1     
POSTRETIREMENT EMPLOYMENT AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lyle W. Hillyard

5     
House Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
10     provisions for postretirement reemployment.
11     Highlighted Provisions:
12          This bill:
13          ▸     provides that "reemployment" does not include work performed on contracts of less
14     than a certain duration;
15          ▸     exempts from postretirement employment restrictions, part-time employment with a
16     different agency from which the member retired, if the employee has been
17     continuously employed in the part-time position for a certain period before the
18     member's retirement date;
19          ▸     exempts a member in the Public Employees' Contributory Retirement System, the
20     Public Employees' Noncontributory Retirement System, the Public Safety
21     Contributory Retirement System, the Public Safety Noncontributory Retirement
22     System, the Firefighters' Retirement System, the New Public Employees' Tier II
23     Contributory Retirement System, and the New Public Safety and Firefighters Tier II
24     Contributory Retirement System from ceasing all employment with any
25     participating employer if the member is also a part-time employee of a different
26     agency and has been continuously employed in the part-time position for a certain
27     period before the member's retirement date; and

28          ▸     makes technical changes.
29     Money Appropriated in this Bill:
30          None
31     Other Special Clauses:
32          None
33     Utah Code Sections Affected:
34     AMENDS:
35          49-11-102, as last amended by Laws of Utah 2014, Chapter 15
36          49-11-505, as last amended by Laws of Utah 2014, Chapters 15, 175, and 311
37          49-12-401, as last amended by Laws of Utah 2014, Chapter 15
38          49-13-401, as last amended by Laws of Utah 2014, Chapter 15
39          49-14-401, as last amended by Laws of Utah 2014, Chapter 15
40          49-15-401, as last amended by Laws of Utah 2014, Chapter 15
41          49-16-401, as last amended by Laws of Utah 2014, Chapter 15
42          49-22-304, as last amended by Laws of Utah 2014, Chapter 15
43          49-23-303, as last amended by Laws of Utah 2014, Chapter 15
44     

45     Be it enacted by the Legislature of the state of Utah:
46          Section 1. Section 49-11-102 is amended to read:
47          49-11-102. Definitions.
48          As used in this title:
49          (1) (a) "Active member" means a member who:
50          (i) is employed by a participating employer and accruing service credit; or
51          (ii) within the previous 120 days:
52          (A) has been employed by a participating employer; and
53          (B) accrued service credit.
54          (b) "Active member" does not include a retiree.
55          (2) "Actuarial equivalent" means a benefit of equal value when computed upon the
56     basis of mortality tables as recommended by the actuary and adopted by the executive director,
57     including regular interest.
58          (3) "Actuarial interest rate" means the interest rate as recommended by the actuary and

59     adopted by the board upon which the funding of system costs and benefits are computed.
60          (4) (a) "Agency" means:
61          (i) a department, division, agency, office, authority, commission, board, institution, or
62     hospital of the state;
63          (ii) a county, municipality, school district, local district, or special service district;
64          (iii) a state college or university; or
65          (iv) any other participating employer.
66          (b) "Agency" does not include an entity listed under Subsection (4)(a)(i) that is a
67     subdivision of another entity listed under Subsection (4)(a).
68          (5) "Allowance" or "retirement allowance" means the pension plus the annuity,
69     including any cost of living or other authorized adjustments to the pension and annuity.
70          (6) "Alternate payee" means a member's former spouse or family member eligible to
71     receive payments under a Domestic Relations Order in compliance with Section 49-11-612.
72          (7) "Amortization rate" means the board certified percent of salary required to amortize
73     the unfunded actuarial accrued liability in accordance with policies established by the board
74     upon the advice of the actuary.
75          (8) "Annuity" means monthly payments derived from member contributions.
76          (9) "Appointive officer" means an employee appointed to a position for a definite and
77     fixed term of office by official and duly recorded action of a participating employer whose
78     appointed position is designated in the participating employer's charter, creation document, or
79     similar document, and:
80          (a) who earns $500 or more per month, indexed as of January 1, 1990, as provided in
81     Section 49-12-407 for a Tier I appointive officer; and
82          (b) whose appointive position is full-time as certified by the participating employer for
83     a Tier II appointive officer.
84          (10) (a) "At-will employee" means a person who is employed by a participating
85     employer and:
86          (i) who is not entitled to merit or civil service protection and is generally considered
87     exempt from a participating employer's merit or career service personnel systems;
88          (ii) whose on-going employment status is entirely at the discretion of the person's
89     employer; or

