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     Committee Note:
9          The Retirement and Independent Entities Interim Committee recommended this bill.
10     General Description:
11          This bill modifies the Utah State Personnel Management Act by amending provisions
12     related to state employee benefits.
13     Highlighted Provisions:
14          This bill:
15          ▸     defines terms;
16          ▸     allows a state employee to make the matching deposit into a deemed IRA, 401(k)
17     plan, or other similar savings plan in order to qualify for the employee matching
18     deposit under the state employee matching supplemental benefit; and
19          ▸     makes technical corrections.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          67-19-43, as last amended by Laws of Utah 2014, Chapter 15
27     

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




Legislative Review Note
     as of 7-28-14 8:35 AM

Office of Legislative Research and General Counsel