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H.B. 180 Enrolled
LONG TITLE
General Description:
This bill modifies the Utah State Retirement and Insurance Benefit Act, including
technical and conforming amendments.
Highlighted Provisions:
This bill:
. defines "exempt employee" to mean an employee working for a participating
employer but who is not eligible for service credit and for whom a participating
employer is not required to pay contributions;
. requires a member to retire from the system which most recently covered the
member;
. allows a member to purchase service credit from employment covered by a
Teachers Insurance and Annuity Association of America retirement plan if the
member forfeits any retirement benefit from that plan for the period of credit to be
purchased;
. repeals an exemption from restrictions on reemployment after retirement for
appointed officers;
. requires beneficiary designations to be signed by the member and filed with the
office to be binding;
. provides that any dispute regarding a benefit, right, obligation, or employment right
under the Utah State Retirement and Insurance Benefit Act is subject to the
administrative hearing process;
. provides that an employee is not considered “terminated” simply because a
participating employer's legal structure is changed and allows the board to adopt rules to
implement this provision;
. clarifies provisions for positions eligible for exemption;
. clarifies that only the spouse married to the member immediately prior to the death of
covered employee is eligible for certain death benefits;
. clarifies that future service credit in a particular retirement system may only be
purchased by members retiring from that system;
. amends the definition of “volunteer firefighter” to include a person who is trained and
continues to be trained as a firefighter;
. provides that a fire chief shall comply with reemployment after retirement provisions;
. requires each volunteer fire department to maintain a current roll of all volunteer
firefighters who meet the definition of a volunteer firefighter;
. provides that the monthly long-term disability benefits offset is consistent with the
amount received from Social Security benefits and terminates no later than the date
the eligible employee receives a reduced allowance;
. transfers the funding of health insurance coverage for persons with a disability from
the long-term disability program to the Public Employees' Benefit and Insurance
Program; and
. makes technical corrections.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
49-11-102, as last amended by Chapter 240, Laws of Utah 2003
49-11-303, as last amended by Chapter 89, Laws of Utah 2004
49-11-401, as renumbered and amended by Chapter 250, Laws of Utah 2002
49-11-403, as renumbered and amended by Chapter 250, Laws of Utah 2002
49-11-504, as last amended by Chapter 118, Laws of Utah 2004
49-11-609, as last amended by Chapter 118, Laws of Utah 2004
49-11-613, as renumbered and amended by Chapter 250, Laws of Utah 2002
49-12-203, as last amended by Chapter 154, Laws of Utah 2003
49-12-402, as renumbered and amended by Chapter 250, Laws of Utah 2002
49-12-405, as last amended by Chapter 240, Laws of Utah 2003
49-12-409, as enacted by Chapter 216, Laws of Utah 2004
49-13-203, as last amended by Chapter 156, Laws of Utah 2004
49-13-205, as last amended by Chapter 118, Laws of Utah 2004
49-13-402, as renumbered and amended by Chapter 250, Laws of Utah 2002
49-13-405, as last amended by Chapter 240, Laws of Utah 2003
49-13-408, as last amended by Chapter 240, Laws of Utah 2003
49-16-102, as last amended by Chapter 240, Laws of Utah 2003
49-16-203, as enacted by Chapter 250, Laws of Utah 2002
49-16-601, as renumbered and amended by Chapter 250, Laws of Utah 2002
49-16-701, as renumbered and amended by Chapter 250, Laws of Utah 2002
49-21-102, as last amended by Chapters 131 and 240, Laws of Utah 2003
49-21-402, as last amended by Chapter 240, Laws of Utah 2003
49-21-403, as last amended by Chapter 240, Laws of Utah 2003
ENACTS:
49-11-621, Utah Code Annotated 1953
49-16-601.5, Utah Code Annotated 1953
49-20-409, Utah Code Annotated 1953
REPEALS:
49-21-407, as renumbered and amended by Chapter 250, Laws of Utah 2002
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 49-11-102 is amended to read:
49-11-102. Definitions.
As used in this title:
(1) (a) "Active member" means a member who is employed or who has been employed
by a participating employer within the previous 120 days.
(b) "Active member" does not include retirees.
(2) "Actuarial equivalent" means a benefit of equal value when computed upon the basis
of mortality tables as recommended by the actuary and adopted by the executive director,
including regular interest.
(3) "Actuarial interest rate" means the interest rate as recommended by the actuary and
adopted by the board upon which the funding of system costs and benefits are computed.
(4) "Agency" means:
(a) a department, division, agency, office, authority, commission, board, institution, or
hospital of the state;
(b) a county, municipality, school district, or special district;
(c) a state college or university; or
(d) any other participating employer.
(5) "Allowance" means the pension plus the annuity, including any cost of living or other
authorized adjustments to the pension and annuity.
(6) "Alternate payee" means a member's former spouse or family member eligible to
receive payments under a Domestic Relations Order in compliance with Section 49-11-612 .
(7) "Annuity" means monthly payments derived from member contributions.
(8) "Appointive officer" means an employee appointed to a position for a definite and
fixed term of office by official and duly recorded action of a participating employer whose
appointed position is designated in the participating employer's charter, creation document, or
similar document, and who earns during the first full month of the term of office $500 or more,
indexed as of January 1, 1990, as provided in Section 49-12-407 .
(9) "Beneficiary" means any person entitled to receive a payment under this title through
a relationship with or designated by a member, participant, covered individual, or alternate payee
of a defined contribution plan.
(10) "Board" means the Utah State Retirement Board established under Section
49-11-202 .
(11) "Board member" means a person serving on the Utah State Retirement Board as
established under Section 49-11-202 .
(12) "Contributions" means the total amount paid by the participating employer and the
member into a system or to the Utah Governors' and Legislators' Retirement Plan under Chapter
19, Utah Governor's and Legislators' Retirement Act.
(13) "Council member" means a person serving on the Membership Council established
under Section 49-11-202 .
(14) "Covered individual" means any individual covered under Chapter 20, Public
Employees' Benefit and Insurance Program Act.
(15) "Current service" means covered service as defined in Chapters 12, 13, 14, 15, 16,
17, 18, and 19.
(16) "Defined contribution" or "defined contribution plan" means any defined
contribution plan authorized under the Internal Revenue Code and administered by the board.
(17) "Educational institution" means a political subdivision or instrumentality of the state
or a combination thereof primarily engaged in educational activities or the administration or
servicing of educational activities, including:
(a) the State Board of Education and its instrumentalities;
(b) any institution of higher education and its branches;
(c) any school district and its instrumentalities;
(d) any vocational and technical school; and
(e) any entity arising out of a consolidation agreement between entities described under
this Subsection (17).
