spouse;
             6992          (iii) a minor child of the individual; or
             6993          (iv) any combination of Subsections (3)(b)(i) through (iii).
             6994          (4) "Committee" means the Legislative Quasi-Governmental Entities Committee created
             6995      in Section 63-95-201 .
             6996          (5) "Government requestor" means:
             6997          (a) the governor;
             6998          (b) an executive branch officer other than the governor;
             6999          (c) an executive branch agency;
             7000          (d) a legislator, including a legislative sponsor of legislation creating a quasi-governmental
             7001      entity; or
             7002          (e) a legislative committee.


             7003          (6) "Interested party" means a person that held or holds the position of trustee, director,
             7004      officer, or other similar position with a quasi-governmental entity within:
             7005          (a) five years prior to the date of an action described in Subsection (8); or
             7006          (b) during the privatization of a quasi-governmental entity.
             7007          (7) "Lobbyist" is a person that provided or provides services as a lobbyist, as defined in
             7008      Section 36-11-102 , within:
             7009          (a) five years prior to the date of an action described in Subsection (8); or
             7010          (b) during the privatization of a quasi-governmental entity.
             7011          (8) (a) "Privatized" means an action described in Subsection (8)(b) taken under
             7012      circumstances in which the operations of the quasi-governmental entity are continued by a
             7013      successor entity that:
             7014          (i) is privately owned;
             7015          (ii) is unaffiliated to the state; and
             7016          (iii) receives any asset of the quasi-governmental entity.
             7017          (b) An action referred to in Subsection (8)(a) includes:
             7018          (i) the repeal of the authorizing statute of a quasi-governmental entity and the revision to
             7019      state laws to terminate the relationship between the state and the quasi-governmental entity;
             7020          (ii) the dissolution of the quasi-governmental entity;
             7021          (iii) the merger or consolidation of the quasi-governmental entity with another entity; or
             7022          (iv) the sale of all or substantially all of the assets of the quasi-governmental entity.
             7023          (9) (a) "Quasi-governmental entity" means an entity that:
             7024          (i) is created by the state or is given by the state the right to exist and conduct its affairs
             7025      as a quasi-governmental entity:
             7026          (A) to serve a public purpose; and
             7027          (B) to meet a need that cannot be met through a private business; and
             7028          (ii) is designated by the state as:
             7029          (A) an independent state agency;
             7030          (B) an independent public corporation;
             7031          (C) a quasi-public corporation; or
             7032          (D) a term similar to that described in Subsections (9)(a)(ii)(A) through (C).
             7033          (b) "Quasi-governmental entity" includes the:


             7034          (i) Dairy Commission created in Title 4, Chapter 22, Dairy Promotion Act;
             7035          (ii) Utah Technology Finance Corporation created in Title 9, Chapter 13, Utah Technology
             7036      and Small Business Finance Act;
             7037          (iii) Heber Valley Railroad Authority created in Title 9, Chapter 3, Part 3, Heber Valley
             7038      Historic Railroad Authority;
             7039          (iv) Utah Science Center Authority created in Title 9, Chapter 3, Part 4, Utah Science
             7040      Center Authority;
             7041          (v) Utah Housing [Finance Agency] Corporation created in Title 9, Chapter 4, Part 9, Utah
             7042      Housing [Finance Agency] Corporation Act;
             7043          (vi) Utah State Fair Corporation created in Title 9, Chapter 4, Part 11, Utah State Fair
             7044      Corporation Act;
             7045          (vii) Workers' Compensation Fund created in Title 31A, Chapter 33, Workers'
             7046      Compensation Fund;
             7047          (viii) Utah State Retirement Office created in Title 49, Chapter [1, Part 2, Retirement
             7048      Office and Board] 11, Utah State Retirement Systems Administration;
             7049          (ix) School and Institutional Trust Lands Administration created in Title 53C, Chapter 1,
             7050      Part 2, School and Institutional Trust Lands Administration; and
             7051          (x) Utah Communications Agency Network created in Title 63C, Chapter 7, Utah
             7052      Communications Agency Network Act.
             7053          (c) Notwithstanding Subsection (9)(a), "quasi-governmental entity" does not include:
             7054          (i) the Public Service Commission of Utah created in Section 54-1-1 ;
             7055          (ii) an institution within the state system of higher education;
             7056          (iii) a city, county, or town;
             7057          (iv) a local school district;
             7058          (v) a special district created under the authority of Title 17A, Special Districts; or
             7059          (vi) a local district created under the authority of Title 17B, Limited Purpose Local
             7060      Government Entities.
             7061          Section 215. Section 63-95-202 is amended to read:
             7062           63-95-202. Duties of the committee.
             7063          (1) The committee shall:
             7064          (a) study the scope of this chapter and determine what entities should be treated under this


