Download Zipped Enrolled WordPerfect SB0308.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 308 Enrolled

             1     

AMENDMENTS TO PUBLIC EMPLOYEE'S BENEFIT AND

             2     
INSURANCE PROGRAM

             3     
2011 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Daniel R. Liljenquist

             6     
House Sponsor: Don L. Ipson

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
             11      retirement and long-term disability provisions.
             12      Highlighted Provisions:
             13          This bill:
             14          .    clarifies in the Utah Workforce Services Code that only a person who is eligible to
             15      purchase service credit under the Utah Retirement Systems may purchase service
             16      credit in those systems;
             17          .    amends definitions;
             18          .    clarifies that an employee who elects to participate exclusively in the defined
             19      contribution plan may not purchase service credit for that period of employment;
             20          .    provides that only an active member may purchase service credit in the Utah
             21      Retirement Systems;
             22          .    clarifies that Social Security substitute payments are not limited for purposes of
             23      post-retirement employment retirement related contributions made on behalf of an
             24      employee;
             25          .    provides that reemployment restrictions for a person who begins reemployment
             26      after July 1, 2010, do not apply to employment as an elected official if the elected
             27      position is not full-time;
             28          .    provides that a participating employer must provide information requested by the
             29      Utah State Retirement Office electronically in a manner approved by the office;


             30          .    provides that a participating employer shall treat any information provided to the
             31      office as subject to certain confidentiality restrictions;
             32          .    provides that a person who is dissatisfied by a ruling of the executive director or
             33      deputy director regarding a medical claim may request a ruling by an external
             34      reviewer in accordance with federal law;
             35          .    requires the Utah State Retirement Office to fund the long-term disability benefits
             36      for new volunteer firefighters using certain insurance premium tax revenues
             37      formerly deposited in the Firefighters' Retirement Trust Fund;
             38          .    provides that a member must cease employment with any participating employer to
             39      be eligible to receive a retirement allowance;
             40          .    modifies the timing of adjusted retirement benefit payments and standardizes
             41      language for applying for benefits following the death of a retiree or a retiree's
             42      spouse under certain retirement options;
             43          .    clarifies that new governors and legislators who are only eligible for a Tier II
             44      retirement system may be eligible for a paid-up group health coverage policy for
             45      members and their surviving spouses;
             46          .    provides that Tier II new employees and employees who are exempt from the
             47      retirement systems are eligible for long-term disability coverage;
             48          .    provides that an employee is not eligible for long-term disability benefits if the
             49      employee has a pending action before any federal administrative body in which the
             50      employee has made a claim that the employee is able to work;
             51          .    repeals a requirement that an eligible employee first apply at the earliest eligible age
             52      for all unreduced retirement benefits to get long-term disability benefits;
             53          .    provides for the time periods for which a new Tier II employee under a defined
             54      contribution plan is eligible for long-term disability benefits consistent with other
             55      Tier II new employees;
             56          .    provides that an elected official, instead of only a governor and a legislator, initially
             57      entering office on or after July 1, 2011, is only eligible to participate in the Tier II


             58      defined contribution plan;
             59          .    provides that an elected official and appointive official are eligible for Tier II
             60      retirement benefits if they are defined as full-time employees;
             61          .    provides that a person initially entering regular full-time employment after July 1,
             62      2011, has one year instead of 30 days to make an irrevocable election between a
             63      Tier II Hybrid Retirement System and a Tier II defined contribution retirement plan
             64      and that the election must be submitted electronically;
             65          .    allows the Legislature to decrease benefits in the defined benefit portion of the Tier
             66      II Hybrid Retirement System for new public employees and new public safety and
             67      firefighter employees for future years of service under certain conditions;
             68          .    provides that vesting of the defined contribution balance occurs upon accruing four
             69      years of service credit instead of four years from the date of employment under the
             70      Tier II Hybrid Retirement System;
             71          .    defines eligibility to receive a retirement allowance for a benefit tied to a retirement
             72      date for members in a defined contribution plan;
             73          .    allows an offset for administrative costs for forfeited defined contribution accounts;
             74      and
             75          .    makes technical changes.
             76      Money Appropriated in this Bill:
             77          None
             78      Other Special Clauses:
             79          None
             80      Utah Code Sections Affected:
             81      AMENDS:
             82          35A-4-502, as last amended by Laws of Utah 2010, Chapters 266 and 286
             83          49-11-102, as last amended by Laws of Utah 2010, Chapters 264 and 266
             84          49-11-403, as last amended by Laws of Utah 2010, Chapters 257, 266, and 321
             85          49-11-504, as last amended by Laws of Utah 2010, Chapter 264


             86          49-11-505, as enacted by Laws of Utah 2010, Chapter 264
             87          49-11-602, as last amended by Laws of Utah 2004, Chapter 118
             88          49-11-613, as last amended by Laws of Utah 2008, Chapters 252 and 382
             89          49-11-902, as last amended by Laws of Utah 2008, Chapter 227
             90          49-12-401, as last amended by Laws of Utah 2010, Chapter 321
             91          49-12-402, as last amended by Laws of Utah 2007, Chapters 130 and 306
             92          49-12-405, as last amended by Laws of Utah 2005, Chapter 116
             93          49-13-401, as last amended by Laws of Utah 2010, Chapter 321
             94          49-13-402, as last amended by Laws of Utah 2007, Chapter 130
             95          49-13-405, as last amended by Laws of Utah 2005, Chapter 116
             96          49-14-401, as last amended by Laws of Utah 2010, Chapter 321
             97          49-14-501, as renumbered and amended by Laws of Utah 2002, Chapter 250
             98          49-14-502, as last amended by Laws of Utah 2003, Chapter 240
             99          49-14-503, as last amended by Laws of Utah 2003, Chapter 240
             100          49-15-401, as last amended by Laws of Utah 2010, Chapter 321
             101          49-15-501, as renumbered and amended by Laws of Utah 2002, Chapter 250
             102          49-15-502, as last amended by Laws of Utah 2003, Chapter 240
             103          49-15-503, as last amended by Laws of Utah 2003, Chapter 240
             104          49-16-301, as last amended by Laws of Utah 2004, Chapter 262
             105          49-16-401, as last amended by Laws of Utah 2010, Chapter 321
             106          49-16-501, as last amended by Laws of Utah 2003, Chapter 240
             107          49-16-502, as renumbered and amended by Laws of Utah 2002, Chapter 250
             108          49-16-503, as last amended by Laws of Utah 2003, Chapter 240
             109          49-16-701, as last amended by Laws of Utah 2005, Chapter 116
             110          49-17-401, as last amended by Laws of Utah 2010, Chapter 321
             111          49-17-501, as renumbered and amended by Laws of Utah 2002, Chapter 250
             112          49-18-401, as last amended by Laws of Utah 2010, Chapter 321
             113          49-18-501, as last amended by Laws of Utah 2003, Chapter 240


             114          49-19-501, as last amended by Laws of Utah 2006, Chapter 260
             115          49-20-404, as last amended by Laws of Utah 2008, Chapter 252
             116          49-21-102, as last amended by Laws of Utah 2007, Chapter 130
             117          49-21-401, as last amended by Laws of Utah 2010, Chapter 321
             118          49-21-402, as last amended by Laws of Utah 2010, Chapter 321
             119          49-21-403, as last amended by Laws of Utah 2010, Chapters 266 and 321
             120          49-22-102, as enacted by Laws of Utah 2010, Chapter 266
             121          49-22-201, as enacted by Laws of Utah 2010, Chapter 266
             122          49-22-301, as enacted by Laws of Utah 2010, Chapter 266
             123          49-22-303, as enacted by Laws of Utah 2010, Chapter 266
             124          49-22-304, as enacted by Laws of Utah 2010, Chapter 266
             125          49-22-305, as enacted by Laws of Utah 2010, Chapter 266
             126          49-22-401, as enacted by Laws of Utah 2010, Chapter 266
             127          49-22-501, as enacted by Laws of Utah 2010, Chapter 266
             128          49-22-502, as enacted by Laws of Utah 2010, Chapter 266
             129          49-23-201, as enacted by Laws of Utah 2010, Chapter 266
             130          49-23-301, as enacted by Laws of Utah 2010, Chapter 266
             131          49-23-302, as enacted by Laws of Utah 2010, Chapter 266
             132          49-23-303, as enacted by Laws of Utah 2010, Chapter 266
             133          49-23-304, as enacted by Laws of Utah 2010, Chapter 266
             134          49-23-401, as enacted by Laws of Utah 2010, Chapter 266
             135          49-23-501, as enacted by Laws of Utah 2010, Chapter 266
             136          49-23-502, as enacted by Laws of Utah 2010, Chapter 266
             137          49-23-601, as enacted by Laws of Utah 2010, Chapter 266
             138          67-5-8, as last amended by Laws of Utah 2007, Chapter 166
             139      ENACTS:
             140          49-11-407, Utah Code Annotated 1953
             141          49-11-901.5, Utah Code Annotated 1953


             142          49-22-310, Utah Code Annotated 1953
             143          49-22-403, Utah Code Annotated 1953
             144          49-23-309, Utah Code Annotated 1953
             145          49-23-403, Utah Code Annotated 1953
             146     
             147      Be it enacted by the Legislature of the state of Utah:
             148          Section 1. Section 35A-4-502 is amended to read:
             149           35A-4-502. Administration of Employment Security Act.
             150          (1) (a) The department shall administer this chapter through the division.
             151          (b) The department may make, amend, or rescind any rules and special orders
             152      necessary for the administration of this chapter.
             153          (c) The division may:
             154          (i) employ persons;
             155          (ii) make expenditures;
             156          (iii) require reports;
             157          (iv) make investigations;
             158          (v) make audits of any or all funds provided for under this chapter when necessary; and
             159          (vi) take any other action it considers necessary or suitable to that end.
             160          (d) No later than the first day of October of each year, the department shall submit to
             161      the governor a report covering the administration and operation of this chapter during the
             162      preceding calendar year and shall make any recommendations for amendments to this chapter
             163      as the department considers proper.
             164          (e) (i) The report required under Subsection (1)(d) shall include a balance sheet of the
             165      money in the fund in which there shall be provided, if possible, a reserve against liability in
             166      future years to pay benefits in excess of the then current contributions, which reserve shall be
             167      set up by the division in accordance with accepted actuarial principles on the basis of statistics
             168      of employment, business activity, and other relevant factors for the longest possible period.
             169          (ii) Whenever the department believes that a change in contribution or benefit rates


             170      will become necessary to protect the solvency of the fund, it shall promptly inform the
             171      governor and the Legislature and make appropriate recommendations.
             172          (2) (a) The department may make, amend, or rescind rules in accordance with Title
             173      63G, Chapter 3, Utah Administrative Rulemaking Act.
             174          (b) The director of the division or the director's designee may adopt, amend, or rescind
             175      special orders after appropriate notice and opportunity to be heard. Special orders become
             176      effective 10 days after notification or mailing to the last-known address of the individuals or
             177      concerns affected thereby.
             178          (3) The director of the division or the director's designee shall cause to be printed for
             179      distribution to the public:
             180          (a) the text of this chapter;
             181          (b) the department's rules pertaining to this chapter;
             182          (c) the department's annual reports to the governor required by Subsection (1)(e); and
             183          (d) any other material the director of the division or the director's designee considers
             184      relevant and suitable and shall furnish them to any person upon application.
             185          (4) (a) The division may delegate to any person so appointed the power and authority it
             186      considers reasonable and proper for the effective administration of this chapter and may bond
             187      any person handling money or signing checks under this authority.
             188          (b) The department may, when permissible under federal and state law, make
             189      arrangements to voluntarily elect coverage under the United States Civil Service Retirement
             190      System or a comparable private retirement plan with respect to past as well as future services of
             191      individuals employed under this chapter who:
             192          (i) were hired prior to October 1, 1980; and
             193          (ii) have been retained by the department without significant interruption in the
             194      employees' services for the department.
             195          (c) An employee of the department who no longer may participate in a federal or other
             196      retirement system as a result of a change in status or appropriation under this chapter may
             197      purchase credit with the employee's assets from the federal or other retirement system in which


             198      the employee may no longer participate in a retirement system created under:
             199          (i) Title 49, Chapter 13, Public Employees' Noncontributory Retirement Act for a
             200      purchase made under this Subsection (4)(c) [made prior to July 1, 2011] by an employee
             201      eligible for service credit under Title 49, Chapter 13, Public Employees' Noncontributory
             202      Retirement Act; or
             203          (ii) Title 49, Chapter 22, New Public Employees' Tier II Contributory Retirement Act,
             204      [if the date of purchase under this Subsection (4)(c) is on or after July 1, 2011] for a purchase
             205      made under this Subsection (4)(c) by an employee eligible for service credit under Title 49,
             206      Chapter 22, New Public Employees' Tier II Contributory Retirement Act.
             207          (5) There is created an Employment Advisory Council composed of the members listed
             208      in Subsections (5)(a) and (b).
             209          (a) The executive director shall appoint:
             210          (i) not less than five employer representatives chosen from individuals recommended
             211      by employers, employer associations, or employer groups;
             212          (ii) not less than five employee representatives chosen from individuals recommended
             213      by employees, employee associations, or employee groups; and
             214          (iii) five public representatives chosen at large.
             215          (b) The executive director or the executive director's designee shall serve as a
             216      nonvoting member of the council.
             217          (c) The employee representatives shall include both union and nonunion employees
             218      who fairly represent the percentage in the labor force of the state.
             219          (d) Employers and employees shall consider nominating members of groups who
             220      historically may have been excluded from the council, such as women, minorities, and
             221      individuals with disabilities.
             222          (e) (i) Except as required by Subsection (5)(e)(ii), as terms of current council members
             223      expire, the executive director shall appoint each new member or reappointed member to a
             224      four-year term.
             225          (ii) Notwithstanding the requirements of Subsection (5)(e)(i), the executive director


             226      shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the
             227      terms of council members are staggered so that approximately half of the council is appointed
             228      every two years.
             229          (f) When a vacancy occurs in the membership for any reason, the replacement shall be
             230      appointed for the unexpired term.
             231          (g) The executive director shall terminate the term of any council member who ceases
             232      to be representative as designated by the council member's original appointment.
             233          (h) The council shall advise the department and the Legislature in formulating policies
             234      and discussing problems related to the administration of this chapter including:
             235          (i) reducing and preventing unemployment;
             236          (ii) encouraging the adoption of practical methods of vocational training, retraining,
             237      and vocational guidance;
             238          (iii) monitoring the implementation of the Wagner-Peyser Act;
             239          (iv) promoting the creation and development of job opportunities and the
             240      reemployment of unemployed workers throughout the state in every possible way; and
             241          (v) appraising the industrial potential of the state.
             242          (i) The council shall assure impartiality and freedom from political influence in the
             243      solution of the problems listed in Subsection (5)(h).
             244          (j) The executive director or the executive director's designee shall serve as chair of the
             245      council and call the necessary meetings.
             246          (k) A member may not receive compensation or benefits for the member's service, but
             247      may receive per diem and travel expenses in accordance with:
             248          (i) Section 63A-3-106 ;
             249          (ii) Section 63A-3-107 ; and
             250          (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             251      63A-3-107 .
             252          (l) The department shall provide staff support to the council.
             253          (6) In the discharge of the duties imposed by this chapter, the division director or the


             254      director's designee as designated by department rule, may in connection with a disputed matter
             255      or the administration of this chapter:
             256          (a) administer oaths and affirmations;
             257          (b) take depositions;
             258          (c) certify to official acts; and
             259          (d) issue subpoenas to compel the attendance of witnesses and the production of books,
             260      papers, correspondence, memoranda, and other records necessary as evidence.
             261          (7) (a) In case of contumacy by or refusal to obey a subpoena issued to any person, any
             262      court of this state within the jurisdiction of which the inquiry is carried on or within the
             263      jurisdiction of which the person guilty of contumacy or refusal to obey is found or resides or
             264      transacts business, upon application by the director of the division or the director's designee
             265      shall have jurisdiction to issue to that person an order requiring the person to appear before the
             266      director or the director's designee to produce evidence, if so ordered, or give testimony
             267      regarding the matter under investigation or in question. Any failure to obey that order of the
             268      court may be punished by the court as contempt.
             269          (b) Any person who, without just cause, fails or refuses to attend and testify or to
             270      answer any lawful inquiry or to produce books, papers, correspondence, memoranda, and other
             271      records, if it is in that person's power to do so, in obedience to a subpoena of the director or the
             272      director's designee shall be punished as provided in Subsection 35A-1-301 (1)(b). Each day the
             273      violation continues is a separate offense.
             274          (c) In the event a witness asserts a privilege against self-incrimination, testimony and
             275      evidence from the witness may be compelled pursuant to Title 77, Chapter 22b, Grants of
             276      Immunity.
             277          (8) (a) In the administration of this chapter, the division shall cooperate with the United
             278      States Department of Labor to the fullest extent consistent with the provisions of this chapter
             279      and shall take action, through the adoption of appropriate rules by the department and
             280      administrative methods and standards, as necessary to secure to this state and its citizens all
             281      advantages available under the provisions of:


             282          (i) the Social Security Act that relate to unemployment compensation;
             283          (ii) the Federal Unemployment Tax Act; and
             284          (iii) the Federal-State Extended Unemployment Compensation Act of 1970.
             285          (b) In the administration of Section 35A-4-402 , which is enacted to conform with the
             286      requirements of the Federal-State Extended Unemployment Compensation Act of 1970, 26
             287      U.S.C. 3304, the division shall take any action necessary to ensure that the section is
             288      interpreted and applied to meet the requirements of the federal act, as interpreted by the United
             289      States Department of Labor and to secure to this state the full reimbursement of the federal
             290      share of extended and regular benefits paid under this chapter that are reimbursable under the
             291      federal act.
             292          Section 2. Section 49-11-102 is amended to read:
             293           49-11-102. Definitions.
             294          As used in this title:
             295          (1) (a) "Active member" means a member who is employed or who has been employed
             296      by a participating employer within the previous 120 days.
             297          (b) "Active member" does not include retirees.
             298          (2) "Actuarial equivalent" means a benefit of equal value when computed upon the
             299      basis of mortality tables as recommended by the actuary and adopted by the executive director,
             300      including regular interest.
             301          (3) "Actuarial interest rate" means the interest rate as recommended by the actuary and
             302      adopted by the board upon which the funding of system costs and benefits are computed.
             303          (4) (a) "Agency" means:
             304          (i) a department, division, agency, office, authority, commission, board, institution, or
             305      hospital of the state;
             306          (ii) a county, municipality, school district, local district, or special service district;
             307          (iii) a state college or university; or
             308          (iv) any other participating employer.
             309          (b) "Agency" does not include an entity listed under Subsection (4)(a)(i) that is a


             310      subdivision of another entity listed under Subsection (4)(a).
             311          (5) "Allowance" or "retirement allowance" means the pension plus the annuity,
             312      including any cost of living or other authorized adjustments to the pension and annuity.
             313          (6) "Alternate payee" means a member's former spouse or family member eligible to
             314      receive payments under a Domestic Relations Order in compliance with Section 49-11-612 .
             315          (7) "Amortization rate" means the board certified percent of salary required to amortize
             316      the unfunded actuarial accrued liability in accordance with policies established by the board
             317      upon the advice of the actuary.
             318          (8) "Annuity" means monthly payments derived from member contributions.
             319          (9) "Appointive officer" means an employee appointed to a position for a definite and
             320      fixed term of office by official and duly recorded action of a participating employer whose
             321      appointed position is designated in the participating employer's charter, creation document, or
             322      similar document, and:
             323          (a) who earns during the first full month of the term of office $500 or more, indexed as
             324      of January 1, 1990, as provided in Section 49-12-407 [.] for a Tier I appointive officer; and
             325          (b) whose appointive position is full-time as certified by the participating employer for
             326      a Tier II appointive officer.
             327          (10) (a) "At-will employee" means a person who is employed by a participating
             328      employer and:
             329          (i) who is not entitled to merit or civil service protection and is generally considered
             330      exempt from a participating employer's merit or career service personnel systems;
             331          (ii) whose on-going employment status is entirely at the discretion of the person's
             332      employer; or
             333          (iii) who may be terminated without cause by a designated supervisor, manager, or
             334      director.
             335          (b) "At-will employee" does not include a career employee who has obtained a
             336      reasonable expectation of continued employment based on inclusion in a participating
             337      employer's merit system, civil service protection system, or career service personnel systems,


             338      policies, or plans.
             339          (11) "Beneficiary" means any person entitled to receive a payment under this title
             340      through a relationship with or designated by a member, participant, covered individual, or
             341      alternate payee of a defined contribution plan.
             342          (12) "Board" means the Utah State Retirement Board established under Section
             343      49-11-202 .
             344          (13) "Board member" means a person serving on the Utah State Retirement Board as
             345      established under Section 49-11-202 .
             346          (14) "Certified contribution rate" means the board certified percent of salary paid on
             347      behalf of an active member to the office to maintain the system on a financially and actuarially
             348      sound basis.
             349          (15) "Contributions" means the total amount paid by the participating employer and the
             350      member into a system or to the Utah Governors' and Legislators' Retirement Plan under
             351      Chapter 19, Utah Governors' and Legislators' Retirement Act.
             352          (16) "Council member" means a person serving on the Membership Council
             353      established under Section 49-11-202 .
             354          (17) "Covered individual" means any individual covered under Chapter 20, Public
             355      Employees' Benefit and Insurance Program Act.
             356          (18) "Current service" means covered service as defined in Chapters 12, 13, 14, 15, 16,
             357      17, 18, and 19.
             358          (19) "Defined benefit" or "defined benefit plan" or "defined benefit system" means a
             359      system or plan offered under this title to provide a specified allowance to a retiree or a retiree's
             360      spouse after retirement that is based on a set formula involving one or more of the following
             361      factors:
             362          (a) years of service;
             363          (b) final average monthly salary; or
             364          (c) a retirement multiplier.
             365          (20) "Defined contribution" or "defined contribution plan" means any defined


