1     
PUBLIC SAFETY RETIREMENT FOR DISPATCHERS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kraig Powell

5     
Senate Sponsor: Curtis S. Bramble

6     

7     LONG TITLE
8     General Description:
9          This bill allows certified dispatchers to be covered in the public safety retirement
10     systems.
11     Highlighted Provisions:
12          This bill:
13          ▸     provides definitions;
14          ▸     requires the state to cover its certified dispatchers under the public safety retirement
15     systems;
16          ▸     authorizes other participating employers to elect to cover their certified dispatchers
17     under the public safety retirement systems; and
18          ▸     makes technical corrections.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          This bill provides a special effective date.
23     Utah Code Sections Affected:
24     AMENDS:
25          49-14-102, as last amended by Laws of Utah 2013, Chapter 40
26          49-14-201, as last amended by Laws of Utah 2014, Chapter 15
27          49-15-102, as last amended by Laws of Utah 2013, Chapter 40
28          49-15-201, as last amended by Laws of Utah 2014, Chapter 15
29          49-23-102, as last amended by Laws of Utah 2013, Chapter 40
30          49-23-201, as last amended by Laws of Utah 2014, Chapter 15
31          49-23-503, as last amended by Laws of Utah 2014, Chapter 15
32     

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 49-14-102 is amended to read:
35          49-14-102. Definitions.
36          As used in this chapter:
37          (1) (a) "Compensation" means the total amount of payments that are includable in
38     gross income which are received by a public safety service employee as base income for the
39     regularly scheduled work period. The participating employer shall establish the regularly
40     scheduled work period. Base income shall be determined prior to the deduction of member
41     contributions or any amounts the public safety service employee authorizes to be deducted for
42     salary deferral or other benefits authorized by federal law.
43          (b) "Compensation" includes performance-based bonuses and cost-of-living
44     adjustments.
45          (c) "Compensation" does not include:
46          (i) overtime;
47          (ii) sick pay incentives;
48          (iii) retirement pay incentives;
49          (iv) the monetary value of remuneration paid in kind, including a residence, use of
50     equipment or uniform, travel, or similar payments;
51          (v) a lump-sum payment or special payments covering accumulated leave; and
52          (vi) all contributions made by a participating employer under this system or under any
53     other employee benefit system or plan maintained by a participating employer for the benefit of
54     a member or participant.
55          (d) "Compensation" for purposes of this chapter may not exceed the amount allowed
56     under Internal Revenue Code Section 401(a)(17).
57          (2) "Dispatcher" means the same as that term is defined in Section 53-6-102.
58          [(2)] (3) "Final average salary" means the amount computed by averaging the highest
59     three years of annual compensation preceding retirement[,] subject to Subsections [(2)] (3)(a)
60     and (b).
61          (a) Except as provided in Subsection [(2)] (3)(b), the percentage increase in annual
62     compensation in any one of the years used may not exceed the previous year's compensation by
63     more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power
64     of the dollar during the previous year, as measured by a United States Bureau of Labor
65     Statistics Consumer Price Index average as determined by the board.
66          (b) In cases where the participating employer provides acceptable documentation to the
67     office, the limitation in Subsection [(2)] (3)(a) may be exceeded if:
68          (i) the public safety service employee has transferred from another agency; or
69          (ii) the public safety service employee has been promoted to a new position.
70          [(3)] (4) (a) "Line-of-duty death" means a death resulting from:
71          (i) external force, violence, or disease occasioned by an act of duty as a public safety
72     service employee; or
73          (ii) strenuous activity, including a heart attack or stroke, that occurs during strenuous
74     training or another strenuous activity required as an act of duty as a public safety service
75     employee.
76          (b) "Line-of-duty death" does not include a death that:
77          (i) occurs during an activity that is required as an act of duty as a public safety service
78     employee if the activity is not a strenuous activity, including an activity that is clerical,
79     administrative, or of a nonmanual nature;
80          (ii) occurs during the commission of a crime committed by the employee;
81          (iii) the employee's intoxication or use of alcohol or drugs, whether prescribed or
82     nonprescribed, contributes to the employee's death; or
83          (iv) occurs in a manner other than as described in Subsection [(3)] (4)(a).
84          [(4)] (5) "Participating employer" means an employer which meets the participation
85     requirements of Section 49-14-201.