             7065      chapter as quasi-governmental entities;
             7066          (b) study the provisions of the Utah Code that govern each quasi-governmental entity
             7067      including whether or not there should be consistency in these provisions;
             7068          (c) study what provisions of the Utah Code, if any, from which each quasi-governmental
             7069      entity should be exempted;
             7070          (d) study whether or not the state should receive services from or provide services to each
             7071      quasi-governmental entity;
             7072          (e) request and hear reports from each quasi-governmental entity;
             7073          (f) review the annual audit of each quasi-governmental entity that is performed in
             7074      accordance with the statutes governing the quasi-governmental entity;
             7075          (g) comply with Part 3, Creation of Quasi-Governmental Entity, in reviewing a proposal
             7076      to create a new quasi-governmental entity;
             7077          (h) if the committee recommends a change in the organizational status of a
             7078      quasi-governmental entity as provided in Subsection (2) and subject to Part 4, Privatization of
             7079      Quasi-Governmental Entities, recommend the appropriate method of changing the organizational
             7080      status of the quasi-governmental entity;
             7081          (i) study the following concerning an entity created by local agreement under Title 11,
             7082      Chapter 13, Interlocal Cooperation Act, if the state is a party to the agreement creating the entity:
             7083          (i) whether or not the entity should be subject to this chapter;
             7084          (ii) whether or not the state should receive services from or provide services to the entity;
             7085          (iii) reporting and audit requirements for the entity; and
             7086          (iv) the need, if any, to modify statutes related to the entity; and
             7087          (j) report annually to the Legislative Management Committee by no later than the
             7088      Legislative Management Committee's November meeting.
             7089          (2) The committee may:
             7090          (a) establish a form for any report required under Subsection (1);
             7091          (b) make recommendations to the Legislature concerning the organizational status of a
             7092      quasi-governmental entity;
             7093          (c) advise the Legislature concerning issues involving quasi-governmental entities; and
             7094          (d) study issues related to the implementation of Title 49, Utah State Retirement and
             7095      Insurance Benefit Act.


             7096          Section 216. Section 63E-1-102 (Effective 07/01/02) is amended to read:
             7097           63E-1-102 (Effective 07/01/02). Definitions.
             7098          As used in this title:
             7099          (1) "Authorizing statute" means the statute creating an entity as an independent entity.
             7100          (2) "Committee" means the Legislative Independent Entities Committee created in Section
             7101      63E-1-201 .
             7102          (3) "Independent corporation" means a corporation incorporated in accordance with
             7103      Chapter 2, Independent Corporations Act.
             7104          (4) (a) "Independent entity" means an entity having a public purpose relating to the state
             7105      or its citizens that is individually created by the state or is given by the state the right to exist and
             7106      conduct its affairs as an:
             7107          (i) independent state agency; or
             7108          (ii) independent corporation.
             7109          (b) "Independent entity" includes the:
             7110          (i) Dairy Commission created in Title 4, Chapter 22, Dairy Promotion Act;
             7111          (ii) Utah Technology Finance Corporation created in Title 9, Chapter 13, Utah Technology
             7112      and Small Business Finance Act;
             7113          (iii) Heber Valley Railroad Authority created in Title 9, Chapter 3, Part 3, Heber Valley
             7114      Historic Railroad Authority;
             7115          (iv) Utah Science Center Authority created in Title 9, Chapter 3, Part 4, Utah Science
             7116      Center Authority;
             7117          (v) Utah Housing [Finance Agency] Corporation created in Title 9, Chapter 4, Part 9, Utah
             7118      Housing [Finance Agency] Corporation Act;
             7119          (vi) Utah State Fair Corporation created in Title 9, Chapter 4, Part 11, Utah State Fair
             7120      Corporation Act;
             7121          (vii) Workers' Compensation Fund created in Title 31A, Chapter 33, Workers'
             7122      Compensation Fund;
             7123          (viii) Utah State Retirement Office created in Title 49, Chapter [1, Part 2, Retirement
             7124      Office and Board] 11, Utah State Retirement Systems Administration;
             7125          (ix) School and Institutional Trust Lands Administration created in Title 53C, Chapter 1,
             7126      Part 2, School and Institutional Trust Lands Administration; and