             366      contribution plan or deferred compensation plan authorized under the Internal Revenue Code
             367      and administered by the board.
             368          (21) "Educational institution" means a political subdivision or instrumentality of the
             369      state or a combination thereof primarily engaged in educational activities or the administration
             370      or servicing of educational activities, including:
             371          (a) the State Board of Education and its instrumentalities;
             372          (b) any institution of higher education and its branches;
             373          (c) any school district and its instrumentalities;
             374          (d) any vocational and technical school; and
             375          (e) any entity arising out of a consolidation agreement between entities described under
             376      this Subsection (21).
             377          (22) "Elected official":
             378          (a) means a person elected to a state office, county office, municipal office, school
             379      board or school district office, local district office, or special service district office;
             380          (b) includes a person who is appointed to serve an unexpired term of office described
             381      under Subsection (22)(a); and
             382          (c) does not include a judge or justice who is subject to a retention election under
             383      Section 20A-12-201 .
             384          [(22)] (23) (a) "Employer" means any department, educational institution, or political
             385      subdivision of the state eligible to participate in a government-sponsored retirement system
             386      under federal law.
             387          (b) "Employer" may also include an agency financed in whole or in part by public
             388      funds.
             389          [(23)] (24) "Exempt employee" means an employee working for a participating
             390      employer:
             391          (a) who is not eligible for service credit under Section 49-12-203 , 49-13-203 ,
             392      49-14-203 , 49-15-203 , or 49-16-203 ; and
             393          (b) for whom a participating employer is not required to pay contributions or


             394      nonelective contributions.
             395          [(24)] (25) "Final average monthly salary" means the amount computed by dividing the
             396      compensation received during the final average salary period under each system by the number
             397      of months in the final average salary period.
             398          [(25)] (26) "Fund" means any fund created under this title for the purpose of paying
             399      benefits or costs of administering a system, plan, or program.
             400          [(26)] (27) (a) "Inactive member" means a member who has not been employed by a
             401      participating employer for a period of at least 120 days.
             402          (b) "Inactive member" does not include retirees.
             403          [(27)] (28) (a) "Initially entering" means hired, appointed, or elected for the first time,
             404      in current service as a member with any participating employer.
             405          (b) "Initially entering" does not include a person who has any prior service credit on
             406      file with the office.
             407          [(28)] (29) (a) "Member" means a person, except a retiree, with contributions on
             408      deposit with a system, the Utah Governors' and Legislators' Retirement Plan under Chapter 19,
             409      Utah Governors' and Legislators' Retirement Act, or with a terminated system.
             410          (b) "Member" also includes leased employees within the meaning of Section 414(n)(2)
             411      of the Internal Revenue Code, if the employees have contributions on deposit with the office.
             412      If leased employees constitute less than 20% of the participating employer's work force that is
             413      not highly compensated within the meaning of Section 414(n)(5)(c)(ii), Internal Revenue Code,
             414      "member" does not include leased employees covered by a plan described in Section 414(n)(5)
             415      of the federal Internal Revenue Code.
             416          [(29)] (30) "Member contributions" means the sum of the contributions paid to a
             417      system or the Utah Governors' and Legislators' Retirement Plan, including refund interest if
             418      allowed by a system, and which are made by:
             419          (a) the member; and
             420          (b) the participating employer on the member's behalf under Section 414(h) of the
             421      Internal Revenue Code.


             422          [(30)] (31) "Nonelective contribution" means an amount contributed by a participating
             423      employer into a participant's defined contribution account.
             424          [(31)] (32) "Normal cost rate":
             425          (a) means the percent of salary that is necessary for a retirement system that is fully
             426      funded to maintain its fully funded status; and
             427          (b) is determined by the actuary based on the assumed rate of return established by the
             428      board.
             429          [(32)] (33) "Office" means the Utah State Retirement Office.
             430          [(33)] (34) "Participant" means an individual with voluntary deferrals or nonelective
             431      contributions on deposit with the defined contribution plans administered under this title.
             432          [(34)] (35) "Participating employer" means a participating employer, as defined by
             433      Chapter 12, Public Employees' Contributory Retirement Act, Chapter 13, Public Employees'
             434      Noncontributory Retirement Act, Chapter 14, Public Safety Contributory Retirement Act,
             435      Chapter 15, Public Safety Noncontributory Retirement Act, Chapter 16, Firefighters'
             436      Retirement Act, Chapter 17, Judges' Contributory Retirement Act, and Chapter 18, Judges'
             437      Noncontributory Retirement Act, or an agency financed in whole or in part by public funds
             438      which is participating in a system or plan as of January 1, 2002.
             439          [(35)] (36) "Pension" means monthly payments derived from participating employer
             440      contributions.
             441          [(36)] (37) "Plan" means the Utah Governors' and Legislators' Retirement Plan created
             442      by Chapter 19, Utah Governors' and Legislators' Retirement Act, the New Public Employees'
             443      Tier II Defined Contribution Plan created by Chapter 22, Part 4, Tier II Defined Contribution
             444      Plan, the New Public Safety and Firefighter Tier II Defined Contribution Plan created by
             445      Chapter 23, Part 4, Tier II Defined Contribution Plan, or the defined contribution plans created
             446      under Section 49-11-801 .
             447          [(37)] (38) (a) "Political subdivision" means any local government entity, including
             448      cities, towns, counties, and school districts, but only if the subdivision is a juristic entity that is
             449      legally separate and distinct from the state and only if its employees are not by virtue of their


             450      relationship to the entity employees of the state.
             451          (b) "Political subdivision" includes local districts, special service districts, or
             452      authorities created by the Legislature or by local governments, including the office.
             453          (c) "Political subdivision" does not include a project entity created under Title 11,
             454      Chapter 13, Interlocal Cooperation Act, that was formed prior to July 1, 1987.
             455          [(38)] (39) "Program" means the Public Employees' Insurance Program created under
             456      Chapter 20, Public Employees' Benefit and Insurance Program Act, or the Public Employees'
             457      Long-Term Disability program created under Chapter 21, Public Employees' Long-Term
             458      Disability Act.
             459          [(39)] (40) "Public funds" means those funds derived, either directly or indirectly, from
             460      public taxes or public revenue, dues or contributions paid or donated by the membership of the
             461      organization, used to finance an activity whose objective is to improve, on a nonprofit basis,
             462      the governmental, educational, and social programs and systems of the state or its political
             463      subdivisions.
             464          [(40)] (41) "Qualified defined contribution plan" means a defined contribution plan
             465      that meets the requirements of Section 401(k) or Section 403(b) of the Internal Revenue Code.
             466          [(41)] (42) (a) "Reemployed," "reemploy," or "reemployment" means work or service
             467      performed after retirement, in exchange for compensation.
             468          (b) Reemployment includes work or service performed on a contract if the retiree is:
             469          (i) listed as the contractor; or
             470          (ii) an owner, partner, or principle of the contractor.
             471          [(42)] (43) "Refund interest" means the amount accrued on member contributions at a
             472      rate adopted by the board.
             473          [(43)] (44) "Retiree" means an individual who has qualified for an allowance under this
             474      title.
             475          [(44)] (45) "Retirement" means the status of an individual who has become eligible,
             476      applies for, and is entitled to receive an allowance under this title.
             477          [(45)] (46) "Retirement date" means the date selected by the member on which the


             478      member's retirement becomes effective with the office.
             479          (47) "Retirement related contribution":
             480          (a) means any employer payment to any type of retirement plan or program made on
             481      behalf of an employee; and
             482          (b) does not include Social Security payments or Social Security substitute payments
             483      made on behalf of an employee.
             484          [(46)] (48) "Service credit" means:
             485          (a) the period during which an employee is employed and compensated by a
             486      participating employer and meets the eligibility requirements for membership in a system or the
             487      Utah Governors' and Legislators' Retirement Plan, provided that any required contributions are
             488      paid to the office; and
             489          (b) periods of time otherwise purchasable under this title.
             490          [(47)] (49) "System" means the individual retirement systems created by Chapter 12,
             491      Public Employees' Contributory Retirement Act, Chapter 13, Public Employees'
             492      Noncontributory Retirement Act, Chapter 14, Public Safety Contributory Retirement Act,
             493      Chapter 15, Public Safety Noncontributory Retirement Act, Chapter 16, Firefighters'
             494      Retirement Act, Chapter 17, Judges' Contributory Retirement Act, Chapter 18, Judges'
             495      Noncontributory Retirement Act, and Chapter 19, Utah Governors' and Legislators' Retirement
             496      Act, the defined benefit portion of the Tier II Hybrid Retirement System under Chapter 22, Part
             497      3, Tier II Hybrid Retirement System, and the defined benefit portion of the Tier II Hybrid
             498      Retirement System under Chapter 23, Part 3, Tier II Hybrid Retirement System.
             499          [(48)] (50) "Tier I" means a system or plan under this title for which an employee is
             500      eligible to participate if the employee initially enters regular full-time employment before July
             501      1, 2011.
             502          [(49)] (51) (a) "Tier II" means a system or plan under this title provided in lieu of a
             503      Tier I system or plan for which an employee is eligible to participate, if the employee initially
             504      enters regular full-time employment on or after July 1, 2011.
             505          (b) "Tier II" includes:


             506          (i) the Tier II hybrid system established under:
             507          (A) Chapter 22, Part 3, Tier II Hybrid Retirement System; or
             508          (B) Chapter 23, Part 3, Tier II Hybrid Retirement System; and
             509          (ii) the Tier II Defined Contribution Plan (Tier II DC Plan) established under:
             510          (A) Chapter 22, Part 4, Tier II Defined Contribution Plan; or
             511          (B) Chapter 23, Part 4, Tier II Defined Contribution Plan.
             512          [(50)] (52) "Unfunded actuarial accrued liability" or "UAAL":
             513          (a) is determined by the system's actuary; and
             514          (b) means the excess, if any, of the accrued liability of a retirement system over the
             515      actuarial value of its assets.
             516          [(51)] (53) "Voluntary deferrals" means an amount contributed by a participant into
             517      that participant's defined contribution account.
             518          Section 3. Section 49-11-403 is amended to read:
             519           49-11-403. Purchase of public service credit not otherwise qualifying for benefit.
             520          (1) A member, a participating employer, or a member and a participating employer
             521      jointly may purchase service credit equal to the period of the member's employment in the
             522      following:
             523          (a) United States federal employment;
             524          (b) employment in a private school based in the United States, if the member received
             525      an employer paid retirement benefit for the employment;
             526          (c) public employment in another state or territory of the United States which qualifies
             527      the member for membership in the public plan or system covering the employment, but only if
             528      the member does not qualify for any retirement benefits based on the employment;
             529          (d) forfeited service credit in this state if the member does not qualify for an allowance
             530      based on the service credit;
             531          (e) full-time public service while on an approved leave of absence;
             532          (f) the period of time for which disability benefits were paid if:
             533          (i) the member was receiving:


             534          (A) long-term disability benefits;
             535          (B) short-term disability benefits; or
             536          (C) worker's compensation disability benefits; and
             537          (ii) the member's employer had not entered into a benefit protection contract under
             538      Section 49-11-404 during the period the member was disabled due to sickness or accident;
             539          (g) employment covered by a Teachers Insurance and Annuity Association of America
             540      retirement plan if the member forfeits any retirement benefit from that retirement plan for the
             541      period of employment to be purchased under this Subsection (1)(g); or
             542          (h) employment in a charter school located within the state if the member forfeits any
             543      retirement benefit under any other retirement system or plan for the period of employment to be
             544      purchased under this Subsection (1)(h).
             545          (2) A member shall:
             546          (a) have at least four years of service credit before a purchase can be made under this
             547      section; and
             548          (b) forfeit service credit and any defined contribution balance based on employer
             549      contributions under any other retirement system or plan based on the period of employment for
             550      which service credit is being purchased.
             551          (3) (a) To purchase credit under this section, the member, a participating employer, or a
             552      member and a participating employer jointly shall make payment to the system under which the
             553      member is currently covered.
             554          (b) The amount of the payment shall be determined by the office based on a formula
             555      that is:
             556          (i) recommended by the actuary; and
             557          (ii) adopted by the board.
             558          (4) The purchase may be made through payroll deductions or through a lump sum
             559      deposit based upon the present value of future payments.
             560          (5) Total payment must be completed prior to the member's effective date of retirement
             561      or service credit will be prorated in accordance with the amount paid.


             562          (6) (a) For a purchase made before July 1, 2010, if any of the factors used to determine
             563      the cost of a service credit purchase change at or before the member's retirement date, the cost
             564      of the purchase shall be recalculated at the time of retirement.
             565          (b) For a purchase made before July 1, 2010, if the recalculated cost exceeds the
             566      amount paid for the purchase, the member, a participating employer, or a member and a
             567      participating employer jointly may:
             568          (i) pay the increased cost, plus interest, to receive the full amount of service credit; or
             569          (ii) not pay the increased cost and have the purchased service credit prorated.
             570          (c) For a purchase made on or after July 1, 2010:
             571          (i) the purchase shall be made in accordance with rules:
             572          (A) adopted by the board based on recommendations by the board's actuary; and
             573          (B) in effect at the time the purchase is completed; and
             574          (ii) the cost of the service credit purchase shall not be recalculated at the time of
             575      retirement.
             576          (7) If the recalculated cost under Subsection (6)(a) is less than the amount paid for the
             577      purchase, the office shall refund the excess payment to the member or participating employer
             578      who paid for the purchase.
             579          (8) (a) The board may adopt rules under which a member may make the necessary
             580      payments to the office for purchases under this title as permitted by federal law.
             581          (b) The office may reject any payments if the office determines the tax status of the
             582      system, plans, or programs would be jeopardized by allowing the payment.
             583          [(9) Account balances created under Section 49-22-303 , 49-22-401 , 49-23-302 , or
             584      49-23-401 may not be used to purchase service credit for a benefit under Sections 49-22-304 ,
             585      49-22-305 , 49-23-303 , and 49-23-304 .]
             586          (9) An employee who elects to participate exclusively in the defined contribution plan
             587      under Chapter 22, Part 4, Tier II Defined Contribution Plan, or Chapter 23, Part 4, Tier II
             588      Defined Contribution Plan, may not purchase service credit for that period of employment.
             589          Section 4. Section 49-11-407 is enacted to read:


             590          49-11-407. Service credit purchases by active employees only.
             591          Notwithstanding any other provision of this title, only an active member may purchase
             592      service credit under this title.
             593          Section 5. Section 49-11-504 is amended to read:
             594           49-11-504. Reemployment of a retiree -- Restrictions.
             595          (1) As used in this section, "full-time" means:
             596          (a) employment requiring 20 or more hours of work per week; or
             597          (b) at least a half-time teaching contract.
             598          (2) (a) Except for the provisions of Subsection (3), the provisions of this section do not
             599      apply to a person who is subject to the provisions of Section 49-11-505 .
             600          (b) This section does not apply to [elected positions] employment as an elected official.
             601          (3) A person who is not a retiree under this title is not subject to any postretirement
             602      restrictions under this title.
             603          (4) A retiree of an agency who is reemployed may not earn additional service credit, if
             604      the retiree is reemployed by:
             605          (a) a different agency; or
             606          (b) the same agency after six months from the retirement date.
             607          (5) A retiree of an agency who is reemployed on a full-time basis by the same agency
             608      within six months of the date of retirement is subject to the following:
             609          (a) the agency shall immediately notify the office;
             610          (b) the office shall cancel the retiree's allowance and reinstate the retiree to active
             611      member status;
             612          (c) the allowance cancellation and reinstatement to active member status is effective on
             613      the first day of the month following the date of reemployment;
             614          (d) the reinstated retiree may not retire again with a recalculated benefit for a two-year
             615      period from the date of cancellation of the original allowance, and if the retiree retires again
             616      within the two-year period, the original allowance shall be resumed; and
             617          (e) a reinstated retiree retiring after the two-year period shall be credited with the


             618      service credit in the retiree's account at the time of the first retirement and from that time shall
             619      be treated as a member of a system, including the accrual of additional service credit, but
             620      subject to recalculation of the allowance under Subsection (9).
             621          (6) A retiree of an agency who is reemployed by the same agency within six months of
             622      retirement on a less than full-time basis by the same agency is subject to the following:
             623          (a) the retiree may earn, without penalty, compensation from that position which is not
             624      in excess of the exempt earnings permitted by Social Security;
             625          (b) if a retiree receives compensation in a calendar year in excess of the Social Security
             626      limitation, 25% of the allowance shall be suspended for the remainder of the six-month period;
             627          (c) the effective date of a suspension and reinstatement of an allowance shall be set by
             628      the office; and
             629          (d) any suspension of a retiree's allowance under this Subsection (6) shall be applied
             630      on a calendar year basis.
             631          (7) For six months immediately following retirement, the retiree and participating
             632      employer who are subject to Subsection (6) shall:
             633          (a) maintain an accurate record of gross earnings in employment;
             634          (b) report the gross earnings at least monthly to the office;
             635          (c) immediately notify the office in writing of any postretirement earnings under
             636      Subsection (6); and
             637          (d) immediately notify the office in writing whether postretirement earnings equal or
             638      exceed the exempt earnings under Subsection (6).
             639          (8) (a) If a participating employer hires a retiree, on a full-time basis, who may not earn
             640      additional service credit under Subsection (4), the participating employer may not [contribute]
             641      make a retirement related contribution in an amount that exceeds the normal cost rate as
             642      defined under Section 49-11-102 [to a plan for] on behalf of the retiree under [Subsection]
             643      Subsections (8)(b) and (c).
             644          (b) The contributions under Subsection (8)(a) are not required, but if paid, shall be paid
             645      to a retiree-designated:


             646          (i) qualified defined contribution plan administered by the board, if the participating
             647      employer participates in a qualified defined contribution plan administered by the board; or
             648          (ii) qualified defined contribution plan offered by the participating employer if the
             649      participating employer does not participate in a qualified defined contribution plan
             650      administered by the board.
             651          (c) Notwithstanding the provisions of Subsection (8)(b), if an employer is not
             652      participating in a qualified defined contribution plan administered by the board, the employer
             653      may elect to pay the contributions under Subsection (8)(a) to a [nonqualified] deferred
             654      compensation plan administered by the board.
             655          (9) A retiree who has returned to work, accrued additional service credit, and again
             656      retires shall have the retiree's allowance recalculated using:
             657          (a) the formula in effect at the date of the retiree's original retirement for all service
             658      credit accrued prior to that date; and
             659          (b) the formula in effect at the date of the subsequent retirement for all service credit
             660      accrued between the first and subsequent retirement dates.
             661          (10) The board may make rules to implement this section.
             662          Section 6. Section 49-11-505 is amended to read:
             663           49-11-505. Reemployment of a retiree -- Restrictions.
             664          (1) (a) For purposes of this section, "retiree":
             665          [(a)] (i) means a person who:
             666          [(i)] (A) retired from a participating employer; and
             667          [(ii)] (B) begins reemployment on or after July 1, 2010 with a participating employer;
             668      and
             669          [(b)] (ii) does not include a retiree who is reemployed as an active senior judge
             670      appointed to hear cases by the Utah Supreme Court in accordance with Article VIII, Section 4,
             671      Utah Constitution.
             672          (b) (i) This section does not apply to employment as an elected official if the elected
             673      official's position is not full-time as certified by the participating employer.


             674          (ii) The provisions of this section apply to an elected official whose elected position is
             675      full-time as certified by the participating employer.
             676          (2) A retiree may not for the same period of reemployment:
             677          (a) (i) earn additional service credit; or
             678          (ii) receive any retirement related contribution from a participating employer; and
             679          (b) receive a retirement allowance.
             680          (3) The office shall cancel the retirement allowance of a retiree if the reemployment
             681      with a participating employer begins within one year of the retiree's retirement date.
             682          (4) If a retiree is not subject to Subsection (3), the retiree may elect to:
             683          (a) earn additional service credit in accordance with this title and cancel the retiree's
             684      retirement allowance; or
             685          (b) continue to receive the retiree's retirement allowance and forfeit any retirement
             686      related contribution from the participating employer who reemployed the retiree.
             687          (5) If an employee makes an election under Subsection (4)(b) to continue to receive a
             688      retirement allowance while reemployed, the participating employer shall contribute to the
             689      office the amortization rate, as defined in Section 49-11-102 , to be applied to the system that
             690      would have covered the retiree.
             691          (6) (a) A participating employer shall immediately notify the office:
             692          (i) if the participating employer reemploys a retiree;
             693          (ii) whether the remployment is subject to Subsection (3) or (4) of this section; and
             694          (iii) of any election by the retiree under Subsection (4).
             695          (b) A participating employer shall certify to the office whether the position of an
             696      elected official is or is not full-time.
             697          [(b)] (c) A participating employer is liable to the office for a payment or failure to
             698      make a payment in violation of this section.
             699          [(c)] (d) If a participating employer fails to notify the office in accordance with this
             700      section, the participating employer is immediately subject to a compliance audit by the office.
             701          (7) (a) The office shall immediately cancel the retirement allowance of a retiree in


             702      accordance with Subsection (7)(b) if the office receives notice or learns of:
             703          (i) the reemployment of a retiree subject to Subsection (3); or
             704          (ii) the election of a reemployed retiree under Subsection (4)(a).
             705          (b) The office shall cancel the allowance of a retiree subject to Subsection (7)(a), and
             706      reinstate the retiree to active member status on the first day of the month following the date of:
             707          (i) reemployment if the retiree is subject to Subsection (3); or
             708          (ii) an election by an employee under Subsection (4)(a).
             709          (8) (a) A retiree subject to Subsection (7)(b) who retires within two years from the date
             710      of reemployment:
             711          (i) is not entitled to a recalculated retirement benefit; and
             712          (ii) will resume the allowance that was being paid at the time of cancellation.
             713          (b) Subject to Subsection (2), a retiree who is re-instated to active membership under
             714      Subsection (7) and who retires two or more years after the date of re-instatement to active
             715      membership shall:
             716          (i) resume receiving the allowance that was being paid at the time of cancellation; and
             717          (ii) receive an additional allowance based on the formula in effect at the date of the
             718      subsequent retirement for all service credit accrued between the first and subsequent retirement
             719      dates.
             720          (9) A retiree subject to this section shall report to the office the status of the
             721      reemployment under Subsection (3) or (4).
             722          (10) The board may make rules to implement this section.
             723          Section 7. Section 49-11-602 is amended to read:
             724           49-11-602. Participating employer to maintain records -- Time limit -- Penalties
             725      for failure to comply.
             726          (1) A participating employer shall maintain records necessary to calculate benefits
             727      under this title and other records necessary for proper administration of this title as required by
             728      the office.
             729          (2) A participating employer shall maintain the records required under Subsection (1)


             730      until the earliest of:
             731          (a) three years after the date of retirement of the employee from a system or plan;
             732          (b) three years after the date of death of the employee; or
             733          (c) 65 years from the date of employment with the participating employer.
             734          (3) A participating employer shall be liable to the office for:
             735          (a) any liabilities and expenses, including administrative expenses and the cost of
             736      increased benefits to members, resulting from the participating employer's failure to maintain
             737      records under this section; and
             738          (b) a penalty equal to 1% of the participating employer's last month's contributions.
             739          (4) The executive director may waive all or any part of the interest, penalties, expenses,
             740      and fees if the executive director finds there were extenuating circumstances surrounding the
             741      participating employer's failure to comply with this section.
             742          (5) The executive director may estimate the length of service, compensation, or age of
             743      any member, if that information is not contained in the records.
             744          (6) (a) A participating employer shall enroll an employee, make reports, submit
             745      contributions, and provide other requested information electronically in a manner approved by
             746      the office.
             747          (b) A participating employer shall treat any information provided electronically or
             748      otherwise by the office as subject to the confidentiality provisions of this title.
             749          Section 8. Section 49-11-613 is amended to read:
             750           49-11-613. Appeals procedure -- Right of appeal to hearing officer -- Board
             751      reconsideration -- Judicial review.
             752          [(1) (a) All members, retirees, participants, alternative payees, or covered individuals
             753      of a system, plan, or program under this title shall acquaint themselves with their rights and
             754      obligations under this title.]
             755          (1) (a) A member, retiree, participant, alternative payee, covered individual, employer,
             756      participating employer, and covered employer shall inform themselves of their rights and
             757      obligations under this title.