86          [(5)] (6) (a) "Public safety service" means employment normally requiring an average
87     of 2,080 hours of regularly scheduled employment per year rendered by a member who is a:
88          (i) law enforcement officer in accordance with Section 53-13-103;
89          (ii) correctional officer in accordance with Section 53-13-104;
90          (iii) special function officer approved in accordance with Sections 49-14-201 and
91     53-13-105; [and]
92          (iv) dispatcher who is certified in accordance with Section 53-6-303; or
93          [(iv)] (v) full-time member of the Board of Pardons and Parole created under Section
94     77-27-2.
95          (b) Except as provided under [Subsection (5)] Subsections (6)(a)(iv) and (v), "public
96     safety service" also requires that in the course of employment the employee's life or personal
97     safety is at risk.
98          (c) Except for the minimum hour requirement, Subsections[ (5)] (6)(a) and (b) do not
99     apply to any person who was eligible for service credit in this system before January 1, 1984.
100          [(6)] (7) "Public safety service employee" means an employee of a participating
101     employer who performs public safety service under this chapter.
102          [(7)] (8) (a) "Strenuous activity" means engagement involving a difficult, stressful, or
103     vigorous fire suppression, rescue, hazardous material response, emergency medical service,
104     physical law enforcement, prison security, disaster relief, or other emergency response activity.
105          (b) "Strenuous activity" includes participating in a participating employer sanctioned
106     and funded training exercise that involves difficult, stressful, or vigorous physical activity.
107          [(8)] (9) "System" means the Public Safety Contributory Retirement System created
108     under this chapter.
109          [(9)] (10) "Years of service credit" means the number of periods, each to consist of 12
110     full months as determined by the board, whether consecutive or not, during which a public
111     safety service employee was employed by a participating employer, including time the public
112     safety service employee was absent in the service of the United States government on military
113     duty.
114          Section 2. Section 49-14-201 is amended to read:
115          49-14-201. System membership -- Eligibility.
116          (1) Except as provided in Section 49-15-201, a public safety service employee of a
117     participating employer participating in this system is eligible for service credit in this system at
118     the earliest of:
119          (a) July 1, 1969, if the public safety service employee was employed by the
120     participating employer on July 1, 1969, and the participating employer was participating in this
121     system on that date;
122          (b) the date the participating employer begins participating in this system if the public
123     safety service employee was employed by the participating employer on that date; or
124          (c) the date the public safety service employee is employed by the participating
125     employer and is eligible to perform public safety service, except that a public safety service
126     employee initially entering employment with a participating employer on or after July 1, 2011,
127     who does not have service credit accrued before July 1, 2011, in a Tier I system or plan
128     administered by the board, may not participate in this system.
129          (2) (a) (i) A participating employer that has public safety service and firefighter service
130     employees that require cross-training and duty shall enroll those dual purpose employees in the
131     system in which the greatest amount of time is actually worked.
132          (ii) The employees shall either be full-time public safety service or full-time firefighter
133     service employees of the participating employer.
134          (b) (i) Prior to transferring a dual purpose employee from one system to another, the
135     participating employer shall receive written permission from the office.
136          (ii) The office may request documentation to verify the appropriateness of the transfer.
137          (3) The board may combine or segregate the actuarial experience of participating
138     employers in this system for the purpose of setting contribution rates.
139          (4) (a) (i) Each participating employer participating in this system shall annually
140     submit to the office a schedule indicating the positions to be covered under this system in
141     accordance with this chapter.
142          (ii) The office may require documentation to justify the inclusion of any position under
143     this system.
144          (b) If there is a dispute between the office and a participating employer or employee
145     over any position to be covered, the disputed position shall be submitted to the Peace Officer
146     Standards and Training Council established under Section 53-6-106 for determination.
147          (c) (i) The Peace Officer Standards and Training Council's authority to decide
148     eligibility for public safety service credit is limited to claims for coverage under this system for
149     time periods after July 1, 1989.
150          (ii) A decision of the Peace Officer Standards and Training Council may not be applied
151     to service credit earned in another system prior to July 1, 1989.
152          (iii) Except as provided under Subsection (4)(c)(iv), a decision of the Peace Officer
153     Standards and Training Council granting a position coverage under this system may only be
154     applied prospectively from the date of that decision.
155          (iv) A decision of the Peace Officer Standards and Training Council granting a position
156     coverage under this system may be applied retroactively only if:
157          (A) the participating employer covered other similarly situated positions under this
158     system during the time period in question; and
159          (B) the position otherwise meets all eligibility requirements for receiving service credit
160     in this system during the period for which service credit is to be granted.
161          (5) The Peace Officer Standards and Training Council may use a subcommittee to
162     provide a recommendation to the council in determining disputes between the office and a
163     participating employer or employee over a position to be covered under this system.