             7127          (x) Utah Communications Agency Network created in Title 63C, Chapter 7, Utah
             7128      Communications Agency Network Act.
             7129          (c) Notwithstanding this Subsection (4), "independent entity" does not include:
             7130          (i) the Public Service Commission of Utah created in Section 54-1-1 ;
             7131          (ii) an institution within the state system of higher education;
             7132          (iii) a city, county, or town;
             7133          (iv) a local school district;
             7134          (v) a special district created under the authority of Title 17A, Special Districts; or
             7135          (vi) a local district created under the authority of Title 17B, Limited Purpose Local
             7136      Government Entities.
             7137          (5) "Independent state agency" means an entity that is created by the state, but is
             7138      independent of the governor's direct supervisory control.
             7139          (6) "Monies held in trust" means monies maintained for the benefit of:
             7140          (a) one or more private individuals, including public employees;
             7141          (b) one or more public or private entities; or
             7142          (c) the owners of a quasi-public corporation.
             7143          (7) "Public corporation" means an artificial person, public in ownership, individually
             7144      created by the state as a body politic and corporate for the administration of a public purpose
             7145      relating to the state or its citizens.
             7146          (8) "Quasi-public corporation" means an artificial person, private in ownership,
             7147      individually created as a corporation by the state which has accepted from the state the grant of a
             7148      franchise or contract involving the performance of a public purpose relating to the state or its
             7149      citizens.
             7150          Section 217. Section 63E-1-202 (Effective 07/01/02) is amended to read:
             7151           63E-1-202 (Effective 07/01/02). Duties of the committee.
             7152          (1) The committee shall:
             7153          (a) study the scope of this title and determine what entities should be treated under this title
             7154      as independent entities;
             7155          (b) study the provisions of the Utah Code that govern each independent entity, including
             7156      whether or not there should be consistency in these provisions;
             7157          (c) study what provisions of the Utah Code, if any, from which each independent entity


             7158      should be exempted;
             7159          (d) study whether or not the state should receive services from or provide services to each
             7160      independent entity;
             7161          (e) request and hear reports from each independent entity;
             7162          (f) review the annual audit of each independent entity that is performed in accordance with
             7163      the statutes governing the independent entity;
             7164          (g) comply with Part 3, Creation of Independent Entities, in reviewing a proposal to create
             7165      a new independent entity;
             7166          (h) if the committee recommends a change in the organizational status of an independent
             7167      entity as provided in Subsection (2) and subject to Part 4, Privatization of Independent Entities,
             7168      recommend the appropriate method of changing the organizational status of the independent entity;
             7169          (i) study the following concerning an entity created by local agreement under Title 11,
             7170      Chapter 13, Interlocal Cooperation Act, if the state is a party to the agreement creating the entity:
             7171          (i) whether or not the entity should be subject to this chapter;
             7172          (ii) whether or not the state should receive services from or provide services to the entity;
             7173          (iii) reporting and audit requirements for the entity; and
             7174          (iv) the need, if any, to modify statutes related to the entity;
             7175          (j) make a recommendation on the organizational status of each independent entity prior
             7176      to the 2002 General Session; and
             7177          (k) report annually to the Legislative Management Committee by no later than the
             7178      Legislative Management Committee's November meeting.
             7179          (2) The committee may:
             7180          (a) establish a form for any report required under Subsection (1);
             7181          (b) make recommendations to the Legislature concerning the organizational status of an
             7182      independent entity;
             7183          (c) advise the Legislature concerning issues involving independent entities; and
             7184          (d) study issues related to the implementation of Title 49, Utah State Retirement and
             7185      Insurance Benefit Act.
             7186          Section 218. Section 67-8-3 is amended to read:
             7187           67-8-3. Compensation plan for appointive officers -- Exceptions -- Legislative
             7188      approval -- Career status attorneys.