             758          (b) [Any] Subject to the provisions in Subsection (8), any dispute regarding a benefit,
             759      right, obligation, or employment right under this title is subject to the procedures provided
             760      under this section.
             761          (c) A person who disputes a benefit, right, obligation, or employment right under this
             762      title shall request a ruling by the executive director who may delegate the decision to the
             763      deputy director.
             764          (d) A person who is dissatisfied by a ruling [of the executive director or deputy
             765      director] under Subsection (1)(c) with respect to any benefit, right, obligation, or employment
             766      right under this title shall request a review of that claim by a hearing officer.
             767          (e) The executive director, on behalf of the board, may request that the hearing officer
             768      review a dispute regarding any benefit, right, obligation, or employment right under this title by
             769      filing a notice of board action and providing notice to all affected parties in accordance with
             770      rules adopted by the board.
             771          (2) The hearing officer shall:
             772          (a) be hired by the executive director after consultation with the board;
             773          (b) follow the procedures and requirements of Title 63G, Chapter 4, Administrative
             774      Procedures Act, except as specifically modified under this title;
             775          (c) hear and determine all facts relevant to a decision, including facts pertaining to
             776      applications for benefits under any system, plan, or program under this title and all matters
             777      pertaining to the administration of the office; and
             778          (d) make conclusions of law in determining the person's rights under any system, plan,
             779      or program under this title and matters pertaining to the administration of the office.
             780          (3) The board shall review and approve or deny all decisions of the hearing officer in
             781      accordance with rules adopted by the board.
             782          (4) The moving party in any proceeding brought under this section shall bear the
             783      burden of proof.
             784          (5) A party may file an application for reconsideration by the board upon any of the
             785      following grounds:


             786          (a) that the board acted in excess of its powers;
             787          (b) that the order or award was procured by fraud;
             788          (c) that the evidence does not justify the determination of the hearing officer; or
             789          (d) that the party has discovered new material evidence that could not, with reasonable
             790      diligence, have been discovered or procured prior to the hearing.
             791          (6) The board shall affirm, reverse, or modify the decision of the hearing officer, or
             792      remand the application to the hearing officer for further consideration.
             793          (7) A party aggrieved by the board's decision may obtain judicial review by complying
             794      with the procedures and requirements of Title 63G, Chapter 4, Administrative Procedures Act.
             795          (8) The program shall provide an appeals process for medical claims that complies
             796      with federal law.
             797          [(8)] (9) The board may make rules to implement this section.
             798          Section 9. Section 49-11-901.5 is enacted to read:
             799     
Part 9. Insurance Premium Tax Revenues Distribution

             800          49-11-901.5. Premium tax revenues -- Distribution.
             801          (1) (a) In accordance with this section, there shall be paid to the office:
             802          (i) 50% of the annual tax levied, assessed, and collected under Title 59, Chapter 9,
             803      Taxation of Admitted Insurers, upon premiums for property insurance, as defined under
             804      Section 31A-1-301 , and as applied to fire and allied lines insurance collected by insurance
             805      companies within the state; and
             806          (ii) 10% of all money assessed and collected under Title 59, Chapter 9, Taxation of
             807      Admitted Insurers, upon premiums for life insurance, as defined in Section 31A-1-301 , within
             808      the state.
             809          (b) Payments to the fund shall be made annually until the service liability under this
             810      part is liquidated, after which the tax revenue provided in this Subsection (1) ceases.
             811          (2) The office shall distribute the premium tax revenue paid under Subsection (1) as
             812      follows:
             813          (a) an amount determined by the office to fully fund the long-term disability program


             814      provided for firefighters under Section 49-23-601 ;
             815          (b) an amount determined by the office to the Firefighters' Retirement Trust Fund
             816      created under Section 49-16-104 equal to the amount when calculated as a percentage of the
             817      certified contribution rate for members in Divisions A and B, as defined under Section
             818      49-16-301 , that is the percentage of the certified contribution rate paid to the Firefighters'
             819      Retirement Trust Fund on July 1, 2004; and
             820          (c) any remaining amount in accordance with Section 49-11-902 .
             821          Section 10. Section 49-11-902 is amended to read:
             822           49-11-902. Premium tax revenues -- Formula -- Deposits.
             823          (1) [(a)] If the premium tax revenue received by the office under Subsection
             824      [ 49-16-301 (6), when calculated as a percentage of the certified contribution rate for members
             825      in Division A and B, as defined under Section 49-16-301 , exceeds the percentage of the
             826      certified contribution rate paid to the Firefighters' Retirement Trust Fund in accordance with
             827      Subsection 49-16-301 (6) on July 1, 2004] 49-11-901.5 (1) and first paid in accordance with
             828      Subsections 49-11-901.5 (2)(a) and (b), include any remaining amount, the office shall deposit
             829      the [difference] amount in the:
             830          (a) Public Safety Contributory Trust Fund created under Section 49-14-104 ; and [the]
             831          (b) Public Safety Noncontributory Retirement Trust Fund created under Section
             832      49-15-104 .
             833          [(b) If the premium tax revenue does not exceed the percentage of the certified
             834      contribution rate paid to the Firefighters' Retirement Trust Fund in accordance with Subsection
             835      49-16-301 (6) on July 1, 2004 as calculated under Subsection (1)(a), the board may not make a
             836      deposit under Subsection (1)(a).]
             837          (2) The money deposited under this section shall be used to fund an increase for
             838      retirees in the public safety retirement systems from a 2.5% maximum annual cost-of-living
             839      adjustment to a 4% maximum annual cost-of-living adjustment under Sections 49-14-403 and
             840      49-15-403 in the public safety retirement systems.
             841          (3) As required to implement this section, the office shall make the calculations and


             842      deposits for the equitable apportionment of money between:
             843          (a) Division A1 and B1; and
             844          (b) the contributory and noncontributory trust funds.
             845          Section 11. Section 49-12-401 is amended to read:
             846           49-12-401. Eligibility for an allowance -- Date of retirement -- Qualifications.
             847          (1) A member is qualified to receive an allowance from this system when:
             848          (a) the member ceases actual work for [a] every participating employer [in this system]
             849      that employs the member before the member's retirement date and provides evidence of the
             850      termination;
             851          (b) the member has submitted to the office a notarized retirement application form that
             852      states the member's proposed retirement date; and
             853          (c) one of the following conditions is met as of the member's retirement date:
             854          (i) the member has accrued at least four years of service credit and has attained an age
             855      of 65 years;
             856          (ii) the member has accrued at least 10 years of service credit and has attained an age
             857      of 62 years;
             858          (iii) the member has accrued at least 20 years of service credit and has attained an age
             859      of 60 years; or
             860          (iv) the member has accrued at least 30 years of service credit.
             861          (2) (a) The member's retirement date:
             862          (i) shall be the 1st or the 16th day of the month, as selected by the member;
             863          (ii) shall be on or after the date of termination; and
             864          (iii) may not be more than 90 days before or after the date the application is received by
             865      the office.
             866          (b) A member may not be employed by a participating employer in the system
             867      established by this chapter on the retirement date selected under Subsection (2)(a)(i).
             868          Section 12. Section 49-12-402 is amended to read:
             869           49-12-402. Service retirement plans -- Calculation of retirement allowance _


             870      Social Security limitations.
             871          (1) (a) Except as provided under Section 49-12-701 , retirees of this system may choose
             872      from the six retirement options described in this section.
             873          (b) Options Two, Three, Four, Five, and Six are modifications of the Option One
             874      calculation.
             875          (2) The Option One benefit is an annual allowance calculated as follows:
             876          (a) If the retiree is at least 65 years of age or has accrued at least 30 years of service
             877      credit, the allowance is:
             878          (i) an amount equal to 1.25% of the retiree's final average monthly salary multiplied by
             879      the number of years of service credit accrued prior to July 1, 1975; plus
             880          (ii) an amount equal to 2% of the retiree's final average monthly salary multiplied by
             881      the number of years of service credit accrued on and after July 1, 1975.
             882          (b) If the retiree is less than 65 years of age, the allowance shall be reduced 3% for
             883      each year of retirement from age 60 to age 65, unless the member has 30 or more years of
             884      accrued credit in which event no reduction is made to the allowance.
             885          (c) (i) Years of service includes any fractions of years of service to which the retiree
             886      may be entitled.
             887          (ii) At the time of retirement, if a retiree's combined years of actual, not purchased,
             888      service credit is within 1/10 of one year of the total years of service credit required for
             889      retirement, the retiree shall be considered to have the total years of service credit required for
             890      retirement.
             891          (d) An Option One allowance is only payable to the member during the member's
             892      lifetime.
             893          (3) The allowance payable under Options Two, Three, Four, Five, and Six is calculated
             894      by reducing an Option One benefit based on actuarial computations to provide the following:
             895          (a) Option Two is a reduced allowance paid to and throughout the lifetime of the
             896      retiree, and, if the retiree receives less in annuity payments than the amount of the retiree's
             897      member contributions, the remaining balance of the retiree's member contributions shall be


             898      paid in accordance with Sections 49-11-609 and 49-11-610 .
             899          (b) Option Three is a reduced allowance paid to and throughout the lifetime of the
             900      retiree, and, upon the death of the retiree, the same reduced allowance paid to and throughout
             901      the lifetime of the retiree's lawful spouse at the time of retirement.
             902          (c) Option Four is a reduced allowance paid to and throughout the lifetime of the
             903      retiree, and upon the death of the retiree, an amount equal to 1/2 of the retiree's allowance paid
             904      to and throughout the lifetime of the retiree's lawful spouse at the time of retirement.
             905          (d) Option Five is a modification of Option Three so that if the lawful spouse at the
             906      time of retirement predeceases the retiree, an allowance equivalent to the amount payable at the
             907      time of initial retirement under Option One shall be paid to the retiree for the remainder of the
             908      retiree's life, beginning on the [last day of the month following the month in which the lawful
             909      spouse dies.] first day of the month:
             910          (i) following the month in which the spouse died, if the application is received by the
             911      office within 90 days of the spouse's death; or
             912          (ii) following the month in which the application is received by the office, if the
             913      application is received by the office more than 90 days after the spouse's death.
             914          (e) Option Six is a modification of Option Four so that if the lawful spouse at the time
             915      of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time
             916      of initial retirement under Option One shall be paid to the retiree for the remainder of the
             917      retiree's life, beginning on the [last day of the month following the month in which the lawful
             918      spouse dies.] first day of the month:
             919          (i) following the month in which the spouse died, if the application is received by the
             920      office within 90 days of the spouse's death; or
             921          (ii) following the month in which the application is received by the office, if the
             922      application is received by the office more than 90 days after the spouse's death.
             923          (4) (a) (i) The final average salary is limited in the computation of that part of an
             924      allowance based on service rendered prior to July 1, 1967, during a period when the retiree
             925      received employer contributions on a portion of compensation from an educational institution


             926      toward the payment of the premium required on a retirement annuity contract with the
             927      Teachers' Insurance and Annuity Association of America or with any other public or private
             928      system, organization, or company to $4,800.
             929          (ii) This limitation is not applicable to retirees who elected to continue in this system
             930      by July 1, 1967.
             931          (b) Periods of employment which are exempt from this system under Subsection
             932      49-12-203 (1)(b), may be purchased by the member for the purpose of retirement only if all
             933      benefits from the Teachers' Insurance and Annuity Association of America or any other public
             934      or private system or organization based on this period of employment are forfeited.
             935          (5) (a) If a retiree under Option One dies within 90 days after the retiree's retirement
             936      date, the retirement is canceled and the death shall be considered as that of a member before
             937      retirement.
             938          (b) Any payments made to the retiree shall be deducted from the amounts due to the
             939      beneficiary.
             940          (6) If a retiree retires under either Option Five or Six and subsequently divorces, the
             941      retiree may elect to convert the benefit to a Option One benefit at the time of divorce, if there is
             942      no court order filed in the matter.
             943          Section 13. Section 49-12-405 is amended to read:
             944           49-12-405. Death of married member -- Service retirement benefits to surviving
             945      spouse.
             946          (1) Upon the request of a deceased member's lawful spouse at the time of the member's
             947      death, the deceased member is considered to have retired under Option Three on the first day of
             948      the month following the month in which the member died if the following requirements are
             949      met:
             950          (a) the member has:
             951          (i) 25 or more years of service credit;
             952          (ii) attained age 60 with 20 or more years of service credit;
             953          (iii) attained age 62 with 10 or more years of service credit; or


             954          (iv) attained age 65 with four or more years of service credit; and
             955          (b) the member dies leaving a spouse to whom the member has been married at least
             956      six months immediately prior to the death date.
             957          (2) The spouse who requests a benefit under this section shall apply in writing to the
             958      office. The allowance shall begin on the first day of the month:
             959          (a) following the month in which the member died, if the application is received by the
             960      office within 90 days of the member's death; or
             961          (b) following the month in which the application is received by the office, if the
             962      application is received by the office more than 90 days after the spouse's death.
             963          (3) The Option Three benefit calculation, when there are 25 or more years of service
             964      credit, shall be calculated without a reduction in allowance under Section 49-12-402 .
             965          (4) Except for a return of member contributions, benefits payable under this section are
             966      retirement benefits and shall be paid in addition to any payments made under Section
             967      49-12-501 and constitute a full and final settlement of the claim of the spouse or any other
             968      beneficiary filing claim for benefits under Section 49-12-501 .
             969          Section 14. Section 49-13-401 is amended to read:
             970           49-13-401. Eligibility for an allowance -- Date of retirement -- Qualifications.
             971          (1) A member is qualified to receive an allowance from this system when:
             972          (a) the member ceases actual work for [a] every participating employer [in this system]
             973      that employs the member before the member's retirement date and provides evidence of the
             974      termination;
             975          (b) the member has submitted to the office a notarized retirement application form that
             976      states the member's proposed retirement date; and
             977          (c) one of the following conditions is met as of the member's retirement date:
             978          (i) the member has accrued at least four years of service credit and has attained an age
             979      of 65 years;
             980          (ii) the member has accrued at least 10 years of service credit and has attained an age
             981      of 62 years;


             982          (iii) the member has accrued at least 20 years of service credit and has attained an age
             983      of 60 years;
             984          (iv) the member has accrued at least 30 years of service credit; or
             985          (v) the member has accrued at least 25 years of service credit, in which case the
             986      member shall be subject to the reduction under Subsection 49-13-402 (2)(b).
             987          (2) (a) The member's retirement date:
             988          (i) shall be the 1st or the 16th day of the month, as selected by the member;
             989          (ii) shall be on or after the date of termination; and
             990          (iii) may not be more than 90 days before or after the date the application is received by
             991      the office.
             992          (b) A member may not be employed by a participating employer in the system
             993      established by this chapter on the retirement date selected under Subsection (2)(a)(i).
             994          Section 15. Section 49-13-402 is amended to read:
             995           49-13-402. Service retirement plans -- Calculation of retirement allowance --
             996      Social Security limitations.
             997          (1) (a) Except as provided under Section 49-13-701 , retirees of this system may choose
             998      from the six retirement options described in this section.
             999          (b) Options Two, Three, Four, Five, and Six are modifications of the Option One
             1000      calculation.
             1001          (2) The Option One benefit is an allowance calculated as follows:
             1002          (a) If the retiree is at least 65 years of age or has accrued at least 30 years of service
             1003      credit, the allowance is an amount equal to 2% of the retiree's final average monthly salary
             1004      multiplied by the number of years of service credit accrued.
             1005          (b) If the retiree is less than 65 years of age, the allowance shall be reduced 3% for
             1006      each year of retirement from age 60 to age 65, plus a full actuarial reduction for each year of
             1007      retirement prior to age 60, unless the member has 30 or more years of accrued credit, in which
             1008      event no reduction is made to the allowance.
             1009          (c) (i) Years of service include any fractions of years of service to which the retiree


             1010      may be entitled.
             1011          (ii) At the time of retirement, if a retiree's combined years of actual, not purchased,
             1012      service credit is within 1/10 of one year of the total years of service credit required for
             1013      retirement, the retiree shall be considered to have the total years of service credit required for
             1014      retirement.
             1015          (d) An Option One allowance is only payable to the member during the member's
             1016      lifetime.
             1017          (3) The allowance payable under Options Two, Three, Four, Five, and Six is calculated
             1018      by reducing an Option One benefit based on actuarial computations to provide the following:
             1019          (a) Option Two is a reduced allowance paid to and throughout the lifetime of the
             1020      retiree, and, if the retiree receives less in annuity payments than the amount of the retiree's
             1021      member contributions, the remaining balance of the retiree's member contributions shall be
             1022      paid in accordance with Sections 49-11-609 and 49-11-610 .
             1023          (b) Option Three is a reduced allowance paid to and throughout the lifetime of the
             1024      retiree, and, upon the death of the retiree, the same reduced allowance paid to and throughout
             1025      the lifetime of the retiree's lawful spouse at the time of retirement.
             1026          (c) Option Four is a reduced allowance paid to and throughout the lifetime of the
             1027      retiree, and upon the death of the retiree, an amount equal to [1/2] one-half of the retiree's
             1028      allowance paid to and throughout the lifetime of the retiree's lawful spouse at the time of
             1029      retirement.
             1030          (d) Option Five is a modification of Option Three so that if the lawful spouse at the
             1031      time of retirement predeceases the retiree, an allowance equivalent to the amount payable at the
             1032      time of initial retirement under Option One shall be paid to the retiree for the remainder of the
             1033      retiree's life, beginning on the [last day of the month following the month in which the lawful
             1034      spouse dies.] first day of the month:
             1035          (i) following the month in which the spouse died, if the application is received by the
             1036      office within 90 days of the spouse's death; or
             1037          (ii) following the month in which the application is received by the office, if the


             1038      application is received by the office more than 90 days after the spouse's death.
             1039          (e) Option Six is a modification of Option Four so that if the lawful spouse at the time
             1040      of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time
             1041      of initial retirement under Option One shall be paid to the retiree for the remainder of the
             1042      retiree's life, beginning on the [last day of the month following the month in which the lawful
             1043      spouse dies.] first day of the month:
             1044          (i) following the month in which the spouse died, if the application is received by the
             1045      office within 90 days of the spouse's death; or
             1046          (ii) following the month in which the application is received by the office, if the
             1047      application is received by the office more than 90 days after the spouse's death.
             1048          (4) (a) (i) The final average salary is limited in the computation of that part of an
             1049      allowance based on service rendered prior to July 1, 1967, during a period when the retiree
             1050      received employer contributions on a portion of compensation from an educational institution
             1051      toward the payment of the premium required on a retirement annuity contract with the
             1052      Teachers' Insurance and Annuity Association of America or with any other public or private
             1053      system, organization, or company to $4,800.
             1054          (ii) This limitation is not applicable to retirees who elected to continue in the Public
             1055      Employees' Contributory Retirement System by July 1, 1967.
             1056          (b) Periods of employment which are exempt from this system as permitted under
             1057      Subsection 49-13-203 (1)(b) may be purchased by the member for the purpose of retirement
             1058      only if all benefits from the Teachers' Insurance and Annuity Association of America or any
             1059      other public or private system or organization based on this period of employment are forfeited.
             1060          (5) (a) If a retiree under Option One dies within 90 days after the retiree's retirement
             1061      date, the retirement is canceled and the death shall be considered as that of a member before
             1062      retirement.
             1063          (b) Any payments made to the retiree shall be deducted from the amounts due to the
             1064      beneficiary.
             1065          (6) If a retiree retires under either Option Five or Six and subsequently divorces, the