(18) (a) "Employer" means any department, educational institution, or political
subdivision of the state eligible to participate in a government-sponsored retirement system under
federal law.
(b) "Employer” may also include an agency financed in whole or in part by public funds.
(19) "Exempt employee" means an employee working for a participating employer:
(a) who is not eligible for service credit under Section 49-12-203 , 49-13-203 , 49-14-203 ,
49-15-203 , or 49-16-203 ; and
(b) for whom a participating employer is not required to pay contributions or nonelective
contributions.
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compensation received during the final average salary period under each system by the number of
months in the final average salary period.
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benefits or costs of administering a system, plan, or program.
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participating employer for a period of at least 120 days.
(b) "Inactive member" does not include retirees.
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with a system, the Utah Governors' and Legislators' Retirement Plan under Chapter 19, or with a
terminated system.
(b) "Member" also includes leased employees within the meaning of Section 414(n)(2) of
the Internal Revenue Code, if the employees have contributions on deposit with the office. If
leased employees constitute less than 20% of the participating employer's work force that is not
highly compensated within the meaning of Section 414(n)(5)(c)(ii), Internal Revenue Code,
"member" does not include leased employees covered by a plan described in Section 414(n)(5) of
the federal Internal Revenue Code.
[
or the Utah Governors' and Legislators' Retirement Plan, including refund interest if allowed by a
system, and which are made by:
(a) the member; and
(b) the participating employer on the member's behalf under Section 414(h) of the
Internal Revenue Code.
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employer into a participant's defined contribution account.
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contributions on deposit with the defined contribution plans administered under this title.
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Chapters 12, 13, 14, 15, 16, 17, and 18, or an agency financed in whole or in part by public funds
which is participating in a system or plan as of January 1, 2002.
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contributions.
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Chapter 19 or the defined contribution plans created under Section 49-11-801 .
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cities, towns, counties, and school districts, but only if the subdivision is a juristic entity that is
legally separate and distinct from the state and only if its employees are not by virtue of their
relationship to the entity employees or the state.
(b) "Political subdivision" includes special districts or authorities created by the
Legislature or by local governments, including the office.
(c) "Political subdivision" does not include a project entity created under Title 11,
Chapter 13, Interlocal Cooperation Act.
[
Chapter 20, Public Employees' Benefit and Insurance Program Act, or the Public Employees'
Long-Term Disability program created under Chapter 21, Public Employees' Long-Term
Disability Act.
[
public taxes or public revenue, dues or contributions paid or donated by the membership of the
organization, used to finance an activity whose objective is to improve, on a nonprofit basis, the
governmental, educational, and social programs and systems of the state or its political
subdivisions.
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rate adopted by the board.
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title.
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applies for, and is entitled to receive an allowance under this title.
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member's retirement becomes effective with the office.
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(a) the period during which an employee is employed and compensated by a participating
employer and meets the eligibility requirements for membership in a system or the Utah
Governors' and Legislators' Retirement Plan, provided that any required contributions are paid to
the office; and
(b) periods of time otherwise purchasable under this title.
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14, 15, 16, 17, and 18.
[
participant's defined contribution account.
Section 2. Section 49-11-303 is amended to read:
49-11-303. Fund investment standard -- Prudent investor rule.
The fund shall be invested in accordance with the prudent [
in Title 75, Chapter 7, Part 9, Utah Uniform Prudent Investor Act.
Section 3. Section 49-11-401 is amended to read:
49-11-401. Transfer of service credit -- Eligibility for service credit -- Computation
of service credit -- Retirement from most recent system.
(1) (a) The office shall make the transfer of service credit, together with related member
and participating employer contributions, from one system to another upon terms and conditions
established by the board.
(b) The terms and conditions may not result in a loss of accrued benefits.
(2) Transfer of employment from a position covered by one system to a position covered
by another system does not cause the employee to lose active member status.
(3) In the accrual of service credit, the following provisions apply:
(a) A person employed and compensated by a participating employer who meets the
eligibility requirements for membership in a system or the Utah Governors' and Legislators'
Retirement Plan shall receive service credit for the term of the employment provided that all
required contributions are paid to the office.
(b) An allowance or other benefit may not accrue under this title which is based upon the
same period of employment as has been the basis for any retirement benefits under some other
public retirement system.
(c) The board shall fix the minimum time per day, per month, and per year upon the basis
of which one year of service and proportionate parts of a year shall be credited toward
qualification for retirement. Service may be computed on a fiscal or calendar year basis and
portions of years served shall be accumulated and counted as service. In any event, all of the
service rendered in any one fiscal or calendar year may not count for more than one year.
(d) Service credit shall be accrued on a fiscal or calendar year basis as determined by the
participating employer.
(e) A member may not accrue more than one year of service credit per fiscal or calendar
year as determined by the office.
(f) Fractions of years of service credit shall be accumulated and counted in proportion to
the work performed.
(4) The office may estimate the amount of service credit, compensation, or age of any
member, participant, or alternate payee, if information is not contained in the records.
(5) A member shall retire from the system which most recently covered the member.
Section 4. Section 49-11-403 is amended to read:
49-11-403. Purchase of public service credit not otherwise qualifying for benefit.
(1) A member, a participating employer, or a member and a participating employer
jointly may purchase service credit equal to the period of the member's employment in the
following:
(a) United States federal employment;
(b) employment in a private school based in the United States;
(c) public employment in another state which qualifies the member for membership in
the public plan or system covering the employment, but only if the member does not qualify for
any retirement benefits based on the employment;
(d) forfeited service credit in this state if the member does not qualify for an allowance
based on the service credit;
(e) full-time public service while on an approved leave of absence; [
(f) the period of time for which disability benefits were paid if:
(i) the member was receiving:
(A) long-term disability benefits;
(B) short-term disability benefits; or
(C) worker's compensation disability benefits; and
(ii) the member's employer had not entered into a benefit protection contract under
Section 49-11-404 during the period the member was disabled due to sickness or accident[
(g) employment covered by a Teachers Insurance and Annuity Association of America
retirement plan if the member forfeits any retirement benefit from that retirement plan for the
period of employment to be purchased under this Subsection (1)(g).
(2) A member shall have:
(a) at least four years of service credit before a purchase can be made under this section;
and
(b) forfeited service credit under any other retirement system or plan based on the public
employment for which service credit is being purchased.
(3) To purchase credit under this section, the member, a participating employer, or a
member and a participating employer jointly shall make payment to the system in an amount
determined by the office based on a formula recommended by the actuary and adopted by the
board.
(4) The purchase may be made through payroll deductions or through a lump sum
deposit based upon the present value of future payments.
(5) Total payment must be completed prior to the member's effective date of retirement
or service credit will be prorated in accordance with the amount paid.
