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6 LONG TITLE
7 General Description:
8 This bill modifies the Utah State Retirement and Insurance Benefit Act provisions,
9 including many technical or conforming amendments.
10 Highlighted Provisions:
11 This bill:
12 . adds "Utah State Retirement Systems" as an alternative official name for the Utah
13 State Retirement Office;
14 . provides that reemployment restrictions following retirement does not apply to
15 appointed officers;
16 . amends the length of time a participating employer is required to maintain records
17 needed for retirement purposes to the earliest of three years after the date of
18 retirement or the date of death of the employee;
19 . amends the criteria for being unable to locate surviving beneficiaries in order to pay
20 benefits to within 12 months of the date a reasonable attempt is made to locate the
22 . allows a retiree in either the contributory or noncontributory system whose
23 retirement date is on or after July 1, 1995, to make an irrevocable cancellation of
24 lump-sum death benefits;
25 . requires a member in the contributory system who is transferred or reemployed to
26 transfer to the noncontributory system if the new employer is a participating
27 employer in the noncontributory system;
28 . provides that contribution rates for each participating employer in the public safety
29 contributory system and the public safety noncontributory systems may be different
30 based on the participating employers current funding status and actuarial
32 . provides that employers that maintain a regularly constituted fire department are
33 eligible to participate in the firefighters retirement system;
34 . provides that employees who have medical employee benefit plan coverage at the
35 time of their retirement are eligible for future Medicare supplement coverage; and
36 . makes technical corrections.
37 Monies Appropriated in this Bill:
39 Other Special Clauses:
40 This bill takes effect on July 1, 2004.
41 Utah Code Sections Affected:
43 49-11-201, as renumbered and amended by Chapter 250, Laws of Utah 2002
44 49-11-504, as last amended by Chapter 240, Laws of Utah 2003
45 49-11-602, as last amended by Chapter 240, Laws of Utah 2003
46 49-11-609, as last amended by Chapter 240, Laws of Utah 2003
47 49-11-612, as last amended by Chapter 240, Laws of Utah 2003
48 49-12-404, as renumbered and amended by Chapter 250, Laws of Utah 2002
49 49-13-205, as renumbered and amended by Chapter 250, Laws of Utah 2002
50 49-13-404, as renumbered and amended by Chapter 250, Laws of Utah 2002
51 49-14-301, as renumbered and amended by Chapter 250, Laws of Utah 2002
52 49-15-301, as renumbered and amended by Chapter 250, Laws of Utah 2002
53 49-16-201, as renumbered and amended by Chapter 250, Laws of Utah 2002
54 49-19-401, as last amended by Chapter 240, Laws of Utah 2003
55 49-19-402, as enacted by Chapter 250, Laws of Utah 2002
56 49-20-201, as renumbered and amended by Chapter 250, Laws of Utah 2002
57 49-20-401, as last amended by Chapter 240, Laws of Utah 2003
59 Be it enacted by the Legislature of the state of Utah:
60 Section 1. Section 49-11-201 is amended to read:
61 49-11-201. Establishment of retirement office -- An independent state agency --
62 Office exemption.
63 (1) (a) There is established the Utah State Retirement Office, which may also be
64 known and function as the Utah State Retirement Systems.
65 (b) The office shall administer the systems, plans, and programs and perform all other
66 functions assigned to it under this title.
67 (2) (a) The office is an independent state agency.
68 (b) It is subject to legislative and executive department budgetary review and comment.
69 (3) The office may establish branch offices upon approval of the board.
70 (4) The board and office are exempt from those acts which are applicable to state and
71 other governmental entities under this code.
72 Section 2. Section 49-11-504 is amended to read:
73 49-11-504. Reemployment of a retiree -- Restrictions.
74 (1) A person who retires from a nonparticipating employer is not subject to any
75 postretirement restrictions under this title.
76 (2) A retiree of an agency who returns to work at a different agency is not subject to
77 any postretirement restrictions under this section and may not earn additional service credit.