             1066      retiree may elect to convert the benefit to an Option One benefit at the time of divorce, if there
             1067      is no court order filed in the matter.
             1068          Section 16. Section 49-13-405 is amended to read:
             1069           49-13-405. Death of married members -- Service retirement benefits to surviving
             1070      spouse.
             1071          (1) As used in this section, "member's full allowance" means an Option Three
             1072      allowance calculated under Section 49-13-402 without an actuarial reduction.
             1073          (2) Upon the request of a deceased member's lawful spouse at the time of the member's
             1074      death, the deceased member is considered to have retired under Option Three on the first day of
             1075      the month following the month in which the member died if the following requirements are
             1076      met:
             1077          (a) the member has:
             1078          (i) 15 or more years of service credit;
             1079          (ii) attained age 62 with 10 or more years of service credit; or
             1080          (iii) attained age 65 with four or more years of service credit; and
             1081          (b) the member dies leaving a spouse to whom the member has been married at least
             1082      six months immediately prior to the death date.
             1083          (3) The spouse who requests a benefit under this section shall apply in writing to the
             1084      office. The allowance shall begin on the first day of the month:
             1085          (a) following the month in which the member died, if the application is received by the
             1086      office within 90 days of the member's death; or
             1087          (b) following the month in which the application is received by the office, if the
             1088      application is received by the office more than 90 days after the spouse's death.
             1089          (4) The allowance payable to a surviving spouse under Subsection (2) is:
             1090          (a) if the member has 25 or more years of service credit at the time of death, the
             1091      surviving spouse shall receive the member's full allowance;
             1092          (b) if the member has between 20-24 years of service credit and is not age 60 or older
             1093      at the time of death, the surviving spouse shall receive [2/3] two-thirds of the member's full


             1094      allowance;
             1095          (c) if the member has between 15-19 years of service credit and is not age 62 or older
             1096      at the time of death, the surviving spouse shall receive [1/3] one-third of the member's full
             1097      allowance; or
             1098          (d) if the member is age 60 or older with 20 or more years of service credit, age 62 or
             1099      older with 10 or more years of service credit, or age 65 or older with four or more years of
             1100      service credit at the time of death, the surviving spouse shall receive an Option Three benefit
             1101      with actuarial reductions.
             1102          (5) Except for a return of member contributions, benefits payable under this section are
             1103      retirement benefits and shall be paid in addition to any other payments made under Section
             1104      49-13-501 and shall constitute a full and final settlement of the claim of the spouse or any other
             1105      beneficiary filing a claim for benefits under Section 49-13-501 .
             1106          Section 17. Section 49-14-401 is amended to read:
             1107           49-14-401. Eligibility for service retirement -- Date of retirement --
             1108      Qualifications.
             1109          (1) A member is qualified to receive an allowance from this system when:
             1110          (a) the member ceases actual work for [a] every participating employer [in this system]
             1111      that employs the member before the member's retirement date and provides evidence of the
             1112      termination;
             1113          (b) the member has submitted to the office a notarized retirement application form that
             1114      states the member's proposed retirement date; and
             1115          (c) one of the following conditions is met as of the member's retirement date:
             1116          (i) the member has accrued at least 20 years of service credit;
             1117          (ii) the member has accrued at least 10 years of service credit and has attained an age
             1118      of 60 years; or
             1119          (iii) the member has accrued at least four years of service credit and has attained an age
             1120      of 65 years.
             1121          (2) (a) The member's retirement date:


             1122          (i) shall be the 1st or the 16th day of the month, as selected by the member;
             1123          (ii) shall be on or after the date of termination; and
             1124          (iii) may not be more than 90 days before or after the date the application is received by
             1125      the office.
             1126          (b) A member may not be employed by a participating employer in the system
             1127      established by this chapter on the retirement date selected under Subsection (2)(a)(i).
             1128          Section 18. Section 49-14-501 is amended to read:
             1129           49-14-501. Death of active member in Division A -- Payment of benefits.
             1130          (1) If an active member of this system enrolled in Division A under Section 49-14-301
             1131      dies, benefits are payable as follows:
             1132          (a) If the death is classified by the office as a line-of-duty death, the spouse at the time
             1133      of death shall receive a lump sum of $1,000 and an allowance equal to 30% of the deceased
             1134      member's final average monthly salary.
             1135          (b) If the death is not classified by the office as a line-of-duty death, benefits are
             1136      payable as follows:
             1137          (i) If the member has accrued less than 10 years of public safety service credit, the
             1138      beneficiary shall receive the sum of $1,000 or a refund of the member's member contributions,
             1139      whichever is greater.
             1140          (ii) If the member has accrued 10 or more years of public safety service credit at the
             1141      time of death, the spouse at the time of death shall receive the sum of $500, plus an allowance
             1142      equal to 2% of the member's final average monthly salary for each year of service credit
             1143      accrued by the member up to a maximum of 30% of the member's final average monthly salary.
             1144          (2) Benefits are not payable to minor children of members covered under Division A.
             1145          (3) If a benefit is not distributed under this section, and the member has designated a
             1146      beneficiary, the member's member contributions shall be paid to the beneficiary.
             1147          (4) (a) A spouse who requests a benefit under this section shall apply in writing to the
             1148      office.
             1149          (b) The allowance shall begin on the first day of the month:


             1150          (i) following the month in which the member died, if the application is received by the
             1151      office within 90 days of the member's death; or
             1152          (ii) following the month in which the application is received by the office, if the
             1153      application is received by the office more than 90 days after the member's death.
             1154          Section 19. Section 49-14-502 is amended to read:
             1155           49-14-502. Death of active member in Division B -- Payment of benefits.
             1156          (1) If an active member of this system enrolled in Division B under Section 49-14-301
             1157      dies, benefits are payable as follows:
             1158          (a) If the death is classified by the office as a line-of-duty death, the spouse at the time
             1159      of death shall receive a lump sum of $1,500 and an allowance equal to 37.5% of the member's
             1160      final average monthly salary.
             1161          (b) If the death is not classified by the office as a line-of-duty death, benefits are
             1162      payable as follows:
             1163          (i) If the member has accrued two or more years of public safety service credit at the
             1164      time of death, the death is considered a line-of-duty death and the benefit shall be paid as
             1165      provided under Subsection (1)(a).
             1166          (ii) If the member has accrued less than two years of public safety service credit at the
             1167      time of death, the spouse at the time of death shall receive a refund of the member's member
             1168      contributions, plus 50% of the member's most recent 12 months' compensation.
             1169          (c) (i) If the member has accrued two or more years of public safety service credit at
             1170      the time of death, each of the member's unmarried children to age 18 or dependent unmarried
             1171      mentally or physically disabled children shall receive a monthly allowance of $50.
             1172          (ii) Payments shall be made to the surviving parent or to a duly appointed guardian, or
             1173      as otherwise provided under Sections 49-11-609 and 49-11-610 .
             1174          (2) In the event of the death of both parents, the spouse's benefit shall be prorated and
             1175      paid to each of the member's unmarried children to age 18.
             1176          (3) If a benefit is not distributed under the previous subsections, and the member has
             1177      designated a beneficiary, the member's member contributions shall be paid to the beneficiary.


             1178          (4) The combined annual payments made to the beneficiaries of any member under this
             1179      section may not exceed 75% of the member's final average monthly salary.
             1180          (5) (a) A spouse who requests a benefit under this section shall apply in writing to the
             1181      office.
             1182          (b) The allowance shall begin on the first day of the month:
             1183          (i) following the month in which the member died, if the application is received by the
             1184      office within 90 days of the member's death; or
             1185          (ii) following the month in which the application is received by the office, if the
             1186      application is received by the office more than 90 days after the member's death.
             1187          Section 20. Section 49-14-503 is amended to read:
             1188           49-14-503. Benefits payable upon death of inactive member.
             1189          (1) If an inactive member who has less than 20 years of public safety service credit
             1190      dies, the spouse at the time of death, or, if there is no spouse at the time of death, the member's
             1191      minor children shall receive a refund of the member's member contributions or $500,
             1192      whichever is greater.
             1193          (2) (a) If an inactive member with 20 or more years of public safety service credit dies,
             1194      the spouse at the time of death shall receive an allowance in an amount of 50% of the amount
             1195      the member would have received had retirement occurred on the first of the month following
             1196      the month in which the death occurred.
             1197          (b) This allowance shall be based on years of service credit and final average monthly
             1198      salary under Section 49-14-402 , reduced actuarially from age 50 to the age of the member at
             1199      the time of death if the member is under age 50 at the time of death.
             1200          (3) (a) A spouse who requests a benefit under this section shall apply in writing to the
             1201      office.
             1202          (b) The allowance shall begin on the first day of the month:
             1203          (i) following the month in which the member died, if the application is received by the
             1204      office within 90 days of the member's death; or
             1205          (ii) following the month in which the application is received by the office, if the


             1206      application is received by the office more than 90 days after the member's death.
             1207          Section 21. Section 49-15-401 is amended to read:
             1208           49-15-401. Eligibility for service retirement -- Date of retirement --
             1209      Qualifications.
             1210          (1) A member is qualified to receive an allowance from this system when:
             1211          (a) the member ceases actual work for [a] every participating employer [in this system]
             1212      that employs the member before the member's retirement date and provides evidence of the
             1213      termination;
             1214          (b) the member has submitted to the office a notarized retirement application form that
             1215      states the member's proposed retirement date; and
             1216          (c) one of the following conditions is met as of the member's retirement date:
             1217          (i) the member has accrued at least 20 years of service credit;
             1218          (ii) the member has accrued at least 10 years of service credit and has attained an age
             1219      of 60 years; or
             1220          (iii) the member has accrued at least four years of service and has attained an age of 65
             1221      years.
             1222          (2) (a) The member's retirement date:
             1223          (i) shall be the 1st or the 16th day of the month, as selected by the member;
             1224          (ii) shall be on or after the date of termination; and
             1225          (iii) may not be more than 90 days before or after the date the application is received by
             1226      the office.
             1227          (b) A member may not be employed by a participating employer in the system
             1228      established by this chapter on the retirement date selected under Subsection (2)(a)(i).
             1229          Section 22. Section 49-15-501 is amended to read:
             1230           49-15-501. Death of active member in Division A -- Payment of benefits.
             1231          (1) If an active member of this system enrolled in Division A under Section 49-15-301
             1232      dies, benefits are payable as follows:
             1233          (a) If the death is classified by the office as a line-of-duty death, benefits are payable as


             1234      follows:
             1235          (i) If the member has accrued less than 20 years of public safety service credit, the
             1236      spouse at the time of death shall receive a lump sum of $1,000 and an allowance equal to 30%
             1237      of the member's final average monthly salary.
             1238          (ii) If the member has accrued 20 or more years of public safety service credit, the
             1239      member shall be considered to have retired with an allowance calculated under Section
             1240      49-15-402 and the spouse at the time of death shall receive the death benefit payable to a
             1241      spouse at the time of death under Section 49-15-504 .
             1242          (b) If the death is not classified as a line-of-duty death by the office, benefits are
             1243      payable as follows:
             1244          (i) If the member has accrued less than 10 years of public safety service credit, the
             1245      beneficiary shall receive the sum of $1,000 or a refund of the member's member contributions,
             1246      whichever is greater.
             1247          (ii) If the member has accrued 10 or more years, but less than 20 years of public safety
             1248      service credit at the time of death, the spouse at the time of death shall receive the sum of $500,
             1249      plus an allowance equal to 2% of the member's final average monthly salary for each year of
             1250      service credit accrued by the member up to a maximum of 30% of the member's final average
             1251      monthly salary.
             1252          (iii) If the member has accrued 20 or more years of public safety service credit, the
             1253      benefit shall be calculated as provided in Subsection (1)(a)(ii).
             1254          (2) Benefits are not payable to minor children under Division A.
             1255          (3) If a benefit is not distributed under this section, and the member has designated a
             1256      beneficiary, the member's member contribution shall be paid to the beneficiary.
             1257          (4) (a) A spouse who requests a benefit under this section shall apply in writing to the
             1258      office.
             1259          (b) The allowance shall begin on the first day of the month:
             1260          (i) following the month in which the member died, if the application is received by the
             1261      office within 90 days of the member's death; or


             1262          (ii) following the month in which the application is received by the office, if the
             1263      application is received by the office more than 90 days after the member's death.
             1264          Section 23. Section 49-15-502 is amended to read:
             1265           49-15-502. Death of active member in Division B -- Payment of benefits.
             1266          (1) If an active member of this system enrolled in Division B under Section 49-15-301
             1267      dies, benefits are payable as follows:
             1268          (a) If the death is classified by the office as a line-of-duty death, the spouse at the time
             1269      of death shall receive a lump sum of $1,500 and an allowance equal to 37.5% of the member's
             1270      final average monthly salary.
             1271          (b) If the death is not classified by the office as a line-of-duty death, and the member
             1272      has accrued two or more years of public safety service credit at the time of death, the death is
             1273      considered line-of-duty and the benefit shall be paid as provided under Subsection (1)(a).
             1274          (c) If the death is not classified by the office as a line-of-duty death, and the member
             1275      has accrued less than two years of public safety service credit at the time of death, the spouse at
             1276      the time of death shall receive a refund of the member's member contributions, plus 50% of the
             1277      member's most recent 12 months' compensation.
             1278          (d) (i) If the member has accrued two or more years of public safety service credit at
             1279      the time of death, each of the member's unmarried children to age 18 or dependent unmarried
             1280      mentally or physically disabled children shall receive an allowance of $50.
             1281          (ii) Payments shall be made to the surviving parent or to a duly appointed guardian, or
             1282      as otherwise provided under Section 49-11-609 or 49-11-610 .
             1283          (2) In the event of the death of both parents, the spouse's benefit shall be prorated and
             1284      paid to each of the member's unmarried children to age 18.
             1285          (3) If a benefit is not distributed under the previous subsections, and the member has
             1286      designated a beneficiary, the member's member contributions shall be paid to the beneficiary.
             1287          (4) The combined payments to beneficiaries of any member under this section may not
             1288      exceed 75% of the member's final average monthly salary.
             1289          (5) (a) A spouse who requests a benefit under this section shall apply in writing to the


             1290      office.
             1291          (b) The allowance shall begin on the first day of the month:
             1292          (i) following the month in which the member died, if the application is received by the
             1293      office within 90 days of the member's death; or
             1294          (ii) following the month in which the application is received by the office, if the
             1295      application is received by the office more than 90 days after the member's death.
             1296          Section 24. Section 49-15-503 is amended to read:
             1297           49-15-503. Benefits payable upon death of inactive member.
             1298          (1) If an inactive member who has less than 20 years of public safety service credit
             1299      dies, the spouse at the time of death, or, if there is no spouse at the time of death, the member's
             1300      minor children shall receive a refund of the member's member contributions or $500,
             1301      whichever is greater.
             1302          (2) (a) If an inactive member with 20 or more years of public safety service credit dies,
             1303      the spouse at the time of death shall receive an allowance in an amount of 50% of the amount
             1304      the member would have received had retirement occurred on the first of the month following
             1305      the month in which the death occurred.
             1306          (b) This allowance shall be based on years of service credit and final average monthly
             1307      salary under Section 49-15-402 , reduced actuarially from age 50 to the age of the member at
             1308      the time of death if the member is under 50 years of age at the time of death.
             1309          (3) (a) A spouse who requests a benefit under this section shall apply in writing to the
             1310      office.
             1311          (b) The allowance shall begin on the first day of the month:
             1312          (i) following the month in which the member died, if the application is received by the
             1313      office within 90 days of the member's death; or
             1314          (ii) following the month in which the application is received by the office, if the
             1315      application is received by the office more than 90 days after the member's death.
             1316          Section 25. Section 49-16-301 is amended to read:
             1317           49-16-301. Contributions -- Two divisions -- Election by employer to pay


             1318      employee contributions -- Accounting for and vesting of worker contributions --
             1319      Deductions.
             1320          (1) In addition to the money paid to this system under [Subsection (6)] Section
             1321      49-11-901.5 , participating employers and firefighter service employees shall jointly pay the
             1322      certified contribution rates to the office to maintain this system on a financially and actuarially
             1323      sound basis.
             1324          (2) For purposes of determining contribution rates, this system is divided into two
             1325      divisions according to Social Security coverage as follows:
             1326          (a) members of this system with on-the-job Social Security coverage are in Division A;
             1327      and
             1328          (b) members of this system without on-the-job Social Security coverage are in Division
             1329      B.
             1330          (3) (a) A participating employer may elect to pay all or part of the required member
             1331      contributions, in addition to the required participating employer contributions.
             1332          (b) Any amount contributed by a participating employer under this section shall vest to
             1333      the member's benefit as though the member had made the contribution.
             1334          (c) The required member contributions shall be reduced by the amount that is paid by
             1335      the participating employer.
             1336          (4) (a) All member contributions are credited by the office to the account of the
             1337      individual member.
             1338          (b) This amount is held in trust for the payment of benefits to the member or the
             1339      member's beneficiaries.
             1340          (c) All member contributions are vested and nonforfeitable.
             1341          (5) (a) Each member is considered to consent to payroll deductions of member
             1342      contributions.
             1343          (b) The payment of compensation less these payroll deductions is considered to be full
             1344      payment for services rendered by the member.
             1345          [(6) (a) Except as provided in Section 49-11-902 , in addition to contribution rates


             1346      described under this section, there shall be paid to the Firefighters' Retirement Trust Fund
             1347      created under Section 49-16-104 :]
             1348          [(i) 50% of the annual tax levied, assessed, and collected under Title 59, Chapter 9,
             1349      Taxation of Admitted Insurers, upon premiums for property insurance, as defined under
             1350      Section 31A-1-301 , and as applied to fire and allied lines insurance collected by insurance
             1351      companies within the state; and]
             1352          [(ii) 10% of all money assessed and collected under Title 59, Chapter 9, Taxation of
             1353      Admitted Insurers, upon premiums for life insurance, as defined in Section 31A-1-301 , within
             1354      the state.]
             1355          [(b) Payments to the fund shall be made annually until the service liability is
             1356      liquidated, after which the tax revenue provided in this Subsection (6) for the Firefighters'
             1357      Retirement Trust Fund ceases.]
             1358          Section 26. Section 49-16-401 is amended to read:
             1359           49-16-401. Eligibility for service retirement -- Date of retirement --
             1360      Qualifications.
             1361          (1) A member is qualified to receive an allowance from this system when:
             1362          (a) the member ceases actual work for [a] every participating employer [in this system]
             1363      that employs the member before the member's retirement date and provides evidence of the
             1364      termination;
             1365          (b) the member has submitted to the office a notarized retirement application form that
             1366      states the member's proposed retirement date; and
             1367          (c) one of the following conditions is met as of the member's retirement date:
             1368          (i) the member has accrued at least 20 years of service credit;
             1369          (ii) the member has accrued at least 10 years of service credit and has attained an age
             1370      of 60 years; or
             1371          (iii) the member has accrued at least four years of service credit and has attained an age
             1372      of 65 years.
             1373          (2) (a) The member's retirement date:


             1374          (i) shall be the 1st or the 16th day of the month, as selected by the firefighter service
             1375      employee;
             1376          (ii) shall be on or after the date of termination; and
             1377          (iii) may not be more than 90 days before or after the date the application is received by
             1378      the office.
             1379          (b) A member may not be employed by a participating employer in the system
             1380      established by this chapter on the retirement date selected under Subsection (2)(a)(i).
             1381          Section 27. Section 49-16-501 is amended to read:
             1382           49-16-501. Death of active member in Division A -- Payment of benefits.
             1383          (1) If an active member of this system enrolled in Division A under Section 49-16-301
             1384      dies, benefits are payable as follows:
             1385          (a) If the death is classified by the office as a line-of-duty death, benefits are payable as
             1386      follows:
             1387          (i) If the member has accrued less than 20 years of firefighter service credit, the spouse
             1388      at the time of death shall receive a lump sum of $1,500 and an allowance equal to 30% of the
             1389      member's final average monthly salary.
             1390          (ii) If the member has accrued 20 or more years of firefighter service credit, the
             1391      member shall be considered to have retired with an allowance calculated under Section
             1392      49-16-402 and the spouse at the time of death shall receive the death benefit payable to a
             1393      spouse under Section 49-16-504 .
             1394          (b) If the death is not classified as a line-of-duty death by the office, benefits are
             1395      payable as follows:
             1396          (i) If the member has accrued less than 10 years of firefighter service credit, the
             1397      beneficiary shall receive a sum of $1,000 or a refund of the member's member contributions,
             1398      whichever is greater.
             1399          (ii) If the member has accrued 10 or more years of firefighter service credit the spouse
             1400      at the time of death shall receive a sum of $500, plus an allowance equal to 2% of the member's
             1401      final average monthly salary for each year of service credit accrued by the member up to a


             1402      maximum of 30% of the member's final average monthly salary.
             1403          (2) (a) If the member dies without a current spouse, the spouse's allowance shall be
             1404      equally divided and paid to each unmarried child until the child reaches age 21.
             1405          (b) The payment shall be made to a duly appointed guardian or as provided under
             1406      Sections 49-11-609 and 49-11-610 .
             1407          (3) If the benefit is not distributed under this section, and the member has designated a
             1408      beneficiary, the member's member contributions shall be paid to the beneficiary.
             1409          (4) (a) A spouse who requests a benefit under this section shall apply in writing to the
             1410      office.
             1411          (b) The allowance shall begin on the first day of the month:
             1412          (i) following the month in which the member died, if the application is received by the
             1413      office within 90 days of the member's death; or
             1414          (ii) following the month in which the application is received by the office, if the
             1415      application is received by the office more than 90 days after the member's death.
             1416          Section 28. Section 49-16-502 is amended to read:
             1417           49-16-502. Death of active member in Division B -- Payment of benefits.
             1418          (1) If an active member of this system enrolled in Division B under Section 49-16-301
             1419      dies, benefits are payable as follows:
             1420          (a) If the death is classified by the office as a line-of-duty death, benefits are payable as
             1421      follows:
             1422          (i) If the member has accrued less than 20 years of firefighter service credit, the spouse
             1423      at the time of death shall receive a lump sum of $1,500 and an allowance equal to 37.5% of the
             1424      member's final average monthly salary.
             1425          (ii) If the member has accrued 20 or more years of firefighter service credit, the
             1426      member shall be considered to have retired with an allowance calculated under Subsection
             1427      49-16-402 and the spouse at the time of death shall receive the death benefit payable to a
             1428      spouse under Section 49-16-504 .
             1429          (b) If the death is not classified by the office as a line-of-duty death, the benefits are