(6) (a) If any of the factors used to determine the cost of a service credit purchase change
at or before the member's retirement date, the cost of the purchase shall be recalculated.
(b) If the recalculated cost exceeds the amount paid for the purchase, the member, a
participating employer, or a member and a participating employer jointly may:
(i) pay the increased cost, plus interest, to receive the full amount of service credit; or
(ii) not pay the increased cost and have the purchased service credit prorated.
(7) If the recalculated cost under Subsection (6) is less than the amount paid for the
purchase, the office shall refund the excess payment to the member or participating employer
who paid for the purchase.
(8) (a) The board may adopt rules under which a member may make the necessary
payments to the office for purchases under this title as permitted by federal law.
(b) The office may reject any payments if the office determines the tax status of the
system, plans, or programs would be jeopardized by allowing the payment.
Section 5. Section 49-11-504 is amended to read:
49-11-504. Reemployment of a retiree -- Restrictions.
(1) A person who retires from a nonparticipating employer is not subject to any
postretirement restrictions under this title.
(2) A retiree of an agency who returns to work at a different agency is not subject to any
postretirement restrictions under this section and may not earn additional service credit.
(3) For the purposes of Subsections (4) and (5), "full-time" employment means
employment requiring 20 hours of work per week or more or at least a half-time teaching
contract.
(4) A retiree of an agency who is reemployed on a full-time basis by the same agency
within six months of the date of retirement is subject to the following:
(a) the agency shall immediately notify the office;
(b) the office shall cancel the retiree's allowance and reinstate the retiree to active
member status;
(c) the allowance cancellation and reinstatement to active member status is effective on
the first day of the month following the date of reemployment;
(d) the reinstated retiree may not retire again with a recalculated benefit for a two-year
period from the date of cancellation of the original allowance, and if the retiree retires again
within the two-year period, the original allowance shall be resumed; and
(e) a reinstated retiree retiring after the two-year period shall be credited with the service
credit in the retiree's account at the time of the first retirement and from that time shall be treated
as a member of a system, including the accrual of additional service credit, but subject to
recalculation of the allowance under Subsection (9).
(5) A retiree of an agency who is reemployed by the same agency within six months of
retirement on a less than full-time basis by the same agency is subject to the following:
(a) the retiree may earn, without penalty, compensation from that position which is not in
excess of the exempt earnings permitted by Social Security;
(b) if a retiree receives compensation in a calendar year in excess of the Social Security
limitation, 25% of the allowance shall be suspended for the remainder of the six-month period;
(c) the effective date of a suspension and reinstatement of an allowance shall be set by
the office; and
(d) any suspension of a retiree's allowance under this Subsection (5) shall be applied on
a calendar year basis.
(6) For six months immediately following retirement, the retiree and participating
employer shall:
(a) maintain an accurate record of gross earnings in employment;
(b) report the gross earnings at least monthly to the office;
(c) immediately notify the office in writing of any postretirement earnings under
Subsection (4); and
(d) immediately notify the office in writing whether postretirement earnings equal or
exceed the exempt earnings under Subsection (5).
(7) A retiree of an agency who is reemployed by the same agency after six months from
the retirement date is not subject to any postretirement restrictions under this title and may not
earn additional service credit.
(8) If a participating employer hires a nonexempt retiree [
additional service credit under this section, the participating employer shall contribute the same
percentage of a retiree's salary that the participating employer would have been required to
contribute if the retiree were an active member, up to the amount allowed by federal law, to a
retiree designated:
(a) defined contribution plan administered by the board, if the participating employer
participates in the defined contribution plan administered by the board; or
(b) defined contribution plan offered by the participating employer if the participating
employer does not participate in a defined contribution plan administered by the board.
(9) Notwithstanding any other provision of this section, a retiree who has returned to
work, accrued additional service credit, and again retires shall have the retiree's allowance
recalculated using:
(a) the formula in effect at the date of the retiree's original retirement for all service
credit accrued prior to that date; and
(b) the formula in effect at the date of the subsequent retirement for all service credit
accrued between the first and subsequent retirement dates.
(10) This section does not apply to [
(11) The board may make rules to implement this section.
Section 6. Section 49-11-609 is amended to read:
49-11-609. Beneficiary designations -- Revocation of beneficiary designation --
Procedure -- Beneficiary not designated -- Payment to survivors in order established under
the Uniform Probate Code -- Restrictions on payment -- Payment of deceased's expenses.
(1) As used in this section, "member" includes a member, retiree, participant, covered
individual, a spouse of a retiree participating in the insurance benefits created by Sections
49-12-404 and 49-13-404 , or an alternate payee under a domestic relations order dividing a
defined contribution account.
(2) The most recent beneficiary designations [
member and filed with the office, including electronic records, at the time of the member's death
are binding in the payment of any benefits due under this title.
(3) (a) Except where an optional continuing benefit is chosen, or the law makes a specific
benefit designation to a dependent spouse, a member may revoke a beneficiary designation at any
time and may execute and file a different beneficiary designation with the office.
(b) A change of beneficiary designation shall be completed on forms provided by the
office.
(4) (a) All benefits payable by the office may be paid or applied to the benefit of the
surviving next of kin of the deceased in the order of precedence established under Title 75,
Chapter 2, Intestate Succession and Wills, if:
(i) no beneficiary is designated or if all designated beneficiaries have predeceased the
member;
(ii) the location of the beneficiary or secondary beneficiaries cannot be ascertained by the
office within 12 months of the date a reasonable attempt is made by the office to locate the
beneficiaries; or
(iii) the beneficiary has not completed the forms necessary to pay the benefits within six
months of the date that beneficiary forms are sent to the beneficiary's last-known address.
(b) (i) A payment may not be made to a person included in any of the groups referred to
in Subsection (4)(a) if at the date of payment there is a living person in any of the groups
preceding it.
(ii) Payment to a person in any group based upon receipt from the person of an affidavit
in a form satisfactory to the office that:
(A) there are no living individuals in the group preceding it;
(B) the probate of the estate of the deceased has not been commenced; and
(C) more than three months have elapsed since the date of death of the decedent.
(5) Benefits paid under this section shall be:
(a) a full satisfaction and discharge of all claims for benefits under this title; and
(b) payable by reason of the death of the decedent.
Section 7. Section 49-11-613 is amended to read:
49-11-613. Appeals procedure -- Right of appeal to hearing officer -- Board
reconsideration -- Judicial review.
(1) (a) All members, retirees, participants, alternative payees, or covered individuals of a
system, plan, or program under this title shall acquaint themselves with their rights and
obligations under this title.
(b) Any dispute regarding a benefit, right, obligation, or employment right under this title
is subject to the procedures provided under this section.
