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H.B. 107

This document includes House Committee Amendments incorporated into the bill on Fri, Feb 11, 2011 at 2:31 PM by jeyring. --> This document includes Senate Committee Amendments incorporated into the bill on Wed, Mar 2, 2011 at 1:43 PM by rday. --> This document includes Senate Committee Amendments incorporated into the bill on Wed, Mar 2, 2011 at 1:45 PM by rday. -->              1     

VOLUNTEER FIREFIGHTERS' RETIREMENT AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Ronda Rudd Menlove

             5     
Senate Sponsor: Daniel R. Liljenquist

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the allocation of premium tax revenues to fund volunteer firefighters'
             10      long-term disability program.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires the Retirement Office to fund the long-term disability benefits for new
             14      S. [ volunteer ] .S firefighters using certain premium tax revenues previously deposited into
             15      the Firefighters' Retirement Trust Fund; and
             16          .    makes technical amendments.
             17      Money Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          49-11-902, as last amended by Laws of Utah 2008, Chapter 227
             24          49-16-301, as last amended by Laws of Utah 2004, Chapter 262
             25          49-23-601, as enacted by Laws of Utah 2010, Chapter 266
             26      ENACTS:
             27          49-11-901.5, Utah Code Annotated 1953


             28     
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 49-11-901.5 is enacted to read:
             31          49-11-901.5. Premium tax revenues -- Distribution.
             32          (1) (a) In accordance with this section there shall be paid H. to the office .H :
             33          (i) 50% of the annual tax levied, assessed, and collected under Title 59, Chapter 9,
             34      Taxation of Admitted Insurers, upon premiums for property insurance, as defined under
             35      Section 31A-1-301 , and as applied to fire and allied lines insurance collected by insurance
             36      companies within the state; and
             37          (ii) 10% of all money assessed and collected under Title 59, Chapter 9, Taxation of
             38      Admitted Insurers, upon premiums for life insurance, as defined in Section 31A-1-301 , within
             39      the state.
             40          (b) Payments to the fund shall be made annually until the service liability under this
             41      part is liquidated, after which the tax revenue provided in this Subsection (1) ceases.
             42          (2) The office shall distribute the premium tax revenue paid under Subsection (1) as
             43      follows:
             44          (a) an amount determined by the office to fully fund the long-term disability program
             45      provided for S. [ volunteer ] .S firefighters under Section 49-23-601 ;
             46          (b) an amount determined by the office to the Firefighters' Retirement Trust Fund
             47      created under Section 49-16-104 equal to an amount when calculated as a percentage of the
             48      certified contribution rate for members in Division A and B, as defined under Section
             49      49-16-301 , is the percentage of the certified contribution rate paid to the Firefighters'
             50      Retirement Trust Fund on July 1, 2004; and
             51          (c) any remaining amount in accordance with Section 49-11-902 .
             51a      S. [ H. (3) (a) In accordance with rules made by the office, a participating employer shall
             51b      provide the office with information on each person who is actively serving the participating
             51c      employer as a volunteer firefighter in order for the person to be eligible for long-term
             51d      disability coverage under this section.
             51e           (b) A participating employer shall provide to the office:
             51f           (i) the information under Subsection (3)(a), not later than July 1, 2011; and
             51g           (ii) updates to the information as changes occur. .H
] .S

             52          Section 2. Section 49-11-902 is amended to read:
             53           49-11-902. Premium tax revenues -- Formula -- Deposits.
             54          (1) [(a)] If the premium tax revenue received by the office under Subsection
             55      [ 49-16-301 (6), when calculated as a percentage of the certified contribution rate for members
             56      in Division A and B, as defined under Section 49-16-301 , exceeds the percentage of the
             57      certified contribution rate paid to the Firefighters' Retirement Trust Fund in accordance with
             58      Subsection 49-16-301 (6) on July 1, 2004,] 49-11-901.5 (1) and first paid in accordance with


