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S.B. 171

This document includes Senate Committee Amendments incorporated into the bill on Tue, Mar 2, 2010 at 8:59 AM by rday. -->             


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Senate Committee Amendments 3-2-2010 rd/cjd
1
    
HIGHER EDUCATION RETIREMENT AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Daniel R. Liljenquist

             5     
House Sponsor: Don L. Ipson

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
             10      participation provisions for higher education employees.
             11      Highlighted Provisions:
             12          This bill:
             13          .    allows a higher education employee hired on or after May 11, 2010, who has service
             14      credit in the Public Employees' Contributory Retirement System and the Public
             15      Employees' Noncontributory Retirement System, to elect to continue participation
             16      in that system regardless of the institution's employment classification assignment;
             17          .    provides a one-time irrevocable election until June 30, 2010, to a regular full-time
             18      employee of an institution of higher education S. who has URS service credit .S to transfer to a
             18a      Public Employees'
             19      Retirement System;
             20          .    provides for certain rulemaking by the board; 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:




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             28
         49-12-204, as renumbered and amended by Laws of Utah 2002, Chapter 250
             29          49-13-204, as renumbered and amended by Laws of Utah 2002, Chapter 250
             30     

             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 49-12-204 is amended to read:
             33           49-12-204. Higher education employees' eligibility requirements -- Election
             34      between different retirement plans -- Classification requirements -- Transfer between
             35      systems -- One-time election window -- Rulemaking.
             36          (1) (a) [Regular full-time employees of institutions] A regular full-time employee of an
             37      institution of higher education who [are] is eligible to participate in either this system or in a
             38      retirement annuity contract with the Teachers' Insurance and Annuity Association of America
             39      or with any other public or private system, organization, or company, designated by the Board
             40      of Regents, shall, not later than January 1, 1979, elect to participate exclusively in this system
             41      or in an annuity contract allowed under this Subsection (1).
             42          (b) The election is final, and no right exists to make any further election.
             43          (2) (a) [A] Except as provided under Subsection (2)(c), a regular full-time employee
             44      hired by an institution of higher education after January 1, 1979, may participate only in the
             45      retirement plan which attaches to the person's employment classification.
             46          (b) Each institution of higher education shall prepare or amend existing employment
             47      classifications, under the direction of the Board of Regents, so that each classification is
             48      assigned with either:
             49          (i) this system;
             50          (ii) the Teachers' Insurance and Annuity Association of America; or
             51          (iii) another public or private system, organization, or company designated by the
             52      Board of Regents.
             53          (c) Notwithstanding a person's employment classification assignment under Subsection
             54      (2)(b), a regular full-time employee who begins employment with an institution of higher
             55      education on or after May 11, 2010, has a one-time irrevocable election to continue
             56      participation in this system, if the employee has service credit in this system before the date of
             57      employment.
             58          (3) [A] Notwithstanding an employment classification assignment change made under



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Senate Committee Amendments 3-2-2010 rd/cjd
             59
     Subsection (2)(b), a regular full-time employee hired by an institution of higher education after
             60      January 1, 1979, whose employment classification requires participation in this system may
             61      elect to continue participation in this system [upon change to an employment classification
             62      which requires participation in:].
             63          [(a) an annuity plan with the Teachers' Insurance and Annuity Association of America;
             64      or]
             65          [(b) another public or private system, organization, or company designated by the
             66      Board of Regents.]
             67          (4) A regular full-time employee hired by an institution of higher education after
             68      January 1, 1979, whose employment classification requires participation in this system shall
             69      participate in this system.
             70          (5) (a) Notwithstanding any other provision of this section, a regular full-time
             71      employee of an institution of higher education S. shall have a one-time irrevocable election to
             71a      participate in this system if the employee:
             71b          (i) was hired after January 1, 1979;
             71c          (ii)    , .S whose employment classification assignment
             72      under Subsection (2)(b) required participation in a retirement program other than this system
             73      S. [ shall have a one-time irrevocable election to participate in this system ] ; and
             73a          (iii)    has service credit in a system under this title .S .
             74          (b) The election under Subsection (5)(a) shall be made before June 30, 2010.
             75          (c) All forms required by the office must be completed and received by the office no
             76      later than June 30, 2010, for the election to participate in this system to be effective.
             77          (d) Beginning July 1, 2010, a regular full-time employee of an institution of higher
             78      education who elects to be covered by this system under Subsection (5)(a) may begin to accrue
             79      service credit in this system.
             80          (6) A regular full-time employee of an institution of higher education who elects to be
             81      covered by this system under Subsection (2)(c) or (5)(a), may purchase periods of employment
             82      while covered under another retirement program S. sponsored by the institution of higher
             82a      education .S by complying with the requirements of
             83      Section 49-11-403 .
             84          (7) The board shall make rules to implement this section.
             85          Section 2. Section 49-13-204 is amended to read:
             86           49-13-204. Higher education employees' eligibility requirements -- Election
             87      between different retirement plans -- Classification requirements -- Transfer between
             88      systems -- One-time election window -- Rulemaking.
             89          (1) (a) [Regular full-time employees of institutions] A regular full-time employee of an