78 (3) For the purposes of Subsections (4) and (5), "full-time" employment means
79 employment requiring 20 hours of work per week or more or at least a half-time teaching
81 (4) A retiree of an agency who is reemployed on a full-time basis by the same agency
82 within six months of the date of retirement is subject to the following:
83 (a) the agency shall immediately notify the office;
84 (b) the office shall cancel the retiree's allowance and reinstate the retiree to active
85 member status;
86 (c) the allowance cancellation and reinstatement to active member status is effective on
87 the first day of the month following the date of reemployment;
88 (d) the reinstated retiree may not retire again with a recalculated benefit for a two-year
89 period from the date of cancellation of the original allowance, and if the retiree retires again
90 within the two-year period, the original allowance shall be resumed; and
91 (e) a reinstated retiree retiring after the two-year period shall be credited with the
92 service credit in the retiree's account at the time of the first retirement and from that time shall
93 be treated as a member of a system, including the accrual of additional service credit, but
94 subject to recalculation of the allowance under Subsection (9).
95 (5) A retiree of an agency who is reemployed by the same agency within six months of
96 retirement on a less than full-time basis by the same agency is subject to the following:
97 (a) the retiree may earn, without penalty, compensation from that position which is not
98 in excess of the exempt earnings permitted by Social Security;
99 (b) if a retiree receives compensation in a calendar year in excess of the Social Security
100 limitation, 25% of the allowance shall be suspended for the remainder of the six-month period;
101 (c) the effective date of a suspension and reinstatement of an allowance shall be set by
102 the office; and
103 (d) any suspension of a retiree's allowance under this Subsection (5) shall be applied
104 on a calendar year basis.
105 (6) For six months immediately following retirement, the retiree and participating
106 employer shall:
107 (a) maintain an accurate record of gross earnings in employment;
108 (b) report the gross earnings at least monthly to the office;
109 (c) immediately notify the office in writing of any postretirement earnings under
110 Subsection (4); and
111 (d) immediately notify the office in writing whether postretirement earnings equal or
112 exceed the exempt earnings under Subsection (5).
113 (7) A retiree of an agency who is reemployed by the same agency after six months from
114 the retirement date is not subject to any postretirement [
115 and may not earn additional service credit.
116 (8) If a participating employer hires a retiree that may not earn additional service credit
117 under this section, the participating employer shall contribute the same percentage of a retiree's
118 salary that the participating employer would have been required to contribute if the retiree were
119 an active member, up to the amount allowed by federal law, to a retiree designated:
120 (a) defined contribution plan administered by the board, if the participating employer
121 participates in the defined contribution plan administered by the board; or
122 (b) defined contribution plan offered by the participating employer if the participating
123 employer does not participate in a defined contribution plan administered by the board.
124 (9) Notwithstanding any other provision of this section, a retiree who has returned to
125 work, accrued additional service credit, and again retires shall have the retiree's allowance
126 recalculated using:
127 (a) the formula in effect at the date of the retiree's original retirement for all service
128 credit accrued prior to that date; and
129 (b) the formula in effect at the date of the subsequent retirement for all service credit
130 accrued between the first and subsequent retirement dates.
131 (10) This section does not apply to appointed officers or elected positions.
132 (11) The board may make rules to implement this section.
133 Section 3. Section 49-11-602 is amended to read:
134 49-11-602. Participating employer to maintain records -- Time limit -- Penalties
135 for failure to comply.
136 (1) A participating employer shall maintain records necessary to calculate benefits
137 under this title and other records necessary for proper administration of this title as required by
138 the office.
139 (2) A participating employer shall maintain the records required under Subsection (1)
140 until the [
141 (a) three years after the date of retirement of the employee from a system or plan;
142 (b) three years after the date of death of the employee; or
143 (c) 65 years from the date [
144 participating employer.
145 (3) A participating employer shall be liable to the office for:
146 (a) any liabilities and expenses, including administrative expenses and the cost of
147 increased benefits to members, resulting from the participating employer's failure to maintain
148 records under this section; and
149 (b) a penalty equal to 1% of the participating employer's last month's contributions.
