Download Zipped Amended WordPerfect SB0195.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 195

This document includes Senate Committee Amendments incorporated into the bill on Tue, Mar 3, 2009 at 1:11 PM by rday. -->             


Text Box

- 1 -
Senate Committee Amendments 3-3-2009 rd/enw
1
    
PUBLIC EMPLOYEE DEFINED

             2     
CONTRIBUTION AMENDMENTS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Daniel R. Liljenquist

             6     
House Sponsor: ____________

             7     

             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
             11      employer defined contributions for certain employees in the Public Employees'
             12      Noncontributory Retirement System.
             13      Highlighted Provisions:
             14          This bill:
             15          .    suspends, for the period of July 1, 2009 through June 30, 2010 only, S. one-half of .S
             15a      the 1.5%
             16      employer defined contribution made on behalf of those employees in the Public
             17      Employees' Noncontributory Retirement System;
             18          .    provides that certain employees who elected to move from the contributory
             19      retirement system to the noncontributory retirement system and who have remained
             20      in that system are not subject to the suspension of payments; and
             21          .    makes technical changes.
             22      Monies Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          None
             26      Utah Code Sections Affected:


             27      AMENDS:



Text Box

- 2 -
             28
         49-13-303, as renumbered and amended by Laws of Utah 2002, Chapter 250
             29     

             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 49-13-303 is amended to read:
             32           49-13-303. Supplemental benefit established -- Defined contribution plan options
             33      -- Contribution by employer and employee -- Immediate vesting of contributions -- Plans
             34      to be separate -- Tax-qualified status of plans -- Temporary contribution suspension.
             35          (1) (a) [Participating] Except as provided under Subsection (8), participating employers
             36      in Level A under Section 49-13-301 , which are participating educational institutions or
             37      participating employers whose activities are associated with participating educational
             38      institutions, shall make a nonelective contribution on behalf of each of its regular full-time
             39      employees who are members of this system an amount equal to at least 1.5% of the member's
             40      compensation to a defined contribution plan qualified under Section 401(k) of the Internal
             41      Revenue Code which is selected by the regular full-time employee and which is sponsored by
             42      the board, by that Level A employer, or by a group of similar Level A employers, and which
             43      has been grandfathered under Section 1116 of the Federal Tax Reform Act of 1986.
             44          (b) [All] Except as provided under Subsection (8), all other Level A participating
             45      employers under Section 49-13-301 shall make a nonelective contribution on behalf of each of
             46      its regular full-time employees who are members of this system an amount equal to at least
             47      1.5% of the member's compensation to the defined contribution plan qualified under Section
             48      401(k) of the Internal Revenue Code which is sponsored by the board.
             49          (c) The member or participating employer may make additional payments to either the
             50      qualified 401(k) plan which receives the 1.5% employer contribution described in this
             51      Subsection (1), or to any other defined contribution plan qualified under Section 401(k) of the
             52      Internal Revenue Code which is selected by the member and sponsored by the board, that Level
             53      A employer, or a group of similar Level A employers, and which has been grandfathered under
             54      Section 1116 of the Federal Tax Reform Act of 1986.
             55          (2) (a) Participating employers in Level B under Section 49-13-301 may make
             56      nonelective contributions on behalf of each of its regular full-time employees who are members
             57      of this system to the 401(k) defined contribution plan sponsored by the board or to a qualified
             58      plan sponsored by the participating employer which has been grandfathered under Section



Text Box

- 3 -
Senate Committee Amendments 3-3-2009 rd/enw
             59
     1116 of the Federal Tax Reform Act of 1986.
             60          (b) The member may also make voluntary deferrals to the same 401(k) plan which the
             61      member selected to receive the employer contribution described in Subsection (2)(a).
             62          (3) Each qualified defined contribution 401(k) plan is separate and distinct from any
             63      other qualified defined contribution 401(k) plan for all purposes, including purposes of
             64      fiduciary liability and plan administration.
             65          (4) A member may not make voluntary deferrals to any other qualified 401(k) plan
             66      sponsored by a state or local government.
             67          (5) The total amount contributed by the participating employer and the member under
             68      Subsection (1) or (2) vests to the member's benefit immediately and is nonforfeitable.
             69          (6) The board may request from any other qualified 401(k) plan under Subsection (1)
             70      or (2) any relevant information pertaining to the maintenance of its tax qualification under the
             71      Internal Revenue Code.
             72          (7) The board may take any action which in its judgment is necessary to maintain the
             73      tax-qualified status of its 401(k) defined contribution plan under federal law.
             74          (8) (a) Notwithstanding any other provision of this section, for the period that starts
             75      with the beginning of the pay period which starting date falls most closely to July 1, 2009 and
             76      ending at the end of the pay period which end date falls most closely to June 30, 2010, S. one-half
             76a      of .S the
             77      participating employer contribution to a qualified defined contribution plan under Subsections
             78      (1)(a) and (b) is suspended for an active member, except for an active member:
             79          (i) who made the election to move to the Public Employees' Noncontributory
             80      Retirement System under Subsection 49-13-205 (1), (2), (3), or (4); and
             81          (ii) who has continuously accrued service credit under the Public Employees'
             82      Noncontributory Retirement System since electing to move to the system as described under
             83      Subsection (8)(a)(i).
             84          (b) Participating employers shall determine which employees shall receive the
             85      participating employer contributions under Subsections (1)(a) and (b) for the period described
             86      in Subsection (8)(a) and shall make the appropriate contributions to the office.



Text Box

- 4 -




Legislative Review Note
    as of 2-19-09 1:32 PM


Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]