164          (6) The Peace Officer Standards and Training Council shall comply with Title 63G,
165     Chapter 4, Administrative Procedures Act, in resolving coverage disputes in this system.
166          (7) A public safety employee who is transferred or promoted to an administration
167     position not covered by this system shall continue to earn public safety service credit in this
168     system as long as the employee remains employed in the same department.
169          (8) Any employee who is reassigned to the Department of Technology Services or to
170     the Department of Human Resource Management, and who was a member of this system, shall
171     be entitled to remain a member of this system.
172          (9) (a) To determine that a position is covered under this system, the office and, if a
173     coverage dispute arises, the Peace Officer Standards and Training Council shall find that the
174     position requires the employee to:
175          (i) except for a dispatcher, place the employee's life or personal safety at risk; and
176          (ii) complete training as provided in Section 53-6-303, 53-13-103, 53-13-104, or
177     53-13-105.
178          (b) If a position satisfies the requirements of Subsection (9)(a), the office and the Peace
179     Officer Standards and Training Council shall consider whether or not the position requires the
180     employee to:
181          (i) perform duties that consist primarily of actively preventing or detecting crime and
182     enforcing criminal statutes or ordinances of this state or any of its political subdivisions;
183          (ii) perform duties that consist primarily of providing community protection; and
184          (iii) respond to situations involving threats to public safety and make emergency
185     decisions affecting the lives and health of others.
186          (10) If a subcommittee is used to recommend the determination of disputes to the
187     Peace Officer Standards and Training Council, the subcommittee shall comply with the
188     requirements of Subsection (9) in making its recommendation.
189          (11) A final order of the Peace Officer Standards and Training Council regarding a
190     dispute is a final agency action for purposes of Title 63G, Chapter 4, Administrative
191     Procedures Act.
192          (12) Except as provided under Subsection (13), if a participating employer's public
193     safety service employees are not covered by this system or under Chapter 15, Public Safety
194     Noncontributory Retirement Act, as of January 1, 1998, those public safety service employees
195     who may otherwise qualify for membership in this system shall, at the discretion of the
196     participating employer, remain in their current retirement system.
197          (13) (a) A public safety service employee employed by an airport police department,
198     which elects to cover its public safety service employees under the Public Safety
199     Noncontributory Retirement System under Subsection (12), may elect to remain in the public
200     safety service employee's current retirement system.
201          (b) The public safety service employee's election to remain in the current retirement
202     system under Subsection (13)(a):
203          (i) shall be made at the time the employer elects to move its public safety service
204     employees to a public safety retirement system;
205          (ii) documented by written notice to the participating employer; and
206          (iii) is irrevocable.
207          (14) (a) Subject to Subsection (15), beginning July 1, 2015, a public safety service
208     employee who is a dispatcher employed by:
209          (i) the state shall be eligible for service credit in this system; and
210          (ii) a participating employer other than the state shall be eligible for service credit in
211     this system if the dispatcher's participating employer elects to cover its dispatchers under this
212     system.
213          (b) A participating employer's election to cover its dispatchers under this system under
214     Subsection (14)(a)(ii) is irrevocable and shall be documented by a resolution adopted by the
215     governing body of the participating employer in accordance with rules made by the office.
216          (c) A dispatcher's service before July 1, 2015, or before a date specified by resolution
217     of a participating employer under Subsection (14)(b), is not eligible for service credit in this
218     system.
219          [(14)] (15) Notwithstanding any other provision of this section, a person initially
220     entering employment with a participating employer on or after July 1, 2011, who does not have
221     service credit accrued before July 1, 2011, in a Tier I system or plan administered by the board,
222     may not participate in this system.
223          Section 3. Section 49-15-102 is amended to read:
224          49-15-102. Definitions.
225          As used in this chapter:
226          (1) (a) "Compensation" means the total amount of payments that are includable in
227     gross income received by a public safety service employee as base income for the regularly
228     scheduled work period. The participating employer shall establish the regularly scheduled
229     work period. Base income shall be determined prior to the deduction of any amounts the
230     public safety service employee authorizes to be deducted for salary deferral or other benefits
231     authorized by federal law.
232          (b) "Compensation" includes performance-based bonuses and cost-of-living
233     adjustments.
234          (c) "Compensation" does not include:
235          (i) overtime;
236          (ii) sick pay incentives;
237          (iii) retirement pay incentives;
238          (iv) the monetary value of remuneration paid in kind, as in a residence, use of
239     equipment or uniform, travel, or similar payments;
240          (v) a lump-sum payment or special payment covering accumulated leave; and
241          (vi) all contributions made by a participating employer under this system or under any
242     other employee benefit system or plan maintained by a participating employer for the benefit of
243     a member or participant.