90          (iii) who may be terminated without cause by a designated supervisor, manager, or
91     director.
92          (b) "At-will employee" does not include a career employee who has obtained a
93     reasonable expectation of continued employment based on inclusion in a participating
94     employer's merit system, civil service protection system, or career service personnel systems,
95     policies, or plans.
96          (11) "Beneficiary" means any person entitled to receive a payment under this title
97     through a relationship with or designated by a member, participant, covered individual, or
98     alternate payee of a defined contribution plan.
99          (12) "Board" means the Utah State Retirement Board established under Section
100     49-11-202.
101          (13) "Board member" means a person serving on the Utah State Retirement Board as
102     established under Section 49-11-202.
103          (14) "Certified contribution rate" means the board certified percent of salary paid on
104     behalf of an active member to the office to maintain the system on a financially and actuarially
105     sound basis.
106          (15) "Contributions" means the total amount paid by the participating employer and the
107     member into a system or to the Utah Governors' and Legislators' Retirement Plan under
108     Chapter 19, Utah Governors' and Legislators' Retirement Act.
109          (16) "Council member" means a person serving on the Membership Council
110     established under Section 49-11-202.
111          (17) "Covered individual" means any individual covered under Chapter 20, Public
112     Employees' Benefit and Insurance Program Act.
113          (18) "Current service" means covered service under:
114          (a) Chapter 12, Public Employees' Contributory Retirement Act;
115          (b) Chapter 13, Public Employees' Noncontributory Retirement Act;
116          (c) Chapter 14, Public Safety Contributory Retirement Act;
117          (d) Chapter 15, Public Safety Noncontributory Retirement Act;
118          (e) Chapter 16, Firefighters' Retirement Act;
119          (f) Chapter 17, Judges' Contributory Retirement Act;
120          (g) Chapter 18, Judges' Noncontributory Retirement Act;

121          (h) Chapter 19, Utah Governors' and Legislators' Retirement Act;
122          (i) Chapter 22, New Public Employees' Tier II Contributory Retirement Act; or
123          (j) Chapter 23, New Public Safety and Firefighter Tier II Contributory Retirement Act.
124          (19) "Defined benefit" or "defined benefit plan" or "defined benefit system" means a
125     system or plan offered under this title to provide a specified allowance to a retiree or a retiree's
126     spouse after retirement that is based on a set formula involving one or more of the following
127     factors:
128          (a) years of service;
129          (b) final average monthly salary; or
130          (c) a retirement multiplier.
131          (20) "Defined contribution" or "defined contribution plan" means any defined
132     contribution plan or deferred compensation plan authorized under the Internal Revenue Code
133     and administered by the board.
134          (21) "Educational institution" means a political subdivision or instrumentality of the
135     state or a combination thereof primarily engaged in educational activities or the administration
136     or servicing of educational activities, including:
137          (a) the State Board of Education and its instrumentalities;
138          (b) any institution of higher education and its branches;
139          (c) any school district and its instrumentalities;
140          (d) any vocational and technical school; and
141          (e) any entity arising out of a consolidation agreement between entities described under
142     this Subsection (21).
143          (22) "Elected official":
144          (a) means a person elected to a state office, county office, municipal office, school
145     board or school district office, local district office, or special service district office;
146          (b) includes a person who is appointed to serve an unexpired term of office described
147     under Subsection (22)(a); and
148          (c) does not include a judge or justice who is subject to a retention election under
149     Section 20A-12-201.
150          (23) (a) "Employer" means any department, educational institution, or political
151     subdivision of the state eligible to participate in a government-sponsored retirement system

152     under federal law.
153          (b) "Employer" may also include an agency financed in whole or in part by public
154     funds.
155          (24) "Exempt employee" means an employee working for a participating employer:
156          (a) who is not eligible for service credit under Section 49-12-203, 49-13-203,
157     49-14-203, 49-15-203, or 49-16-203; and
158          (b) for whom a participating employer is not required to pay contributions or
159     nonelective contributions.
160          (25) "Final average monthly salary" means the amount computed by dividing the
161     compensation received during the final average salary period under each system by the number
162     of months in the final average salary period.
163          (26) "Fund" means any fund created under this title for the purpose of paying benefits
164     or costs of administering a system, plan, or program.
165          (27) (a) "Inactive member" means a member who has not been employed by a
166     participating employer for a period of at least 120 days.
167          (b) "Inactive member" does not include retirees.
168          (28) (a) "Initially entering" means hired, appointed, or elected for the first time, in
169     current service as a member with any participating employer.
170          (b) "Initially entering" does not include a person who has any prior service credit on
171     file with the office.
172          (c) "Initially entering" includes an employee of a participating employer, except for an
173     employee that is not eligible under a system or plan under this title, who:
174          (i) does not have any prior service credit on file with the office;
175          (ii) is covered by a retirement plan other than a retirement plan created under this title;
176     and
177          (iii) moves to a position with a participating employer that is covered by this title.
178          (29) "Institution of higher education" means an institution described in Section
179     53B-1-102.
180          (30) (a) "Member" means a person, except a retiree, with contributions on deposit with
181     a system, the Utah Governors' and Legislators' Retirement Plan under Chapter 19, Utah
182     Governors' and Legislators' Retirement Act, or with a terminated system.

