1     
SUPPLEMENTAL SAVINGS PLAN AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Rich Cunningham

5     
Senate Sponsor: Curtis S. Bramble

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Utah State Personnel Management Act by amending provisions
10     related to state employee benefits.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     allows a state employee to make the matching deposit into a deemed IRA, 401(k)
15     plan, or other similar savings plan in order to qualify for the employee matching
16     deposit under the state employee matching supplemental benefit; and
17          ▸     makes technical corrections.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          67-19-43, as last amended by Laws of Utah 2014, Chapter 15
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 67-19-43 is amended to read:
28          67-19-43. State employee matching supplemental defined contribution benefit.
29          (1) As used in this section[, "qualifying employee" means an employee who is]:
30          (a) "Qualifying account" means:
31          (i) a defined contribution plan qualified under Section 401(k) of the Internal Revenue
32     Code, which is sponsored by the Utah State Retirement Board; or
33          (ii) a deemed Individual Retirement Account authorized under the Internal Revenue
34     Code, which is sponsored by the Utah State Retirement Board; or
35          (iii) a similar savings plan or account authorized under the Internal Revenue Code,
36     which is sponsored by the Utah State Retirement Board.
37          (b) "Qualifying employee" means an employee who is:
38          [(a)] (i) in a position that is:
39          [(i)] (A) receiving retirement benefits under Title 49, Utah State Retirement and
40     Insurance Benefit Act; and
41          [(ii)] (B) accruing paid leave benefits that can be used in the current and future
42     calendar years; and
43          [(b)] (ii) not an employee who is reemployed as defined in Section 49-11-102.
44          (2) Subject to the requirements of Subsection (3) and beginning on or after January 4,
45     2014, an employer shall make a biweekly matching contribution to every qualifying employee's
46     defined contribution plan qualified under Section 401(k) of the Internal Revenue Code, subject
47     to federal requirements and limitations, which is sponsored by the Utah State Retirement
48     Board.
49          (3) (a) In accordance with the requirements of this Subsection (3), each qualifying
50     employee shall be eligible to receive the same dollar amount for the contribution under
51     Subsection (2).
52          (b) A qualifying employee:
53          (i) shall receive the contribution amount determined under Subsection (3)(c) if the
54     qualifying employee makes a voluntary personal contribution to [the defined contribution plan
55     account described in Subsection (2)] one or more qualifying accounts in an amount equal to or
56     greater than the employer's contribution amount determined in Subsection (3)(c);
57          (ii) shall receive a partial contribution amount that is equal to the qualifying employee's
58     personal contribution amount if the employee makes a voluntary personal contribution to [the
59     defined contribution plan account described in Subsection (2)] one or more qualifying accounts
60     in an amount less than the employer's contribution amount determined in Subsection (3)(c); or
61          (iii) may not receive a contribution under Subsection (2) if the qualifying employee
62     does not make a voluntary personal contribution to [the defined contribution plan account
63     described in Subsection (2)] a qualifying account.
64          (c) (i) Subject to the maximum limit under Subsection (3)(c)(iii), the Legislature shall
65     annually determine the contribution amount that an employer shall provide to each qualifying
66     employee under Subsection (2).
67          (ii) The department shall make recommendations annually to the Legislature on the
68     contribution amount required under Subsection (2), in consultation with the Governor's Office
69     of Management and Budget and the Division of Finance.
70          (iii) The biweekly matching contribution amount required under Subsection (2) may
71     not exceed $26 for each qualifying employee.
72          (4) A qualifying employee is eligible to receive the biweekly contribution under this
73     section for any pay period in which the employee is in a paid status or other status protected by
74     federal or state law.
75          (5) The employer and employee contributions made and related earnings under this
76     section vest immediately upon deposit and can be withdrawn by the employee at any time,
77     subject to Internal Revenue Code regulations on the withdrawals.
78          (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
79     executive director shall make rules establishing procedures to implement the provisions of this
80     section.