[
employment right under this title shall request a ruling by the executive director.
[
any benefit [
employment right under this title shall request a review of that claim by a hearing officer.
(2) The hearing officer shall:
(a) be hired by the executive director after consultation with the board;
(b) follow the procedures and requirements of Title 63, Chapter 46b, Administrative
Procedures Act, except as specifically modified under this title;
(c) hear and determine all facts pertaining to applications for benefits under any system,
plan, or program under this title and all matters pertaining to the administration of the office; and
(d) make conclusions of law in determining the person's rights under any system, plan, or
program under this title and matters pertaining to the administration of the office.
(3) The board shall review and approve or deny all decisions of the hearing officer in
accordance with rules adopted by the board.
(4) The moving party in any proceeding brought under this section shall bear the burden
of proof.
(5) A party may file an application for reconsideration by the board upon any of the
following grounds:
(a) that the board acted in excess of its powers;
(b) that the order or award was procured by fraud;
(c) that the evidence does not justify the determination of the hearing officer; or
(d) that the party has discovered new material evidence that could not, with reasonable
diligence, have been discovered or procured prior to the hearing.
(6) The board shall affirm, reverse, or modify the decision of the hearing officer, or
remand the application to the hearing officer for further consideration.
(7) A party aggrieved by the board's decision may obtain judicial review by complying
with the procedures and requirements of Title 63, Chapter 46b, Administrative Procedures Act.
(8) The board may make rules to implement this section.
Section 8. Section 49-11-621 is enacted to read:
49-11-621. Change in employer -- Eligibility for retirement.
(1) If a participating employer is dissolved, consolidated, merged, or is structurally
changed in any way, but similar services are provided by the same members after the change, the
members may not be considered terminated for purposes of eligibility for retirement until the
members actually terminate and are otherwise eligible for retirement.
(2) The board may adopt rules to implement this section.
Section 9. Section 49-12-203 is amended to read:
49-12-203. Exclusions from membership in system.
(1) The following employees are not eligible for service credit in this system:
(a) An employee whose employment status is temporary in nature due to the nature or the
type of work to be performed, provided that:
(i) if the term of employment exceeds six months and the employee otherwise qualifies
for service credit in this system, the participating employer shall report and certify to the office
that the employee is a regular full-time employee effective the beginning of the seventh month of
employment; or
(ii) if an employee, previously terminated prior to being eligible for service credit in this
system is reemployed within three months of termination by the same participating employer, the
participating employer shall report and certify that the member is a regular full-time employee
when the total of the periods of employment equals six months and the employee otherwise
qualifies for service credit in this system.
[
[
who holds, or is entitled to hold, under Section 49-12-204 , a retirement annuity contract with the
Teachers' Insurance and Annuity Association of America or with any other public or private
system, organization, or company during any period in which required contributions based on
compensation have been paid on behalf of the employee by the employer.
(ii) The employee, upon cessation of the participating employer contributions, shall
immediately become eligible for service credit in this system.
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[
[
Commission, the Public Service Commission, and a member of a full-time or part-time board or
commission who files a formal request for exemption.
[
another retirement system allowed under Title 35A, Chapter 4, Employment Security Act.
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[
(2) Upon filing a written request for exemption with the office, the following employees
shall be exempt from coverage under this system:
(a) a full-time student or the spouse of a full-time student and individuals employed in a
trainee relationship;
(b) an elected official;
(c) an executive department head of the state or a legislative director, senior executive
employed by the governor's office, a member of the State Tax Commission, a member of the
Public Service Commission, and a member of a full-time or part-time board or commission; and
(d) a person appointed as a city manager or chief city administrator or another person
employed by a municipality, county, or other political subdivision, who is not entitled to merit or
civil service protection.
(3) (a) Each participating employer shall prepare a list designating those positions
eligible for exemption under Subsection (2).
(b) An employee may not be exempted unless they are employed in a position designated
by the participating employer.
[
subdivision may not exempt more than 50 positions or a number equal to 10% of the employees
of the municipality, county, or political subdivision whichever is lesser.
(b) A municipality, county, or political subdivision may exempt at least one regular
full-time employee.
[
(a) file employee exemptions annually with the office; and
(b) update the employee exemptions in the event of any change.
[
Section 10. Section 49-12-402 is amended to read:
49-12-402. Service retirement plans -- Calculation of retirement allowance -- Social
Security limitations.
(1) (a) Except as provided under Section 49-12-701 , retirees of this system may choose
from the six retirement options described in this section.
(b) Options Two, Three, Four, Five, and Six are modifications of the Option One
calculation.
(2) The Option One benefit is an annual allowance calculated as follows:
(a) If the retiree is at least 65 years of age or has accrued at least 30 years of service
credit, the allowance is:
(i) an amount equal to 1.25% of the retiree's final average monthly salary multiplied by
the number of years of service credit accrued prior to July 1, 1975; plus
(ii) an amount equal to 2% of the retiree's final average monthly salary multiplied by the
number of years of service credit accrued on and after July 1, 1975.
(b) If the retiree is less than 65 years of age, the allowance shall be reduced 3% for each
year of retirement from age 60 to age 65, unless the member has 30 or more years of accrued
credit in which event no reduction is made to the allowance.
(c) (i) Years of service includes any fractions of years of service to which the retiree may
be entitled.
(ii) At the time of retirement, if a retiree's combined years of actual, not purchased,
service credit is within 1/10 of one year of the total years of service credit required for retirement,
the retiree shall be considered to have the total years of service credit required for retirement.
(3) The allowance payable under Options Two, Three, Four, Five, and Six is calculated
by reducing an Option One benefit based on actuarial computations to provide the following:
(a) Option Two is a reduced allowance paid to and throughout the lifetime of the retiree,
and, if the retiree receives less in annuity payments than the amount of the retiree's member
contributions, the remaining balance of the retiree's member contributions shall be paid in
accordance with Sections 49-11-609 and 49-11-610 .
(b) Option Three is a reduced allowance paid to and throughout the lifetime of the
retiree, and, upon the death of the retiree, the same reduced allowance paid to and throughout the
lifetime of the retiree's lawful spouse at the time of retirement.
(c) Option Four is a reduced allowance paid to and throughout the lifetime of the retiree,
and upon the death of the retiree, an amount equal to 1/2 of the retiree's allowance paid to and
throughout the lifetime of the retiree's lawful spouse at the time of retirement.
(d) Option Five is a modification of Option Three so that if the lawful spouse at the time
of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time
of initial retirement under Option One shall be paid to the retiree for the remainder of the retiree's
life, beginning on the last day of the month following the month in which the lawful spouse dies.