             7189          (1) (a) The director of the Department of Human Resource Management, based upon
             7190      recommendations of the Executive and Judicial Compensation Commission shall, before October
             7191      31 of each year, recommend to the governor a compensation plan for appointed officers of the state
             7192      except those officers whose compensation is set under Section [ 49-1-203 ] 49-11-203 , 53A-1-301 ,
             7193      53B-1-105 , or 53C-1-301 .
             7194          (b) The plan shall include salaries and wages, paid leave, group insurance plans, retirement
             7195      programs, and any other benefits that may be offered to state officers.
             7196          (2) The governor shall include in each annual budget proposal to the Legislature specific
             7197      recommendations on compensation for those appointed state officers in Subsection (1).
             7198          (3) (a) After consultation with the attorney general, the director of the Department of
             7199      Human Resource Management shall place career status attorneys on a state salary schedule at a
             7200      range comparable with salaries paid attorneys in private and other public employment.
             7201          (b) The attorney general and the director shall take into consideration the experience of
             7202      the attorney, length of service with the Office of the Attorney General, quality of performance, and
             7203      responsibility involved in legal assignments.
             7204          (c) The attorney general and the director shall periodically adjust the salary levels for
             7205      attorneys in a career status to reasonably compensate them for full-time employment and the
             7206      restrictions placed on the private practice of law.
             7207          Section 219. Section 67-20-7 is amended to read:
             7208           67-20-7. Workers' compensation benefits for volunteer firefighters.
             7209          (1) In addition to the purposes set out in Subsections 67-20-3 (2) and (3), a volunteer
             7210      firefighter, as defined in Section [ 49-5-103 ] 49-16-102 , is considered an agency employee for the
             7211      purpose of receiving workers' compensation benefits under Title [35A] 34A, Chapter [3] 2,
             7212      Workers' Compensation and Chapter [3a] 3, Utah Occupational Disease Act.
             7213          (2) These benefits are the exclusive remedy for all injuries and occupational diseases
             7214      resulting from his services as a volunteer firefighter. Compensation shall be computed as indicated
             7215      in Section [ 49-5-802 ] 49-16-701 .
             7216          Section 220. Section 67-22-1 is amended to read:
             7217           67-22-1. Compensation -- Constitutional offices.
             7218          (1) The Legislature fixes salaries for the constitutional offices as follows:
             7219          (a) Governor                         $100,600


             7220          (b) Lieutenant Governor                 $78,200
             7221          (c) Attorney General                     $84,600
             7222          (d) State Auditor                     $80,700
             7223          (e) State Treasurer                     $78,200
             7224          (2) The Legislature fixes benefits for the constitutional offices as follows:
             7225          (a) Governor:
             7226          (i) a vehicle for official and personal use;
             7227          (ii) housing;
             7228          (iii) household and security staff;
             7229          (iv) household expenses;
             7230          (v) retirement benefits as provided in Title 49;
             7231          (vi) health insurance;
             7232          (vii) dental insurance;
             7233          (viii) basic life insurance;
             7234          (ix) workers' compensation;
             7235          (x) required employer contribution to Social Security;
             7236          (xi) long-term disability income insurance; and
             7237          (xii) the same additional state paid life insurance available to other noncareer service
             7238      employees.
             7239          (b) Lieutenant governor, attorney general, state auditor, and state treasurer:
             7240          (i) a vehicle for official and personal use;
             7241          (ii) the option of participating in a state retirement system established by Title 49, Chapter
             7242      [2] 12, Public Employees' Contributory Retirement Act, or Chapter [3] 13, Public Employees'
             7243      Noncontributory Retirement Act, or in a deferred compensation plan administered by the State
             7244      Retirement Office, in accordance with the Internal Revenue Code and its accompanying rules and
             7245      regulations;
             7246          (iii) health insurance;
             7247          (iv) dental insurance;
             7248          (v) basic life insurance;
             7249          (vi) workers' compensation;
             7250          (vii) required employer contribution to Social Security;


             7251          (viii) long-term disability income insurance; and
             7252          (ix) the same additional state paid life insurance available to other noncareer service
             7253      employees.
             7254          (c) Each constitutional office shall pay the cost of the additional state-paid life insurance
             7255      for its constitutional officer from its existing budget.
             7256          Section 221. Section 67-22-2 is amended to read:
             7257           67-22-2. Compensation -- Other state officers.
             7258          (1) The governor shall establish salaries for the following state officers within the
             7259      following salary ranges fixed by the Legislature:
             7260              State Officer                     Salary Range
             7261          Commissioner of Agriculture and Food         $64,600 - $87,500
             7262          Commissioner of Insurance                 $64,600 - $87,500
             7263          Commissioner of the Labor Commission         $64,600 - $87,500
             7264          Director, Alcoholic Beverage Control
             7265              Commission                     $64,600 - $87,500
             7266          Commissioner, Department of
             7267              Financial Institutions                 $64,600 - $87,500
             7268          Members, Board of Pardons and Parole         $64,600 - $87,500
             7269          Executive Director, Department
             7270              of Commerce                     $64,600 - $87,500
             7271          Executive Director, Commission on
             7272              Criminal and Juvenile Justice         $64,600 - $87,500
             7273          Adjutant General                     $64,600 - $87,500
             7274          Chair, Tax Commission                 $69,900 - $94,300
             7275          Commissioners, Tax Commission             $69,900 - $94,300
             7276          Executive Director, Department of
             7277              Community and Economic
             7278              Development                     $69,900 - $94,300
             7279          Executive Director, Tax Commission         $69,900 - $94,300
             7280          Chair, Public Service Commission             $69,900 - $94,300
             7281          Commissioner, Public Service Commission          $69,900 - $94,300