             1430      payable as follows:
             1431          (i) If the member has accrued five or more years of firefighter service credit, the death
             1432      is considered line-of-duty and the same benefits are payable as established under Subsection
             1433      (1)(a).
             1434          (ii) If the member has accrued less than five years of firefighter service credit, the
             1435      spouse at the time of death shall receive a refund of the member's contributions, plus 50% of
             1436      the member's most recent 12 months compensation.
             1437          (c) If the member has accrued five or more years of firefighter service credit, the
             1438      member's unmarried children until they reach age 21 or dependent unmarried mentally or
             1439      physically disabled children, shall receive a monthly allowance of $75.
             1440          (2) (a) In the event of the death of the member and spouse, the spouse's benefits are
             1441      equally divided and paid to each unmarried child until the child reaches age 21.
             1442          (b) The payments shall be made to the surviving parent or duly appointed guardian or
             1443      as provided under Sections 49-11-609 and 49-11-610 .
             1444          (3) If a benefit is not distributed under the previous subsections, and the member has
             1445      designated a beneficiary, the member's member contributions shall be paid to the beneficiary.
             1446          (4) The combined monthly payments made to the beneficiaries of any member under
             1447      this section may not exceed 75% of the member's final average monthly salary.
             1448          (5) (a) A spouse who requests a benefit under this section shall apply in writing to the
             1449      office.
             1450          (b) The allowance shall begin on the first day of the month:
             1451          (i) following the month in which the member died, if the application is received by the
             1452      office within 90 days of the member's death; or
             1453          (ii) following the month in which the application is received by the office, if the
             1454      application is received by the office more than 90 days after the member's death.
             1455          Section 29. Section 49-16-503 is amended to read:
             1456           49-16-503. Benefits payable upon death of inactive member.
             1457          (1) If an inactive member who has less than 20 years of firefighter service credit dies,


             1458      the spouse at the time of death, or, if there is no spouse at the time of death, the member's
             1459      minor children shall receive a refund of the member's member contributions or $500,
             1460      whichever is greater.
             1461          (2) (a) If an inactive member with 20 or more years of firefighter service credit dies,
             1462      the spouse at the time of death shall receive an allowance in the amount of 50% of the amount
             1463      the member would have received had retirement occurred on the first of the month following
             1464      the month in which the death occurred.
             1465          (b) This allowance shall be based on years of service credit and final average monthly
             1466      salary under Section 49-16-402 , reduced actuarially from age 50 to the age of the member at
             1467      the time of death if the member is under 50 years of age at the time of death.
             1468          (3) (a) A spouse who requests a benefit under this section shall apply in writing to the
             1469      office.
             1470          (b) The allowance shall begin on the first day of the month:
             1471          (i) following the month in which the member died, if the application is received by the
             1472      office within 90 days of the member's death; or
             1473          (ii) following the month in which the application is received by the office, if the
             1474      application is received by the office more than 90 days after the member's death.
             1475          Section 30. Section 49-16-701 is amended to read:
             1476           49-16-701. Volunteer firefighters eligible for line-of-duty death and disability
             1477      benefits in Division A -- Computation of benefit.
             1478          (1) A volunteer firefighter is only eligible for line-of-duty death and line-of-duty
             1479      disability benefits provided for firefighters enrolled in Division A, subject to [Section] Sections
             1480      49-16-602 and 49-16-603 .
             1481          (2) The lowest monthly compensation of firefighters of a city of the first class in this
             1482      state at the time of death or disability shall be considered to be the final average monthly salary
             1483      of a volunteer firefighter for purposes of computing these benefits.
             1484          (3) Each volunteer fire department shall maintain a current roll of all volunteer
             1485      firefighters which meet the requirements of Subsection 49-16-102 (10) to determine eligibility


             1486      for this benefit.
             1487          Section 31. Section 49-17-401 is amended to read:
             1488           49-17-401. Eligibility for an allowance -- Date of retirement -- Qualifications.
             1489          (1) A member is qualified to receive an allowance when:
             1490          (a) the member ceases actual work for [a] every participating employer [in this system]
             1491      that employs the member before the member's retirement date and provides evidence of the
             1492      termination;
             1493          (b) the member has submitted to the office a notarized retirement application form that
             1494      states the member's proposed retirement date; and
             1495          (c) one of the following conditions is met as of the member's retirement date:
             1496          (i) the member has accrued at least six years of service credit and has attained an age of
             1497      70 years;
             1498          (ii) the member has accrued at least 10 years of service credit and has attained an age
             1499      of 62 years;
             1500          (iii) the member has accrued at least 20 years of service credit and has attained an age
             1501      of 55 years; or
             1502          (iv) the member has accrued at least 25 years of service credit.
             1503          (2) (a) The member's retirement date:
             1504          (i) shall be the 1st or the 16th day of the month, as selected by the member;
             1505          (ii) shall be on or after the date of termination; and
             1506          (iii) may not be more than 90 days before or after the date the application is received by
             1507      the office.
             1508          (b) A member may not be employed by a participating employer in the system
             1509      established by this chapter on the retirement date selected under Subsection (2)(a)(i).
             1510          Section 32. Section 49-17-501 is amended to read:
             1511           49-17-501. Death benefit for members before retirement -- Computation.
             1512          (1) Upon the receipt of acceptable proof of death of a member before the member's
             1513      retirement date, the member's spouse at the time of death shall have the choice of the following


             1514      death benefits:
             1515          (a) a refund of the member's member contributions, including refund interest, plus 65%
             1516      of the member's most recent 12 months' compensation prior to death; or
             1517          (b) an allowance equal to 65% of the allowance computed in accordance with Section
             1518      49-17-402 , but disregarding early retirement reductions.
             1519          (2) If there is no spouse to whom the member is married at the time of death, member
             1520      contributions, including refund interest, shall be refunded to a beneficiary, in accordance with
             1521      Sections 49-11-609 and 49-11-610 .
             1522          (3) (a) A spouse who requests a benefit under this section shall apply in writing to the
             1523      office.
             1524          (b) The allowance shall begin on the first day of the month:
             1525          (i) following the month in which the member died, if the application is received by the
             1526      office within 90 days of the member's death; or
             1527          (ii) following the month in which the application is received by the office, if the
             1528      application is received by the office more than 90 days after the member's death.
             1529          Section 33. Section 49-18-401 is amended to read:
             1530           49-18-401. Eligibility for an allowance -- Date of retirement -- Qualifications.
             1531          (1) A member is qualified to receive an allowance when:
             1532          (a) the member ceases actual work for [a] every participating employer [in this system]
             1533      that employs the member before the member's retirement date and provides evidence of the
             1534      termination;
             1535          (b) the member has submitted to the office a notarized retirement application form that
             1536      states the member's proposed retirement date; and
             1537          (c) one of the following conditions is met as of the member's retirement date:
             1538          (i) the member has accrued at least six years of service credit and has attained an age of
             1539      70 years;
             1540          (ii) the member has accrued at least 10 years of service credit and has attained an age
             1541      of 62 years;


             1542          (iii) the member has accrued at least 20 years of service credit and has attained an age
             1543      of 55 years; or
             1544          (iv) the member has accrued at least 25 years of service credit.
             1545          (2) (a) The member's retirement date:
             1546          (i) shall be the 1st or the 16th day of the month, as selected by the member;
             1547          (ii) shall be on or after the date of termination; and
             1548          (iii) may not be more than 90 days before or after the date the application is received by
             1549      the office.
             1550          (b) A member may not be employed by a participating employer in the system
             1551      established by this chapter on the retirement date selected under Subsection (2)(a)(i).
             1552          Section 34. Section 49-18-501 is amended to read:
             1553           49-18-501. Death benefit for members before retirement -- Computation.
             1554          (1) Upon the receipt of acceptable proof of death of a member before the member's
             1555      retirement date, the member's spouse at the time of death shall have the choice of the following
             1556      death benefits:
             1557          (a) a refund of the member's member contributions, if any, plus 65% of the member's
             1558      most recent 12 months' compensation prior to death; or
             1559          (b) an allowance equal to 65% of the allowance computed in accordance with Section
             1560      49-18-402 , but disregarding early retirement reductions.
             1561          (2) If there is no spouse to whom the member is married at the time of death, member
             1562      contributions shall be refunded to a beneficiary, in accordance with Sections 49-11-609 and
             1563      49-11-610 .
             1564          (3) (a) A spouse who requests a benefit under this section shall apply in writing to the
             1565      office.
             1566          (b) The allowance shall begin on the first day of the month:
             1567          (i) following the month in which the member died, if the application is received by the
             1568      office within 90 days of the member's death; or
             1569          (ii) following the month in which the application is received by the office, if the


             1570      application is received by the office more than 90 days after the member's death.
             1571          Section 35. Section 49-19-501 is amended to read:
             1572           49-19-501. Death of member or retiree -- Surviving spouse benefit.
             1573          (1) Upon the death of a governor or legislator who has not yet retired and who has
             1574      completed four or more years in the elected office, the member's spouse at the time of death
             1575      shall receive an allowance equal to 50% of the allowance to which the governor or legislator
             1576      would have been entitled upon reaching age 65, if the governor or legislator and surviving
             1577      spouse had been married at least six months.
             1578          (2) Upon the death of a governor or legislator receiving an allowance under this plan,
             1579      the member's spouse at the time of death is entitled to an allowance equal to 50% of the
             1580      allowance being paid to the member at the time of death.
             1581          (3) (a) A spouse who requests a benefit under this section shall apply in writing to the
             1582      office.
             1583          (b) The allowance shall begin on the first day of the month:
             1584          (i) following the month in which the member died, if the application is received by the
             1585      office within 90 days of the member's death; or
             1586          (ii) following the month in which the application is received by the office, if the
             1587      application is received by the office more than 90 days after the member's death.
             1588          Section 36. Section 49-20-404 is amended to read:
             1589           49-20-404. Governors' and legislative benefit.
             1590          (1) The state shall pay the percentage described in Subsection (3) of the cost of
             1591      providing paid-up group health coverage policy for members and their surviving spouses
             1592      covered under Chapter 19, Utah Governors' and Legislators' Retirement Act, or Chapter 22,
             1593      New Public Employees' Tier II Contributory Retirement Act, who:
             1594          (a) retire after January 1, 1998;
             1595          (b) are at least 62 but less than 65 years of age;
             1596          (c) elect to receive and apply for this benefit to the program; and
             1597          (d) are active members at the time of retirement or have continued coverage with the


             1598      program until the date of eligibility for the benefit under this Subsection (1).
             1599          (2) The state shall pay the percentage described in Subsection (3) of the cost of
             1600      providing Medicare supplemental coverage for members and their surviving spouses covered
             1601      under Chapter 19, Utah Governors' and Legislators' Retirement Act who:
             1602          (a) retire after January 1, 1998;
             1603          (b) are at least 65 years of age; and
             1604          (c) elect to receive and apply for this benefit to the program.
             1605          (3) The following percentages apply to the benefit described in Subsections (1) and (2):
             1606          (a) 100% if the member has accrued 10 or more years of service credit;
             1607          (b) 80% if the member has accrued 8 or more years of service credit;
             1608          (c) 60% if the member has accrued 6 or more years of service credit; and
             1609          (d) 40% if the member has accrued 4 or more years of service credit.
             1610          Section 37. Section 49-21-102 is amended to read:
             1611           49-21-102. Definitions.
             1612          As used in this chapter:
             1613          (1) "Date of disability" means the date on which a period of continuous disability
             1614      commences, and may not commence on or before the last day of actual work.
             1615          (2) "Elimination period" means the three months at the beginning of each continuous
             1616      period of total disability for which no benefit will be paid. The elimination period begins on
             1617      the nearest first day of the month from the date of disability. The elimination period may
             1618      include a one-time trial return to work period of less than 15 consecutive calendar days.
             1619          (3) (a) "Eligible employee" means the following employee whose employer provides
             1620      coverage under this chapter:
             1621          (i) (A) any regular full-time employee as defined under Section 49-12-102 [or],
             1622      49-13-102 , or 49-22-102 ;
             1623          (B) any public safety service employee as defined under Section 49-14-102 [or],
             1624      49-15-102 , or 49-23-102 ;
             1625          (C) any firefighter service employee or volunteer firefighter as defined under Section


             1626      49-23-102 who began firefighter service on or after July 1, 2011;
             1627          (D) any judge as defined under Section 49-17-102 or 49-18-102 [, whose employer
             1628      provides coverage under this chapter,]; or
             1629          (E) the governor of the state; [and]
             1630          (ii) an employee who is exempt from participating in a retirement system under
             1631      Subsection 49-12-203 (2), 49-13-203 (2), 49-14-203 (1), or 49-15-203 (1); and
             1632          [(ii)] (iii) an employee who is covered by a retirement program offered by the Teachers'
             1633      Insurance and Annuity Association of America[, if the employee's employer provides coverage
             1634      under this chapter; and].
             1635          (b) "Eligible employee" does not include:
             1636          (i) any employee that is exempt from coverage under Section 49-21-201 [.]; or
             1637          (ii) a retiree.
             1638          (4) "Maximum benefit period" means the maximum period of time the monthly
             1639      disability income benefit will be paid under Section 49-21-403 for any continuous period of
             1640      total disability.
             1641          (5) "Monthly disability benefit" means the monthly payments and accrual of service
             1642      credit under Section 49-21-401 .
             1643          (6) "Objective medical impairment" means an impairment resulting from an injury or
             1644      illness which is diagnosed by a physician and which is based on accepted objective medical
             1645      tests or findings rather than subjective complaints.
             1646          (7) "Physician" means a licensed physician.
             1647          (8) "Regular monthly salary" means the amount certified by the participating employer
             1648      as the monthly salary of the eligible employee, unless there is a discrepancy between the
             1649      certified amount and the amount actually paid, in which case the office shall determine the
             1650      regular monthly salary.
             1651          (9) "Regular occupation" means either the primary duties performed by the eligible
             1652      employee for the 12 months preceding the date of disability, or a permanent assignment of duty
             1653      to the eligible employee.


             1654          (10) "Rehabilitative employment" means any occupation or employment for wage or
             1655      profit, for which the eligible employee is reasonably qualified to perform based on education,
             1656      training, or experience.
             1657          (11) (a) "Total disability" or "totally disabled" means the complete inability, due to
             1658      objective medical impairment, whether physical or mental, to engage in the eligible employee's
             1659      regular occupation during the elimination period and the first 24 months of disability benefits.
             1660          (b) "Total disability" means, after the elimination period and the first 24 months of
             1661      disability benefits, the complete inability, based solely on physical objective medical
             1662      impairment, to engage in any gainful occupation which is reasonable, considering the eligible
             1663      employee's education, training, and experience.
             1664          Section 38. Section 49-21-401 is amended to read:
             1665           49-21-401. Disability benefits -- Application -- Eligibility.
             1666          (1) An eligible employee shall apply for long-term disability benefits under this chapter
             1667      by:
             1668          (a) completing an application form prepared by the office;
             1669          (b) signing a consent form allowing the office access to the eligible employee's medical
             1670      records; and
             1671          (c) providing any documentation or information reasonably requested by the office.
             1672          (2) (a) If an eligible employee is unable to apply on the employee's own behalf, the
             1673      application may be made by a person who is:
             1674          (i) the attorney for an eligible employee; or
             1675          (ii) appointed as a conservator or guardian of the eligible employee.
             1676          (b) A person described in Subsection (2)(a), may not make an application for a
             1677      deceased employee.
             1678          (3) Upon request by the office, the participating employer of the eligible employee
             1679      shall provide to the office documentation and information concerning the eligible employee.
             1680          (4) The office shall review all relevant information and determine whether or not the
             1681      eligible employee is totally disabled.


             1682          (5) If the office determines that the eligible employee is totally disabled due to
             1683      accidental bodily injury or physical illness which is not the result of the performance of an
             1684      employment duty, the eligible employee shall receive a monthly disability benefit equal to
             1685      two-thirds of the eligible employee's regular monthly salary, for each month the total disability
             1686      continues beyond the elimination period, not to exceed the maximum benefit period.
             1687          (6) If the office determines that the eligible employee is totally disabled due to
             1688      psychiatric illness, the eligible employee shall receive:
             1689          (a) a maximum of two years of monthly disability benefits equal to two-thirds of the
             1690      eligible employee's regular monthly salary for each month the total disability continues beyond
             1691      the elimination period;
             1692          (b) a maximum of $10,000 for psychiatric expenses, including rehabilitation expenses
             1693      preauthorized by the office's consultants, paid during the period of monthly disability benefits;
             1694      and
             1695          (c) payment of monthly disability benefits according to contractual provisions for a
             1696      period not to exceed five years if the eligible employee is institutionalized due to psychiatric
             1697      illness.
             1698          (7) If the office determines that the eligible employee is totally disabled due to a
             1699      physical injury resulting from external force or violence as a result of the performance of an
             1700      employment duty, the eligible employee shall receive a monthly disability benefit equal to
             1701      100% of the eligible employee's regular monthly salary, for each month the total disability
             1702      continues beyond the elimination period, not to exceed the maximum benefit period.
             1703          (8) (a) Successive periods of disability are considered as a continuous period of
             1704      disability if the period of disability:
             1705          (i) results from the same or related causes;
             1706          (ii) is separated by less than six months of continuous full-time work at the individual's
             1707      usual place of employment; and
             1708          (iii) commences while the individual is an eligible employee covered by this chapter.
             1709          (b) The inability to work for a period of less than 15 consecutive calendar days is not


             1710      considered as a period of disability.
             1711          (c) If Subsection (8)(a) or (b) does not apply, successive periods of disability are
             1712      considered as separate periods of disability.
             1713          (9) The office may, at any time, have any eligible employee claiming disability
             1714      examined by a physician chosen by the office to determine if the eligible employee is totally
             1715      disabled.
             1716          (10) A claim brought by an eligible employee for long-term disability benefits under
             1717      the Public Employee's Long-Term Disability Program is barred if it is not commenced within
             1718      one year from the eligible employee's date of disability, unless the office determines that under
             1719      the surrounding facts and circumstances, the eligible employee's failure to comply with the
             1720      time limitations was reasonable.
             1721          (11) Medical or psychiatric conditions which existed prior to eligibility may not be a
             1722      basis for disability benefits until the eligible employee has had one year of continuous
             1723      eligibility in the Public Employees Long-Term Disability Program.
             1724          (12) If there is a valid benefit protection contract, service credit shall accrue during the
             1725      period of total disability, unless the disabled eligible employee is exempted from a system, or is
             1726      otherwise ineligible for service credit.
             1727          (13) Regardless of any medical evidence provided by the employee to support the
             1728      application for disability, an employee is not eligible for long-term disability benefits during
             1729      any period in which the employee:
             1730          (a) makes a claim that the employee is able to work; or
             1731          (b) has a pending action in a court or before any federal, state, or local administrative
             1732      body in which the employee has made a claim that the employee is able to work.
             1733          (14) Notwithstanding the provisions of Section 49-11-618 , upon written request by an
             1734      employer, information obtained under this part may, upon an order of a court or an
             1735      administrative law judge, be released to an employer who is a party in an action under
             1736      Subsection (13).
             1737          Section 39. Section 49-21-402 is amended to read:


             1738           49-21-402. Reduction or reimbursement of benefit -- Circumstances --
             1739      Application for other benefits required.
             1740          (1) A monthly disability benefit may not be paid for any period of total disability unless
             1741      the eligible employee is under the ongoing care and treatment of a physician other than the
             1742      eligible employee.
             1743          (2) The monthly disability benefit shall be reduced or reimbursed by any amount
             1744      received by, or payable to, the eligible employee from the following sources for the same
             1745      period of time during which the eligible employee is entitled to receive a monthly disability
             1746      benefit:
             1747          (a) Social Security disability benefits, including all benefits received by the eligible
             1748      employee, the eligible employee's spouse, and the eligible employee's children as determined
             1749      by the Social Security Administration;
             1750          (b) workers' compensation indemnity benefits;
             1751          (c) any money received by judgment, legal action, or settlement from a third party
             1752      liable to the employee for the disability;
             1753          (d) unemployment compensation benefits;
             1754          (e) automobile no-fault, medical payments, or similar insurance payments; and
             1755          (f) any money received by a judgment, settlement, or other payment as a result of a
             1756      claim against an employer.
             1757          (3) The monthly disability benefit shall be reduced by any amount in excess of
             1758      one-third of the eligible employee's regular monthly salary received by, or payable to, the
             1759      eligible employee from the following sources for the same period of time during which the
             1760      eligible employee is entitled to receive a monthly disability benefit:
             1761          (a) any employer-sponsored retirement programs; and
             1762          (b) any disability benefit resulting from the disability for which benefits are being
             1763      received under this chapter.
             1764          (4) After the date of disability, cost-of-living increases to any of the benefits listed in
             1765      Subsection (2) or (3) may not be considered in calculating a reduction to the monthly disability


