H.B. 60

1

PUBLIC SAFETY NONCONTRIBUTORY
2 RETIREMENT ACT AMENDMENTS
3 2003 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Neil A. Hansen
6 This act modifies the Utah State Retirement and Insurance Benefit Act by including
7 overtime in the calculation of compensation that is used to determine the defined
8 retirement benefit of members of the Public Safety Noncontributory Retirement System.
9 This act takes effect on July 1, 2003.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 49-15-102, as renumbered and amended by Chapter 250, Laws of Utah 2002
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 49-15-102 is amended to read:
15 49-15-102. Definitions.
16 As used in this chapter:
17 (1) (a) "Compensation" means the total amount of payments that are includable in
18 gross income received by a public safety service employee as base income for the regularly
19 scheduled work period. The participating employer shall establish the regularly scheduled
20 work period. Base income shall be determined prior to the deduction of any amounts the
21 public safety service employee authorizes to be deducted for salary deferral or other benefits
22 authorized by federal law.
23 (b) "Compensation" includes performance-based bonuses [and], cost-of-living
24 adjustments, and overtime.
25 (c) "Compensation" does not include:
26 [(i) overtime;]
27 [(ii)] (i) sick pay incentives;

28 [(iii)] (ii) retirement pay incentives;
29 [(iv)] (iii) the monetary value of remuneration paid in kind, as in a residence, use of
30 equipment or uniform, travel, or similar payments;
31 [(v)] (iv) a lump-sum payment or special payment covering accumulated leave; and
32 [(vi)] (v) all contributions made by a participating employer under this system or under
33 any other employee benefit system or plan maintained by a participating employer for the
34 benefit of a member or participant.
35 (d) "Compensation" for purposes of this chapter may not exceed the amount allowed
36 under Internal Revenue Code Section 401(a)(17).
37 (2) "Final average salary" means the amount computed by averaging the highest three
38 years of annual compensation preceding retirement subject to Subsections (2)(a) and (b).
39 (a) Except as provided in Subsection (2)(b), the percentage increase in annual
40 compensation in any one of the years used may not exceed the previous year's compensation by
41 more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power
42 of the dollar during the previous year, as measured by a United States Bureau of Labor
43 Statistics Consumer Price Index average as determined by the board.
44 (b) In cases where the participating employer provides acceptable documentation to the
45 office, the limitation in Subsection [(3)] (2)(a) may be exceeded if:
46 (i) the public safety service employee has transferred from another agency; or
47 (ii) the public safety service employee has been promoted to a new position.
48 (3) "Line-of-duty death" means a death resulting from external force, violence, or
49 disease occasioned by an act of duty as a public safety service employee.
50 (4) "Participating employer" means an employer which meets the participation
51 requirements of Section 49-15-201 .
52 (5) (a) "Public safety service" means at least 2,080 hours of regularly scheduled
53 compensated employment per year rendered by a member who is a:
54 (i) law enforcement officer in accordance with Section 53-13-103 ;
55 (ii) correctional officer in accordance with Section 53-13-104 ; and
56 (iii) special function officer approved in accordance with Section [ 49-4a-203 ]
57 49-15-201 and Section 53-13-105 .
58 (b) "Public safety service" also requires that in the course of employment the

59 employee's life or personal safety is at risk.
60 (6) "Public safety service employee" means an employee of a participating employer
61 who performs public safety service under this chapter.
62 (7) "System" means the Public Safety Noncontributory Retirement System created
63 under this chapter.
64 (8) "Years of service credit" means the number of periods, each to consist of 12 full
65 months as determined by the board, whether consecutive or not, during which a public safety
66 service employee was employed by a participating employer, including time the public safety
67 service employee was absent in the service of the United States government on military duty.
68 Section 2. Effective date.
69 This act takes effect on July 1, 2003.




Legislative Review Note
as of 12-5-02 3:23 PM

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

Office of Legislative Research and General Counsel