             7282          Executive Director, Department
             7283              of Corrections                     $76,000 - $102,600
             7284          Commissioner, Department of Public Safety         $76,000 - $102,600
             7285          Executive Director, Department of
             7286              Natural Resources                 $76,000 - $102,600
             7287          Director, Office of Planning
             7288              and Budget                     $76,000 - $102,600
             7289          Executive Director, Department of
             7290              Administrative Services              $76,000 - $102,600
             7291          Executive Director, Department of
             7292              Human Resource Management          $76,000 - $102,600
             7293          Executive Director, Department of
             7294              Environmental Quality             $76,000 - $102,600
             7295          State Olympic Officer                  $82,800 - $111,800
             7296          Executive Director, Department of
             7297              Workforce Services                 $82,800 - $111,800
             7298          Executive Director, Department of
             7299              Health                          $82,800 - $111,800
             7300          Executive Director, Department
             7301              of Human Services                 $82,800 - $111,800
             7302          Executive Director, Department
             7303              of Transportation                 $82,800 - $111,800
             7304          Chief Information Officer                 $82,800 - $111,800
             7305          (2) (a) The Legislature fixes benefits for the state offices outlined in Subsection (1) as
             7306      follows:
             7307          (i) the option of participating in a state retirement system established by Title 49, Utah
             7308      State Retirement and Insurance Benefit Act, or in a deferred compensation plan administered by
             7309      the State Retirement Office in accordance with the Internal Revenue Code and its accompanying
             7310      rules and regulations;
             7311          (ii) health insurance;
             7312          (iii) dental insurance;


             7313          (iv) basic life insurance;
             7314          (v) unemployment compensation;
             7315          (vi) workers' compensation;
             7316          (vii) required employer contribution to Social Security;
             7317          (viii) long-term disability income insurance;
             7318          (ix) the same additional state-paid life insurance available to other noncareer service
             7319      employees;
             7320          (x) the same severance pay available to other noncareer service employees;
             7321          (xi) the same sick leave, converted sick leave, educational allowances, and holidays
             7322      granted to Schedule B state employees, and the same annual leave granted to Schedule B state
             7323      employees with more than ten years of state service;
             7324          (xii) the option to convert accumulated sick leave to cash or insurance benefits as provided
             7325      by law or rule upon resignation or retirement according to the same criteria and procedures applied
             7326      to Schedule B state employees;
             7327          (xiii) the option to purchase additional life insurance at group insurance rates according
             7328      to the same criteria and procedures applied to Schedule B state employees; and
             7329          (xiv) professional memberships if being a member of the professional organization is a
             7330      requirement of the position.
             7331          (b) Each department shall pay the cost of additional state-paid life insurance for its
             7332      executive director from its existing budget.
             7333          (3) The Legislature fixes the following additional benefits:
             7334          (a) for the executive director of the State Tax Commission a vehicle for official and
             7335      personal use;
             7336          (b) for the executive director of the Department of Transportation a vehicle for official and
             7337      personal use;
             7338          (c) for the executive director of the Department of Natural Resources a vehicle for
             7339      commute and official use;
             7340          (d) for the Commissioner of Public Safety:
             7341          (i) an accidental death insurance policy if POST certified; and
             7342          (ii) a public safety vehicle for official and personal use;
             7343          (e) for the executive director of the Department of Corrections:


             7344          (i) an accidental death insurance policy if POST certified; and
             7345          (ii) a public safety vehicle for official and personal use;
             7346          (f) for the Adjutant General a vehicle for official and personal use; and
             7347          (g) for each member of the Board of Pardons and Parole a vehicle for commute and official
             7348      use.
             7349          (4) (a) The governor has the discretion to establish a specific salary for each office listed
             7350      in Subsection (1), and, within that discretion, may provide salary increases within the range fixed
             7351      by the Legislature.
             7352          (b) The governor shall apply the same overtime regulations applicable to other FLSA
             7353      exempt positions.
             7354          (c) The governor may develop standards and criteria for reviewing the performance of the
             7355      state officers listed in Subsection (1).
             7356          (5) Salaries for other Schedule A employees, as defined in Section 67-19-15 , which are
             7357      not provided for in this chapter, or in Title 67, Chapter 8, Utah Executive and Judicial Salary Act,
             7358      shall be established as provided in Section 67-19-15 .
             7359          Section 222. Section 78-7-35 is amended to read:
             7360           78-7-35. Civil fees of the courts of record -- Courts complex design.
             7361          (1) (a) The fee for filing any civil complaint or petition invoking the jurisdiction of a court
             7362      of record not governed by another subsection is $120.
             7363          (b) The fee for filing a complaint or petition is:
             7364          (i) $37 if the claim for damages or amount in interpleader exclusive of court costs, interest,
             7365      and attorney fees is $2,000 or less;
             7366          (ii) $80 if the claim for damages or amount in interpleader exclusive of court costs,
             7367      interest, and attorney fees is greater than $2,000 and less than $10,000;
             7368          (iii) $120 if the claim for damages or amount in interpleader is $10,000 or more; and
             7369          (iv) $80 if the petition is filed under Title 30, Chapter 3, Divorce, or Title 30, Chapter 4,
             7370      Separate Maintenance.
             7371          (c) The fee for filing a small claims affidavit is:
             7372          (i) $37 if the claim for damages or amount in interpleader exclusive of court costs, interest,
             7373      and attorney fees is $2,000 or less; and
             7374          (ii) $60 if the claim for damages or amount in interpleader exclusive of court costs,