             1766      benefit.
             1767          (5) Any amounts payable to the eligible employee from one or more of the sources
             1768      under Subsection (2) are considered as amounts received whether or not the amounts were
             1769      actually received by the eligible employee.
             1770          (6) (a) An eligible employee shall first apply for all disability benefits from
             1771      governmental entities under Subsection (2) to which the eligible employee is or may be
             1772      entitled, and provide to the office evidence of the applications.
             1773          [(b) The eligible employee shall also first apply at the earliest eligible age for all
             1774      unreduced retirement benefits to which the eligible employee is or may be entitled, and provide
             1775      to the office evidence of the application.]
             1776          [(c)] (b) If the eligible employee fails to make application under this Subsection (6)[(a)
             1777      or (b)], the monthly disability benefit shall be suspended.
             1778          Section 40. Section 49-21-403 is amended to read:
             1779           49-21-403. Termination of disability benefits -- Calculation of retirement benefit.
             1780          (1) An eligible employee covered by this chapter and eligible for service credit under a
             1781      system or plan, [or a participant in the Tier II Defined Contribution Plan, created in Chapter 22,
             1782      Part 4, Tier II Defined Contribution Plan, or Chapter 23, Part 4, Tier II Defined Contribution
             1783      Plan,] including an eligible employee who relinquishes rights to retirement benefits under
             1784      Section 49-11-619 , who applies and is qualified for a monthly disability benefit shall receive a
             1785      monthly disability benefit until the earlier of:
             1786          (a) the date of the eligible employee's death;
             1787          (b) the date the eligible employee is no longer disabled;
             1788          (c) the date the eligible employee has accumulated:
             1789          (i) 20 years of service credit if the eligible employee is covered by Chapter 14, Public
             1790      Safety Contributory Retirement Act, or Chapter 15, Public Safety Noncontributory Retirement
             1791      Act;
             1792          (ii) 25 years of service credit if the eligible employee is covered by Chapter 17, Judges'
             1793      Contributory Retirement Act, or Chapter 18, Judges' Noncontributory Retirement Act;


             1794          (iii) 30 years of service credit if the eligible employee is covered by Chapter 12, Public
             1795      Employees' Contributory Retirement Act, or Chapter 13, Public Employees' Noncontributory
             1796      Retirement Act;
             1797          (iv) 35 years of service credit if the eligible employee is covered by the defined benefit
             1798      portion under Chapter 22, Part 3, Tier II Hybrid Retirement System, or is covered by the
             1799      defined contribution plan under Chapter 22, Part 4, Tier II Defined Contribution Plan; or
             1800          (v) 25 years of service credit if the eligible employee is covered by the defined benefit
             1801      portion under Chapter 23, Part 3, Tier II Hybrid Retirement System, or is covered by the
             1802      defined contribution plan under Chapter 23, Part 4, Tier II Defined Contribution Plan; or
             1803          (d) the date the eligible employee has received a monthly disability benefit for the
             1804      following applicable time periods:
             1805          (i) if the eligible employee is under age 60, the monthly disability benefit is payable
             1806      until age 65;
             1807          (ii) if the eligible employee is 60 or 61 years of age on the date of disability, the
             1808      monthly disability benefit is payable for five years;
             1809          (iii) if the eligible employee is 62 or 63 years of age on the date of disability, the
             1810      monthly disability benefit is payable for four years;
             1811          (iv) if the eligible employee is 64 or 65 years of age on the date of disability, the
             1812      monthly disability benefit is payable for three years;
             1813          (v) if the eligible employee is 66, 67, or 68 years of age on the date of disability, the
             1814      monthly disability benefit is payable for two years; and
             1815          (vi) if the eligible employee is 69 years of age or older on the date of disability, the
             1816      monthly disability benefit is payable for one year.
             1817          (2) (a) Upon termination of a monthly disability benefit, an eligible employee eligible
             1818      for service credit under a system may retire under the requirements of the system which
             1819      covered the eligible employee on the date of disability.
             1820          (b) The final average salary used in the calculation of the allowance shall be based on
             1821      the annual rate of pay on the date of disability, improved by the annual cost-of-living increase


             1822      factor applied to retirees of the system which covered the eligible employee on the date of
             1823      disability.
             1824          (3) An eligible employee who is eligible for service credit in a system, but has
             1825      relinquished rights to an allowance under Section 49-11-619 , may receive the benefits the
             1826      eligible employee would have received by being eligible for service credit in the system
             1827      covering the eligible employee on the date of disability, except for the accrual of service credit,
             1828      in accordance with this title.
             1829          (4) An eligible employee receiving a monthly disability benefit who has service credit
             1830      from two or more systems may not combine service credits under Section 49-11-405 in
             1831      qualifying for retirement, unless the eligible employee would receive a greater allowance by
             1832      combining the service credits.
             1833          [(5) A monthly disability benefit payable to an eligible employee who is not eligible for
             1834      service credit under a system shall terminate at the earliest of:]
             1835          [(a) the date the eligible employee would be eligible for an unreduced allowance;]
             1836          [(b) the date the eligible employee has received a monthly disability benefit for the
             1837      applicable time period as set forth in Subsection (1)(c); or]
             1838          [(c) the date the eligible employee receives a reduced allowance.]
             1839          (5) An eligible employee covered by this chapter who is a participant in the Tier II
             1840      Defined Contribution Plan, created in Chapter 22, Part 4, Tier II Defined Contribution Plan, or
             1841      Chapter 23, Part 4, Tier II Defined Contribution Plan, who applies and is qualified for a
             1842      monthly disability benefit, shall receive a monthly disability benefit until the earlier of:
             1843          (a) the date of the eligible employee's death;
             1844          (b) the date the eligible employee no longer has a disability;
             1845          (c) (i) 35 years from the date the eligible employee began participation in the Tier II
             1846      Defined Contribution Plan, created in Chapter 22, Part 4, Tier II Defined Contribution Plan; or
             1847          (ii) 25 years from the date the eligible employee began participation in the Tier II
             1848      Defined Contribution Plan created in Chapter 23, Part 4, Tier II Defined Contribution Plan; or
             1849          (d) the date the eligible employee has received a monthly disability benefit for the


             1850      following applicable time periods:
             1851          (i) if the eligible employee is under age 60, the monthly disability benefit is payable
             1852      until age 65;
             1853          (ii) if the eligible employee is 60 or 61 years of age on the date of disability, the
             1854      monthly disability benefit is payable for five years;
             1855          (iii) if the eligible employee is 62 or 63 years of age on the date of disability, the
             1856      monthly disability benefit is payable for four years;
             1857          (iv) if the eligible employee is 64 or 65 years of age on the date of disability, the
             1858      monthly disability benefit is payable for three years;
             1859          (v) if the eligible employee is 66, 67, or 68 years of age on the date of disability, the
             1860      monthly disability benefit is payable for two years; and
             1861          (vi) if the eligible employee is 69 years of age or older on the date of disability, the
             1862      monthly disability benefit is payable for one year.
             1863          Section 41. Section 49-22-102 is amended to read:
             1864           49-22-102. Definitions.
             1865          As used in this chapter:
             1866          (1) (a) Except as provided in Subsection (1)(c), "compensation" means the total
             1867      amount of payments made by a participating employer to a member of this system for services
             1868      rendered to the participating employer, including:
             1869          (i) bonuses;
             1870          (ii) cost-of-living adjustments;
             1871          (iii) other payments currently includable in gross income and that are subject to Social
             1872      Security deductions, including any payments in excess of the maximum amount subject to
             1873      deduction under Social Security law;
             1874          (iv) amounts that the member authorizes to be deducted or reduced for salary deferral
             1875      or other benefits authorized by federal law; and
             1876          (v) member contributions.
             1877          (b) "Compensation" for purposes of this chapter may not exceed the amount allowed


             1878      under Internal Revenue Code, Section 401(a)(17).
             1879          (c) "Compensation" does not include:
             1880          (i) the monetary value of remuneration paid in kind, including a residence or use of
             1881      equipment;
             1882          (ii) the cost of any employment benefits paid for by the participating employer;
             1883          (iii) compensation paid to a temporary employee or an employee otherwise ineligible
             1884      for service credit;
             1885          (iv) any payments upon termination, including accumulated vacation, sick leave
             1886      payments, severance payments, compensatory time payments, or any other special payments; or
             1887          (v) any allowances or payments to a member for costs or expenses paid by the
             1888      participating employer, including automobile costs, uniform costs, travel costs, tuition costs,
             1889      housing costs, insurance costs, equipment costs, and dependent care costs.
             1890          (d) The executive director may determine if a payment not listed under this Subsection
             1891      (1) falls within the definition of compensation.
             1892          (2) "Corresponding Tier I system" means the system or plan that would have covered
             1893      the member if the member had initially entered employment before July 1, 2011.
             1894          (3) "Final average salary" means the amount computed by averaging the highest five
             1895      years of annual compensation preceding retirement subject to Subsections (3)(a), (b), (c), and
             1896      (d).
             1897          (a) Except as provided in Subsection (3)(b), the percentage increase in annual
             1898      compensation in any one of the years used may not exceed the previous year's compensation by
             1899      more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power
             1900      of the dollar during the previous year, as measured by a United States Bureau of Labor
             1901      Statistics Consumer Price Index average as determined by the board.
             1902          (b) In cases where the participating employer provides acceptable documentation to the
             1903      office, the limitation in Subsection (3)(a) may be exceeded if:
             1904          (i) the member has transferred from another agency; or
             1905          (ii) the member has been promoted to a new position.


             1906          (c) If the member retires more than six months from the date of termination of
             1907      employment, the member is considered to have been in service at the member's last rate of pay
             1908      from the date of the termination of employment to the effective date of retirement for purposes
             1909      of computing the member's final average salary only.
             1910          (d) If the member has less than five years of service credit in this system, final average
             1911      salary means the average annual compensation paid to the member during the full period of
             1912      service credit.
             1913          (4) "Participating employer" means an employer which meets the participation
             1914      requirements of:
             1915          (a) Sections 49-12-201 and 49-12-202 ;
             1916          (b) Sections 49-13-201 and 49-13-202 ;
             1917          (c) Section 49-19-201 ; or
             1918          (d) Section 49-22-201 or 49-22-202 .
             1919          (5) (a) "Regular full-time employee" means an employee whose term of employment
             1920      for a participating employer contemplates continued employment during a fiscal or calendar
             1921      year and whose employment normally requires an average of 20 hours or more per week,
             1922      except as modified by the board, and who receives benefits normally provided by the
             1923      participating employer.
             1924          (b) "Regular full-time employee" includes:
             1925          (i) a teacher whose term of employment for a participating employer contemplates
             1926      continued employment during a school year and who teaches half-time or more;
             1927          (ii) a classified school employee whose employment normally requires an average of
             1928      20 hours per week or more for a participating employer, regardless of benefits provided;
             1929          [(iii) an officer, elective or appointive, who earns during the first full month of the
             1930      term of office $500 or more, indexed as of January 1, 1990, as provided in Section 49-22-309 ;]
             1931          (iii) an appointive officer whose appointed position is full-time as certified by the
             1932      participating employer;
             1933          (iv) the governor, the lieutenant governor, the state auditor, the state treasurer, the


             1934      attorney general, and a state legislator;
             1935          (v) an elected official not included under Subsection (5)(b)(iv) whose elected position
             1936      is full-time as certified by the participating employer;
             1937          [(iv)] (vi) a faculty member or employee of an institution of higher education who is
             1938      considered full-time by that institution of higher education; and
             1939          [(v)] (vii) an individual who otherwise meets the definition of this Subsection (5) who
             1940      performs services for a participating employer through a professional employer organization or
             1941      similar arrangement.
             1942          (c) "Regular full-time employee" does not include:
             1943          (i) a firefighter service employee as defined in Section 49-23-102 ; or
             1944          (ii) a public safety service employee as defined in Section 49-23-102 .
             1945          (6) "System" means the New Public Employees' Tier II Contributory Retirement
             1946      System created under this chapter.
             1947          (7) "Years of service credit" means:
             1948          (a) a period, consisting of 12 full months as determined by the board;
             1949          (b) a period determined by the board, whether consecutive or not, during which a
             1950      regular full-time employee performed services for a participating employer, including any time
             1951      the regular full-time employee was absent on a paid leave of absence granted by a participating
             1952      employer or was absent in the service of the United States government on military duty as
             1953      provided by this chapter; or
             1954          (c) the regular school year consisting of not less than eight months of full-time service
             1955      for a regular full-time employee of an educational institution.
             1956          Section 42. Section 49-22-201 is amended to read:
             1957           49-22-201. System membership -- Eligibility.
             1958          (1) Beginning July 1, 2011, a participating employer shall participate in this system.
             1959          (2) (a) A person initially entering regular full-time employment with a participating
             1960      employer on or after July 1, 2011, is eligible:
             1961          (i) as a member for service credit and defined contributions under the Tier II hybrid


             1962      retirement system established by Part 3, Tier II Hybrid Retirement System; or
             1963          (ii) as a participant for defined contributions under the Tier II defined contribution plan
             1964      established by Part 4, Tier II Defined Contribution Plan.
             1965          (b) A person initially entering regular full-time employment with a participating
             1966      employer on or after July 1, 2011, shall:
             1967          (i) make an election to participate in the system created under this chapter within 30
             1968      days from the date of [employment] eligibility for accrual of benefits:
             1969          (A) as a member for service credit and defined contributions under the Tier II hybrid
             1970      retirement system established by Part 3, Tier II Hybrid Retirement System; or
             1971          (B) as a participant for defined contributions under the Tier II defined contribution plan
             1972      established by Part 4, Tier II Defined Contribution Plan; and
             1973          (ii) electronically submit to the office notification of the member's election under
             1974      Subsection (2)(b)(i) in a manner approved by the office.
             1975          (c) An election made by a person initially entering regular full-time employment with a
             1976      participating employer under this Subsection (2) is irrevocable beginning one year from the
             1977      date of eligibility for accrual of benefits.
             1978          (d) If no election is made under Subsection (2)(b)(i), the person shall become a
             1979      member eligible for service credit and defined contributions under the Tier II hybrid retirement
             1980      system established by Part 3, Tier II Hybrid Retirement System.
             1981          (3) Notwithstanding the provisions of this section, [a governor or legislator] an elected
             1982      official initially entering office on or after July 1, 2011:
             1983          (a) is only eligible to participate in the Tier II defined contribution plan established
             1984      under Chapter 22, Part 4, Tier II Defined Contribution Plan; and
             1985          (b) is not eligible to participate in the Tier II hybrid retirement system established
             1986      under Chapter 22, Part 3, Tier II Hybrid Retirement System.
             1987          Section 43. Section 49-22-301 is amended to read:
             1988           49-22-301. Contributions.
             1989          (1) Participating employers and members shall [jointly] pay the certified contribution


             1990      rates to the office to maintain the defined benefit portion of this system on a financially and
             1991      actuarially sound basis.
             1992          (2) (a) A participating employer shall pay up to 10% of compensation toward the
             1993      certified contribution rate to the office for the defined benefit portion of this system.
             1994          (b) A member shall [pay] only pay to the office the amount, if any, of the certified
             1995      contribution rate for the defined benefit portion of this system that exceeds [10% to the office]
             1996      the percent of compensation paid by the participating employer under Subsection (2)(a).
             1997          (c) In addition to the percent specified under Subsection (2)(a), the participating
             1998      employer shall pay the corresponding Tier I system amortization rate of the employee's
             1999      compensation to the office to be applied to the employer's corresponding Tier I system liability.
             2000          (3) A participating employer may not elect to pay all or part of the required member
             2001      contributions under Subsection (2)(b), in addition to the required participating employer
             2002      contributions.
             2003          (4) (a) A member contribution is credited by the office to the account of the individual
             2004      member.
             2005          (b) This amount, together with refund interest, is held in trust for the payment of
             2006      benefits to the member or the member's beneficiaries.
             2007          (c) A member contribution is vested and nonforfeitable.
             2008          (5) (a) Each member is considered to consent to payroll deductions of member
             2009      contributions.
             2010          (b) The payment of compensation less these payroll deductions is considered full
             2011      payment for services rendered by the member.
             2012          (6) Benefits provided under the defined benefit portion of the Tier II Hybrid
             2013      Retirement System created under this part:
             2014          (a) may not be increased unless the actuarial funded ratios of all systems under this title
             2015      reach 100%[.]; and
             2016          (b) may be decreased only in accordance with the provisions of Section 49-22-310 .
             2017          Section 44. Section 49-22-303 is amended to read:


             2018           49-22-303. Defined contribution benefit established -- Contribution by employer
             2019      and employee -- Vesting of contributions -- Plans to be separate -- Tax-qualified status of
             2020      plans.
             2021          (1) (a) A participating employer shall make a nonelective contribution on behalf of
             2022      each regular full-time employee who is a member of this system in an amount equal to 10%
             2023      minus the contribution rate paid by the employer pursuant to Subsection 49-22-301 (2)(a) of the
             2024      member's compensation to a defined contribution plan qualified under Section 401(k) of the
             2025      Internal Revenue Code which:
             2026          (i) is sponsored by the board; and
             2027          (ii) has been grandfathered under Section 1116 of the Federal Tax Reform Act of 1986.
             2028          (b) The member may make [additional payments] voluntary deferrals to:
             2029          (i) the qualified 401(k) plan which receives the employer contribution described in this
             2030      Subsection (1); or
             2031          (ii) at the member's option, another defined contribution plan established by the
             2032      participating employer.
             2033          (2) (a) The total amount contributed by the participating employer under Subsection
             2034      (1)(a), including associated investment gains and losses, vests to the [member's benefit after
             2035      four years of employment from the date of employment] member upon accruing four years of
             2036      service credit under this title.
             2037          (b) The total amount contributed by the member under Subsection (1)(b) vests to the
             2038      member's benefit immediately and is nonforfeitable.
             2039          (3) (a) Contributions made by a participating employer under Subsection (1)(a) shall be
             2040      invested in a default option selected by the board until the member is vested in accordance with
             2041      Subsection (2)(a).
             2042          (b) A member may direct the investment of contributions made by a participating
             2043      employer under Subsection (1)(a) only after the contributions have vested in accordance with
             2044      Subsection (2)(a).
             2045          (c) A member may direct the investment of contributions made by the member under


             2046      Subsection (1)(b).
             2047          (4) No loans shall be available from contributions made by a participating employer
             2048      under Subsection (1)(a).
             2049          (5) No hardship distributions shall be available from contributions made by a
             2050      participating employer under Subsection (1)(a).
             2051          (6) (a) Except as provided in Subsection (6)(b), if a member terminates employment
             2052      with a participating employer prior to the vesting period described in Subsection (2)(a), all
             2053      contributions, including associated investment gains and losses, made by a participating
             2054      employer on behalf of the member under Subsection (1)(a) are subject to forfeiture.
             2055          (b) If a member who terminates employment with a participating employer prior to the
             2056      vesting period described in Subsection (2)(a) subsequently enters employment with the same or
             2057      another participating employer within 10 years of the termination date of the previous
             2058      employment:
             2059          (i) all contributions made by the previous participating employer on behalf of the
             2060      member, including associated investment gains and losses, shall be reinstated upon [the
             2061      member's completion of the vesting period under Subsection (2)(a)] employment as a regular
             2062      full-time employee; and
             2063          (ii) the length of time that the member worked with the previous employer shall be
             2064      included in determining whether the member has completed the vesting period under
             2065      Subsection (2)(a).
             2066          (c) The [board] office shall establish a forfeiture account and shall specify the uses of
             2067      the forfeiture account, which may include an offset against administrative costs or employer
             2068      contributions made under this section.
             2069          (7) The [board] office may request from any other qualified 401(k) plan under
             2070      Subsection (1) or (2) any relevant information pertaining to the maintenance of its tax
             2071      qualification under the Internal Revenue Code.
             2072          (8) The [board] office may take any action which in its judgment is necessary to
             2073      maintain the tax-qualified status of its 401(k) defined contribution plan under federal law.