150 (4) The executive director may waive all or any part of the interest, penalties, expenses,
151 and fees if the executive director finds there were extenuating circumstances surrounding the
152 participating employer's failure to comply with this section.
153 (5) The executive director may estimate the length of service, compensation, or age of
154 any member, if that information is not contained in the records.
155 Section 4. Section 49-11-609 is amended to read:
156 49-11-609. Beneficiary designations -- Revocation of beneficiary designation --
157 Procedure -- Beneficiary not designated -- Payment to survivors in order established
158 under the Uniform Probate Code -- Restrictions on payment -- Payment of deceased's
160 (1) As used in this section, "member" includes a member, retiree, participant, covered
161 individual, a spouse of a retiree participating in the insurance benefits created by Sections
162 49-12-404 and 49-13-404 , or an alternate payee under a domestic relations order dividing a
163 defined contribution account.
164 (2) The most recent beneficiary designations contained in office records, including
165 electronic records, at the time of the member's death are binding in the payment of any benefits
166 due under this title.
167 (3) (a) Except where an optional continuing benefit is chosen, or the law makes a
168 specific benefit designation to a dependent spouse, a member may revoke a beneficiary
169 designation at any time and may execute and file a different beneficiary designation with the
171 (b) A change of beneficiary designation shall be completed on forms provided by the
173 (4) (a) All benefits payable by the office may be paid or applied to the benefit of the
174 surviving next of kin of the deceased in the order of precedence established under Title 75,
175 Chapter 2, Intestate Succession and Wills, if:
176 (i) no beneficiary is designated or if all designated beneficiaries have predeceased the
178 (ii) the location of the beneficiary or secondary beneficiaries cannot be ascertained by
179 the office within 12 months of the date [
180 attempt is made by the office to locate the beneficiaries; or
181 (iii) the beneficiary has not completed the forms necessary to pay the benefits within
182 six months of the date that beneficiary forms are sent to the beneficiary's last-known address.
183 (b) (i) A payment may not be made to a person included in any of the groups referred
184 to in Subsection (4)(a) if at the date of payment there is a living person in any of the groups
185 preceding it.
186 (ii) Payment to a person in any group based upon receipt from the person of an
187 affidavit in a form satisfactory to the office that:
188 (A) there are no living individuals in the group preceding it;
189 (B) the probate of the estate of the deceased has not been commenced; and
190 (C) more than three months have elapsed since the date of death of the decedent.
191 (5) Benefits paid under this section shall be:
192 (a) a full satisfaction and discharge of all claims for benefits under this title; and
193 (b) payable by reason of the death of the decedent.
194 Section 5. Section 49-11-612 is amended to read:
195 49-11-612. Nonassignability of benefits or payments -- Exemption from legal
197 (1) Except as provided in Subsections (2), (3), and (4), the right of any member, retiree,
198 participant, or beneficiary to any retirement benefit, retirement payment, or any other
199 retirement right accrued or accruing under this title and the assets of the funds created by this
200 title are not subject to alienation or assignment by the member, retiree, participant, or their
201 beneficiaries and are not subject to attachment, execution, garnishment, or any other legal or
202 equitable process.
203 (2) The office may, upon the request of the retiree, deduct from the retiree's allowance
204 insurance premiums or other dues payable on behalf of the retiree, but only to those entities
205 that have received the deductions prior to February 1, 2002.
206 (3) (a) The office shall provide for the division of an allowance, defined contribution
207 account, continuing monthly death benefit, or refund of member contributions upon
208 termination to former spouses and family members under an order of a court of competent
209 jurisdiction with respect to domestic relations matters on file with the office.
210 (b) The court order shall specify the manner in which the allowance, defined
211 contribution account, continuing monthly death benefit, or refund of member contributions
212 shall be partitioned, whether as a fixed amount or as a percentage of the benefit.