             7375      interest, and attorney fees is greater than $2,000.
             7376          (d) The fee for filing a counter claim, cross claim, complaint in intervention, third party
             7377      complaint, or other claim for relief against an existing or joined party other than the original
             7378      complaint or petition is:
             7379          (i) $45 if the claim for relief exclusive of court costs, interest, and attorney fees is $2,000
             7380      or less;
             7381          (ii) $60 if the claim for relief exclusive of court costs, interest, and attorney fees is greater
             7382      than $2,000 and less than $10,000;
             7383          (iii) $90 if the original petition is filed under Subsection (1)(a), the claim for relief is
             7384      $10,000 or more, or the party seeks relief other than monetary damages; and
             7385          (iv) $60 if the original petition is filed under Title 30, Chapter 3, Divorce, or Title 30,
             7386      Chapter 4, Separate Maintenance.
             7387          (e) The fee for filing a small claims counter affidavit is:
             7388          (i) $35 if the claim for relief exclusive of court costs, interest, and attorney fees is $2,000
             7389      or less; and
             7390          (ii) $50 if the claim for relief exclusive of court costs, interest, and attorney fees is greater
             7391      than $2,000.
             7392          (f) The fee for depositing funds under Section 57-1-29 when not associated with an action
             7393      already before the court is determined under Subsection (1)(b) based on the amount deposited.
             7394          (g) The fee for filing a petition is:
             7395          (i) $70 for trial de novo of an adjudication of the justice court or of the small claims
             7396      department; and
             7397          (ii) $40 for an appeal of a municipal administrative determination in accordance with
             7398      Section 10-3-703.7 .
             7399          (h) The fee for filing a notice of appeal, petition for appeal of an interlocutory order, or
             7400      petition for writ of certiorari is $190.
             7401          (i) (i) Except for a petition filed under Subsection 77-18-10 (2), the fee for filing a petition
             7402      for expungement is $50.
             7403          (ii) There is no fee for a petition filed under Subsection 77-18-10 (2).
             7404          (j) (i) Fifteen dollars of the fees established by Subsections (1)(a) through (i) shall be
             7405      allocated to and between the Judges' Contributory Retirement Trust Fund and the Judges'


             7406      Noncontributory Retirement Trust Fund, as provided in Title 49, Chapter [6] 17, Judges'
             7407      Contributory Retirement Act, and Title 49, Chapter 18, Judges' Noncontributory Retirement Act.
             7408          (ii) Two dollars of the fees established by Subsections (1)(a) through (i) shall be allocated
             7409      by the state treasurer to be deposited in the restricted account, Children's Legal Defense Account,
             7410      as provided in Section 63-63a-8 .
             7411          (iii) One dollar of the fees established under Subsections (1)(a) through (e), (1)(g), and
             7412      (1)(r) shall be allocated to and deposited with the Dispute Resolution Fund as provided in Section
             7413      78-31b-9 .
             7414          (k) The fee for filing a judgment, order, or decree of a court of another state or of the
             7415      United States is $25.
             7416          (l) The fee for filing probate or child custody documents from another state is $25.
             7417          (m) (i) The fee for filing an abstract or transcript of judgment, order, or decree of the Utah
             7418      State Tax Commission is $30.
             7419          (ii) The fee for filing an abstract or transcript of judgment of a court of law of this state
             7420      or a judgment, order, or decree of an administrative agency, commission, board, council, or hearing
             7421      officer of this state or of its political subdivisions other than the Utah State Tax Commission, is
             7422      $40.
             7423          (n) The fee for filing a judgment by confession without action under Section 78-22-3 is
             7424      $25.
             7425          (o) The fee for filing an award of arbitration for confirmation, modification, or vacation
             7426      under Title 78, Chapter 31a, Utah Arbitration Act, that is not part of an action before the court is
             7427      $25.
             7428          (p) The fee for filing a petition or counter-petition to modify a decree of divorce is $30.
             7429          (q) The fee for filing any accounting required by law is:
             7430          (i) $10 for an estate valued at $50,000 or less;
             7431          (ii) $20 for an estate valued at $75,000 or less but more than $50,000;
             7432          (iii) $40 for an estate valued at $112,000 or less but more than $75,000;
             7433          (iv) $80 for an estate valued at $168,000 or less but more than $112,000; and
             7434          (v) $150 for an estate valued at more than $168,000.
             7435          (r) The fee for filing a demand for a civil jury is $50.
             7436          (s) The fee for filing a notice of deposition in this state concerning an action pending in