             2074          Section 45. Section 49-22-304 is amended to read:
             2075           49-22-304. Defined benefit eligibility for an allowance -- Date of retirement --
             2076      Qualifications.
             2077          (1) A member is qualified to receive an allowance from this system when:
             2078          (a) before the member's retirement date, the member ceases actual work for [a] every
             2079      participating employer [in this system] that employs the member and provides evidence of the
             2080      termination;
             2081          (b) the member has submitted to the office a notarized retirement application form that
             2082      states the member's proposed retirement date; and
             2083          (c) one of the following conditions is met as of the member's retirement date:
             2084          (i) the member has accrued at least four years of service credit and has attained an age
             2085      of 65 years;
             2086          (ii) the member has accrued at least 10 years of service credit and has attained an age
             2087      of 62 years;
             2088          (iii) the member has accrued at least 20 years of service credit and has attained an age
             2089      of 60 years; or
             2090          (iv) the member has accrued at least 35 years of service credit.
             2091          (2) (a) The member's retirement date:
             2092          (i) shall be the 1st or the 16th day of the month, as selected by the member;
             2093          (ii) shall be on or after the date of termination; and
             2094          (iii) may not be more than 90 days before or after the date the application is received by
             2095      the office.
             2096          (b) A member may not be employed by a participating employer in the system
             2097      established by this chapter on the retirement date selected under Subsection (2)(a)(i).
             2098          Section 46. Section 49-22-305 is amended to read:
             2099           49-22-305. Defined benefit service retirement plans -- Calculation of retirement
             2100      allowance -- Social Security limitations.
             2101          (1) (a) The retirees of this system may choose from the six retirement options described


             2102      in this section.
             2103          (b) Options Two, Three, Four, Five, and Six are modifications of the Option One
             2104      calculation.
             2105          (2) The Option One benefit is an annual allowance calculated as follows:
             2106          (a) If the retiree is at least 65 years of age or has accrued at least 35 years of service
             2107      credit, the allowance is an amount equal to 1.5% of the retiree's final average salary multiplied
             2108      by the number of years of service credit accrued on and after July 1, 2011.
             2109          (b) If the retiree is less than 65 years of age, the allowance shall be reduced by the full
             2110      actuarial amount for each year of retirement from age 60 to age 65, unless the member has 35
             2111      or more years of accrued credit in which event no reduction is made to the allowance.
             2112          (c) (i) Years of service includes any fractions of years of service to which the retiree
             2113      may be entitled.
             2114          (ii) At the time of retirement, if a retiree's combined years of actual, not purchased,
             2115      service credit is within [1/10] one-tenth of one year of the total years of service credit required
             2116      for retirement, the retiree shall be considered to have the total years of service credit required
             2117      for retirement.
             2118          (d) An Option One allowance is only payable to the member during the member's
             2119      lifetime.
             2120          (3) The allowance payable under Options Two, Three, Four, Five, and Six is calculated
             2121      by reducing an Option One benefit based on actuarial computations to provide the following:
             2122          (a) Option Two is a reduced allowance paid to and throughout the lifetime of the
             2123      retiree, and, if the retiree receives less in annuity payments than the amount of the retiree's
             2124      member contributions, the remaining balance of the retiree's member contributions shall be
             2125      paid in accordance with Sections 49-11-609 and 49-11-610 .
             2126          (b) Option Three is a reduced allowance paid to and throughout the lifetime of the
             2127      retiree, and, upon the death of the retiree, the same reduced allowance is paid to and throughout
             2128      the lifetime of the retiree's lawful spouse at the time of retirement.
             2129          (c) Option Four is a reduced allowance paid to and throughout the lifetime of the


             2130      retiree, and upon the death of the retiree, an amount equal to [1/2] one-half of the retiree's
             2131      allowance is paid to and throughout the lifetime of the retiree's lawful spouse at the time of
             2132      retirement.
             2133          (d) Option Five is a modification of Option Three so that if the lawful spouse at the
             2134      time of retirement predeceases the retiree, an allowance equivalent to the amount payable at the
             2135      time of initial retirement under Option One shall be paid to the retiree for the remainder of the
             2136      retiree's life, beginning on the [last day of the month following the month in which the lawful
             2137      spouse dies.] first day of the month:
             2138          (i) following the month in which the spouse died, if the application is received by the
             2139      office within 90 days of the spouse's death; or
             2140          (ii) following the month in which the application is received by the office, if the
             2141      application is received by the office more than 90 days after the spouse's death.
             2142          (e) Option Six is a modification of Option Four so that if the lawful spouse at the time
             2143      of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time
             2144      of initial retirement under Option One shall be paid to the retiree for the remainder of the
             2145      retiree's life, beginning on the [last day of the month following the month in which the lawful
             2146      spouse dies.] first day of the month:
             2147          (i) following the month in which the spouse died, if the application is received by the
             2148      office within 90 days of the spouse's death; or
             2149          (ii) following the month in which the application is received by the office, if the
             2150      application is received by the office more than 90 days after the spouse's death.
             2151          [(4) Periods of employment which are exempt from this system under Subsection
             2152      49-22-203 (1)(b) may be purchased by the member for the purpose of retirement only if all
             2153      benefits from the Teachers' Insurance and Annuity Association of America or any other public
             2154      or private system or organization based on this period of employment are forfeited.]
             2155          [(5)] (4) (a) If a retiree under Option One dies within 120 days after the retiree's
             2156      retirement date, the retirement is canceled and the death shall be considered as that of a
             2157      member before retirement.


             2158          (b) Any payments made to the retiree shall be deducted from the amounts due to the
             2159      beneficiary.
             2160          [(6)] (5) If a retiree retires under either Option Five or Six and subsequently divorces,
             2161      the retiree may elect to convert the benefit to an Option One benefit at the time of divorce, if
             2162      there is no court order filed in the matter.
             2163          Section 47. Section 49-22-310 is enacted to read:
             2164          49-22-310. Defined benefit adjustments -- Conditions -- Process -- Future years
             2165      accrual.
             2166          (1) In accordance with this section, the Legislature may make adjustments to the
             2167      benefits provided for the defined benefit portion of the Tier II Hybrid Retirement System
             2168      created under this part if the member's contribution required under Subsection 49-22-301 (2)(b)
             2169      to the certified contribution rate for the defined benefit portion of this system exceeds 2% of
             2170      the member's salary and:
             2171          (a) (i) the membership council created under Section 49-11-202 recommends an
             2172      adjustment to the board in accordance with Subsection (2); and
             2173          (ii) the board recommends specific adjustments to the Legislature in accordance with
             2174      Subsection (2); or
             2175          (b) an actuarial study that conforms with generally accepted actuarial principles and
             2176      practices and with the Actuarial Standards of Practice issued by the Actuarial Standards Board
             2177      and requested or commissioned by the board or the Legislature concludes:
             2178          (i) there is a significant likelihood that contribution rates will continue to rise; and
             2179          (ii) that participating employers are liable for system costs above the contribution rate
             2180      established under Subsection 49-22-301 (2)(a).
             2181          (2) If the conditions under Subsection (1)(a) or (b) are met, the Legislature may adjust
             2182      benefits for the defined benefit portion of the Tier II Hybrid Retirement System accrued or
             2183      applied for future years of service including:
             2184          (a) the final average salary calculation provided under Section 49-22-102 ;
             2185          (b) the years of service required to be eligible to receive a retirement allowance under


             2186      Section 49-22-304 ;
             2187          (c) the years of service credit multiplier established under Subsection 49-22-305 (2)(a);
             2188          (d) the annual cost-of-living adjustment under Section 49-22-308 ; or
             2189          (e) other provisions of the defined benefit portion of the Tier II Hybrid Retirement
             2190      System.
             2191          (3) (a) Notwithstanding the provisions of Subsections (1) and (2), the Legislature may
             2192      make adjustments to the benefits provided for the defined benefit portion of the Tier II Hybrid
             2193      Retirement System created under this part if an actuarial study described under Subsection
             2194      (1)(b) concludes, due to current and projected economic conditions, member participation
             2195      levels, and system structure, that the system:
             2196          (i) cannot reasonably be sustained under its current provisions;
             2197          (ii) is critically underfunded; and
             2198          (iii) has become unstable and is in risk of collapse.
             2199          (b) Subject to federal law, the adjustments under Subsection (3)(a) may include:
             2200          (i) conversion to a different type of retirement plan;
             2201          (ii) equitable distribution of system assets to retirees and members; and
             2202          (iii) a closure of the system.
             2203          Section 48. Section 49-22-401 is amended to read:
             2204           49-22-401. Contributions -- Rates.
             2205          (1) Up to the amount allowed by federal law, the participating employer shall
             2206      [contribute] make a nonelective contribution of 10% of the participant's compensation to a
             2207      defined contribution plan.
             2208          (2) (a) The participating employer shall contribute the 10% nonelective contribution
             2209      described in Subsection (1) to a defined contribution plan qualified under Section 401(k) of the
             2210      Internal Revenue Code which:
             2211          (i) is sponsored by the board; and
             2212          (ii) has been grandfathered under Section 1116 of the Federal Tax Reform Act of 1986.
             2213          (b) The member may make [additional payments] voluntary deferrals to:


             2214          (i) the qualified 401(k) plan which receives the employer contribution described in this
             2215      Subsection (2); or
             2216          (ii) at the member's option, another defined contribution plan established by the
             2217      participating employer.
             2218          (c) In addition to the percent specified under Subsection (2)(a), the participating
             2219      employer shall pay the corresponding Tier I system amortization rate of the employee's
             2220      compensation to the office to be applied to the employer's corresponding Tier I system liability.
             2221          (3) (a) The total amount contributed by the participating employer under Subsection
             2222      (2)(a) vests to the [member's benefit after four years of employment from the date of
             2223      employment] member upon accruing four years employment as a regular full-time employee
             2224      under this title.
             2225          (b) The total amount contributed by the member under Subsection (2)(b) vests to the
             2226      member's benefit immediately and is nonforfeitable.
             2227          (4) (a) Contributions made by a participating employer under Subsection (2)(a) shall be
             2228      invested in a default option selected by the board until the member is vested in accordance with
             2229      Subsection (3)(a).
             2230          (b) A member may direct the investment of contributions including associated
             2231      investment gains and losses made by a participating employer under Subsection (2)(a) only
             2232      after the contributions have vested in accordance with Subsection (3)(a).
             2233          (c) A member may direct the investment of contributions made by the member under
             2234      Subsection (3)(b).
             2235          (5) No loans shall be available from contributions made by a participating employer
             2236      under Subsection (2)(a).
             2237          (6) No hardship distributions shall be available from contributions made by a
             2238      participating employer under Subsection (2)(a).
             2239          (7) (a) Except as provided in Subsection (7)(b), if a member terminates employment
             2240      with a participating employer prior to the vesting period described in Subsection (3)(a), all
             2241      contributions made by a participating employer on behalf of the member including associated


             2242      investment gains and losses under Subsection (2)(a) are subject to forfeiture.
             2243          (b) If a member who terminates employment with a participating employer prior to the
             2244      vesting period described in Subsection (3)(a) subsequently enters employment with the same or
             2245      another participating employer within 10 years of the termination date of the previous
             2246      employment:
             2247          (i) all contributions made by the previous participating employer on behalf of the
             2248      member including associated investment gains and losses shall be reinstated upon the member's
             2249      [completion of the vesting period under Subsection (3)(a)] employment as a regular full-time
             2250      employee; and
             2251          (ii) the length of time that the member worked with the previous employer shall be
             2252      included in determining whether the member has completed the vesting period under
             2253      Subsection (3)(a).
             2254          (c) The [board] office shall establish a forfeiture account and shall specify the uses of
             2255      the forfeiture account, which may include an offset against administrative costs or employer
             2256      contributions made under this section.
             2257          (8) The [board] office may request from any other qualified 401(k) plan under
             2258      Subsection (2) any relevant information pertaining to the maintenance of its tax qualification
             2259      under the Internal Revenue Code.
             2260          (9) The [board] office may take any action which in its judgment is necessary to
             2261      maintain the tax-qualified status of its 401(k) defined contribution plan under federal law.
             2262          Section 49. Section 49-22-403 is enacted to read:
             2263          49-22-403. Eligibility to receive a retirement allowance for a benefit tied to a
             2264      retirement date for defined contribution members.
             2265          (1) As used in this section, "eligible to receive a retirement allowance" means the date
             2266      selected by the member who is a participant under this part on which the member has ceased
             2267      employment and would be qualified to receive an allowance under Section 49-22-304 if the
             2268      member had been under the Tier II Hybrid Retirement System for the same period of
             2269      employment.


             2270          (2) The office and a participating employer shall make an accounting of years of
             2271      service credit accrued for a member who is a participant under this part in order to calculate
             2272      when a member would be eligible to receive a retirement allowance for purposes of
             2273      establishing when a member may be eligible for a benefit tied to a retirement date that may be
             2274      provided under Section 67-19-14.4 , this title, another state statute, or by a participating
             2275      employer.
             2276          Section 50. Section 49-22-501 is amended to read:
             2277           49-22-501. Death benefit by means of group insurance policy -- Eligibility for
             2278      death benefit -- Benefit calculation -- Payment of claim.
             2279          (1) The office shall provide a death benefit through the purchase of a group insurance
             2280      policy for members of this system.
             2281          (2) The board shall make rules to administer the death benefit provided by this section
             2282      and may, in accordance with federal law, establish:
             2283          (a) benefit levels;
             2284          (b) classes of members; and
             2285          (c) a living benefit option.
             2286          (3) This death benefit is payable when:
             2287          (a) the member dies prior to the member's retirement date or dies under circumstances
             2288      which Subsection [ 49-22-305 (5)] 49-22-305 (4) requires to be treated as the death of a member
             2289      before retirement;
             2290          (b) the office receives acceptable proof of death; and
             2291          (c) benefits are not payable under Section 49-22-307 .
             2292          (4) The death benefit payable to the beneficiary under this section is a lump-sum
             2293      payment consisting of:
             2294          (a) the return of any member contributions under this chapter; plus
             2295          (b) a percentage of the final average salary of the member to be determined by the
             2296      board.
             2297          (5) Any amount of a living benefit option paid to the member prior to death shall be


             2298      deducted from the benefit payable to the beneficiary.
             2299          (6) The cost of the death benefit shall be paid by the participating employer in addition
             2300      to the contribution rate established under Section 49-22-301 or 49-22-401 .
             2301          (7) The portion of the death benefit provided under Subsection (4)(b) may not be paid
             2302      to the beneficiary of an inactive member unless the death of the member occurs either:
             2303          (a) within a period of 120 days after the last day of work for which the person received
             2304      compensation; or
             2305          (b) while the member is still physically or mentally incapacitated from performance of
             2306      duties, if the incapacity has been continuous since the last day of work for which compensation
             2307      was received.
             2308          (8) The death benefit provided under Subsection (4)(b) shall be paid in accordance
             2309      with Sections 49-11-609 and 49-11-610 .
             2310          (9) The death benefit paid to the beneficiary of an inactive member, except as
             2311      otherwise provided under Subsection (7), is a lump-sum return of the member's member
             2312      contributions.
             2313          (10) Payment of the death benefit by the office constitutes a full settlement of any
             2314      beneficiary's claim against the office and the office is not liable for any further or additional
             2315      claims or assessments on behalf of the member.
             2316          (11) Unless otherwise specified in a written document filed with the office, death
             2317      benefits payable to beneficiaries shall be in accordance with the order of precedence
             2318      established under Title 75, Chapter 2, Intestate Succession and Wills.
             2319          (12) A death benefit under this section may not be paid on behalf of a retiree under this
             2320      system.
             2321          Section 51. Section 49-22-502 is amended to read:
             2322           49-22-502. Death of married members -- Service retirement benefits to surviving
             2323      spouse.
             2324          (1) As used in this section, "member's full allowance" means an Option Three
             2325      allowance calculated under Section 49-22-305 without an actuarial reduction.


             2326          (2) Upon the request of a deceased member's lawful spouse at the time of the member's
             2327      death, the deceased member is considered to have retired under Option Three on the first day of
             2328      the month following the month in which the member died if the following requirements are
             2329      met:
             2330          (a) the member has:
             2331          (i) 15 or more years of service credit;
             2332          (ii) attained age 62 with 10 or more years of service credit; or
             2333          (iii) attained age 65 with four or more years of service credit; and
             2334          (b) the member dies leaving a spouse to whom the member has been married at least
             2335      six months immediately prior to the death date.
             2336          (3) The spouse who requests a benefit under this section shall apply in writing to the
             2337      office. The allowance shall begin on the first day of the month:
             2338          (a) following the month in which the member died, if the application is received by the
             2339      office within 90 days of the member's death; or
             2340          (b) following the month in which the application is received by the office, if the
             2341      application is received by the office more than 90 days after the spouse's death.
             2342          (4) The allowance payable to a surviving spouse under Subsection (2) is as follows:
             2343          (a) if the member has 25 or more years of service credit at the time of death, the
             2344      surviving spouse shall receive the member's full allowance;
             2345          (b) if the member has between 20-24 years of service credit and is not age 60 or older
             2346      at the time of death, the surviving spouse shall receive 2/3 of the member's full allowance;
             2347          (c) if the member has between 15-19 years of service credit and is not age 62 or older
             2348      at the time of death, the surviving spouse shall receive 1/3 of the member's full allowance; or
             2349          (d) if the member is age 60 or older with 20 or more years of service credit, age 62 or
             2350      older with 10 or more years of service credit, or age 65 or older with four or more years of
             2351      service credit at the time of death, the surviving spouse shall receive an Option Three benefit
             2352      with actuarial reductions.
             2353          (5) Except for a return of member contributions, benefits payable under this section are


             2354      retirement benefits and shall be paid in addition to any other payments made under Section
             2355      49-22-501 and shall constitute a full and final settlement of the claim of the spouse or any other
             2356      beneficiary filing a claim for benefits under Section 49-22-501 .
             2357          Section 52. Section 49-23-201 is amended to read:
             2358           49-23-201. System membership -- Eligibility.
             2359          (1) Beginning July 1, 2011, a participating employer that employs public safety service
             2360      employees or firefighter service employees shall participate in this system.
             2361          (2) (a) A public safety service employee or a firefighter service employee initially
             2362      entering employment with a participating employer on or after July 1, 2011, is eligible:
             2363          (i) as a member for service credit and defined contributions under the Tier II hybrid
             2364      retirement system established by Part 3, Tier II Hybrid Retirement System; or
             2365          (ii) as a participant for defined contributions under the Tier II defined contributions
             2366      plan established by Part 4, Tier II Defined Contribution Plan.
             2367          (b) A public safety service employee or a firefighter service employee initially entering
             2368      employment with a participating employer on or after July 1, 2011, shall:
             2369          (i) make an election to participate in the system created under this chapter within 30
             2370      days from the date of [employment] eligibility for accrual of benefits:
             2371          (A) as a member for service credit and defined contributions under the Tier II hybrid
             2372      retirement system established by Part 3, Tier II Hybrid Retirement System; or
             2373          (B) as a participant for defined contributions under the Tier II defined contribution plan
             2374      established by Part 4, Tier II Defined Contribution Plan; and
             2375          (ii) electronically submit to the office notification of the member's election under
             2376      Subsection (2)(b)(i) in a manner approved by the office.
             2377          (c) An election made by a public safety service employee or firefighter service
             2378      employee initially entering employment with a participating employer under this Subsection (2)
             2379      is irrevocable beginning one year from the date of eligibility for accrual of benefits.
             2380          (d) If no election is made under Subsection (2)(b)(i), the public safety service employee
             2381      or firefighter service employee shall become a member eligible for service credit and defined


             2382      contributions under the Tier II hybrid retirement system established by Part 3, Tier II Hybrid
             2383      Retirement System.
             2384          Section 53. Section 49-23-301 is amended to read:
             2385           49-23-301. Contributions.
             2386          (1) Participating employers and members shall [jointly] pay the certified contribution
             2387      rates to the office to maintain the defined benefit portion of this system on a financially and
             2388      actuarially sound basis in accordance with Subsection (2).
             2389          (2) (a) A participating employer shall pay up to 12% of compensation toward the
             2390      certified contribution rate to the office for the defined benefit portion of this system.
             2391          (b) A member shall [pay] only pay to the office the amount, if any, of the certified
             2392      contribution rate for the defined benefit portion of this system that exceeds [12% to the office]
             2393      the percent of compensation paid by the participating employer under Subsection (2)(a).
             2394          (c) In addition to the percent specified under Subsection (2)(a), the participating
             2395      employer shall pay the corresponding Tier I system amortization rate of the employee's
             2396      compensation to the office to be applied to the employer's corresponding Tier I system liability.
             2397          (3) A participating employer may not elect to pay all or part of the required member
             2398      contributions under Subsection (2)(b), in addition to the required participating employer
             2399      contributions.
             2400          (4) (a) A member contribution is credited by the office to the account of the individual
             2401      member.
             2402          (b) This amount, together with refund interest, is held in trust for the payment of
             2403      benefits to the member or the member's beneficiaries.
             2404          (c) A member contribution is vested and nonforfeitable.
             2405          (5) (a) Each member is considered to consent to payroll deductions of member
             2406      contributions.
             2407          (b) The payment of compensation less these payroll deductions is considered full
             2408      payment for services rendered by the member.
             2409          (6) Benefits provided under the defined benefit portion of the Tier II hybrid retirement


             2410      system created under this part:
             2411          (a) may not be increased unless the actuarial funded ratios of all systems under this title
             2412      reach 100%[.]; and
             2413          (b) may be decreased only in accordance with the provisions of Section 49-23-309 .
             2414          Section 54. Section 49-23-302 is amended to read:
             2415           49-23-302. Defined contribution benefit established -- Contribution by employer
             2416      and employee -- Vesting of contributions -- Plans to be separate -- Tax-qualified status of
             2417      plans.
             2418          (1) (a) A participating employer shall make a nonelective contribution on behalf of
             2419      each public safety service employee or firefighter service employee who is a member of this
             2420      system in an amount equal to 12% minus the contribution rate paid by the employer pursuant to
             2421      Subsection 49-23-301 (2)(a) of the member's compensation to a defined contribution plan
             2422      qualified under Section 401(k) of the Internal Revenue Code which:
             2423          (i) is sponsored by the board; and
             2424          (ii) has been grandfathered under Section 1116 of the Federal Tax Reform Act of 1986.
             2425          (b) The member may make [additional payments] voluntary deferrals to:
             2426          (i) the qualified 401(k) plan which receives the employer contribution described in this
             2427      Subsection (1); or
             2428          (ii) at the member's option, another defined contribution plan established by the
             2429      participating employer.
             2430          (2) (a) The total amount contributed by the participating employer under Subsection
             2431      (1)(a), including associated investment gains and losses, vests to the [member's benefit after
             2432      four years of employment from the date of employment] member upon accruing four years of
             2433      service credit under this title.
             2434          (b) The total amount contributed by the member under Subsection (1)(b) vests to the
             2435      member's benefit immediately and is nonforfeitable.
             2436          (3) (a) Contributions made by a participating employer under Subsection (1)(a) shall be
             2437      invested in a default option selected by the board until the member is vested in accordance with


             2438      Subsection (2)(a).
             2439          (b) A member may direct the investment of contributions made by a participating
             2440      employer under Subsection (1)(a) only after the contributions have vested in accordance with
             2441      Subsection (2)(a).
             2442          (c) A member may direct the investment of contributions made by the member under
             2443      Subsection (1)(b).
             2444          (4) No loans shall be available from contributions made by a participating employer
             2445      under Subsection (1)(a).
             2446          (5) No hardship distributions shall be available from contributions made by a
             2447      participating employer under Subsection (1)(a).
             2448          (6) (a) Except as provided in Subsection (6)(b), if a member terminates employment
             2449      with a participating employer prior to the vesting period described in Subsection (2)(a), all
             2450      contributions, including associated investment gains and losses, made by a participating
             2451      employer on behalf of the member under Subsection (1)(a) are subject to forfeiture.
             2452          (b) If a member who terminates employment with a participating employer prior to the
             2453      vesting period described in Subsection (2)(a) subsequently enters employment with the same or
             2454      another participating employer within 10 years of the termination date of the previous
             2455      employment:
             2456          (i) all contributions made by the previous participating employer on behalf of the
             2457      member, including associated investment gains and losses, shall be reinstated upon the
             2458      member's [completion of the vesting period under Subsection (2)(a)] employment as a regular
             2459      full-time employee; and
             2460          (ii) the length of time that the member worked with the previous employer shall be
             2461      included in determining whether the member has completed the vesting period under
             2462      Subsection (2)(a).
             2463          (c) The [board] office shall establish a forfeiture account and shall specify the uses of
             2464      the forfeiture account, which may include an offset against administrative costs or employer
             2465      contributions made under this section.