183          (b) "Member" also includes leased employees within the meaning of Section 414(n)(2)
184     of the Internal Revenue Code, if the employees have contributions on deposit with the office.
185     If leased employees constitute less than 20% of the participating employer's work force that is
186     not highly compensated within the meaning of Section 414(n)(5)(c)(ii), Internal Revenue Code,
187     "member" does not include leased employees covered by a plan described in Section 414(n)(5)
188     of the federal Internal Revenue Code.
189          (31) "Member contributions" means the sum of the contributions paid to a system or
190     the Utah Governors' and Legislators' Retirement Plan, including refund interest if allowed by a
191     system, and which are made by:
192          (a) the member; and
193          (b) the participating employer on the member's behalf under Section 414(h) of the
194     Internal Revenue Code.
195          (32) "Nonelective contribution" means an amount contributed by a participating
196     employer into a participant's defined contribution account.
197          (33) "Normal cost rate":
198          (a) means the percent of salary that is necessary for a retirement system that is fully
199     funded to maintain its fully funded status; and
200          (b) is determined by the actuary based on the assumed rate of return established by the
201     board.
202          (34) "Office" means the Utah State Retirement Office.
203          (35) "Participant" means an individual with voluntary deferrals or nonelective
204     contributions on deposit with the defined contribution plans administered under this title.
205          (36) "Participating employer" means a participating employer, as defined by Chapter
206     12, Public Employees' Contributory Retirement Act, Chapter 13, Public Employees'
207     Noncontributory Retirement Act, Chapter 14, Public Safety Contributory Retirement Act,
208     Chapter 15, Public Safety Noncontributory Retirement Act, Chapter 16, Firefighters'
209     Retirement Act, Chapter 17, Judges' Contributory Retirement Act, and Chapter 18, Judges'
210     Noncontributory Retirement Act, or an agency financed in whole or in part by public funds
211     which is participating in a system or plan as of January 1, 2002.
212          (37) "Part-time appointed board member" means a person:
213          (a) who is appointed to serve as a member of a board, commission, council, committee,

214     or panel of a participating employer; and
215          (b) whose service as a part-time appointed board member does not qualify as a regular
216     full-time employee as defined under Section 49-12-102, 49-13-102, or 49-22-102.
217          (38) "Pension" means monthly payments derived from participating employer
218     contributions.
219          (39) "Plan" means the Utah Governors' and Legislators' Retirement Plan created by
220     Chapter 19, Utah Governors' and Legislators' Retirement Act, the New Public Employees' Tier
221     II Defined Contribution Plan created by Chapter 22, Part 4, Tier II Defined Contribution Plan,
222     the New Public Safety and Firefighter Tier II Defined Contribution Plan created by Chapter 23,
223     Part 4, Tier II Defined Contribution Plan, or the defined contribution plans created under
224     Section 49-11-801.
225          (40) (a) "Political subdivision" means any local government entity, including cities,
226     towns, counties, and school districts, but only if the subdivision is a juristic entity that is legally
227     separate and distinct from the state and only if its employees are not by virtue of their
228     relationship to the entity employees of the state.
229          (b) "Political subdivision" includes local districts, special service districts, or
230     authorities created by the Legislature or by local governments, including the office.
231          (c) "Political subdivision" does not include a project entity created under Title 11,
232     Chapter 13, Interlocal Cooperation Act, that was formed prior to July 1, 1987.
233          (41) "Program" means the Public Employees' Insurance Program created under Chapter
234     20, Public Employees' Benefit and Insurance Program Act, or the Public Employees'
235     Long-Term Disability program created under Chapter 21, Public Employees' Long-Term
236     Disability Act.
237          (42) "Public funds" means those funds derived, either directly or indirectly, from public
238     taxes or public revenue, dues or contributions paid or donated by the membership of the
239     organization, used to finance an activity whose objective is to improve, on a nonprofit basis,
240     the governmental, educational, and social programs and systems of the state or its political
241     subdivisions.
242          (43) "Qualified defined contribution plan" means a defined contribution plan that
243     meets the requirements of Section 401(k) or Section 403(b) of the Internal Revenue Code.
244          (44) (a) "Reemployed," "reemploy," or "reemployment" means work or service

