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