(e) Option Six is a modification of Option Four so that if the lawful spouse at the time of
retirement predeceases the retiree, an allowance equivalent to the amount payable at the time of
initial retirement under Option One shall be paid to the retiree for the remainder of the retiree's
life, beginning on the last day of the month following the month in which the lawful spouse dies.
(4) (a) (i) The final average salary is limited in the computation of that part of an
allowance based on service rendered prior to July 1, 1967, during a period when the retiree
received employer contributions on a portion of compensation from an educational institution
toward the payment of the premium required on a retirement annuity contract with the Teachers'
Insurance and Annuity Association of America or with any other public or private system,
organization, or company to $4,800.
(ii) This limitation is not applicable to retirees who elected to continue in the this system
by July 1, 1967.
(b) Periods of employment which are exempt from this system under Subsection
49-12-203 (1)[
benefits from the Teachers' Insurance and Annuity Association of America or any other public or
private system or organization based on this period of employment are forfeited.
(5) (a) If a retiree under Option One dies within 90 days after the retiree's retirement date,
the retirement is canceled and the death shall be considered as that of a member before
retirement.
(b) Any payments made to the retiree shall be deducted from the amounts due to the
beneficiary.
(6) If a retiree retires under either Option Five or Six and subsequently divorces, the
retiree may elect to convert the benefit to a Option One benefit at the time of divorce, if there is
no court order filed in the matter.
Section 11. Section 49-12-405 is amended to read:
49-12-405. Death of married member -- Service retirement benefits to surviving
spouse.
(1) Upon the request of a deceased member's lawful spouse at the time of the member's
death, the deceased member is considered to have retired under Option Three on the first day of
the month following the month in which the member died if the following requirements are met:
(a) the member has:
(i) 25 or more years of service credit;
(ii) attained age 60 with 20 or more years of service credit;
(iii) attained age 62 with ten or more years of service credit; or
(iv) attained age 65 with four or more years of service credit; and
(b) the member dies leaving a spouse to whom the member has been married at least six
months immediately prior to the death date.
(2) The spouse who requests a benefit under this section shall apply in writing to the
office. The allowance shall begin on the first day of the month:
(a) following the month in which the member died, if the application is received by the
office within 90 days of the member's death; or
(b) in which the application is received by the office.
(3) The Option Three benefit calculation, when there are 25 or more years of service
credit, shall be calculated without a reduction in allowance under Section 49-12-402 .
(4) Except for a return of member contributions, benefits payable under this section are
retirement benefits and shall be paid in addition to any payments made under Section 49-12-501
and constitute a full and final settlement of the claim of the spouse or any other beneficiary filing
claim for benefits under Section 49-12-501 .
Section 12. Section 49-12-409 is amended 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.
(4) Only members retiring from this system may purchase service credit under this
section.
Section 13. Section 49-13-203 is amended to read:
49-13-203. Exclusions from membership in system.
(1) The following employees are not eligible for service credit in this system:
(a) An employee whose employment status is temporary in nature due to the nature or the
type of work to be performed, provided that:
(i) if the term of employment exceeds six months and the employee otherwise qualifies
for service credit in this system, the participating employer shall report and certify to the office
that the employee is a regular full-time employee effective the beginning of the seventh month of
employment; and
(ii) if an employee, previously terminated prior to becoming eligible for service credit in
this system, is reemployed within three months of termination by the same participating
employer, the participating employer shall report and certify to the office that the member is a
regular full-time employee when the total of the periods of employment equals six months and
the employee otherwise qualifies for service credit in this system.
[
[
who holds, or is entitled to hold, under Section 49-13-204 , a retirement annuity contract with the
Teachers' Insurance and Annuity Association of America or with any other public or private
system, organization, or company during any period in which required contributions based on
compensation have been paid on behalf of the employee by the employer.
(ii) The employee, upon cessation of the participating employer contributions, shall
immediately become eligible for service credit in this system.
[
[
[
executive employed by the governor's office, a member of the State Tax Commission, a member
of the Public Service Commission, and a member of a full-time or part-time board or
commission who files a formal request for exemption.
[
another retirement system allowed under Title 35A, Chapter 4, Employment Security Act.
[
[
(2) Upon filing a written request for exemption with the office, the following employees
shall be exempt from coverage under this system:
(a) a full-time student or the spouse of a full-time student and individuals employed in a
trainee relationship;
(b) an elected official;
(c) an executive department head of the state or a legislative director, senior executive
employed by the governor's office, a member of the State Tax Commission, a member of the
Public Service Commission, and a member of a full-time or part-time board or commission; and
(d) a person appointed as a city manager or chief city administrator or another person
employed by a municipality, county, or other political subdivision, who is not entitled to merit or
civil service protection.
(3) (a) Each participating employer shall prepare a list designating those positions
eligible for exemption under Subsection (2).
(b) An employee may not be exempted unless they are employed in a position designated
by the participating employer.
[
subdivision may not exempt more than 50 positions or a number equal to 10% of the employees
of the municipality, county, or political subdivision, whichever is lesser.
(b) A municipality, county, or political subdivision may exempt at least one regular
full-time employee.
[
(a) file employee exemptions annually with the office; and
(b) update the employee exemptions in the event of any change.
[
Section 14. Section 49-13-205 is amended to read:
49-13-205. Conversion to system -- Time schedule -- Conversion windows.
(1) An employee governed under Section 49-13-201 shall make the election to
participate in this system within six months of July 1, 1986.
(2) (a) (i) An employer governed under Sections 49-13-201 and 49-13-202 shall make
the election to participate in this system within six months of July 1, 1986.
(ii) The employer shall indicate whether or not it elects to participate by enacting a
resolution or ordinance to that effect.
(iii) Prior to the enactment of the resolution or ordinance, a hearing shall be held by the
employer, at which all employees of the political subdivision shall be given an opportunity to be
heard on the question of participating in this system.
(iv) Notice of the hearing shall be mailed to all employees within 30 days of the hearing
and shall contain the time, place, and purpose of the hearing.
(b) A regular full-time employee has six months from the date the employer elects to
participate in this system in which to make the election to participate in this system and become
eligible for service credit in this system.
(3) Subsections (1) and (2) shall be used to provide a second time period of conversion to
this system beginning July 1, 1990.
(4) Subsections (1) and (2) shall be used to provide a third time period of conversion to
this system beginning July 1, 1995.
(5) A member of the Contributory Retirement System who is employed by one agency
and who either transfers to or is reemployed by another agency shall [
the Noncontributory Retirement System as of the date of employment, if the participating
employer has elected to participate in the Noncontributory Retirement System.
Section 15. Section 49-13-402 is amended to read:
49-13-402. Service retirement plans -- Calculation of retirement allowance -- Social
Security limitations.