             7437      another state under Utah Rule of Civil Procedure 26 is $25.
             7438          (t) The fee for filing documents that require judicial approval but are not part of an action
             7439      before the court is $25.
             7440          (u) The fee for a petition to open a sealed record is $25.
             7441          (v) The fee for a writ of replevin, attachment, execution, or garnishment is $20 in addition
             7442      to any fee for a complaint or petition.
             7443          (w) The fee for a petition for authorization for a minor to marry required by Section 30-1-9
             7444      is $5.
             7445          (x) The fee for a certificate issued under Section 26-2-25 is $2.
             7446          (y) The fee for a certified copy of a document is $2 per document plus 50 cents per page.
             7447          (z) The fee for an exemplified copy of a document is $4 per document plus 50 cents per
             7448      page.
             7449          (aa) The Judicial Council shall by rule establish a schedule of fees for copies of documents
             7450      and forms and for the search and retrieval of records under Title 63, Chapter 2, Government
             7451      Records Access and Management Act. Fees under this subsection shall be credited to the court
             7452      as a reimbursement of expenditures.
             7453          (bb) There is no fee for services or the filing of documents not listed in this section or
             7454      otherwise provided by law.
             7455          (cc) Except as provided in this section, all fees collected under this section are paid to the
             7456      General Fund. Except as provided in this section, all fees shall be paid at the time the clerk accepts
             7457      the pleading for filing or performs the requested service.
             7458          (dd) The filing fees under this section may not be charged to the state, its agencies, or
             7459      political subdivisions filing or defending any action. In judgments awarded in favor of the state,
             7460      its agencies, or political subdivisions, except the Office of Recovery Services, the court shall order
             7461      the filing fees and collection costs to be paid by the judgment debtor. The sums collected under
             7462      this subsection shall be applied to the fees after credit to the judgment, order, fine, tax, lien, or
             7463      other penalty and costs permitted by law.
             7464          (2) (a) (i) From March 17, 1994 until June 30, 1998, the administrator of the courts shall
             7465      transfer all revenues representing the difference between the fees in effect after May 2, 1994, and
             7466      the fees in effect before February 1, 1994, as dedicated credits to the Division of Facilities
             7467      Construction and Management Capital Projects Fund.


             7468          (ii) (A) Except as provided in Subsection (2)(a)(ii)(B), the Division of Facilities
             7469      Construction and Management shall use up to $3,750,000 of the revenue deposited in the Capital
             7470      Projects Fund under this Subsection (2)(a) to design and take other actions necessary to initiate the
             7471      development of a courts complex in Salt Lake City.
             7472          (B) If the Legislature approves funding for construction of a courts complex in Salt Lake
             7473      City in the 1995 Annual General Session, the Division of Facilities Construction and Management
             7474      shall use the revenue deposited in the Capital Projects Fund under Subsection (2)(a)(ii) to construct
             7475      a courts complex in Salt Lake City.
             7476          (C) After the courts complex is completed and all bills connected with its construction
             7477      have been paid, the Division of Facilities Construction and Management shall use any monies
             7478      remaining in the Capital Projects Fund under Subsection (2)(a)(ii) to fund the Vernal District Court
             7479      building.
             7480          (iii) The Division of Facilities Construction and Management may enter into agreements
             7481      and make expenditures related to this project before the receipt of revenues provided for under this
             7482      Subsection (2)(a)(iii).
             7483          (iv) The Division of Facilities Construction and Management shall:
             7484          (A) make those expenditures from unexpended and unencumbered building funds already
             7485      appropriated to the Capital Projects Fund; and
             7486          (B) reimburse the Capital Projects Fund upon receipt of the revenues provided for under
             7487      this Subsection (2).
             7488          (b) After June 30, 1998, the administrator of the courts shall ensure that all revenues
             7489      representing the difference between the fees in effect after May 2, 1994, and the fees in effect
             7490      before February 1, 1994, are transferred to the Division of Finance for deposit in the restricted
             7491      account.
             7492          (c) The Division of Finance shall deposit all revenues received from the court
             7493      administrator into the restricted account created by this section.
             7494          (d) (i) From May 1, 1995 until June 30, 1998, the administrator of the courts shall transfer
             7495      $7 of the amount of a fine or bail forfeiture paid for a violation of Title 41, Motor Vehicles, in a
             7496      court of record to the Division of Facilities Construction and Management Capital Projects Fund.
             7497      The division of money pursuant to Section 78-3-14.5 shall be calculated on the balance of the fine
             7498      or bail forfeiture paid.


