Download Zipped Introduced WordPerfect HB0167.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 167

             1     

COUNTY HOSPITAL RETIREMENT

             2     
PROVISIONS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Michael E. Noel

             6     
Senate Sponsor: Curtis S. Bramble

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Utah State Retirement and Insurance Benefit Act to allow certain
             11      employers and employees to be excluded from participation in the Public Employees'
             12      Contributory Retirement System and the Public Employees' Noncontributory
             13      Retirement System.
             14      Highlighted Provisions:
             15          This bill:
             16          .    allows an employer that is a hospital created as a special service district to elect to
             17      be excluded from participation in the Public Employees' Contributory Retirement
             18      System and the Public Employees' Noncontributory Retirement System under
             19      certain circumstances;
             20          .    provides procedures for the exclusion;
             21          .    excludes new and existing employees of a special service district hospital from
             22      participation in the Public Employees' Contributory Retirement System and the
             23      Public Employees' Noncontributory Retirement System under certain
             24      circumstances; and
             25          .    makes technical changes.
             26      Monies Appropriated in this Bill:
             27          None


             28      Other Special Clauses:
             29          None
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          49-12-202, as last amended by Laws of Utah 2005, Chapter 71
             33          49-12-203, as last amended by Laws of Utah 2008, Chapter 335
             34          49-13-202, as last amended by Laws of Utah 2005, Chapter 71
             35          49-13-203, as last amended by Laws of Utah 2008, Chapter 335
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 49-12-202 is amended to read:
             39           49-12-202. Participation of employers -- Limitations -- Exclusions -- Admission
             40      requirements -- Exceptions -- Nondiscrimination requirements.
             41          (1) (a) Unless excluded under Subsection (2) [or (3)], an employer is a participating
             42      employer and may not withdraw from participation in this system.
             43          (b) In addition to their participation in this system, participating employers may
             44      provide or participate in public or private retirement, supplemental or defined contribution
             45      plan, either directly or indirectly, for their employees.
             46          (2) The following employers may be excluded from participation in this system:
             47          [(2)] (a) [An] an employer not initially admitted or included as a participating employer
             48      in this system prior to January 1, 1982[, may be excluded from participation in this system] if:
             49          [(a)] (i) the employer elects not to provide or participate in any type of private or public
             50      retirement, supplemental or defined contribution plan, either directly or indirectly, for its
             51      employees, except for Social Security; or
             52          [(b)] (ii) the employer offers another collectively bargained retirement benefit and has
             53      continued to do so on an uninterrupted basis since that date[.];
             54          [(3)] (b) [An] an employer that is a charter school sponsored by the State Board of
             55      Education or a school district that makes an election of nonparticipation in accordance with
             56      Section 53A-1a-512 [may be excluded as a participating employer.]; or
             57          (c) an employer that is a hospital created as a special service district under Title 17D,
             58      Chapter 1, Special Service District Act, that makes an election of nonparticipation in


             59      accordance with Subsection (4).
             60          [(4)] (3) An employer who did not become a participating employer in this system
             61      prior to July 1, 1986, may not participate in this system.
             62          (4) (a) Until June 30, 2009, a employer that is a hospital created as a special service
             63      district under Title 17D, Chapter 1, Special Service District Act, may make an election of
             64      nonparticipation as an employer for retirement programs under this chapter.
             65          (b) An election provided under Subsection (4)(a):
             66          (i) is a one-time election made no later than the time specified under Subsection (4)(a);
             67          (ii) shall be documented by a resolution adopted by the governing body of the special
             68      service district;
             69          (iii) is irrevocable; and
             70          (iv) applies to the special service district as the employer and to all employees of the
             71      special service district.
             72          (c) The governing body of the special service district may offer employee benefit plans
             73      for its employees:
             74          (i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
             75      or
             76          (ii) under any other program.
             77          (5) If a participating employer purchases service credit on behalf of regular full-time
             78      employees for service rendered prior to the participating employer's admission to this system,
             79      the service credit shall be purchased in a nondiscriminatory manner on behalf of all current and
             80      former regular full-time employees who were eligible for service credit at the time service was
             81      rendered.
             82          Section 2. Section 49-12-203 is amended to read:
             83           49-12-203. Exclusions from membership in system.
             84          (1) The following employees are not eligible for service credit in this system:
             85          (a) An employee whose employment status is temporary in nature due to the nature or
             86      the type of work to be performed, provided that:
             87          (i) if the term of employment exceeds six months and the employee otherwise qualifies
             88      for service credit in this system, the participating employer shall report and certify to the office
             89      that the employee is a regular full-time employee effective the beginning of the seventh month