             2466          (7) The [board] office may request from any other qualified 401(k) plan under
             2467      Subsection (1) or (2) any relevant information pertaining to the maintenance of its tax
             2468      qualification under the Internal Revenue Code.
             2469          (8) The [board] office may take any action which in its judgment is necessary to
             2470      maintain the tax-qualified status of its 401(k) defined contribution plan under federal law.
             2471          Section 55. Section 49-23-303 is amended to read:
             2472           49-23-303. Defined benefit eligibility for an allowance -- Date of retirement --
             2473      Qualifications.
             2474          (1) A member is qualified to receive an allowance from this system when:
             2475          (a) before the member's retirement date, the member ceases actual work for [a] every
             2476      participating employer [in this system] that employs the member and provides evidence of the
             2477      termination;
             2478          (b) the member has submitted to the office a notarized retirement application form that
             2479      states the member's proposed retirement date; and
             2480          (c) one of the following conditions is met as of the member's retirement date:
             2481          (i) the member has accrued at least four years of service credit and has attained an age
             2482      of 65 years;
             2483          (ii) the member has accrued at least 10 years of service credit and has attained an age
             2484      of 62 years;
             2485          (iii) the member has accrued at least 20 years of service credit and has attained an age
             2486      of 60 years; or
             2487          (iv) the member has accrued at least 25 years of service credit.
             2488          (2) (a) The member's retirement date:
             2489          (i) shall be the 1st or the 16th day of the month, as selected by the member;
             2490          (ii) shall be on or after the date of termination; and
             2491          (iii) may not be more than 90 days before or after the date the application is received by
             2492      the office.
             2493          (b) A member may not be employed by a participating employer in the system


             2494      established by this chapter on the retirement date selected under Subsection (2)(a)(i).
             2495          Section 56. Section 49-23-304 is amended to read:
             2496           49-23-304. Defined benefit service retirement plans -- Calculation of retirement
             2497      allowance -- Social Security limitations.
             2498          (1) (a) The retirees of this system may choose from the six retirement options described
             2499      in this section.
             2500          (b) Options Two, Three, Four, Five, and Six are modifications of the Option One
             2501      calculation.
             2502          (2) The Option One benefit is an annual allowance calculated as follows:
             2503          (a) If the retiree is at least 65 years of age or has accrued at least 25 years of service
             2504      credit, the allowance is an amount equal to 1.5% of the retiree's final average salary multiplied
             2505      by the number of years of service credit accrued on and after July 1, 2011.
             2506          (b) If the retiree is less than 65 years of age, the allowance shall be reduced by the full
             2507      actuarial amount for each year of retirement from age 60 to age 65, unless the member has 25
             2508      or more years of accrued credit in which event no reduction is made to the allowance.
             2509          (c) (i) Years of service includes any fractions of years of service to which the retiree
             2510      may be entitled.
             2511          (ii) At the time of retirement, if a retiree's combined years of actual, not purchased,
             2512      service credit is within 1/10 of one year of the total years of service credit required for
             2513      retirement, the retiree shall be considered to have the total years of service credit required for
             2514      retirement.
             2515          (d) An Option One allowance is only payable to the member during the member's
             2516      lifetime.
             2517          (3) The allowance payable under Options Two, Three, Four, Five, and Six is calculated
             2518      by reducing an Option One benefit based on actuarial computations to provide the following:
             2519          (a) Option Two is a reduced allowance paid to and throughout the lifetime of the
             2520      retiree, and, if the retiree receives less in annuity payments than the amount of the retiree's
             2521      member contributions, the remaining balance of the retiree's member contributions shall be


             2522      paid in accordance with Sections 49-11-609 and 49-11-610 .
             2523          (b) Option Three is a reduced allowance paid to and throughout the lifetime of the
             2524      retiree, and, upon the death of the retiree, the same reduced allowance is paid to and throughout
             2525      the lifetime of the retiree's lawful spouse at the time of retirement.
             2526          (c) Option Four is a reduced allowance paid to and throughout the lifetime of the
             2527      retiree, and upon the death of the retiree, an amount equal to 1/2 of the retiree's allowance is
             2528      paid to and throughout the lifetime of the retiree's lawful spouse at the time of retirement.
             2529          (d) Option Five is a modification of Option Three so that if the lawful spouse at the
             2530      time of retirement predeceases the retiree, an allowance equivalent to the amount payable at the
             2531      time of initial retirement under Option One shall be paid to the retiree for the remainder of the
             2532      retiree's life, beginning on the [last day of the month following the month in which the lawful
             2533      spouse dies.] first day of the month:
             2534          (i) following the month in which the spouse died, if the application is received by the
             2535      office within 90 days of the spouse's death; or
             2536          (ii) following the month in which the application is received by the office, if the
             2537      application is received by the office more than 90 days after the spouse's death.
             2538          (e) Option Six is a modification of Option Four so that if the lawful spouse at the time
             2539      of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time
             2540      of initial retirement under Option One shall be paid to the retiree for the remainder of the
             2541      retiree's life, beginning on the [last day of the month following the month in which the lawful
             2542      spouse dies.] first day of the month:
             2543          (i) following the month in which the spouse died, if the application is received by the
             2544      office within 90 days of the spouse's death; or
             2545          (ii) following the month in which the application is received by the office, if the
             2546      application is received by the office more than 90 days after the spouse's death.
             2547          [(4) Periods of employment which are exempt from this system may be purchased by
             2548      the member for the purpose of retirement only if all benefits from any other public or private
             2549      system or organization based on this period of employment are forfeited.]


             2550          [(5)] (4) (a) If a retiree under Option One dies within 120 days after the retiree's
             2551      retirement date, the retirement is canceled and the death shall be considered as that of a
             2552      member before retirement.
             2553          (b) Any payments made to the retiree shall be deducted from the amounts due to the
             2554      beneficiary.
             2555          [(6)] (5) If a retiree retires under either Option Five or Six and subsequently divorces,
             2556      the retiree may elect to convert the benefit to an Option One benefit at the time of divorce, if
             2557      there is no court order filed in the matter.
             2558          Section 57. Section 49-23-309 is enacted to read:
             2559          49-23-309. Defined benefit adjustments -- Conditions -- Process -- Future years
             2560      accrual.
             2561          (1) In accordance with this section, the Legislature may make adjustments to the
             2562      benefits provided for the defined benefit portion of the Tier II Hybrid Retirement System
             2563      created under this part if the member's contribution required under Subsection 49-23-301 (2)(b)
             2564      to the certified contribution rate for the defined benefit portion of this system exceeds 2% of
             2565      the member's salary and:
             2566          (a) (i) the membership council created under Section 49-11-202 recommends an
             2567      adjustment to the board in accordance with Subsection (2); and
             2568          (ii) the board recommends specific adjustments to the Legislature in accordance with
             2569      Subsection (2); or
             2570          (b) an actuarial study that conforms with generally accepted actuarial principles and
             2571      practices and with the Actuarial Standards of Practice issued by the Actuarial Standards Board
             2572      and requested or commissioned by the board or the Legislature concludes:
             2573          (i) there is a significant likelihood that contribution rates will continue to rise; and
             2574          (ii) that participating employers are liable for system costs above the contribution rate
             2575      established under Subsection 49-23-301 (2)(a).
             2576          (2) If the conditions under Subsection (1)(a) or (b) are met, the Legislature may adjust
             2577      benefits for the defined benefit portion of the Tier II Hybrid Retirement System accrued or


             2578      applied for future years of service including:
             2579          (a) the final average salary calculation provided under Section 49-23-102 ;
             2580          (b) the years of service required to be eligible to receive a retirement allowance under
             2581      Section 49-23-303 ;
             2582          (c) the years of service credit multiplier established under Subsection 49-23-304 (2)(a);
             2583          (d) the annual cost-of-living adjustment under Section 49-23-307 ; or
             2584          (e) other provisions of the defined benefit portion of the Tier II Hybrid Retirement
             2585      System.
             2586          (3) (a) Notwithstanding the provisions of Subsections (1) and (2), the Legislature may
             2587      make adjustments to the benefits provided for the defined benefit portion of the Tier II Hybrid
             2588      Retirement System created under this part if an actuarial study described under Subsection
             2589      (1)(b) concludes, due to current and projected economic conditions, member participation
             2590      levels, and system structure, that the system:
             2591          (i) cannot reasonably be sustained under its current provisions;
             2592          (ii) is critically underfunded; and
             2593          (iii) has become unstable and is in risk of collapse.
             2594          (b) Subject to federal law, the adjustments under Subsection (3)(a) may include:
             2595          (i) conversion to a different type of retirement plan;
             2596          (ii) equitable distribution of system assets to retirees and members; and
             2597          (iii) a closure of the system.
             2598          Section 58. Section 49-23-401 is amended to read:
             2599           49-23-401. Contributions -- Rates.
             2600          (1) Up to the amount allowed by federal law, the participating employer shall
             2601      [contribute] make a nonelective contribution of 12% of the participant's compensation to a
             2602      defined contribution plan.
             2603          (2) (a) The participating employer shall contribute the 12% nonelective contribution
             2604      described in Subsection (1) to a defined contribution plan qualified under Section 401(k) of the
             2605      Internal Revenue Code which:


             2606          (i) is sponsored by the board; and
             2607          (ii) has been grandfathered under Section 1116 of the Federal Tax Reform Act of 1986.
             2608          (b) The member may make [additional payments] voluntary deferrals to:
             2609          (i) the qualified 401(k) plan which receives the employer contribution described in this
             2610      Subsection (2); or
             2611          (ii) at the member's option, another defined contribution plan established by the
             2612      participating employer.
             2613          (c) In addition to the percent specified under Subsection (2)(a), the participating
             2614      employer shall pay the corresponding Tier I system amortization rate of the employee's
             2615      compensation to the office to be applied to the employer's corresponding Tier I system liability.
             2616          (3) (a) The total amount contributed by the participating employer under Subsection
             2617      (2)(a) vests to the [member's benefit after four years of employment from the date of
             2618      employment] member upon accruing four years of employment as a regular full-time employee
             2619      under this chapter.
             2620          (b) The total amount contributed by the member under Subsection (2)(b) vests to the
             2621      member's benefit immediately and is nonforfeitable.
             2622          (4) (a) Contributions made by a participating employer under Subsection (2)(a) shall be
             2623      invested in a default option selected by the board until the member is vested in accordance with
             2624      Subsection (3)(a).
             2625          (b) A member may direct the investment of contributions, including associated
             2626      investment gains and losses, made by a participating employer under Subsection (2)(a) only
             2627      after the contributions have vested in accordance with Subsection (3)(a).
             2628          (c) A member may direct the investment of contributions made by the member under
             2629      Subsection (3)(b).
             2630          (5) No loans shall be available from contributions made by a participating employer
             2631      under Subsection (2)(a).
             2632          (6) No hardship distributions shall be available from contributions made by a
             2633      participating employer under Subsection (2)(a).


             2634          (7) (a) Except as provided in Subsection (7)(b), if a member terminates employment
             2635      with a participating employer prior to the vesting period described in Subsection (3)(a), all
             2636      contributions made by a participating employer on behalf of the member including associated
             2637      investment gains and losses under Subsection (2)(a) are subject to forfeiture.
             2638          (b) If a member who terminates employment with a participating employer prior to the
             2639      vesting period described in Subsection (3)(a) subsequently enters employment with the same or
             2640      another participating employer within 10 years of the termination date of the previous
             2641      employment:
             2642          (i) all contributions made by the previous participating employer on behalf of the
             2643      member, including associated investment gains and losses, shall be reinstated upon the
             2644      member's [completion of the vesting period under Subsection (3)(a)] employment as a regular
             2645      full-time employee; and
             2646          (ii) the length of time that the member worked with the previous employer shall be
             2647      included in determining whether the member has completed the vesting period under
             2648      Subsection (3)(a).
             2649          (c) The [board] office shall establish a forfeiture account and shall specify the uses of
             2650      the forfeiture account, which may include an offset against administrative costs of employer
             2651      contributions made under this section.
             2652          (8) The [board] office may request from any other qualified 401(k) plan under
             2653      Subsection (2) any relevant information pertaining to the maintenance of its tax qualification
             2654      under the Internal Revenue Code.
             2655          (9) The [board] office may take any action which in its judgment is necessary to
             2656      maintain the tax-qualified status of its 401(k) defined contribution plan under federal law.
             2657          Section 59. Section 49-23-403 is enacted to read:
             2658          49-23-403. Eligibility to receive a retirement allowance for a benefit tied to a
             2659      retirement date for defined contribution members.
             2660          (1) As used in this section, "eligible to receive a retirement allowance" means the date
             2661      selected by the member who is a participant under this part on which the member has ceased


             2662      employment and would be qualified to receive an allowance under Section 49-23-303 if the
             2663      member had been under the Tier II Hybrid Retirement System for the same period of
             2664      employment.
             2665          (2) The office and a participating employer shall make an accounting of years of
             2666      service credit accrued for a member who is a participant under this part in order to calculate
             2667      when a member would be eligible to receive a retirement allowance for purposes of
             2668      establishing when a member may be eligible for a benefit tied to a retirement date that may be
             2669      provided under Section 67-19-14.4 , this title, another state statute, or by a participating
             2670      employer.
             2671          Section 60. Section 49-23-501 is amended to read:
             2672           49-23-501. Death benefit by means of group insurance policy -- Eligibility for
             2673      death benefit -- Benefit calculation -- Payment of claim.
             2674          (1) The office shall provide a death benefit through the purchase of a group insurance
             2675      policy for members of this system.
             2676          (2) The board shall make rules to administer the death benefit provided by this section
             2677      and may, in accordance with federal law, establish:
             2678          (a) benefit levels;
             2679          (b) classes of members; and
             2680          (c) a living benefit option.
             2681          (3) This death benefit is payable when:
             2682          (a) the member dies prior to the member's retirement date or dies under circumstances
             2683      which Subsection [ 49-23-304 (5)] 49-23-304 (4) requires to be treated as the death of a member
             2684      before retirement;
             2685          (b) the office receives acceptable proof of death; and
             2686          (c) benefits are not payable under Section 49-23-306 .
             2687          (4) The death benefit payable to the beneficiary under this section is a lump-sum
             2688      payment consisting of:
             2689          (a) the return of any member contributions under this chapter; plus


             2690          (b) a percentage of the final average salary of the member to be determined by the
             2691      board.
             2692          (5) Any amount of a living benefit option paid to the member prior to death shall be
             2693      deducted from the benefit payable to the beneficiary.
             2694          (6) The cost of the death benefit shall be paid by the participating employer in addition
             2695      to the contribution rate established under Section 49-23-301 or 49-23-401 .
             2696          (7) The portion of the death benefit provided under Subsection (4)(b) may not be paid
             2697      to the beneficiary of an inactive member unless the death of the member occurs either:
             2698          (a) within a period of 120 days after the last day of work for which the person received
             2699      compensation; or
             2700          (b) while the member is still physically or mentally incapacitated from performance of
             2701      duties, if the incapacity has been continuous since the last day of work for which compensation
             2702      was received.
             2703          (8) The death benefit provided under Subsection (4)(b) shall be paid in accordance
             2704      with Sections 49-11-609 and 49-11-610 .
             2705          (9) The death benefit paid to the beneficiary of an inactive member, except as
             2706      otherwise provided under Subsection (7), is a lump-sum return of the member's member
             2707      contributions.
             2708          (10) Payment of the death benefit by the office constitutes a full settlement of any
             2709      beneficiary's claim against the office and the office is not liable for any further or additional
             2710      claims or assessments on behalf of the member.
             2711          (11) Unless otherwise specified in a written document filed with the office, death
             2712      benefits payable to beneficiaries shall be in accordance with the order of precedence
             2713      established under Title 75, Chapter 2, Intestate Succession and Wills.
             2714          (12) A death benefit under this section may not be paid on behalf of a retiree under this
             2715      system.
             2716          Section 61. Section 49-23-502 is amended to read:
             2717           49-23-502. Death of married members -- Service retirement benefits to surviving


             2718      spouse.
             2719          (1) As used in this section, "member's full allowance" means an Option Three
             2720      allowance calculated under Section 49-23-304 without an actuarial reduction.
             2721          (2) Upon the request of a deceased member's lawful spouse at the time of the member's
             2722      death, the deceased member is considered to have retired under Option Three on the first day of
             2723      the month following the month in which the member died if the following requirements are
             2724      met:
             2725          (a) the member has:
             2726          (i) 15 or more years of service credit;
             2727          (ii) attained age 62 with 10 or more years of service credit; or
             2728          (iii) attained age 65 with four or more years of service credit; and
             2729          (b) the member dies leaving a spouse to whom the member has been married at least
             2730      six months immediately prior to the death date.
             2731          (3) The spouse who requests a benefit under this section shall apply in writing to the
             2732      office. The allowance shall begin on the first day of the month:
             2733          (a) following the month in which the member died, if the application is received by the
             2734      office within 90 days of the member's death; or
             2735          (b) following the month in which the application is received by the office, if the
             2736      application is received by the office more than 90 days after the spouse's death.
             2737          (4) The allowance payable to a surviving spouse under Subsection (2) is:
             2738          (a) if the member has 25 or more years of service credit at the time of death, the
             2739      surviving spouse shall receive the member's full allowance;
             2740          (b) if the member has between 20-24 years of service credit and is not age 60 or older
             2741      at the time of death, the surviving spouse shall receive [2/3] two-thirds of the member's full
             2742      allowance;
             2743          (c) if the member has between 15-19 years of service credit and is not age 62 or older
             2744      at the time of death, the surviving spouse shall receive [1/3] one-third of the member's full
             2745      allowance; or


             2746          (d) if the member is age 60 or older with 20 or more years of service credit, age 62 or
             2747      older with 10 or more years of service credit, or age 65 or older with four or more years of
             2748      service credit at the time of death, the surviving spouse shall receive an Option Three benefit
             2749      with actuarial reductions.
             2750          (5) Except for a return of member contributions, benefits payable under this section are
             2751      retirement benefits and shall be paid in addition to any other payments made under Section
             2752      49-23-501 and shall constitute a full and final settlement of the claim of the spouse or any other
             2753      beneficiary filing a claim for benefits under Section 49-23-501 .
             2754          Section 62. Section 49-23-601 is amended to read:
             2755           49-23-601. Long-term disability coverage.
             2756          [Each] (1) A participating employer shall cover [the following employees] a public
             2757      safety employee who initially enters employment on or after July 1, 2011, under Title 49,
             2758      Chapter 21, Public Employees' Long-Term Disability Act, or a substantially similar long-term
             2759      disability program[:].
             2760          [(1) public safety employees initially entering employment on or after July 1, 2011;]
             2761          [(2) firefighter service employees initially entering employment on or after July 1,
             2762      2011; and]
             2763          [(3) volunteer firefighters.]
             2764          (2) (a) A participating employer shall cover a firefighter employee who initially enters
             2765      employment on or after July 1, 2011, under Title 49, Chapter 21, Public Employees'
             2766      Long-Term Disability Act.
             2767          (b) In accordance with this section, a participating employer shall provide long-term
             2768      disability benefit coverage for a volunteer firefighter as provided under Section 49-16-701 .
             2769          (c) The office shall ensure that the cost of the long-term disability benefit coverage
             2770      provided under Subsections (2)(a) and (b) is funded with revenue received under Section
             2771      49-11-901.5 .
             2772          Section 63. Section 67-5-8 is amended to read:
             2773           67-5-8. Eligibility for career service status.


             2774          (1) (a) The attorney general has sole authority to determine who may be employed with
             2775      the Office of the Attorney General.
             2776          (b) An employee of the state or any of its departments or agencies has no claim or right
             2777      to a position in the attorney general's office by virtue of that employment.
             2778          (2) (a) An employee of the Office of the Attorney General shall be placed in a career
             2779      service status if:
             2780          (i) for an employee who is an attorney, the attorney is a member in good standing of
             2781      the Utah State Bar Association; and
             2782          (ii) except as provided in Subsection (3), the employee has been employed by the
             2783      Office of the Attorney General as a probationary employee for a period of:
             2784          (A) at least one year but no more than 18 months; or
             2785          (B) in the case of investigators, at least 18 months, but no more than two years.
             2786          (b) An employee now employed by the attorney general's office in career service may
             2787      not be terminated under this chapter except for cause.
             2788          (3) (a) The attorney general shall determine whether an employee should be granted
             2789      career service status.
             2790          (b) If, at the end of the probationary period established under Subsection (2), the
             2791      attorney general determines that an employee should be granted career service status, the
             2792      attorney general shall notify the employee in writing of that decision and place a copy of the
             2793      notification in the employee's personnel file.
             2794          (c) If the attorney general determines that career service status should not be granted,
             2795      the attorney general may either terminate the employee or extend the probationary period for a
             2796      period not to exceed one year.
             2797          (d) The attorney general shall notify the employee in writing of that decision and place
             2798      a copy of the notification in the employee's personnel file.
             2799          (e) An employee terminated under this section has no appeal rights under this chapter.
             2800          (4) (a) An attorney in career service status under this chapter shall retire upon attaining
             2801      the age of 70 years.


             2802          (b) Subject to the provisions of [Section] Sections 49-11-504 and 49-11-505 , an
             2803      attorney required to retire under this section may be employed by the attorney general, after
             2804      retirement, as a special assistant attorney general.
             2805          (c) An attorney employed in the capacity of a special assistant under Subsection (4)(b)
             2806      is not in career service status and is subject to termination in accordance with Section 67-5-12 .


[Bill Documents][Bills Directory]