244          (d) "Compensation" for purposes of this chapter may not exceed the amount allowed
245     under Internal Revenue Code Section 401(a)(17).
246          (2) "Dispatcher" means the same as that term is defined in Section 53-6-102.
247          [(2)] (3) "Final average salary" means the amount computed by averaging the highest
248     three years of annual compensation preceding retirement subject to Subsections [(2)] (3)(a) and
249     (b).
250          (a) Except as provided in Subsection [(2)] (3)(b), the percentage increase in annual
251     compensation in any one of the years used may not exceed the previous year's compensation by
252     more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power
253     of the dollar during the previous year, as measured by a United States Bureau of Labor
254     Statistics Consumer Price Index average as determined by the board.
255          (b) In cases where the participating employer provides acceptable documentation to the
256     office, the limitation in Subsection [(2)] (3)(a) may be exceeded if:
257          (i) the public safety service employee has transferred from another agency; or
258          (ii) the public safety service employee has been promoted to a new position.
259          [(3)] (4) (a) "Line-of-duty death" means a death resulting from:
260          (i) external force, violence, or disease occasioned by an act of duty as a public safety
261     service employee; or
262          (ii) strenuous activity, including a heart attack or stroke, that occurs during strenuous
263     training or another strenuous activity required as an act of duty as a public safety service
264     employee.
265          (b) "Line-of-duty death" does not include a death that:
266          (i) occurs during an activity that is required as an act of duty as a public safety service
267     employee if the activity is not a strenuous activity, including an activity that is clerical,
268     administrative, or of a nonmanual nature;
269          (ii) occurs during the commission of a crime committed by the employee;
270          (iii) the employee's intoxication or use of alcohol or drugs, whether prescribed or
271     nonprescribed, contributes to the employee's death; or
272          (iv) occurs in a manner other than as described in Subsection [(3)] (4)(a).
273          [(4)] (5) "Participating employer" means an employer which meets the participation
274     requirements of Section 49-15-201.
275          [(5)] (6) (a) "Public safety service" means employment normally requiring an average
276     of 2,080 hours of regularly scheduled employment per year rendered by a member who is a:
277          (i) law enforcement officer in accordance with Section 53-13-103;
278          (ii) correctional officer in accordance with Section 53-13-104;
279          (iii) special function officer approved in accordance with Sections 49-15-201 and
280     53-13-105; [and]
281          (iv) dispatcher who is certified in accordance with Section 53-6-303; or
282          [(iv)] (v) full-time member of the Board of Pardons and Parole created under Section
283     77-27-2.
284          (b) Except as provided under [Subsection (5)] Subsections (6)(a)(iv) and (v), "public
285     safety service" also requires that in the course of employment the employee's life or personal
286     safety is at risk.
287          [(6)] (7) "Public safety service employee" means an employee of a participating
288     employer who performs public safety service under this chapter.
289          [(7)] (8) (a) "Strenuous activity" means engagement involving a difficult, stressful, or
290     vigorous fire suppression, rescue, hazardous material response, emergency medical service,
291     physical law enforcement, prison security, disaster relief, or other emergency response activity.
292          (b) "Strenuous activity" includes participating in a participating employer sanctioned
293     and funded training exercise that involves difficult, stressful, or vigorous physical activity.
294          [(8)] (9) "System" means the Public Safety Noncontributory Retirement System created
295     under this chapter.
296          [(9)] (10) "Years of service credit" means the number of periods, each to consist of 12
297     full months as determined by the board, whether consecutive or not, during which a public
298     safety service employee was employed by a participating employer, including time the public
299     safety service employee was absent in the service of the United States government on military
300     duty.
301          Section 4. Section 49-15-201 is amended to read:
302          49-15-201. System membership -- Eligibility.
303          (1) (a) A public safety service employee employed by the state after July 1, 1989, but
304     before July 1, 2011, is eligible for service credit in this system.
305          (b) A public safety service employee employed by the state prior to July 1, 1989, may
306     either elect to receive service credit in this system or continue to receive service credit under
307     the system established under Chapter 14, Public Safety Contributory Retirement Act, by
308     following the procedures established by the board under this chapter.