             90      of employment; or
             91          (ii) if an employee, previously terminated prior to being eligible for service credit in
             92      this system is reemployed within three months of termination by the same participating
             93      employer, the participating employer shall report and certify that the member is a regular
             94      full-time employee when the total of the periods of employment equals six months and the
             95      employee otherwise qualifies for service credit in this system.
             96          (b) (i) A current or future employee of a two-year or four-year college or university
             97      who holds, or is entitled to hold, under Section 49-12-204 , a retirement annuity contract with
             98      the Teachers' Insurance and Annuity Association of America or with any other public or private
             99      system, organization, or company during any period in which required contributions based on
             100      compensation have been paid on behalf of the employee by the employer.
             101          (ii) The employee, upon cessation of the participating employer contributions, shall
             102      immediately become eligible for service credit in this system.
             103          (c) An employee serving as an exchange employee from outside the state.
             104          (d) An executive department head of the state, a member of the State Tax Commission,
             105      the Public Service Commission, and a member of a full-time or part-time board or commission
             106      who files a formal request for exemption.
             107          (e) An employee of the Department of Workforce Services who is covered under
             108      another retirement system allowed under Title 35A, Chapter 4, Employment Security Act.
             109          (f) (i) An employee who is employed on or after July 1, 2009 with an employer that has
             110      elected, prior to July 1, 2009, to be excluded from participation in this system under Subsection
             111      49-12-202 (2)(c).
             112          (ii) Notwithstanding the provisions of this Subsection (1)(f), any eligibility for service
             113      credit earned by an employee under this chapter before July 1, 2009 is not affected under this
             114      Subsection (1)(f).
             115          (2) Upon filing a written request for exemption with the office, the following
             116      employees shall be exempt from coverage under this system:
             117          (a) a full-time student or the spouse of a full-time student and individuals employed in
             118      a trainee relationship;
             119          (b) an elected official;
             120          (c) an executive department head of the state, a member of the State Tax Commission,


             121      a member of the Public Service Commission, and a member of a full-time or part-time board or
             122      commission;
             123          (d) an employee of the Governor's Office of Planning and Budget;
             124          (e) an employee of the Governor's Office of Economic Development;
             125          (f) an employee of the Commission on Criminal and Juvenile Justice;
             126          (g) an employee of the Governor's Office;
             127          (h) an employee of the State Auditor's Office;
             128          (i) an employee of the State Treasurer's Office;
             129          (j) any other member who is permitted to make an election under Section 49-11-406 ;
             130          (k) a person appointed as a city manager or chief city administrator or another person
             131      employed by a municipality, county, or other political subdivision, who is an at-will employee;
             132      and
             133          (l) an employee of an interlocal cooperative agency created under Title 11, Chapter 13,
             134      Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided through
             135      membership in a labor organization that provides retirement benefits to its members.
             136          (3) (a) Each participating employer shall prepare a list designating those positions
             137      eligible for exemption under Subsection (2).
             138          (b) An employee may not be exempted unless the employee is employed in a position
             139      designated by the participating employer.
             140          (4) (a) In accordance with this section, a municipality, county, or political subdivision
             141      may not exempt more than 50 positions or a number equal to 10% of the employees of the
             142      municipality, county, or political subdivision whichever is lesser.
             143          (b) A municipality, county, or political subdivision may exempt at least one regular
             144      full-time employee.
             145          (5) Each participating employer shall:
             146          (a) file employee exemptions annually with the office; and
             147          (b) update the employee exemptions in the event of any change.
             148          (6) The office may make rules to implement this section.
             149          Section 3. Section 49-13-202 is amended to read:
             150           49-13-202. Participation of employers -- Limitations -- Exclusions -- Admission
             151      requirements -- Nondiscrimination requirements -- Service credit purchases.