(1) (a) Except as provided under Section 49-13-701 , retirees of this system may choose
from the six retirement options described in this section.
(b) Options Two, Three, Four, Five, and Six are modifications of the Option One
calculation.
(2) The Option One benefit is an allowance calculated as follows:
(a) If the retiree is at least 65 years of age or has accrued at least 30 years of service
credit, the allowance is an amount equal to 2% of the retiree's final average monthly salary
multiplied by the number of years of service credit accrued.
(b) If the retiree is less than 65 years of age, the allowance shall be reduced 3% for each
year of retirement from age 60 to age 65, plus a full actuarial reduction for each year of
retirement prior to age 60, unless the member has 30 or more years of accrued credit, in which
event no reduction is made to the allowance.
(c) (i) Years of service include any fractions of years of service to which the retiree may
be entitled.
(ii) At the time of retirement, if a retiree's combined years of actual, not purchased,
service credit is within 1/10 of one year of the total years of service credit required for retirement,
the retiree shall be considered to have the total years of service credit required for retirement.
(3) The allowance payable under Options Two, Three, Four, Five, and Six is calculated
by reducing an Option One benefit based on actuarial computations to provide the following:
(a) Option Two is a reduced allowance paid to and throughout the lifetime of the retiree,
and, if the retiree receives less in annuity payments than the amount of the retiree's member
contributions, the remaining balance of the retiree's member contributions shall be paid in
accordance with Sections 49-11-609 and 49-11-610 .
(b) Option Three is a reduced allowance paid to and throughout the lifetime of the
retiree, and, upon the death of the retiree, the same reduced allowance paid to and throughout the
lifetime of the retiree's lawful spouse at the time of retirement.
(c) Option Four is a reduced allowance paid to and throughout the lifetime of the retiree,
and upon the death of the retiree, an amount equal to 1/2 of the retiree's allowance paid to and
throughout the lifetime of the retiree's lawful spouse at the time of retirement.
(d) Option Five is a modification of Option Three so that if the lawful spouse at the time
of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time
of initial retirement under Option One shall be paid to the retiree for the remainder of the retiree's
life, beginning on the last day of the month following the month in which the lawful spouse dies.
(e) Option Six is a modification of Option Four so that if the lawful spouse at the time of
retirement predeceases the retiree, an allowance equivalent to the amount payable at the time of
initial retirement under Option One shall be paid to the retiree for the remainder of the retiree's
life, beginning on the last day of the month following the month in which the lawful spouse dies.
(4) (a) (i) The final average salary is limited in the computation of that part of an
allowance based on service rendered prior to July 1, 1967, during a period when the retiree
received employer contributions on a portion of compensation from an educational institution
toward the payment of the premium required on a retirement annuity contract with the Teachers'
Insurance and Annuity Association of America or with any other public or private system,
organization, or company to $4,800.
(ii) This limitation is not applicable to retirees who elected to continue in the Public
Employees' Contributory Retirement System by July 1, 1967.
(b) Periods of employment which are exempt from this system as permitted under
Subsection 49-13-203 (1)[
only if all benefits from the Teachers' Insurance and Annuity Association of America or any other
public or private system or organization based on this period of employment are forfeited.
(5) (a) If a retiree under Option One dies within 90 days after the retiree's retirement date,
the retirement is canceled and the death shall be considered as that of a member before
retirement.
(b) Any payments made to the retiree shall be deducted from the amounts due to the
beneficiary.
(6) If a retiree retires under either Option Five or Six and subsequently divorces, the
retiree may elect to convert the benefit to an Option One benefit at the time of divorce, if there is
no court order filed in the matter.
Section 16. Section 49-13-405 is amended to read:
49-13-405. Death of married members -- Service retirement benefits to surviving
spouse.
(1) As used in this section, "member's full allowance" means an Option Three allowance
calculated under Section 49-13-402 without an actuarial reduction.
(2) Upon the request of a deceased member's lawful spouse at the time of the member's
death, the deceased member is considered to have retired under Option Three on the first day of
the month following the month in which the member died if the following requirements are met:
(a) the member has:
(i) 15 or more years of service credit;
(ii) attained age 62 with ten or more years of service credit; or
(iii) attained age 65 with four or more years of service credit; and
(b) the member dies leaving a spouse to whom the member has been married at least six
months immediately prior to the death date.
(3) The spouse who requests a benefit under this section shall apply in writing to the
office. The allowance shall begin on the first day of the month:
(a) following the month in which the member died, if the application is received by the
office within 90 days of the member's death; or
(b) in which the application is received by the office.
(4) The allowance payable to a surviving spouse under Subsection (2) is:
(a) if the member has 25 or more years of service credit at the time of death, the
surviving spouse shall receive the member's full allowance;
(b) if the member has between 20-24 years of service credit and is not age 60 or older at
the time of death, the surviving spouse shall receive [
allowance;
(c) if the member has between 15-19 years of service credit and is not age 62 or older at
the time of death, the surviving spouse shall receive [
allowance; or
(d) if the member is age 60 or older with 20 or more years of service credit, age 62 or
older with [
service credit at the time of death, the surviving spouse shall receive an Option Three benefit
with actuarial reductions.
(5) Except for a return of member contributions, benefits payable under this section are
retirement benefits and shall be paid in addition to any other payments made under Section
49-13-501 and shall constitute a full and final settlement of the claim of the spouse or any other
beneficiary filing a claim for benefits under Section 49-13-501 .
Section 17. Section 49-13-408 is amended to read:
49-13-408. 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.
(4) Only members retiring from this system may purchase service credit under this
section.
Section 18. Section 49-16-102 is amended to read:
49-16-102. Definitions.
As used in this chapter:
(1) (a) "Compensation" means the total amount of payments that are includable as gross
income which are received by a firefighter service employee as base income for the regularly
scheduled work period. The participating employer shall establish the regularly scheduled work
period. Base income shall be determined prior to the deduction of member contributions or any
amounts the firefighter service employee authorizes to be deducted for salary deferral or other
benefits authorized by federal law.
(b) "Compensation" includes performance-based bonuses and cost-of-living adjustments.
(c) "Compensation" does not include:
(i) overtime;
(ii) sick pay incentives;
(iii) retirement pay incentives;
(iv) remuneration paid in kind such as a residence, use of equipment, uniforms, travel, or
similar payments;
(v) a lump-sum payment or special payments covering accumulated leave; and
(vi) all contributions made by a participating employer under this system or under any
other employee benefit system or plan maintained by a participating employer for the benefit of a
member or participant.
(d) "Compensation" for purposes of this chapter may not exceed the amount allowed
under Internal Revenue Code Section 401(a)(17).