245     performed for a participating employer after retirement, in exchange for compensation.
246          (b) [Reemployment] Except as provided in Subsection (44)(c), reemployment includes
247     work or service performed on a contract for a participating employer if the retiree is:
248          (i) listed as the contractor; or
249          (ii) an owner, partner, or principal of the contractor.
250          (c) Reemployment does not include work or service performed on a contract for a
251     period of less than 60 working days in a calendar year.
252          (45) "Refund interest" means the amount accrued on member contributions at a rate
253     adopted by the board.
254          (46) "Retiree" means an individual who has qualified for an allowance under this title.
255          (47) "Retirement" means the status of an individual who has become eligible, applies
256     for, and is entitled to receive an allowance under this title.
257          (48) "Retirement date" means the date selected by the member on which the member's
258     retirement becomes effective with the office.
259          (49) "Retirement related contribution":
260          (a) means any employer payment to any type of retirement plan or program made on
261     behalf of an employee; and
262          (b) does not include Social Security payments or Social Security substitute payments
263     made on behalf of an employee.
264          (50) "Service credit" means:
265          (a) the period during which an employee is employed and compensated by a
266     participating employer and meets the eligibility requirements for membership in a system or the
267     Utah Governors' and Legislators' Retirement Plan, provided that any required contributions are
268     paid to the office; and
269          (b) periods of time otherwise purchasable under this title.
270          (51) "System" means the individual retirement systems created by Chapter 12, Public
271     Employees' Contributory Retirement Act, Chapter 13, Public Employees' Noncontributory
272     Retirement Act, Chapter 14, Public Safety Contributory Retirement Act, Chapter 15, Public
273     Safety Noncontributory Retirement Act, Chapter 16, Firefighters' Retirement Act, Chapter 17,
274     Judges' Contributory Retirement Act, Chapter 18, Judges' Noncontributory Retirement Act, and
275     Chapter 19, Utah Governors' and Legislators' Retirement Act, the defined benefit portion of the

276     Tier II Hybrid Retirement System under Chapter 22, Part 3, Tier II Hybrid Retirement System,
277     and the defined benefit portion of the Tier II Hybrid Retirement System under Chapter 23, Part
278     3, Tier II Hybrid Retirement System.
279          (52) "Tier I" means a system or plan under this title for which:
280          (a) an employee is eligible to participate if the employee initially enters regular
281     full-time employment before July 1, 2011; or
282          (b) a governor or legislator who initially enters office before July 1, 2011.
283          (53) (a) "Tier II" means a system or plan under this title provided in lieu of a Tier I
284     system or plan for an employee, governor, legislator, or full-time elected official who does not
285     have Tier I service credit in a system or plan under this title:
286          (i) if the employee initially enters regular full-time employment on or after July 1,
287     2011; or
288          (ii) if the governor, legislator, or full-time elected official initially enters office on or
289     after July 1, 2011.
290          (b) "Tier II" includes:
291          (i) the Tier II hybrid system established under:
292          (A) Chapter 22, Part 3, Tier II Hybrid Retirement System; or
293          (B) Chapter 23, Part 3, Tier II Hybrid Retirement System; and
294          (ii) the Tier II Defined Contribution Plan (Tier II DC Plan) established under:
295          (A) Chapter 22, Part 4, Tier II Defined Contribution Plan; or
296          (B) Chapter 23, Part 4, Tier II Defined Contribution Plan.
297          (54) "Unfunded actuarial accrued liability" or "UAAL":
298          (a) is determined by the system's actuary; and
299          (b) means the excess, if any, of the accrued liability of a retirement system over the
300     actuarial value of its assets.
301          (55) "Voluntary deferrals" means an amount contributed by a participant into that
302     participant's defined contribution account.
303          Section 2. Section 49-11-505 is amended to read:
304          49-11-505. Reemployment of a retiree -- Restrictions.
305          (1) (a) For purposes of this section, "retiree":
306          (i) means a person who:

