H.B. 225

1

RETIREMENT SYSTEMS MEMBERSHIP
2 EXCLUSIONS
3 2003 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Brad L. Dee
6 This act modifies the Utah State Retirement and Insurance Benefit Act by increasing the
7 cap on the number of positions that a municipality, county, or political subdivision may
8 exclude from membership in the Public Employees' Contributory Retirement System and
9 the Public Employees' Noncontributory Retirement System. This act takes effect on July
10 1, 2003.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 AMENDS:
13 49-12-203, as renumbered and amended by Chapter 250, Laws of Utah 2002
14 49-13-203, as renumbered and amended by Chapter 250, Laws of Utah 2002
15 Be it enacted by the Legislature of the state of Utah:
16 Section 1. Section 49-12-203 is amended to read:
17 49-12-203. Exclusions from membership in system.
18 (1) The following employees are not eligible for service credit in this system:
19 (a) An employee whose employment status is temporary in nature due to the nature or
20 the type of work to be performed, provided that:
21 (i) if the term of employment exceeds six months and the employee otherwise qualifies
22 for service credit in this system, the participating employer shall report and certify to the office
23 that the employee is a regular full-time employee effective the beginning of the seventh month
24 of employment; or
25 (ii) if an employee, previously terminated prior to being eligible for service credit in
26 this system is reemployed within three months of termination by the same participating
27 employer, the participating employer shall report and certify that the member is a regular

28 full-time employee when the total of the periods of employment equals six months and the
29 employee otherwise qualifies for service credit in this system.
30 (b) A full-time student, the spouse of a full-time student, or a person employed in a
31 trainee relationship who files a formal request for exemption.
32 (c) (i) A current or future employee of a two-year or four-year college or university who
33 holds, or is entitled to hold, under Section 49-12-204 , a retirement annuity contract with the
34 Teachers' Insurance and Annuity Association of America or with any other public or private
35 system, organization, or company during any period in which required contributions based on
36 compensation have been paid on behalf of the employee by the employer.
37 (ii) The employee, upon cessation of the participating employer contributions, shall
38 immediately become eligible for service credit in this system.
39 (d) An employee serving as an exchange employee from outside the state.
40 (e) An elected official who files a formal request for exemption.
41 (f) An executive department head of the state, a member of the State Tax Commission,
42 the Public Service Commission, and a member of a full-time or part-time board or commission
43 who files a formal request for exemption.
44 (g) An employee of the Department of Workforce Services who is covered under
45 another retirement system allowed under Title 35A, Chapter 4, Employment Security Act.
46 (h) (i) A person appointed as a city manager or chief city administrator or another
47 person employed by a municipality, county, or other political subdivision who is not entitled to
48 merit or civil service protection.
49 (ii) A person eligible for exclusion under Subsection (1)(h)(i) shall file a formal request
50 for exemption and be employed in a position designated as exempt under an employee
51 exemption plan developed by the municipality, county, or political subdivision.
52 (2) (a) A municipality, county, or political subdivision may not exempt more than [30]
53 50 positions or a number equal to 10% of the employees of the municipality, county, or
54 political subdivision whichever is lesser.
55 (b) A municipality, county, or political subdivision may exempt at least one regular
56 full-time employee.
57 (3) Each participating employer shall:
58 (a) file employee exemptions annually with the office; and

59 (b) update the employee exemptions in the event of any change.
60 (4) The office may make rules to implement this section.
61 Section 2. Section 49-13-203 is amended to read:
62 49-13-203. Exclusions from membership in system.
63 (1) The following employees are not eligible for service credit in this system:
64 (a) An employee whose employment status is temporary in nature due to the nature or
65 the type of work to be performed, provided that:
66 (i) if the term of employment exceeds six months and the employee otherwise qualifies
67 for service credit in this system, the participating employer shall report and certify to the office
68 that the employee is a regular full-time employee effective the beginning of the seventh month
69 of employment; and
70 (ii) if an employee, previously terminated prior to becoming eligible for service credit
71 in this system, is reemployed within three months of termination by the same participating
72 employer, the participating employer shall report and certify to the office that the member is a
73 regular full-time employee when the total of the periods of employment equals six months and
74 the employee otherwise qualifies for service credit in this system.
75 (b) A full-time student or the spouse of a full-time student and another person employed
76 in a trainee relationship who file a formal request for exemption.
77 (c) (i) A current or future employee of a two-year or four-year college or university who
78 holds, or is entitled to hold, under Section 49-13-204 , a retirement annuity contract with the
79 Teachers' Insurance and Annuity Association of America or with any other public or private
80 system, organization, or company during any period in which required contributions based on
81 compensation have been paid on behalf of the employee by the employer.
82 (ii) The employee, upon cessation of the participating employer contributions, shall
83 immediately become eligible for service credit in this system.
84 (d) An employee serving as an exchange employee from outside the state.
85 (e) An elected official who files a formal request for exemption.
86 (f) An executive department head of the state or a legislative director, senior executive
87 employed by the governor's office, a member of the State Tax Commission, a member of the
88 Public Service Commission, the State Olympic Officer, and a member of a full-time or
89 part-time board or commission who files a formal request for exemption.

90 (g) An employee of the Department of Workforce Services who is covered under
91 another retirement system allowed under Title 35A, Chapter 4, Employment Security Act.
92 (h) (i) A person appointed as a city manager or chief city administrator or another
93 person employed by a municipality, county, or other political subdivision, who is not entitled to
94 merit or civil service protection.
95 (ii) A person eligible for exclusion under Subsection (1)(h)(i) shall file a formal request
96 for exemption and be employed in a position designated as exempt under an employee
97 exemption plan developed by the municipality, county, or political subdivision.
98 (2) (a) A municipality, county, or political subdivision may not exempt more than [30]
99 50 positions or a number equal to 10% of the employees of the municipality, county, or
100 political subdivision, whichever is lesser.
101 (b) A municipality, county, or political subdivision may exempt at least one regular
102 full-time employee.
103 (3) Each participating employer shall:
104 (a) file employee exemptions annually with the office; and
105 (b) update the employee exemptions in the event of any change.
106 (4) The office may make rules to implement this section.
107 Section 3. Effective date.
108 This act takes effect on July 1, 2003.




Legislative Review Note
as of 1-21-03 2:10 PM

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

Office of Legislative Research and General Counsel