309          (2) (a) Public safety service employees of a participating employer other than the state
310     that elected on or before July 1, 1989, to remain in the Public Safety Contributory Retirement
311     System shall be eligible only for service credit in that system.
312          (b) (i) A participating employer other than the state that elected on or before July 1,
313     1989, to participate in this system shall, have allowed, prior to July 1, 1989, a public safety
314     service employee to elect to participate in either this system or the Public Safety Contributory
315     Retirement System.
316          (ii) Except as expressly allowed by this title, the election of the public safety service
317     employee is final and may not be changed.
318          (c) A public safety service employee hired by a participating employer other than the
319     state after July 1, 1989, but before July 1, 2011, shall become a member in this system.
320          (d) A public safety service employee of a participating employer other than the state
321     who began participation in this system after July 1, 1989, but before July 1, 2011, is only
322     eligible for service credit in this system.
323          (e) A person initially entering employment with a participating employer on or after
324     July 1, 2011, who does not have service credit accrued before July 1, 2011, in a Tier I system
325     or plan administered by the board, may not participate in this system.
326          (3) (a) (i) A participating employer that has public safety service and firefighter service
327     employees that require cross-training and duty shall enroll those dual purpose employees in the
328     system in which the greatest amount of time is actually worked.
329          (ii) The employees shall either be full-time public safety service or full-time firefighter
330     service employees of the participating employer.
331          (b) (i) Prior to transferring a dual purpose employee from one system to another, the
332     participating employer shall receive written permission from the office.
333          (ii) The office may request documentation to verify the appropriateness of the transfer.
334          (4) The board may combine or segregate the actuarial experience of participating
335     employers in this system for the purpose of setting contribution rates.
336          (5) (a) (i) Each participating employer participating in this system shall annually
337     submit to the office a schedule indicating the positions to be covered under this system in
338     accordance with this chapter.
339          (ii) The office may require documentation to justify the inclusion of any position under
340     this system.
341          (b) If there is a dispute between the office and a participating employer or employee
342     over any position to be covered, the disputed position shall be submitted to the Peace Officer
343     Standards and Training Council established under Section 53-6-106 for determination.
344          (c) (i) The Peace Officer Standards and Training Council's authority to decide
345     eligibility for public safety service credit is limited to claims for coverage under this system for
346     time periods after July 1, 1989.
347          (ii) A decision of the Peace Officer Standards and Training Council may not be applied
348     to service credit earned in another system prior to July 1, 1989.
349          (iii) Except as provided under Subsection (5)(c)(iv), a decision of the Peace Officer
350     Standards and Training Council granting a position coverage under this system may only be
351     applied prospectively from the date of that decision.
352          (iv) A decision of the Peace Officer Standards and Training Council granting a position
353     coverage under this system may be applied retroactively only if:
354          (A) the participating employer covered other similarly situated positions under this
355     system during the time period in question; and
356          (B) the position otherwise meets all eligibility requirements for receiving service credit
357     in this system during the period for which service credit is to be granted.
358          (6) The Peace Officer Standards and Training Council may use a subcommittee to
359     provide a recommendation to the council in determining disputes between the office and a
360     participating employer or employee over a position to be covered under this system.
361          (7) The Peace Officer Standards and Training Council shall comply with Title 63G,
362     Chapter 4, Administrative Procedures Act, in resolving coverage disputes in this system.
363          (8) A public safety service employee who is transferred or promoted to an
364     administration position not covered by this system shall continue to earn public safety service
365     credit in this system as long as the employee remains employed in the same department.
366          (9) Any employee who is reassigned to the Department of Technology Services or to
367     the Department of Human Resource Management, and who was a member in this system, shall
368     be entitled to remain a member in this system.
369          (10) (a) To determine that a position is covered under this system, the office and, if a
370     coverage dispute arises, the Peace Officer Standards and Training Council shall find that the
371     position requires the employee to:
372          (i) except for a dispatcher, place the employee's life or personal safety at risk; and
373          (ii) complete training as provided in Section 53-6-303, 53-13-103, 53-13-104, or
374     53-13-105.
375          (b) If a position satisfies the requirements of Subsection (10)(a), the office and Peace
376     Officer Standards and Training Council shall consider whether the position requires the
377     employee to:
378          (i) perform duties that consist primarily of actively preventing or detecting crime and
379     enforcing criminal statutes or ordinances of this state or any of its political subdivisions;
380          (ii) perform duties that consist primarily of providing community protection; and
381          (iii) respond to situations involving threats to public safety and make emergency
382     decisions affecting the lives and health of others.
383          (11) If a subcommittee is used to recommend the determination of disputes to the
384     Peace Officer Standards and Training Council, the subcommittee shall comply with the
385     requirements of Subsection (10) in making its recommendation.