             59      Subsections 49-11-901.5 (2)(a) and (b), including any remaining amount, the office shall
             60      deposit the [difference] amount in the:
             61          (a) Public Safety Contributory Trust Fund created under Section 49-14-104 ; and [the]
             62          (b) Public Safety Noncontributory Retirement Trust Fund created under Section
             63      49-15-104 .
             64          [(b) If the premium tax revenue does not exceed the percentage of the certified
             65      contribution rate paid to the Firefighters' Retirement Trust Fund in accordance with Subsection
             66      49-16-301 (6) on July 1, 2004 as calculated under Subsection (1)(a), the board may not make a
             67      deposit under Subsection (1)(a).]
             68          (2) The money deposited under this section shall be used to fund an increase for
             69      retirees in the public safety retirement systems from a 2.5% maximum annual cost-of-living
             70      adjustment to a 4% maximum annual cost-of-living adjustment under Sections 49-14-403 and
             71      49-15-403 in the public safety retirement systems.
             72          (3) As required to implement this section, the office shall make the calculations and
             73      deposits for the equitable apportionment of money between:
             74          (a) Division A1 and B1; and
             75          (b) the contributory and noncontributory trust funds.
             76          Section 3. Section 49-16-301 is amended to read:
             77           49-16-301. Contributions -- Two divisions -- Election by employer to pay
             78      employee contributions -- Accounting for and vesting of worker contributions --
             79      Deductions.
             80          (1) In addition to the money paid to this system under [Subsection (6)] Section
             81      49-11-901.5 , participating employers and firefighter service employees shall jointly pay the
             82      certified contribution rates to the office to maintain this system on a financially and actuarially
             83      sound basis.
             84          (2) For purposes of determining contribution rates, this system is divided into two
             85      divisions according to Social Security coverage as follows:
             86          (a) members of this system with on-the-job Social Security coverage are in Division A;
             87      and
             88          (b) members of this system without on-the-job Social Security coverage are in Division
             89      B.


             90          (3) (a) A participating employer may elect to pay all or part of the required member
             91      contributions, in addition to the required participating employer contributions.
             92          (b) Any amount contributed by a participating employer under this section shall vest to
             93      the member's benefit as though the member had made the contribution.
             94          (c) The required member contributions shall be reduced by the amount that is paid by
             95      the participating employer.
             96          (4) (a) All member contributions are credited by the office to the account of the
             97      individual member.
             98          (b) This amount is held in trust for the payment of benefits to the member or the
             99      member's beneficiaries.
             100          (c) All member contributions are vested and nonforfeitable.
             101          (5) (a) Each member is considered to consent to payroll deductions of member
             102      contributions.
             103          (b) The payment of compensation less these payroll deductions is considered to be full
             104      payment for services rendered by the member.
             105          [(6) (a) Except as provided in Section 49-11-902 , in addition to contribution rates
             106      described under this section, there shall be paid to the Firefighters' Retirement Trust Fund
             107      created under Section 49-16-104 :]
             108          [(i) 50% of the annual tax levied, assessed, and collected under Title 59, Chapter 9,
             109      Taxation of Admitted Insurers, upon premiums for property insurance, as defined under
             110      Section 31A-1-301 , and as applied to fire and allied lines insurance collected by insurance
             111      companies within the state; and]
             112          [(ii) 10% of all money assessed and collected under Title 59, Chapter 9, Taxation of
             113      Admitted Insurers, upon premiums for life insurance, as defined in Section 31A-1-301 , within
             114      the state.]
             115          [(b) Payments to the fund shall be made annually until the service liability is
             116      liquidated, after which the tax revenue provided in this Subsection (6) for the Firefighters'
             117      Retirement Trust Fund ceases.]
             118          Section 4. Section 49-23-601 is amended to read:
             119           49-23-601. Long-term disability coverage.
             120          (1) S. [ Each ] A .S participating employer shall cover S. [ the following employees ] a
             120a      public safety employee who initially enters employment on or after July 1, 2011, .S under
             120b      Title 49,


             121      Chapter 21, Public Employees' Long-Term Disability Act, or a substantially similar long-term
             122      disability program S. [ : ] . .S
             123          [(1)] S. [ (a) public safety employees initially entering employment on or after July 1, 2011;
             124          [(2)] (b) firefighter service employees initially entering employment on or after July 1,
             125      2011; and
             126          [(3)] (c) volunteer firefighters.
             127          (2) The office shall ensure that the long-term disability program provided for volunteer
             128      firefighters under this section is funded with money paid under Section 49-11-901.5 .
]

             128a      (2) (a) A participating employer shall cover a firefighter employee who initially enters
             128b      employment on or after July 1, 2011 under Title 49, Chapter 21, Public Employees'
             128c      Long-Term Disability Act.
             128d          (b) In accordance with this section, a participating employer shall provided long term
             128e      disability benefit coverage for a volunteer firefighter as provided under Section 49-16-701.
             128f          (c) The office shall ensure that the cost of the long-term disability benefit coverage
             128g      provided under Subsection (2)(a) and (b) is funded with revenue received under Section
             128h      49-11-901.5. .S




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    as of 2-1-11 3:32 PM


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