307          (A) retired from a participating employer; and
308          (B) begins reemployment on or after July 1, 2010, with a participating employer;
309          (ii) does not include a person:
310          (A) who was reemployed by a participating employer before July 1, 2010; and
311          (B) whose participating employer that reemployed the person under Subsection
312     (1)(a)(ii)(A) was dissolved, consolidated, merged, or structurally changed in accordance with
313     Section 49-11-621 after July 1, 2010; and
314          (iii) does not include a person who is reemployed as an active senior judge or an active
315     senior justice court judge as described by Utah State Court Rules, appointed to hear cases by
316     the Utah Supreme Court in accordance with Article VIII, Section 4, Utah Constitution.
317          (b) (i) This section does not apply to employment as an elected official if the elected
318     official's position is not full time as certified by the participating employer.
319          (ii) The provisions of this section apply to an elected official whose elected position is
320     full time as certified by the participating employer.
321          (c) (i) This section does not apply to employment as a part-time appointed board
322     member who does not receive any remuneration, stipend, or other benefit for the part-time
323     appointed board member's service.
324          (ii) For purposes of this Subsection (1)(c), remuneration, stipend, or other benefit does
325     not include receipt of per diem and travel expenses up to the amounts established by the
326     Division of Finance in:
327          (A) Section 63A-3-106;
328          (B) Section 63A-3-107; and
329          (C) rules made by the Division of Finance according to Sections 63A-3-106 and
330     63A-3-107.
331          (2) A retiree may not for the same period of reemployment:
332          (a) (i) earn additional service credit; or
333          (ii) receive any retirement related contribution from a participating employer; and
334          (b) receive a retirement allowance.
335          (3) (a) Except as provided under Subsection (3)(b) [or (10)], (10), or (11), the office
336     shall cancel the retirement allowance of a retiree if the reemployment with a participating
337     employer begins within one year of the retiree's retirement date.

338          (b) The office may not cancel the retirement allowance of a retiree who is reemployed
339     with a participating employer within one year of the retiree's retirement date if:
340          (i) except under Subsection (11), the retiree is not reemployed by a participating
341     employer for a period of at least 60 days from the retiree's retirement date;
342          (ii) upon reemployment after the break in service under Subsection (3)(b)(i), the retiree
343     does not receive any employer provided benefits, including:
344          (A) medical benefits;
345          (B) dental benefits;
346          (C) other insurance benefits except for workers' compensation as provided under Title
347     34A, Chapter 2, Workers' Compensation Act, and withholdings required by federal or state law
348     for Social Security, Medicare, and unemployment insurance; or
349          (D) paid time off, including sick, annual, or other type of leave; and
350          (iii) (A) the retiree does not earn in any calendar year of reemployment an amount in
351     excess of the lesser of $15,000 or one-half of the retiree's final average salary upon which the
352     retiree's retirement allowance is based; or
353          (B) the retiree is reemployed as a judge as defined under Section 78A-11-102.
354          (c) Beginning January 1, 2013, the board shall adjust the amounts under Subsection
355     (3)(b)(iii)(A) by the annual change in the Consumer Price Index during the previous calendar
356     year as measured by a United States Bureau of Labor Statistics Consumer Price Index average
357     as determined by the board.
358          (d) The office shall cancel the retirement allowance of a retiree for the remainder of the
359     calendar year if the reemployment with a participating employer exceeds the limitation under
360     Subsection (3)(b)(iii)(A).
361          (e) If a retiree is reemployed under the provisions of Subsection (3)(b) or (11), the
362     termination date of the reemployment, as confirmed in writing by the participating employer, is
363     considered the retiree's retirement date for the purpose of calculating the separation
364     requirement under Subsection (3)(a).
365          (4) If a reemployed retiree has completed the one-year separation from employment
366     with a participating employer required under Subsection (3)(a), the retiree may elect to:
367          (a) earn additional service credit in accordance with this title and cancel the retiree's
368     retirement allowance; or

