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S.B. 145

             1     

PUBLIC SAFETY RETIREES DEATH

             2     
BENEFIT REVISIONS

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Jon J. Greiner

             6     
House Sponsor: Richard A. Greenwood

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
             11      death benefit provisions for the public safety and judges contributory and
             12      noncontributory retirement systems.
             13      Highlighted Provisions:
             14          This bill:
             15          .    allows a public safety retiree to choose a death benefit of 75% instead of 65% of the
             16      retiree's allowance to be paid to the surviving spouse in exchange for an actuarially
             17      reduced retirement allowance;
             18          .    provides that the public safety retiree must make the choice at the time of
             19      retirement;
             20          .    allows a 12-month window for certain public safety retirees to elect an increased
             21      spousal death benefit paid through a reduction in the retiree's allowance;
             22          .    requires the Retirement Board to make rules to administer the optional spousal
             23      death benefit; and
             24          .    makes technical changes.
             25      Monies Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28          This bill takes effect on July 1, 2009.
             29      Utah Code Sections Affected:
             30      AMENDS:
             31          49-14-504, as renumbered and amended by Laws of Utah 2002, Chapter 250
             32          49-15-504, as last amended by Laws of Utah 2003, Chapter 240
             33          49-17-502, as renumbered and amended by Laws of Utah 2002, Chapter 250
             34          49-18-502, as renumbered and amended by Laws of Utah 2002, Chapter 250
             35     
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 49-14-504 is amended to read:
             38           49-14-504. Benefits payable upon death of retired member -- Enhance benefit
             39      election -- Rulemaking.
             40          (1) If a retiree who retired under either Division A or Division B dies, the retiree's
             41      spouse at the time of death of the retiree shall receive an allowance equal to 65% of the
             42      allowance that was being paid to the retiree at the time of death.
             43          (2) (a) Notwithstanding the amount of the allowance under Subsection (1), at the time
             44      of retirement, a retiree may elect to increase the spousal death benefit to 75% of an allowance
             45      computed in accordance with Section 49-14-402 .
             46          (b) If an election is made under Subsection (2)(a), the member's allowance shall be
             47      reduced to an amount payable monthly for life to reflect the actuarial equivalent necessary to
             48      pay for the increased spousal death benefit above 65%.
             49          (3) (a) For a retiree whose retirement date is before July 1, 2009, the office shall
             50      provide an optional spousal death benefit to bring the total spousal death benefit up to 75% of
             51      an allowance computed in accordance with Section 49-14-402 .
             52          (b) A retiree may elect to purchase the optional spousal death benefit until July 1,
             53      2010.
             54          (c) If an election is made under Subsection (3)(b), the retiree's allowance shall be
             55      reduced to an amount payable monthly for life to reflect the actuarial equivalent necessary to
             56      pay for the increased spousal death benefit above 65%.
             57          (d) The board shall make rules to administer the death benefit under this Subsection
             58      (3).


             59          [(2)] (4) If the retiree retired solely under Division B and dies leaving unmarried
             60      children under the age of 18 or dependent unmarried mentally or physically disabled children,
             61      the children shall qualify for a benefit as prescribed for children under Subsection
             62      49-14-502 (1)(c) which is payable on the first day of the month following the month in which
             63      the retiree died.
             64          Section 2. Section 49-15-504 is amended to read:
             65           49-15-504. Benefits payable upon death of retired member -- Enhance benefit
             66      election -- Rulemaking.
             67          (1) If a retiree who retired under either Division A or Division B dies, the retiree's
             68      spouse at the time of death of the retiree shall receive an allowance equal to 65% of the
             69      allowance that was being paid to the retiree at the time of death.
             70          (2) (a) Notwithstanding the amount of the allowance under Subsection (1), at the time
             71      of retirement, a retiree may elect to increase the spousal death benefit to 75% of an allowance
             72      computed in accordance with Section 49-15-402 .
             73          (b) If an election is made under Subsection (2)(a), the member's allowance shall be
             74      reduced to an amount payable monthly for life to reflect the actuarial equivalent necessary to
             75      pay for the increased spousal death benefit above 65%.
             76          (3) (a) For a retiree whose retirement date is before July 1, 2009, the office shall
             77      provide an optional spousal death benefit to bring the total spousal death benefit up to 75% of
             78      an allowance computed in accordance with Section 49-15-402 .
             79          (b) A retiree may elect to purchase the optional spousal death benefit until July 1,
             80      2010.
             81          (c) If an election is made under Subsection (3)(b), the retiree's allowance shall be
             82      reduced to an amount payable monthly for life to reflect the actuarial equivalent necessary to
             83      pay for the increased spousal death benefit above 65%.
             84          (d) The board shall make rules to administer the death benefit under this Subsection
             85      (3).
             86          [(2)] (4) If the retiree retired solely under Division B and dies leaving unmarried
             87      children under the age of 18 or dependent unmarried mentally or physically disabled children,
             88      the children shall qualify for a benefit as prescribed under Subsection 49-15-502 (1)(d) which is
             89      payable on the first day of the month following the month in which the retiree died.


             90          Section 3. Section 49-17-502 is amended to read:
             91           49-17-502. Benefits payable upon death of retired member.
             92          (1) (a) The death benefit payable to a retiree's spouse at the time of death is an
             93      allowance equal to 65% of the allowance which was being paid to the retiree at the time of
             94      death.
             95          (b) The effective date of the accrual of this allowance is the first day of the month
             96      following the month in which the retiree died.
             97          (2) (a) [At] Notwithstanding the amount of the allowance under Subsection (1), at the
             98      time of retirement, a retiree may elect to increase the spousal death benefit up to 75% of an
             99      allowance computed in accordance with Section 49-17-402 .
             100          (b) [The] If an election is made under Subsection (2)(a), the member's allowance shall
             101      be reduced to reflect the actuarial equivalent necessary to pay for the increased spousal death
             102      benefit above 65%.
             103          Section 4. Section 49-18-502 is amended to read:
             104           49-18-502. Benefits payable upon death of retired member.
             105          (1) (a) The death benefit payable to a retiree's spouse at the time of death is an
             106      allowance equal to 65% of the allowance which was being paid to the retiree at the time of
             107      death.
             108          (b) The effective date of the accrual of this allowance is the first day of the month
             109      following the month in which the retiree died.
             110          (2) (a) [At] Notwithstanding the amount of the allowance under Subsection (1), at the
             111      time of retirement, a retiree may elect to increase the spousal death benefit up to 75% of an
             112      allowance computed in accordance with Section 49-18-402 .
             113          (b) [The] If an election is made under Subsection (2)(a), the member's allowance shall
             114      be reduced to an amount payable monthly for life to reflect the actuarial equivalent necessary to
             115      pay for the increased spousal death benefit above 65%.
             116          Section 5. Effective date.
             117          This bill takes effect on July 1, 2009.





Legislative Review Note
    as of 11-6-08 1:19 PM


Office of Legislative Research and General Counsel


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