386          (12) A final order of the Peace Officer Standards and Training Council regarding a
387     dispute is a final agency action for purposes of Title 63G, Chapter 4, Administrative
388     Procedures Act.
389          (13) Except as provided under Subsection (14), if a participating employer's public
390     safety service employees are not covered by this system or under Chapter 14, Public Safety
391     Contributory Retirement Act, as of January 1, 1998, those public safety service employees who
392     may otherwise qualify for membership in this system shall, at the discretion of the participating
393     employer, remain in their current retirement system.
394          (14) (a) A public safety service employee employed by an airport police department,
395     which elects to cover its public safety service employees under the Public Safety
396     Noncontributory Retirement System under Subsection (13), may elect to remain in the public
397     safety service employee's current retirement system.
398          (b) The public safety service employee's election to remain in the current retirement
399     system under Subsection (14)(a):
400          (i) shall be made at the time the employer elects to move its public safety service
401     employees to a public safety retirement system;
402          (ii) documented by written notice to the participating employer; and
403          (iii) is irrevocable.
404          (15) (a) Subject to Subsection (16), beginning July 1, 2015, a public safety service
405     employee who is a dispatcher employed by:
406          (i) the state shall be eligible for service credit in this system; and
407          (ii) a participating employer other than the state shall be eligible for service credit in
408     this system if the dispatcher's participating employer elects to cover its dispatchers under this
409     system.
410          (b) A participating employer's election to cover its dispatchers under this system under
411     Subsection (15)(a)(ii) is irrevocable and shall be documented by a resolution adopted by the
412     governing body of the participating employer in accordance with rules made by the office.
413          (c) A dispatcher's service before July 1, 2015, or before a date specified by resolution
414     of a participating employer under Subsection (15)(b), is not eligible for service credit in this
415     system.
416          [(15)] (16) Notwithstanding any other provision of this section, a person initially
417     entering employment with a participating employer on or after July 1, 2011, who does not have
418     service credit accrued before July 1, 2011, in a Tier I system or plan administered by the board,
419     may not participate in this system.
420          Section 5. Section 49-23-102 is amended to read:
421          49-23-102. Definitions.
422          As used in this chapter:
423          (1) (a) "Compensation" means the total amount of payments that are includable in
424     gross income received by a public safety service employee or a firefighter service employee as
425     base income for the regularly scheduled work period. The participating employer shall
426     establish the regularly scheduled work period. Base income shall be determined prior to the
427     deduction of any amounts the public safety service employee or firefighter service employee
428     authorizes to be deducted for salary deferral or other benefits authorized by federal law.
429          (b) "Compensation" includes performance-based bonuses and cost-of-living
430     adjustments.
431          (c) "Compensation" does not include:
432          (i) overtime;
433          (ii) sick pay incentives;
434          (iii) retirement pay incentives;
435          (iv) the monetary value of remuneration paid in kind, as in a residence, use of
436     equipment or uniform, travel, or similar payments;
437          (v) a lump-sum payment or special payment covering accumulated leave; and
438          (vi) all contributions made by a participating employer under this system or under any
439     other employee benefit system or plan maintained by a participating employer for the benefit of
440     a member or participant.
441          (d) "Compensation" for purposes of this chapter may not exceed the amount allowed
442     under Internal Revenue Code Section 401(a)(17).
443          (2) "Corresponding Tier I system" means the system or plan that would have covered
444     the member if the member had initially entered employment before July 1, 2011.
445          (3) "Dispatcher" means the same as that term is defined in Section 53-6-102.
446          [(3)] (4) "Final average salary" means the amount computed by averaging the highest
447     five years of annual compensation preceding retirement subject to Subsections [(3)] (4)(a), (b),
448     (c), and (d).
449          (a) Except as provided in Subsection [(3)] (4)(b), the percentage increase in annual
450     compensation in any one of the years used may not exceed the previous year's compensation by
451     more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power
452     of the dollar during the previous year, as measured by a United States Bureau of Labor
453     Statistics Consumer Price Index average as determined by the board.
454          (b) In cases where the participating employer provides acceptable documentation to the
455     office, the limitation in Subsection [(3)] (4)(a) may be exceeded if:
456          (i) the member has transferred from another agency; or
457          (ii) the member has been promoted to a new position.
458          (c) If the member retires more than six months from the date of termination of
459     employment, the member is considered to have been in service at the member's last rate of pay
460     from the date of the termination of employment to the effective date of retirement for purposes
461     of computing the member's final average salary only.