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             90
     institution of higher education who [are] is eligible to participate in either this system or in a
             91      retirement annuity contract with the Teachers' Insurance and Annuity Association of America
             92      or with any other public or private system, organization, or company, designated by the Board
             93      of Regents, shall, not later than January 1, 1979, elect to participate exclusively in this system
             94      or in an annuity contract allowed under this Subsection (1)(a).
             95          (b) The election is final, and no right exists to make any further election.
             96          (2) (a) [A] Except as provided under Subsection (2)(c), a regular full-time employee
             97      hired by an institution of higher education after January 1, 1979, may participate only in the
             98      retirement plan which attaches to the person's employment classification.
             99          (b) Each institution of higher education shall prepare or amend existing employment
             100      classifications, under the direction of the Board of Regents, so that each classification is
             101      assigned with either:
             102          (i) this system;
             103          (ii) the Teachers' Insurance and Annuity Association of America; or
             104          (iii) another public or private system, organization, or company designated by the
             105      Board of Regents.
             106          (c) Notwithstanding a person's employment classification assignment under Subsection
             107      (2)(b), a regular full-time employee who begins employment with an institution of higher
             108      education on or after May 11, 2010, has a one-time irrevocable election to continue
             109      participation in this system, if the employee has service credit in this system before the date of
             110      employment.
             111          (3) [A] Notwithstanding an employment classification assignment change made under
             112      Subsection (2)(b), a regular full-time employee hired by an institution of higher education after
             113      January 1, 1979, whose employment classification requires participation in this system may
             114      elect to continue participation in this system [upon change to an employment classification
             115      which requires participation in:].
             116          [(a) an annuity plan with the Teachers' Insurance and Annuity Association of America;
             117      or]
             118          [(b) another public or private system, organization, or company designated by the
             119      Board of Regents.]
             120          (4) A regular full-time employee hired by an institution of higher education after



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             121
     January 1, 1979, whose employment classification requires participation in this system shall
             122      participate in this system.
             123          (5) (a) Notwithstanding any other provision of this section, a regular full-time
             124      employee of an institution of higher education whose employment classification assignment
             125      under Subsection (2)(b) required participation in a retirement program other than this system
             126      shall have a one-time irrevocable election to participate in this system.
             127          (b) The election under Subsection (5)(a) shall be made before June 30, 2010.
             128          (c) All forms required by the office must be completed and received by the office no
             129      later than June 30, 2010, for the election to participate in this system to be effective.
             130          (d) Beginning July 1, 2010, a regular full-time employee of an institution of higher
             131      education who elects to be covered by this system under Subsection (5)(a) may begin to accrue
             132      service credit in this system.
             133          (6) A regular full-time employee of an institution of higher education who elects to be
             134      covered by this system under Subsection (2)(c) or (5)(a) may purchase periods of employment
             135      while covered under another retirement program by complying with the requirements of
             136      Section 49-11-403 .
             137          (7) The board shall make rules to implement this section.





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