213 (c) Allowances, continuing monthly death benefits, and refunds of member
214 contributions split under a domestic relations order are subject to the following:
215 (i) the amount to be paid or the period for which payments shall be made under the
216 original domestic relations order may not be altered if the alteration affects the actuarial
217 calculation of the allowance;
218 (ii) payments to an alternate payee shall begin at the time the member or beneficiary
219 begins receiving payments; and
220 (iii) the alternate payee shall receive payments in the same form as [
221 allowances received by the member or beneficiary.
222 (4) In accordance with federal law, the board may deduct the required amount from any
223 benefit, payment, or other right accrued or accruing to any member of a system, plan, or
224 program under this title to offset any amount that member owes to a system, plan, or program
225 administered by the board.
226 (5) The board shall make rules to implement this section.
227 Section 6. Section 49-12-404 is amended to read:
228 49-12-404. Lump-sum death benefit for retiree and spouse.
229 (1) (a) Upon retirement, a retiree may elect to have the office deduct an actuarially
230 determined amount from the retiree's allowance to provide a lump-sum benefit payable to a
231 beneficiary upon the death of the retiree.
232 (b) [
233 amount deducted from the retiree's allowance to provide a lump-sum death benefit payable to a
234 beneficiary upon the death of the retiree's lawful spouse at the time of retirement.
235 (c) The board may make rules for the administration of this lump-sum death benefit.
236 (2) (a) For [
237 section through a reduction of an allowance, benefits shall be paid in accordance with Sections
238 49-11-609 and 49-11-610 .
239 (b) If the retiree chooses Option Three, Four, Five, or Six, and a lump-sum death
240 benefit is payable after the death of the retiree [
241 restored to its original amount.
242 (3) (a) A retiree whose retirement date is on or after July 1, 1995, may elect to cancel
243 the lump-sum death benefit under this section.
244 (b) The cancellation under this Subsection (3) is irrevocable.
245 (c) Upon cancellation, the allowance shall be restored to its original amount and
246 benefits under this section may not be paid.
247 Section 7. Section 49-13-205 is amended to read:
248 49-13-205. Conversion to system -- Time schedule -- Conversion windows.
249 (1) An employee governed under Section 49-13-201 shall make the election to
250 participate in this system within six months of July 1, 1986.
251 (2) (a) (i) An employer governed under Sections 49-13-201 and 49-13-202 shall make
252 the election to participate in this system within six months of July 1, 1986.
253 (ii) The employer shall indicate whether or not it elects to participate by enacting a
254 resolution or ordinance to that effect.
255 (iii) Prior to the enactment of the resolution or ordinance, a hearing shall be held by the
256 employer, at which all employees of the political subdivision shall be given an opportunity to
257 be heard on the question of participating in this system.
258 (iv) Notice of the hearing shall be mailed to all employees within 30 days of the
259 hearing and shall contain the time, place, and purpose of the hearing.
260 (b) A regular full-time employee has six months from the date the employer elects to
261 participate in this system in which to make the election to participate in this system and
262 become eligible for service credit in this system.
263 (3) Subsections (1) and (2) shall be used to provide a second time period of conversion
264 to this system beginning July 1, 1990.
265 (4) Subsections (1) and (2) shall be used to provide a third time period of conversion to
266 this system beginning July 1, 1995.
267 (5) A member of the Contributory Retirement System who is employed by one agency
268 and who either transfers to or is reemployed by another agency shall transfer to the
269 Noncontributory Retirement System as of the date of employment, if the participating employer
270 has elected to participate in the Noncontributory Retirement System.
271 Section 8. Section 49-13-404 is amended to read:
272 49-13-404. Lump-sum death benefit for retiree and spouse.
273 (1) (a) Upon retirement, a retiree may elect to have the office deduct an actuarially
274 determined amount from the retiree's allowance to provide a lump-sum benefit payable to a
275 beneficiary upon the death of the retiree.
276 (b) [
277 amount deducted from the retiree's allowance to provide a lump-sum death benefit payable to a
278 beneficiary upon the death of the retiree's lawful spouse at the time of retirement.