369          (b) continue to receive the retiree's retirement allowance and forfeit any retirement
370     related contribution from the participating employer who reemployed the retiree.
371          (5) A participating employer who reemploys a retiree shall contribute to the office the
372     amortization rate, as defined in Section 49-11-102, to be applied to the system that would have
373     covered the retiree, if the reemployed retiree:
374          (a) has completed the one-year separation from employment with a participating
375     employer required under Subsection (3)(a); and
376          (b) makes an election under Subsection (4)(b) to continue to receive a retirement
377     allowance while reemployed.
378          (6) (a) A participating employer shall immediately notify the office:
379          (i) if the participating employer reemploys a retiree;
380          (ii) whether the reemployment is subject to Subsection (3)(b) [or (4) of this section],
381     (4), or (11); and
382          (iii) of any election by the retiree under Subsection (4).
383          (b) A participating employer shall certify to the office whether the position of an
384     elected official is or is not full time.
385          (c) A participating employer is liable to the office for a payment or failure to make a
386     payment in violation of this section.
387          (d) If a participating employer fails to notify the office in accordance with this section,
388     the participating employer is immediately subject to a compliance audit by the office.
389          (7) (a) The office shall immediately cancel the retirement allowance of a retiree in
390     accordance with Subsection (7)(b) if the office receives notice or learns of:
391          (i) the reemployment of a retiree in violation of Subsection (3); or
392          (ii) the election of a reemployed retiree under Subsection (4)(a).
393          (b) If the retiree is eligible for retirement coverage in the reemployed position, the
394     office shall cancel the allowance of a retiree subject to Subsection (7)(a), and reinstate the
395     retiree to active member status on the first day of the month following the date of:
396          (i) reemployment if the retiree is subject to Subsection (3); or
397          (ii) an election by an employee under Subsection (4)(a).
398          (c) If the retiree is not otherwise eligible for retirement coverage in the reemployed
399     position:

400          (i) the office shall cancel the allowance of a retiree subject to Subsection (7)(a)(i); and
401          (ii) the participating employer shall pay the amortization rate to the office on behalf of
402     the retiree.
403          (8) (a) A retiree subject to Subsection (7)(b) who retires within two years from the date
404     of reemployment:
405          (i) is not entitled to a recalculated retirement benefit; and
406          (ii) will resume the allowance that was being paid at the time of cancellation.
407          (b) Subject to Subsection (2), a retiree who is reinstated to active membership under
408     Subsection (7) and who retires two or more years after the date of reinstatement to active
409     membership shall:
410          (i) resume receiving the allowance that was being paid at the time of cancellation; and
411          (ii) receive an additional allowance based on the formula in effect at the date of the
412     subsequent retirement for all service credit accrued between the first and subsequent retirement
413     dates.
414          (9) (a) A retiree subject to this section shall report to the office the status of the
415     reemployment under Subsection (3) or (4).
416          (b) If the retiree fails to inform the office of an election under Subsection (4), the office
417     shall withhold one month's benefit for each month the retiree fails to inform the office under
418     Subsection (9)(a).
419          (10) A retiree shall be considered as having completed the one-year separation from
420     employment with a participating employer required under Subsection (3)(a), if the retiree:
421          (a) before retiring:
422          (i) was employed with a participating employer as a public safety service employee as
423     defined in Section 49-14-102, 49-15-102, or 49-23-102;
424          (ii) and during the employment under Subsection (10)(a)(i), suffered a physical injury
425     resulting from external force or violence while performing the duties of the employment, and
426     for which injury the retiree would have been approved for total disability in accordance with
427     the provisions under Title 49, Chapter 21, Public Employees' Long-Term Disability Act, if
428     years of service are not considered;
429          (iii) had less than 30 years of service credit but had sufficient service credit to retire,
430     with an unreduced allowance making the public safety service employee ineligible for

431     long-term disability payments under Title 49, Chapter 21, Public Employees' Long-Term
432     Disability Act, or a substantially similar long-term disability program; and
433          (iv) does not receive any long-term disability benefits from any participating employer;
434     and
435          (b) is reemployed by a different participating employer.
436          (11) A retiree shall be considered as having completed the 60-day separation from
437     employment with a participating employer under Subsection (3)(b)(i) if the:
438          (a) employee has been continuously employed in the part-time position for a period of
439     at least three years before the member's retirement date; and
440          (b) employment is a part-time position with a different agency from which the member
441     retired.
442          [(11)] (12) The board may make rules to implement this section.
443          Section 3. Section 49-12-401 is amended to read:
444          49-12-401. Eligibility for an allowance -- Date of retirement -- Qualifications.
445          (1) A member is qualified to receive an allowance from this system when:
446          (a) except as provided under Subsection (3), the member ceases actual work for every
447     participating employer that employs the member before the member's retirement date and
448     provides evidence of the termination;
449          (b) the member has submitted to the office a retirement application form that states the
450     member's proposed retirement date; and
451          (c) one of the following conditions is met as of the member's retirement date:
452          (i) the member has accrued at least four years of service credit and has attained an age
453     of 65 years;
454          (ii) the member has accrued at least 10 years of service credit and has attained an age
455     of 62 years;
456          (iii) the member has accrued at least 20 years of service credit and has attained an age
457     of 60 years; or
458          (iv) the member has accrued at least 30 years of service credit.
459          (2) (a) The member's retirement date:
460          (i) shall be the 1st or the 16th day of the month, as selected by the member;
461          (ii) shall be on or after the date of termination; and