             152          (1) (a) Unless excluded under Subsection (2) [or (3)], an employer is a participating
             153      employer and may not withdraw from participation in this system.
             154          (b) In addition to their participation in this system, participating employers may
             155      provide or participate in any additional public or private retirement, supplemental or defined
             156      contribution plan, either directly or indirectly, for their employees.
             157          (2) The following employers may be excluded from participation in this system:
             158          [(2)] (a) [An] an employer not initially admitted or included as a participating employer
             159      in this system prior to January 1, 1982[, may be excluded from participation in this system] if:
             160          [(a)] (i) the employer elects not to provide or participate in any type of private or public
             161      retirement, supplemental or defined contribution plan, either directly or indirectly, for its
             162      employees, except for Social Security; or
             163          [(b)] (ii) the employer offers another collectively bargained retirement benefit and has
             164      continued to do so on an uninterrupted basis since that date[.];
             165          [(3)] (b) [An] an employer that is a charter school sponsored by the State Board of
             166      Education or a school district that makes an election of nonparticipation in accordance with
             167      Section 53A-1a-512 [shall be excluded as a participating employer.]; or
             168          (c) an employer that is a hospital created as a special service district under Title 17D,
             169      Chapter 1, Special Service District Act, that makes an election of nonparticipation in
             170      accordance with Subsection (5).
             171          [(4) If] (3) If an employer[, except an employer that maintains a collectively bargained
             172      plan under Subsection (2)(b),] that may be excluded under Subsection (2)(a)(i) elects at any
             173      time to provide or participate in any type of public or private retirement, supplemental or
             174      defined contribution plan, either directly or indirectly, except for Social Security, the employer
             175      shall be a participating employer in this system.
             176          [(5)] (4) (a) [Any] An employer may, by resolution of its governing body, apply for
             177      admission to this system.
             178          (b) Upon approval of the resolution by the board, the employer is a participating
             179      employer in this system and is subject to this title.
             180          (5) (a) Until June 30, 2009, a employer that is a hospital created as a special service
             181      district under Title 17D, Chapter 1, Special Service District Act, may make an election of
             182      nonparticipation as an employer for retirement programs under this chapter.


             183          (b) An election provided under Subsection (5)(a):
             184          (i) is a one-time election made no later than the time specified under Subsection (5)(a);
             185          (ii) shall be documented by a resolution adopted by the governing body of the special
             186      service district;
             187          (iii) is irrevocable; and
             188          (iv) applies to the special service district as the employer and to all employees of the
             189      special service district.
             190          (c) The governing body of the special service district may offer employee benefit plans
             191      for its employees:
             192          (i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
             193      or
             194          (ii) under any other program.
             195          (6) If a participating employer purchases service credit on behalf of regular full-time
             196      employees for service rendered prior to the participating employer's admission to this system,
             197      the service credit shall be purchased in a nondiscriminatory manner on behalf of all current and
             198      former regular full-time employees who were eligible for service credit at the time service was
             199      rendered.
             200          Section 4. Section 49-13-203 is amended to read:
             201           49-13-203. Exclusions from membership in system.
             202          (1) The following employees are not eligible for service credit in this system:
             203          (a) An employee whose employment status is temporary in nature due to the nature or
             204      the type of work to be performed, provided that:
             205          (i) if the term of employment exceeds six months and the employee otherwise qualifies
             206      for service credit in this system, the participating employer shall report and certify to the office
             207      that the employee is a regular full-time employee effective the beginning of the seventh month
             208      of employment; and
             209          (ii) if an employee, previously terminated prior to becoming eligible for service credit
             210      in this system, is reemployed within three months of termination by the same participating
             211      employer, the participating employer shall report and certify to the office that the member is a
             212      regular full-time employee when the total of the periods of employment equals six months and
             213      the employee otherwise qualifies for service credit in this system.


