H.B. 263 Enrolled

STATE RETIREMENT SYSTEM AMENDMENTS
2004 GENERAL SESSION
STATE OF UTAH
Sponsor: Brad King

LONG TITLE
General Description:
This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
purchase of certain service credit provisions.
Highlighted Provisions:
This bill:
. allows an option for the purchase of up to five years of service credit for members in
the Public Employees' Contributory Retirement System;
. requires a minimum years of service credit purchase sufficient to allow the member
to retire;
. requires the member to retire immediately after the purchase of service credit;
. provides that the service credit may be jointly purchased by the member who must
pay at least 5% of the cost and the participating employer; and
. provides for certain eligibility requirements, purchase price for years of service, and
a nondiscriminatory purchase policy adopted by the participating employer.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
49-12-409, Utah Code Annotated 1953

Be it enacted by the Legislature of the state of Utah:

Section 1. Section 49-12-409 is enacted to read:
49-12-409. Purchase of service credit -- Conditions -- Cost -- Nondiscrimination
policy.
(1) (a) A member may purchase or a member and a participating employer may jointly
purchase a maximum of five years of service credit which cannot otherwise be purchased under
this title.
(b) At a minimum, the years of service credit purchased shall be sufficient to allow the
member to meet the retirement eligibility requirements of this system with no actuarial reduction.
(c) The member's retirement date shall be immediately after the purchase of years of
service credit.
(d) The member shall pay at least 5% of the cost of the purchase.
(e) To qualify for a purchase of service credit under this section, the member shall:
(i) have at least five years of service credit; and
(ii) otherwise meet federal eligibility requirements.
(2) The purchase price for the years of service credit shall be calculated and paid for as
provided in Section 49-11-403 .
(3) Prior to making any purchase of years of service credit under this section, a
participating employer shall adopt a purchase policy that includes nondiscriminatory participation
standards for all regular full-time employees.

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