462          (iii) may not be more than 90 days before or after the date the application is received by
463     the office.
464          (b) Except as provided under Subsection (3), a member may not be employed by a
465     participating employer in the system established by this chapter on the retirement date selected
466     under Subsection (2)(a)(i).
467          (3) (a) A member who is employed by a participating employer and who is also an
468     elected official is not required to cease service as an elected official to be qualified to receive
469     an allowance under Subsection (1), unless the member is retiring from service as an elected
470     official.
471          (b) A member who is employed by a participating employer and who is also a part-time
472     appointed board member is not required to cease service as a part-time appointed board
473     member to be qualified to receive an allowance under Subsection (1).
474          (c) A member who is employed by a participating employer and who is also a part-time
475     employee of a different agency is not required to cease service as a part-time employee of the
476     different agency to be qualified to receive an allowance under Subsection (1), if the member
477     has been continuously employed in the part-time position for a period of at least three years
478     before the member's retirement date.
479          Section 4. Section 49-13-401 is amended to read:
480          49-13-401. Eligibility for an allowance -- Date of retirement -- Qualifications.
481          (1) A member is qualified to receive an allowance from this system when:
482          (a) except as provided under Subsection (3), the member ceases actual work for every
483     participating employer that employs the member before the member's retirement date and
484     provides evidence of the termination;
485          (b) the member has submitted to the office a retirement application form that states the
486     member's proposed retirement date; and
487          (c) one of the following conditions is met as of the member's retirement date:
488          (i) the member has accrued at least four years of service credit and has attained an age
489     of 65 years;
490          (ii) the member has accrued at least 10 years of service credit and has attained an age
491     of 62 years;
492          (iii) the member has accrued at least 20 years of service credit and has attained an age

493     of 60 years;
494          (iv) the member has accrued at least 30 years of service credit; or
495          (v) the member has accrued at least 25 years of service credit, in which case the
496     member shall be subject to the reduction under Subsection 49-13-402(2)(b).
497          (2) (a) The member's retirement date:
498          (i) shall be the 1st or the 16th day of the month, as selected by the member;
499          (ii) shall be on or after the date of termination; and
500          (iii) may not be more than 90 days before or after the date the application is received by
501     the office.
502          (b) Except as provided under Subsection (3), a member may not be employed by a
503     participating employer in the system established by this chapter on the retirement date selected
504     under Subsection (2)(a)(i).
505          (3) (a) A member who is employed by a participating employer and who is also an
506     elected official is not required to cease service as an elected official to be qualified to receive
507     an allowance under Subsection (1), unless the member is retiring from service as an elected
508     official.
509          (b) A member who is employed by a participating employer and who is also a part-time
510     appointed board member is not required to cease service as a part-time appointed board
511     member to be qualified to receive an allowance under Subsection (1).
512          (c) A member who is employed by a participating employer and who is also a part-time
513     employee of a different agency is not required to cease service as a part-time employee of the
514     different agency to be qualified to receive an allowance under Subsection (1), if the member
515     has been continuously employed in the part-time position for a period of at least three years
516     before the member's retirement date.
517          Section 5. Section 49-14-401 is amended to read:
518          49-14-401. Eligibility for service retirement -- Date of retirement --
519     Qualifications.
520          (1) A member is qualified to receive an allowance from this system when:
521          (a) except as provided under Subsection (3), the member ceases actual work for every
522     participating employer that employs the member before the member's retirement date and
523     provides evidence of the termination;

524          (b) the member has submitted to the office a retirement application form that states the
525     member's proposed retirement date; and
526          (c) one of the following conditions is met as of the member's retirement date:
527          (i) the member has accrued at least 20 years of service credit;
528          (ii) the member has accrued at least 10 years of service credit and has attained an age
529     of 60 years; or
530          (iii) the member has accrued at least four years of service credit and has attained an age
531     of 65 years.
532          (2) (a) The member's retirement date:
533          (i) shall be the 1st or the 16th day of the month, as selected by the member;
534          (ii) shall be on or after the date of termination; and
535          (iii) may not be more than 90 days before or after the date the application is received by
536     the office.
537          (b) Except as provided under Subsection (3), a member may not be employed by a
538     participating employer in the system established by this chapter on the retirement date selected
539     under Subsection (2)(a)(i).
540          (3) (a) A member who is employed by a participating employer and who is also an
541     elected official is not required to cease service as an elected official to be qualified to receive
542     an allowance under Subsection (1), unless the member is retiring from service as an elected
543     official.
544          (b) A member who is employed by a participating employer and who is also a part-time
545     appointed board member is not required to cease service as a part-time appointed board
546     member to be qualified to receive an allowance under Subsection (1).
547          (c) A member who is employed by a participating employer and who is also a part-time
548     employee of a different agency is not required to cease service as a part-time employee of the
549     different agency to be qualified to receive an allowance under Subsection (1), if the member
550     has been continuously employed in the part-time position for a period of at least three years
551     before the member's retirement date.
552          Section 6. Section 49-15-401 is amended to read:
553          49-15-401. Eligibility for service retirement -- Date of retirement --
554     Qualifications.