             214          (b) (i) A current or future employee of a two-year or four-year college or university
             215      who holds, or is entitled to hold, under Section 49-13-204 , a retirement annuity contract with
             216      the Teachers' Insurance and Annuity Association of America or with any other public or private
             217      system, organization, or company during any period in which required contributions based on
             218      compensation have been paid on behalf of the employee by the employer.
             219          (ii) The employee, upon cessation of the participating employer contributions, shall
             220      immediately become eligible for service credit in this system.
             221          (c) An employee serving as an exchange employee from outside the state.
             222          (d) An executive department head of the state or a legislative director, senior executive
             223      employed by the governor's office, a member of the State Tax Commission, a member of the
             224      Public Service Commission, and a member of a full-time or part-time board or commission
             225      who files a formal request for exemption.
             226          (e) An employee of the Department of Workforce Services who is covered under
             227      another retirement system allowed under Title 35A, Chapter 4, Employment Security Act.
             228          (f) (i) An employee who is employed on or after July 1, 2009 with an employer that has
             229      elected, prior to July 1, 2009, to be excluded from participation in this system under Subsection
             230      49-13-202 (2)(c).
             231          (ii) Notwithstanding the provisions of this Subsection (1)(f), any eligibility for service
             232      credit earned by an employee under this chapter before July 1, 2009 is not affected under this
             233      Subsection (1)(f).
             234          (2) Upon filing a written request for exemption with the office, the following
             235      employees shall be exempt from coverage under this system:
             236          (a) a full-time student or the spouse of a full-time student and individuals employed in
             237      a trainee relationship;
             238          (b) an elected official;
             239          (c) an executive department head of the state, a member of the State Tax Commission,
             240      a member of the Public Service Commission, and a member of a full-time or part-time board or
             241      commission;
             242          (d) an employee of the Governor's Office of Planning and Budget;
             243          (e) an employee of the Governor's Office of Economic Development;
             244          (f) an employee of the Commission on Criminal and Juvenile Justice;


             245          (g) an employee of the Governor's Office;
             246          (h) an employee of the State Auditor's Office;
             247          (i) an employee of the State Treasurer's Office;
             248          (j) any other member who is permitted to make an election under Section 49-11-406 ;
             249          (k) a person appointed as a city manager or chief city administrator or another person
             250      employed by a municipality, county, or other political subdivision, who is an at-will employee;
             251      and
             252          (l) an employee of an interlocal cooperative agency created under Title 11, Chapter 13,
             253      Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided through
             254      membership in a labor organization that provides retirement benefits to its members.
             255          (3) (a) Each participating employer shall prepare a list designating those positions
             256      eligible for exemption under Subsection (2).
             257          (b) An employee may not be exempted unless the employee is employed in a position
             258      designated by the participating employer.
             259          (4) (a) In accordance with this section, a municipality, county, or political subdivision
             260      may not exempt more than 50 positions or a number equal to 10% of the employees of the
             261      municipality, county, or political subdivision, whichever is lesser.
             262          (b) A municipality, county, or political subdivision may exempt at least one regular
             263      full-time employee.
             264          (5) Each participating employer shall:
             265          (a) file employee exemptions annually with the office; and
             266          (b) update the employee exemptions in the event of any change.
             267          (6) The office may make rules to implement this section.




Legislative Review Note
    as of 2-12-09 11:02 AM


Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]