462          (d) If the member has less than five years of service credit in this system, final average
463     salary means the average annual compensation paid to the member during the full period of
464     service credit.
465          [(4)] (5) "Firefighter service" means employment normally requiring an average of
466     2,080 hours of regularly scheduled employment per year rendered by a member who is a
467     firefighter service employee trained in firefighter techniques and assigned to a position of
468     hazardous duty with a regularly constituted fire department, but does not include secretarial
469     staff or other similar employees.
470          [(5)] (6) "Firefighter service employee" means an employee of a participating employer
471     who provides firefighter service under this chapter. An employee of a regularly constituted fire
472     department who does not perform firefighter service is not a firefighter service employee.
473          [(6)] (7) (a) "Line-of-duty death" means a death resulting from:
474          (i) external force, violence, or disease occasioned by an act of duty as a public safety
475     service or firefighter service employee; or
476          (ii) strenuous activity, including a heart attack or stroke, that occurs during strenuous
477     training or another strenuous activity required as an act of duty as a public safety service or
478     firefighter service employee.
479          (b) "Line-of-duty death" does not include a death that:
480          (i) occurs during an activity that is required as an act of duty as a public safety service
481     or firefighter service employee if the activity is not a strenuous activity, including an activity
482     that is clerical, administrative, or of a nonmanual nature;
483          (ii) occurs during the commission of a crime committed by the employee;
484          (iii) the employee's intoxication or use of alcohol or drugs, whether prescribed or
485     nonprescribed, contributes to the employee's death; or
486          (iv) occurs in a manner other than as described in Subsection [(6)] (7)(a).
487          [(7)] (8) "Participating employer" means an employer which meets the participation
488     requirements of:
489          (a) Sections 49-14-201 and 49-14-202;
490          (b) Sections 49-15-201 and 49-15-202;
491          (c) Sections 49-16-201 and 49-16-202; or
492          (d) Sections 49-23-201 and 49-23-202.
493          [(8)] (9) (a) "Public safety service" means employment normally requiring an average
494     of 2,080 hours of regularly scheduled employment per year rendered by a member who is a:
495          (i) law enforcement officer in accordance with Section 53-13-103;
496          (ii) correctional officer in accordance with Section 53-13-104;
497          (iii) special function officer approved in accordance with Sections 49-15-201 and
498     53-13-105; [and]
499          (iv) dispatcher who is certified in accordance with Section 53-6-303; and
500          [(iv)] (v) full-time member of the Board of Pardons and Parole created under Section
501     77-27-2.
502          (b) Except as provided under [Subsection (8)] Subsections (9)(a)(iv) and (v), "public
503     safety service" also requires that in the course of employment the employee's life or personal
504     safety is at risk.
505          [(9)] (10) "Public safety service employee" means an employee of a participating
506     employer who performs public safety service under this chapter.
507          [(10)] (11) (a) "Strenuous activity" means engagement involving a difficult, stressful,
508     or vigorous fire suppression, rescue, hazardous material response, emergency medical service,
509     physical law enforcement, prison security, disaster relief, or other emergency response activity.
510          (b) "Strenuous activity" includes participating in a participating employer sanctioned
511     and funded training exercise that involves difficult, stressful, or vigorous physical activity.
512          [(11)] (12) "System" means the New Public Safety and Firefighter Tier II Contributory
513     Retirement System created under this chapter.
514          [(12)] (13) (a) "Volunteer firefighter" means any individual that is not regularly
515     employed as a firefighter service employee, but who:
516          (i) has been trained in firefighter techniques and skills;
517          (ii) continues to receive regular firefighter training; and
518          (iii) is on the rolls of a legally organized volunteer fire department which provides
519     ongoing training and serves a political subdivision of the state.
520          (b) An individual that volunteers assistance but does not meet the requirements of
521     Subsection [(12)] (13)(a) is not a volunteer firefighter for purposes of this chapter.
522          [(13)] (14) "Years of service credit" means:
523          (a) a period, consisting of 12 full months as determined by the board; or
524          (b) a period determined by the board, whether consecutive or not, during which a
525     regular full-time employee performed services for a participating employer, including any time
526     the regular full-time employee was absent on a paid leave of absence granted by a participating
527     employer or was absent in the service of the United States government on military duty as
528     provided by this chapter.
529          Section 6. Section 49-23-201 is amended to read:
530          49-23-201. System membership -- Eligibility.
531          (1) Beginning July 1, 2011, a participating employer that employs public safety service
532     employees or firefighter service employees shall participate in this system.
