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H.B. 263

             1     

STATE RETIREMENT SYSTEM AMENDMENTS

             2     
2004 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Brad King

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
             9      purchase of certain service credit provisions.
             10      Highlighted Provisions:
             11          This bill:
             12          .    allows an option for the purchase of up to five years of service credit for members
             13      in the Public Employees' Contributory Retirement System;
             14          .    requires a minimum years of service credit purchase sufficient to allow the member
             15      to retire;
             16          .    requires the member to retire immediately after the purchase of service credit;
             17          .    provides that the service credit may be jointly purchased by the member who must
             18      pay at least 5% of the cost and the participating employer; and
             19          .    provides for certain eligibility requirements, purchase price for years of service, and
             20      a nondiscriminatory purchase policy adopted by the participating employer.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      ENACTS:
             27          49-12-409, Utah Code Annotated 1953


             28     
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 49-12-409 is enacted to read:
             31          49-12-409. Purchase of service credit -- Conditions -- Cost -- Nondiscrimination
             32      policy.
             33          (1) (a) A member may purchase or a member and a participating employer may jointly
             34      purchase a maximum of five years of service credit which cannot otherwise be purchased under
             35      this title.
             36          (b) At a minimum, the years of service credit purchased shall be sufficient to allow the
             37      member to meet the retirement eligibility requirements of this system with no actuarial
             38      reduction.
             39          (c) The member's retirement date shall be immediately after the purchase of years of
             40      service credit.
             41          (d) The member shall pay at least 5% of the cost of the purchase.
             42          (e) To qualify for a purchase of service credit under this section, the member shall:
             43          (i) have at least five years of service credit; and
             44          (ii) otherwise meet federal eligibility requirements.
             45          (2) The purchase price for the years of service credit shall be calculated and paid for as
             46      provided in Section 49-11-403 .
             47          (3) Prior to making any purchase of years of service credit under this section, a
             48      participating employer shall adopt a purchase policy that includes nondiscriminatory
             49      participation standards for all regular full-time employees.




Legislative Review Note
    as of 1-26-04 6:49 AM


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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