279 (c) The board shall make rules for the administration of this lump-sum death benefit.
280 (2) (a) For [
281 section through a reduction of an allowance, benefits shall be paid in accordance with Sections
282 49-11-609 and 49-11-610 .
283 (b) If the retiree chooses Option Three, Four, Five, or Six, and a lump-sum death
284 benefit is payable after the death of the retiree [
285 restored to its original amount.
286 (3) (a) A retiree whose retirement date is on or after July 1, 1995, may elect to cancel
287 the lump-sum death benefit under this section.
288 (b) The cancellation under this Subsection (3) is irrevocable.
289 (c) Upon cancellation, the allowance shall be restored to its original amount and
290 benefits under this section may not be paid.
291 Section 9. Section 49-14-301 is amended to read:
292 49-14-301. Contributions -- Two divisions -- Election by employer to pay
293 employee contributions -- Accounting for and vesting of member contributions --
295 (1) Participating employers and members shall jointly pay the certified contribution
296 rates to the office to maintain this system on a financially and actuarially sound basis.
297 (2) For purposes of determining contribution rates, this system is divided into two
298 divisions according to Social Security coverage as follows:
299 (a) members of this system with on-the-job Social Security coverage are in Division A;
301 (b) members of this system without on-the-job Social Security coverage are in Division
303 (3) (a) A participating employer may elect to pay all or part of the required member
304 contributions, in addition to the required participating employer contributions.
305 (b) Any amount contributed by a participating employer under this section shall vest to
306 the member's benefit as though the member had made the contribution.
307 (c) The required member contributions shall be reduced by the amount that is paid by
308 the participating employer.
309 (4) (a) All member contributions are credited by the office to the account of the
310 individual member.
311 (b) This amount, plus refund interest, is held in trust for the payment of benefits to the
312 member or the member's beneficiaries.
313 (c) All member contributions are vested and nonforfeitable.
314 (5) (a) Each member is considered to consent to payroll deductions of member
316 (b) The payment of compensation less these payroll deductions is considered full
317 payment for services rendered by the member.
318 (6) Contribution rates for a participating employer may be different than for other
319 participating employers based on the participating employer's current funding status and
320 actuarial experience.
321 Section 10. Section 49-15-301 is amended to read:
322 49-15-301. Contributions -- Two divisions.
323 (1) Participating employers shall pay the certified contribution rates to the office to
324 maintain this system on a financially and actuarially sound basis.
325 (2) For purposes of determining contribution rates, this system is divided into two
326 divisions according to Social Security coverage.
327 (a) Members of this system with on-the-job Social Security coverage are Division A.
328 (b) Members of this system without on-the-job Social Security coverage are in Division
330 (3) Contribution rates for a participating employer may be different than for other
331 participating employers based on the participating employer's current funding status and
332 actuarial experience.
333 Section 11. Section 49-16-201 is amended to read:
334 49-16-201. System membership -- Eligibility.
335 (1) A firefighter service employee who performs firefighter service for an employer
336 participating in this system is eligible for service credit in this system upon the earliest of:
337 (a) July 1, 1971, if the firefighter service employee was employed by the participating
338 employer on July 1, 1971, and the participating employer was participating in this system on
339 that date;
340 (b) the date the participating employer begins participating in this system if the
341 firefighter service employee was employed by the participating employer on that date; or
342 (c) the date the firefighter service employee is hired to perform firefighter services for a
343 participating employer.
344 (2) (a) (i) A participating employer that has public safety service and firefighter service
345 employees that require cross-training and duty shall enroll the dual purpose employees in the
346 system in which the greatest amount of time is actually worked.
347 (ii) The employees shall either be full-time public safety service or full-time firefighter
348 service employees of the participating employer.
349 (b) (i) Prior to transferring a dual purpose employee from one system to another, the
350 participating employer shall receive written permission from the office.
351 (ii) The office may request documentation to verify the appropriateness of the transfer.