             7499          (ii) After June 30, 1998, the administrator of the courts or a municipality shall transfer $7
             7500      of the amount of a fine or bail forfeiture paid for a violation of Title 41, Motor Vehicles, in a court
             7501      of record or an administrative traffic proceeding in accordance with Section 10-3-703.5 to the
             7502      Division of Finance for deposit in the restricted account created by this section. The division of
             7503      money pursuant to Section 78-3-14.5 shall be calculated on the balance of the fine or bail forfeiture
             7504      paid.
             7505          (3) (a) There is created within the General Fund a restricted account known as the State
             7506      Courts Complex Account.
             7507          (b) The Legislature may appropriate monies from the restricted account to the
             7508      administrator of the courts for the following purposes only:
             7509          (i) to repay costs associated with the construction of the court complex that were funded
             7510      from sources other than revenues provided for under this Subsection (3)(b)(i); and
             7511          (ii) to cover operations and maintenance costs on the court complex.
             7512          Section 223. Repealer.
             7513          This act repeals:
             7514          Section 49-1-501, Termination of membership.
             7515          Section 49-1-605, Extra monthly payments authorized -- Adjustment of benefits and
             7516      allowances -- Incorporation into normal allowance.
             7517          Section 49-1-612, Required distributions.
             7518          Section 49-1-617, Payment of additional retirement benefit -- Rules for
             7519      implementation.
             7520          Section 49-2-102, Purpose.
             7521          Section 49-2-403, Service retirement plans -- Additional options -- Death of member
             7522      within 90 days after retirement -- Divorce of member.
             7523          Section 49-2-501, Disability coverage.
             7524          Section 49-2-702, Closing the retirement account -- Status of retirants and
             7525      beneficiaries.
             7526          Section 49-3-102, Purpose.
             7527          Section 49-3-403, Service retirement plans -- Additional options -- Death of member
             7528      within 90 days after retirement.
             7529          Section 49-3-501, Disability coverage.


             7530          Section 49-3-702, Closing the retirement account -- Status of retirants and
             7531      beneficiaries.
             7532          Section 49-4-102, Purpose.
             7533          Section 49-4-403, Service credit under both Division A and B -- Computation of
             7534      benefit -- Benefits for surviving spouse.
             7535          Section 49-4a-102, Purpose.
             7536          Section 49-4a-403, Service credit under both Division A and B -- Computation of
             7537      benefit -- Benefits for surviving spouse.
             7538          Section 49-5-102, Purpose.
             7539          Section 49-5-403, Service credit under both Division A and B -- Computation of
             7540      benefit.
             7541          Section 49-5-602, Minimum monthly allowance -- Funded by member contributions.
             7542          Section 49-6-102, Purpose.
             7543          Section 49-6-602, Minimum retirement allowance.
             7544          Section 49-6a-102, Purpose.
             7545          Section 49-7-102, Purpose.
             7546          Section 49-7-402, Cost-of-living adjustment.
             7547          Section 49-7-404, Retirement option.
             7548          Section 49-9-302, Rates established on basis of agency experience -- Limitations --
             7549      Annual report to governor and Legislature.
             7550          Section 49-9-406, Psychopathy benefit.
             7551          Section 49-9-408, Administration of disabilities -- Members of Public Safety
             7552      Retirement System Members of Judges' Retirement System.
             7553          Section 49-10-303, Preservation of Hill Air Force Base Expendable Trust Fund.
             7554          Section 224. Effective date.
             7555          If approved by two-thirds of all the members elected to each house, this act takes effect
             7556      upon approval by the governor, or the day following the constitutional time limit of Utah
             7557      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
             7558      date of veto override.





Legislative Review Note
    as of 1-7-02 4:28 PM


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

Office of Legislative Research and General Counsel


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