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