352 (3) (a) A person hired by a regularly constituted fire department on or after July 1,
353 1971, who does not perform firefighter service is not eligible for service credit in this system.
354 (b) The nonfirefighter service employee shall become a member of the system for
355 which the nonfirefighter service employee qualifies for service credit.
356 (c) The service credit exclusion under this Subsection (3) may not be interpreted to
357 prohibit the assignment of a disabled or partially disabled firefighter to a nonfirefighter service
359 (d) If Subsection (3)(c) applies, the firefighter service employee remains eligible for
360 service credit in this system.
361 (4) An allowance or other benefit may not be granted under this system that is based
362 upon the same service for benefits received under some other system.
363 (5) Service as a volunteer firefighter is not eligible for service credit in this system.
364 (6) An employer that maintains a regularly constituted fire department is eligible to
365 participate in this system.
366 Section 12. Section 49-19-401 is amended to read:
367 49-19-401. Eligibility for an allowance -- Governor -- Legislator.
368 (1) A governor is qualified to receive an allowance when:
369 (a) the governor has submitted to the office a notarized retirement application form that
370 states the proposed retirement date; and
371 (b) one of the following conditions is met as of the retirement date:
372 (i) the governor has completed at least one full term in office and has attained an age of
373 65 years; or
374 (ii) the governor has served as governor of the state for at least ten years and has
375 attained an age of 62 years.
376 (2) A legislator is qualified to receive an allowance when:
377 (a) the legislator has submitted to the office a notarized retirement application form
378 that states the proposed retirement date; and
379 (b) one of the following conditions is met as of the retirement date:
380 (i) the legislator has completed at least four years in the Legislature and has attained an
381 age of 65 years; or
382 (ii) the legislator has completed at least ten years in the Legislature and has attained an
383 age of 62 years.
384 (3) (a) The retirement date shall be the 1st or the 16th day of the month as selected by
385 the member.
386 (b) The retirement date may not be more than 90 days before or after the date the
387 application is received by the office.
388 (4) A member who withdraws member contributions shall forfeit all allowances based
389 on those contributions.
390 (5) If a retired legislator is elected to another term in the Legislature or continues to
391 serve in the Legislature [
392 beginning of each session under rules established by the board, but is restored at the same
393 amount at the end of the session.
394 (6) A member receiving an allowance while serving as a legislator is eligible for
395 additional service credits and allowance adjustments at the end of each term of office if the
396 legislator continues as a contributing member during the member's service as a legislator.
397 Section 13. Section 49-19-402 is amended to read:
398 49-19-402. Calculation of allowance -- Reduction for early retirement.
399 (1) (a) The base retirement amount for a governor under this plan is $500 per term,
400 adjusted as provided in Section 49-19-404 since 1973.
401 (b) A governor's allowance shall be calculated by multiplying the base retirement
402 amount at the [
403 governor served, including fractions of terms.
404 (2) (a) The base retirement amount for a legislator under this plan is $10 per year of
405 service in the Legislature, adjusted as provided in Section 49-19-404 , since 1967.
406 (b) A legislator's allowance shall be calculated by multiplying the base retirement
407 amount at the [
408 legislator served, including fractions of years.
409 (3) If a governor or legislator retires prior to age 65, the allowance shall be reduced by
410 3% for each year of retirement between age 62 and age 65.
411 Section 14. Section 49-20-201 is amended to read:
412 49-20-201. Program participation -- Eligibility -- Optional for certain groups.
413 (1) (a) The state shall participate in the program on behalf of its employees.
414 (b) Other employers, including political subdivisions and educational institutions, are
415 eligible, but are not required, to participate in the program on behalf of their employees.
416 (2) (a) The Department of Health may participate in the program for the purpose of
417 providing health and dental benefits to children enrolled in the Utah Children's Health
418 Insurance Program created in Title 26, Chapter 40, Utah Children's Health Insurance Act, if the
419 provisions in Subsection 26-40-110 (4) occur.