(2) (a) "Disability" means a physical or mental condition that, in the judgment of the
office, is total and presumably permanent, and prevents a member from performing firefighter
service.
(b) The determination of disability is based upon medical and other evidence satisfactory
to the office.
(3) "Final average salary" means the amount computed by averaging the highest three
years of annual compensation preceding retirement subject to Subsections (3)(a) and (b).
(a) Except as provided in Subsection (3)(b), the percentage increase in annual
compensation in any one of the years used may not exceed the previous year's compensation by
more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power of
the dollar during the previous year, as measured by a United States Bureau of Labor Statistics
Consumer Price Index average as determined by the board.
(b) In cases where the participating employer provides acceptable documentation to the
office the limitation in Subsection (3)(a) may be exceeded if:
(i) the member has transferred from another agency; or
(ii) the member has been promoted to a new position.
(4) "Firefighter service" means employment normally requiring an average of 2,080
hours of regularly scheduled employment per year rendered by a member who is a firefighter
service employee trained in firefighter techniques and assigned to a position of hazardous duty
with a regularly constituted fire department, but does not include secretarial staff or other similar
employees.
(5) "Firefighter service employee" means an employee of a participating employer who
provides firefighter service under this chapter. An employee of a regularly constituted fire
department who does not perform firefighter service is not a firefighter service employee.
(6) "Line-of-duty death or disability" means a death or any physical or mental disability
resulting from external force, violence, or disease directly resulting from firefighter service.
(a) A paid firefighter who has five years of firefighter service credit is eligible for a
line-of-duty death or disability resulting from heart disease, lung disease, or respiratory tract
condition.
(b) A paid firefighter who receives a service connected disability benefit for more than
six months due to violence or illness other than heart disease, lung disease, or respiratory tract
condition, and then returns to paid firefighter service, may not be eligible for a line-of-duty death
or disability benefit due to heart disease, lung disease, or respiratory tract condition for two years
after the firefighter returned to work unless clear and convincing evidence is presented that the
heart disease, lung disease, or respiratory tract condition was directly a result of firefighter
service.
(7) "Participating employer" means an employer which meets the participation
requirements of Section 49-16-201 .
(8) "Regularly constituted fire department" means a fire department that employs a fire
chief who performs firefighter service for at least 2,080 hours of regularly scheduled paid
employment per year.
(9) "System" means the Firefighters' Retirement System created under this chapter.
(10) (a) "Volunteer firefighter" means any individual that is not regularly employed as a
firefighter service employee, but who [
(i) has been trained in firefighter techniques and skills;
(ii) continues to receive regular firefighter training; and
(iii) is on the rolls of a legally organized volunteer fire department which provides
ongoing training and serves a political subdivision of the state.
(b) An individual that volunteers assistance but [
does not meet the requirements of Subsection (10)(a) is not a volunteer firefighter for purposes of
this chapter.
(11) "Years of service credit" means the number of periods, each to consist of 12 full
months as determined by the board, whether consecutive or not, during which a firefighter
service employee was employed by a participating employer or received full-time pay while on
sick leave, including any time the firefighter service employee was absent in the service of the
United States on military duty.
Section 19. Section 49-16-203 is amended to read:
49-16-203. Exemption of certain employees from coverage -- Exception.
(1) A firefighter service employee serving as the chief of any fire department or district is
excluded from coverage under this system if that firefighter service employee files a formal
written request seeking exemption.
[
(2) The chief of any fire department or district who retires from that position shall
comply with the provisions of Section 49-11-504 upon reemployment by the participating
employer.
Section 20. Section 49-16-601 is amended to read:
49-16-601. Disability benefit -- Line-of-duty disability -- Benefits -- Monthly
allowance.
(1) An active member of this system who is unable to perform firefighter service due to a
physical or mental condition that was not incurred in the line-of-duty may apply to the office for
a disability retirement benefit subject to the following provisions:
[
[
(a) if the member has less than five years of service credit in this system, disability
benefits are not payable[
[
the member has five or more years of service credit in this system, the member shall be granted a
disability retirement benefit subject to Section 49-16-602 .
(2) The monthly disability retirement benefit is 50% of the member's final average
monthly salary.
Section 21. Section 49-16-601.5 is enacted to read:
49-16-601.5. Line-of-duty disability benefit -- Benefits -- Monthly allowance.
(1) An active member of this system who is unable to perform firefighter service due to a
physical or mental condition incurred in the line-of-duty may apply to the office for a disability
retirement benefit under this section.
(2) If the condition is classified by the office as a line-of-duty disability, the member
shall be granted a disability retirement benefit subject to Section 49-16-602 .
(3) The monthly disability retirement benefit is 50% of the member's final average salary.
Section 22. Section 49-16-701 is amended to read:
49-16-701. Volunteer firefighters eligible for line-of-duty death and disability
benefits in Division A -- Computation of benefit.
(1) A volunteer firefighter is only eligible for line-of-duty death and line-of-duty
disability benefits provided for firefighters enrolled in Division A, subject to Section 49-16-603 .
(2) The lowest monthly compensation of firefighters of a city of the first class in this
state at the time of death or disability shall be considered to be the final average monthly salary
of a volunteer firefighter for purposes of computing these benefits.
(3) Each volunteer fire department shall maintain a current roll of all volunteer
firefighters which meet the requirements of Subsection 49-16-102 (10) to determine eligibility for
this benefit.
Section 23. Section 49-20-409 is enacted to read:
49-20-409. Long-term disability -- Cost of health coverage waiver.
(1) Under the direction of the board, the program shall provide a waiver of the cost of
health insurance coverage for state employees who receive a monthly disability benefit under
Title 49, Chapter 21, Public Employees' Long-Term Disability Act.
(2) A participating employer, other than the state, may elect to provide a waiver for its
employees similar to the waiver provided under Subsection (1).
Section 24. Section 49-21-102 is amended to read:
49-21-102. Definitions.
As used in this chapter:
(1) "Date of disability" means the date on which a period of continuous disability
commences, and may not commence on or before the last day of actual work.
(2) "Elimination period" means the three months at the beginning of each continuous
period of total disability for which no benefit will be paid. The elimination period begins on the
nearest first day of the month from the date of disability. The elimination period may include a
one-time trial return to work period of less than 15 consecutive calendar days.
(3) (a) "Eligible employee" means:
(i) any regular full-time employee as defined under Section 49-12-102 or 49-13-102 ,
public safety service employee as defined under Section 49-14-102 or 49-15-102 , or judge as
defined under Section 49-17-102 or 49-18-102 , whose employer provides coverage under this
chapter, or the governor of the state; and
(ii) an employee who is covered by a retirement program offered by the Teachers'
Insurance and Annuity Association of America, if the employee's employer provides coverage
under this chapter; and
(b) "Eligible employee" does not include any employee that is exempt from coverage
under Section 49-21-201 .