533          (2) (a) A public safety service employee or a firefighter service employee initially
534     entering employment with a participating employer on or after July 1, 2011, who does not have
535     service credit accrued before July 1, 2011, in a Tier I system or plan administered by the board,
536     is eligible:
537          (i) as a member for service credit and defined contributions under the Tier II hybrid
538     retirement system established by Part 3, Tier II Hybrid Retirement System; or
539          (ii) as a participant for defined contributions under the Tier II defined contributions
540     plan established by Part 4, Tier II Defined Contribution Plan.
541          (b) A public safety service employee or a firefighter service employee initially entering
542     employment with a participating employer on or after July 1, 2011, shall:
543          (i) make an election to participate in the system created under this chapter within 30
544     days from the date of eligibility for accrual of benefits:
545          (A) as a member for service credit and defined contributions under the Tier II hybrid
546     retirement system established by Part 3, Tier II Hybrid Retirement System; or
547          (B) as a participant for defined contributions under the Tier II defined contribution plan
548     established by Part 4, Tier II Defined Contribution Plan; and
549          (ii) electronically submit to the office notification of the member's election under
550     Subsection (2)(b)(i) in a manner approved by the office.
551          (c) An election made by a public safety service employee or firefighter service
552     employee initially entering employment with a participating employer under this Subsection (2)
553     is irrevocable beginning one year from the date of eligibility for accrual of benefits.
554          (d) If no election is made under Subsection (2)(b)(i), the public safety service employee
555     or firefighter service employee shall become a member eligible for service credit and defined
556     contributions under the Tier II hybrid retirement system established by Part 3, Tier II Hybrid
557     Retirement System.
558          (3) (a) Beginning July 1, 2015, a public safety service employee who is a dispatcher
559     employed by:
560          (i) the state shall be eligible for service credit in this system; and
561          (ii) a participating employer other than the state shall be eligible for service credit in
562     this system if the dispatcher's participating employer elects to cover its dispatchers under this
563     system.
564          (b) A participating employer's election to cover its dispatchers under this system under
565     Subsection (3)(a)(ii) is irrevocable and shall be documented by a resolution adopted by the
566     governing body of the participating employer in accordance with rules made by the office.
567          (c) A dispatcher's service before July 1, 2015, or before a date specified by resolution
568     of a participating employer under Subsection (3)(b), is not eligible for service credit in this
569     system.
570          Section 7. Section 49-23-503 is amended to read:
571          49-23-503. Death of active member in line of duty -- Payment of benefits.
572          If an active member of this system dies, benefits are payable as follows:
573          (1) If the death is classified by the office as a line-of-duty death, benefits are payable as
574     follows:
575          (a) If the member has accrued less than 20 years of public safety service or firefighter
576     service credit, the spouse at the time of death shall receive a lump sum of $1,000 and an
577     allowance equal to 30% of the member's final average monthly salary.
578          (b) If the member has accrued 20 or more years of public safety service or firefighter
579     service credit, the member shall be considered to have retired with an Option One allowance
580     calculated without an actuarial reduction under Section 49-23-304 and the spouse at the time of
581     death shall receive the allowance that would have been payable to the member.
582          (2) (a) A volunteer firefighter is eligible for a line-of-duty death benefit under this
583     section if the death results from external force, violence, or disease directly resulting from
584     firefighter service.
585          (b) The lowest monthly compensation of firefighters of a city of the first class in this
586     state at the time of death shall be considered to be the final average monthly salary of a
587     volunteer firefighter for purposes of computing these benefits.
588          (c) Each volunteer fire department shall maintain a current roll of all volunteer
589     firefighters which meet the requirements of Subsection 49-23-102[(12)](13) to determine the
590     eligibility for this benefit.
591          (3) (a) If the death is classified as a line-of-duty death by the office, death benefits are
592     payable under this section and the spouse at the time of death is not eligible for benefits under
593     Section 49-23-502.
594          (b) If the death is not classified as a line-of-duty death by the office, benefits are
595     payable in accordance with Section 49-23-502.
596          (4) (a) A spouse who qualifies for a monthly benefit under this section shall apply in
597     writing to the office.
598          (b) The allowance shall begin on the first day of the month following the month in
599     which the:
600          (i) member or participant died, if the application is received by the office within 90
601     days of the date of death of the member or participant; or
602          (ii) application is received by the office, if the application is received by the office
603     more than 90 days after the date of death of the member or participant.
604          Section 8. Effective date.
605          This bill takes effect on July 1, 2015.