420 (b) If the Department of Health participates in the program under the provisions of this
421 Subsection (2), all insurance risk associated with the Children's Health Insurance Program shall
422 be the responsibility of the Department of Health and not the program or the office.
423 (3) A covered individual covered under a medical employee benefit plan shall be
424 eligible for coverage after termination of employment under rules adopted by the board.
425 (4) [
426 are eligible for Medicare supplement coverage under this chapter upon becoming eligible for
427 Medicare Part A and Part B coverage[
428 (a) retirees;
429 (b) members;
430 (c) participants;
431 (d) employees who have medical employee benefit plan coverage at the time of their
432 retirement; and
433 (e) current spouses of those who are eligible under Subsections (4)(a) through (d).
434 Section 15. Section 49-20-401 is amended to read:
435 49-20-401. Program -- Powers and duties.
436 (1) The program shall:
437 (a) act as a self-insurer of employee benefit plans and administer those plans;
438 (b) enter into contracts with private insurers or carriers to underwrite employee benefit
439 plans as considered appropriate by the program;
440 (c) indemnify employee benefit plans or purchase commercial reinsurance as
441 considered appropriate by the program;
442 (d) provide descriptions of all employee benefit plans under this chapter in cooperation
443 with covered employers;
444 (e) process claims for all employee benefit plans under this chapter or enter into
445 contracts, after competitive bids are taken, with other benefit administrators to provide for the
446 administration of the claims process;
447 (f) obtain an annual actuarial review of all health and dental benefit plans and a
448 periodic review of all other employee benefit plans;
449 (g) consult with the covered employers to evaluate employee benefit plans and develop
450 recommendations for benefit changes;
451 (h) annually submit a budget and audited financial statements to the governor and
452 Legislature which includes total projected benefit costs and administrative costs;
453 (i) maintain reserves sufficient to liquidate the unrevealed claims liability and other
454 liabilities of the employee benefit plans as certified by the program's consulting actuary;
455 (j) submit its recommended benefit adjustments for state employees to the director of
456 the state Department of Human Resource Management;
457 (k) determine benefits and rates, upon approval of the board, for multiemployer risk
458 pools, retiree coverage, and conversion coverage;
459 (l) determine benefits and rates, upon approval of the board and the Legislature, for
460 state employees;
461 (m) administer benefits and rates, upon ratification of the board, for single employer
462 risk pools;
463 (n) request proposals for provider networks or health and dental benefit plans
464 administered by third party carriers at least once every three years for the purposes of:
465 (i) stimulating competition for the benefit of covered individuals;
466 (ii) establishing better geographical distribution of medical care services; and
467 (iii) providing coverage for both active and retired covered individuals;
468 (o) offer proposals which meet the criteria specified in a request for proposals and
469 accepted by the program to active and retired state covered individuals and which may be
470 offered to active and retired covered individuals of other covered employers at the option of the
471 covered employer;
472 (p) perform the same functions established in Subsections (1)(a), (b), (e), and (h) for
473 the Department of Health if the program provides program benefits to children enrolled in the
474 Utah Children's Health Insurance Program created in Title 26, Chapter 40, Utah Children's
475 Health Insurance Act;
476 (q) establish rules and procedures governing the admission of political subdivisions or
477 educational institutions and their employees to the program;
478 (r) contract directly with medical providers to provide services for covered individuals;
480 (s) take additional actions necessary or appropriate to carry out the purposes of this
482 (2) (a) Funds budgeted and expended shall accrue from rates paid by the covered
483 employers and covered individuals.
484 (b) Administrative costs shall be approved by the board and reported to the governor
485 and the Legislature.
486 (3) The Department of Human Resource Management shall include the benefit
487 adjustments described in Subsection (1)(j) in the total compensation plan recommended to the
488 governor required under Subsection 67-19-12 (6)(a).
489 Section 16. Effective date.
490 This bill takes effect on July 1, 2004.
Legislative Review Note
as of 1-26-04 1:21 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.