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MINUTES OF THE

HOUSE RETIREMENT AND INDEPENDENT ENTITIES STANDING COMMITTEE

Room W020, State Capitol Complex

January 20, 2006

Members Present:    Rep. Michael T. Morley, Chair    
    Rep. David Clark, Vice Chair     Rep. Ron Bigelow     Rep. Neil A. Hansen
    Rep. Ann W. Hardy
    Rep. Rebecca Lockhart
    Rep. Karen W. Morgan
    Rep. Merlynn T. Newbold
    Rep. LaWanna Shurtliff

Staff Present:
    Mr. Benjamin N. Christensen, Policy Analyst
    Mr. Dee S. Larsen, Associate General Counsel             Ms. Barbara Bryner, Committee Secretary    

Note: A list of visitors and a copy of handouts are filed with the committee minutes.

    
     Rep. Michael T. Morley called the meeting to order at 1:09 p.m.

1.    H.B. 209    Partial Lump-sum Retirement Payment Option (Rep. D. Clark)

    
Rep. David Clark introduced the bill to the committee.

    Courtney White, UEA, spoke for the bill.

MOTION:    Rep. Morgan moved to pass the bill out favorably. The motion passed unanimously with Rep. Bigelow and Rep. Newbold absent for the vote.

2.    H.B. 216    Expiration of Group Health Insurance for Retired Governors and Legislators (Rep. D. Clark)

    Rep. David Clark introduced the bill.

    Kim Hood, Staff of the Legislative Compensation Commission, spoke to the bill.

MOTION:    Rep. Newbold moved to pass the bill out favorably. The motion passed with
        Rep. Hansen voting against the motion.



3.    H.B. 225    Post Retirement Employment (Rep. G. Donnelson)

MOTION:    Rep. Lockhart moved to amend as follows:

1.    Page 1, Lines 20 through 21 :    

             20      Other Special Clauses:
             21          
{   None   }        This bill takes effect on July 1, 2006.      


2.    Page 4, Line 101 :    

             101          (11) The board may make rules to implement this section.
    
  Section 2. Effective date.

    This bill takes effect on July 1, 2006.  

    
    The motion passed unanimously.

Rep. Glen Donnelson introduced the bill.

The following people spoke against the bill:

Vall Shoup, Director of Public Safety of South Office Police Department & Represents
            Utah Chiefs of Police
Steven Peterson, Utah School Board Association
Courtney White, UEA
John Griner, Police Department and Chairman of Post Council

MOTION:    Rep. Lockhart moved to amend as follows:

3.    Page 1, Lines 15 through 16 :    

             15          
{   .    extends the period that a retiree may not be reemployed from six months to 12

             16      months in order to avoid reemployment restrictions for retirees;  
}
and

4.    Page 2, Lines 46 through 47 :    

             46          (4) A retiree of an agency who is reemployed on a full-time basis by the same agency
             47      within
{   [   } six      {   ]   }      {   12   } months of the date of retirement is subject to the following:



5.    Page 3, Lines 60 through 73 :    

             60          (5) A retiree of an agency who is reemployed by the same agency within
{   [   } six      {   ]   }      {   12   }

             61      months of retirement on a less than full-time basis by the same agency is subject to the
             62      following:
             63          (a) the retiree may earn, without penalty, compensation from that position which is not
             64      in excess of the exempt earnings permitted by Social Security;
             65          (b) if a retiree receives compensation in a calendar year in excess of the Social Security
             66      limitation, 25% of the allowance shall be suspended for the remainder of the
{   [   } six-month      {   ]   }

             67     
{   12-month   } period;

             68      (c) the effective date of a suspension and reinstatement of an allowance shall be set by
             69      the office; and
             70      (d) any suspension of a retiree's allowance under this Subsection (5) shall be applied
             71      on a calendar year basis.
             72          (6) For
{   [   } six      {   ]   }      {   12   } months immediately following retirement, the retiree and participating

             73      employer shall:

6.    Page 3, Lines 80 through 81 :    

             80          (7) A retiree of an agency who is reemployed by the same agency after
{   [   } six      {   ]   }      {   12   } months

             81      from the retirement date:
        
        The motion passed unanimously.

MOTION:    Rep. Morgan moved to amend as follows:

1.    Page 1, Lines 15 through 16 :    

             15          .    
{   extends   }        reduces       the period that a retiree may not be reemployed from six months to      {   12   }        three      


             16
     months in order to avoid reemployment restrictions for retirees; and

2.    Page 2, Lines 46 through 47 :    

             46          (4) A retiree of an agency who is reemployed on a full-time basis by the same agency
             47      within
{   [   }      {   six   }      {   ]   }      {   12   }        three       months of the date of retirement is subject to the following:


3.    Page 3, Lines 60 through 73 :    

             60          (5) A retiree of an agency who is reemployed by the same agency within
{   [   }      {   six   }      {   ]   }      {   12   }        three      

             61      months of retirement on a less than full-time basis by the same agency is subject to the
             62      following:
             63          (a) the retiree may earn, without penalty, compensation from that position which is not
             64      in excess of the exempt earnings permitted by Social Security;
             65          (b) if a retiree receives compensation in a calendar year in excess of the Social Security
             66      limitation, 25% of the allowance shall be suspended for the remainder of the
{   [   }      {   six-month   }        three            {   ]   }

             67     
{   12-month   } period;

             68          (c) the effective date of a suspension and reinstatement of an allowance shall be set by
             69      the office; and
             70          (d) any suspension of a retiree's allowance under this Subsection (5) shall be applied
             71      on a calendar year basis.
             72          (6) For
{   [   }      {   six   }        three            {   ]   }      {   12   } months immediately following retirement, the retiree and participating

             73      employer shall:




4.    Page 3, Lines 80 through 81 :    

             80          (7) A retiree of an agency who is reemployed by the same agency after
{   [   }      {   six   }        three            {   ]   }      {   12   } months

             81      from the retirement date:
        
        The motion failed with Rep. Hansen, Rep. Morgan and Rep. Shurtliff voting for         the motion.

MOTION:    Rep. Bigelow moved to pass the bill out favorably as amended. The motion passed unanimously.

MOTION:    Rep. Lockhart moved to adjourn. The motion passed unanimously and the Chair adjourned the meeting at 2:02 p.m.





                ____________________________________
                    Rep. Michael T. Morley, Chair