(4) "Maximum benefit period" means the maximum period of time the monthly disability
income benefit will be paid under Section 49-21-403 for any continuous period of total disability.
(5) "Monthly disability benefit" means the monthly payments and accrual of service
credit under Section 49-21-401 [
(6) "Objective medical impairment" means an impairment resulting from an injury or
illness which is diagnosed by a physician and which is based on accepted objective medical tests
or findings rather than subjective complaints.
(7) "Physician" means a licensed physician.
(8) "Regular monthly salary" means the amount certified by the participating employer as
the monthly salary of the eligible employee, unless there is a discrepancy between the certified
amount and the amount actually paid, in which case the office shall determine the regular
monthly salary.
(9) "Regular occupation" means either the primary duties performed by the eligible
employee for the twelve months preceding the date of disability, or a permanent assignment of
duty to the eligible employee.
(10) "Rehabilitative employment" means any occupation or employment for wage or
profit, for which the eligible employee is reasonably qualified to perform based on education,
training, or experience while unable to perform the employee's regular occupation.
(11) (a) "Total disability" or "totally disabled" means the complete inability, due to
objective medical impairment, whether physical or mental, to engage in the eligible employee's
regular occupation during the elimination period and the first 24 months of disability benefits.
(b) "Total disability" means, after the elimination period and the first 24 months of
disability benefits, the complete inability, based solely on physical objective medical impairment,
to engage in any gainful occupation which is reasonable, considering the eligible employee's
education, training, and experience.
Section 25. Section 49-21-402 is amended to read:
49-21-402. Reduction of benefit -- Circumstances -- Application for other benefits
required.
(1) A monthly disability benefit may not be paid for any period of total disability unless
the eligible employee is under the ongoing care and treatment of a physician other than the
eligible employee.
(2) The monthly disability benefit shall be reduced by any amount received by, or
payable to, the eligible employee from the following sources for the same period of time during
which the eligible employee is entitled to receive a monthly disability benefit:
(a) Social Security disability benefits, including all benefits received by the eligible
employee, the eligible employee's spouse, and the eligible employee's [
children as determined by the Social Security Administration;
(b) workers' compensation indemnity benefits;
(c) any monies received by judgment, legal action, or settlement from a third party liable
to the employee for the disability;
(d) unemployment compensation benefits; and
(e) automobile no-fault, medical payments, or similar insurance payments.
(3) The monthly disability benefit shall be reduced by any amount in excess of 1/3 of the
eligible employee's regular monthly salary received by, or payable to, the eligible employee from
the following sources for the same period of time during which the eligible employee is entitled
to receive a monthly disability benefit:
(a) any employer-sponsored retirement programs; and
(b) any disability benefit resulting from the disability for which benefits are being
received under this chapter.
(4) Cost-of-living increases to any of the benefits listed in Subsection (2) may not be
considered in calculating a reduction to the monthly disability benefit.
(5) Any amounts payable to the eligible employee from one or more of the sources under
Subsection (2) are considered as amounts received whether or not the amounts were actually
received by the eligible employee.
(6) (a) An eligible employee shall first apply for all disability benefits from governmental
entities under Subsection (2) to which the eligible employee is or may be entitled, and provide to
the office evidence of the applications.
(b) The eligible employee shall also first apply at the earliest eligible age for all
unreduced retirement benefits to which the eligible employee is or may be entitled, and provide
to the office evidence of the application.
(c) If the eligible employee fails to make application under Subsection (6)(a) or (b), the
monthly disability benefit shall be suspended.
Section 26. Section 49-21-403 is amended to read:
49-21-403. Termination of disability benefits -- Calculation of retirement benefit.
(1) An eligible employee covered by this chapter and eligible for service credit under a
system, including an eligible employee who relinquishes rights to retirement benefits under
Section 49-11-619 , who applies and is qualified for a monthly disability benefit shall receive a
monthly disability benefit until the earlier of:
(a) the date the eligible employee has accumulated:
(i) 20 years of service credit if the eligible employee is covered by Chapter 14, Public
Safety Contributory Retirement Act, or Chapter 15, Public Safety Noncontributory Retirement
Act;
(ii) 25 years of service credit if the eligible employee is covered by Chapter 17, Judges'
Contributory Retirement Act, or Chapter 18, Judges' Noncontributory Retirement Act; or
(iii) 30 years of service credit if the eligible employee is covered by Chapter 12, Public
Employees' Contributory Retirement Act, or Chapter 13, Public Employees' Noncontributory
Retirement Act; or
(b) the date the eligible employee has received a monthly disability benefit for the
following applicable time periods:
(i) if the eligible employee is under age 60, the monthly disability benefit is payable until
age 65;
(ii) if the eligible employee is 60 or 61 years of age on the date of disability, the monthly
disability benefit is payable for five years;
(iii) if the eligible employee is 62 or 63 years of age on the date of disability, the monthly
disability benefit is payable for four years;
(iv) if the eligible employee is 64 or 65 years of age on the date of disability, the monthly
disability benefit is payable for three years;
(v) if the eligible employee is 66, 67, or 68 years of age on the date of disability, the
monthly disability benefit is payable for two years; and
(vi) if the eligible employee is 69 years of age or older on the date of disability, the
monthly disability benefit is payable for one year.
(2) (a) Upon termination of a monthly disability benefit, an eligible employee eligible for
service credit under a system may retire under the system which covered the eligible employee on
the date of disability.
(b) The final average salary used in the calculation of the allowance shall be based on the
annual rate of pay on the date of disability, improved by the annual cost-of-living increase factor
applied to retirees of the system which covered the eligible employee on the date of disability.
(3) An eligible employee who is eligible for service credit in a system, but has
relinquished rights to an allowance under Section 49-11-619 , may receive the benefits the
eligible employee would have received by being eligible for service credit in the system covering
the eligible employee on the date of disability, except for the accrual of service credit, in
accordance with this title.
(4) An eligible employee receiving a monthly disability benefit who has service credit
from two or more systems may not combine service credits under Section 49-11-405 in
qualifying for retirement, unless the eligible employee would receive a greater allowance by
combining the service credits.
(5) A monthly disability benefit payable to an eligible employee who is not eligible for
service credit under a system shall terminate at the earliest of:
(a) the date the eligible employee would be eligible for an unreduced [
allowance; [
(b) the date the eligible employee has received a monthly disability benefit for the
applicable time period as set forth in Subsection (1)(b)[
(c) the date the eligible employee receives a reduced allowance.
Section 27. Repealer.
This bill repeals:
Section 49-21-407, Health insurance reimbursements for persons with a disability --
Limitations.
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