555          (1) A member is qualified to receive an allowance from this system when:
556          (a) except as provided under Subsection (3), the member ceases actual work for every
557     participating employer that employs the member before the member's retirement date and
558     provides evidence of the termination;
559          (b) the member has submitted to the office a retirement application form that states the
560     member's proposed retirement date; and
561          (c) one of the following conditions is met as of the member's retirement date:
562          (i) the member has accrued at least 20 years of service credit;
563          (ii) the member has accrued at least 10 years of service credit and has attained an age
564     of 60 years; or
565          (iii) the member has accrued at least four years of service and has attained an age of 65
566     years.
567          (2) (a) The member's retirement date:
568          (i) shall be the 1st or the 16th day of the month, as selected by the member;
569          (ii) shall be on or after the date of termination; and
570          (iii) may not be more than 90 days before or after the date the application is received by
571     the office.
572          (b) Except as provided under Subsection (3), a member may not be employed by a
573     participating employer in the system established by this chapter on the retirement date selected
574     under Subsection (2)(a)(i).
575          (3) (a) A member who is employed by a participating employer and who is also an
576     elected official is not required to cease service as an elected official to be qualified to receive
577     an allowance under Subsection (1), unless the member is retiring from service as an elected
578     official.
579          (b) A member who is employed by a participating employer and who is also a part-time
580     appointed board member is not required to cease service as a part-time appointed board
581     member to be qualified to receive an allowance under Subsection (1).
582          (c) A member who is employed by a participating employer and who is also a part-time
583     employee of a different agency is not required to cease service as a part-time employee of the
584     different agency to be qualified to receive an allowance under Subsection (1), if the member
585     has been continuously employed in the part-time position for a period of at least three years

586     before the member's retirement date.
587          Section 7. Section 49-16-401 is amended to read:
588          49-16-401. Eligibility for service retirement -- Date of retirement --
589     Qualifications.
590          (1) A member is qualified to receive an allowance from this system when:
591          (a) except as provided under Subsection (3), the member ceases actual work for every
592     participating employer that employs the member before the member's retirement date and
593     provides evidence of the termination;
594          (b) the member has submitted to the office a retirement application form that states the
595     member's proposed retirement date; and
596          (c) one of the following conditions is met as of the member's retirement date:
597          (i) the member has accrued at least 20 years of service credit;
598          (ii) the member has accrued at least 10 years of service credit and has attained an age
599     of 60 years; or
600          (iii) the member has accrued at least four years of service credit and has attained an age
601     of 65 years.
602          (2) (a) The member's retirement date:
603          (i) shall be the 1st or the 16th day of the month, as selected by the firefighter service
604     employee;
605          (ii) shall be on or after the date of termination; and
606          (iii) may not be more than 90 days before or after the date the application is received by
607     the office.
608          (b) Except as provided under Subsection (3), a member may not be employed by a
609     participating employer in the system established by this chapter on the retirement date selected
610     under Subsection (2)(a)(i).
611          (3) (a) A member who is employed by a participating employer and who is also an
612     elected official is not required to cease service as an elected official to be qualified to receive
613     an allowance under Subsection (1), unless the member is retiring from service as an elected
614     official.
615          (b) A member who is employed by a participating employer and who is also a part-time
616     appointed board member is not required to cease service as a part-time appointed board

617     member to be qualified to receive an allowance under Subsection (1).
618          (c) A member who is employed by a participating employer and who is also a part-time
619     employee of a different agency is not required to cease service as a part-time employee of the
620     different agency to be qualified to receive an allowance under Subsection (1), if the member
621     has been continuously employed in the part-time position for a period of at least three years
622     before the member's retirement date.
623          Section 8. Section 49-22-304 is amended to read:
624          49-22-304. Defined benefit eligibility for an allowance -- Date of retirement --
625     Qualifications.
626          (1) A member is qualified to receive an allowance from this system when:
627          (a) except as provided under Subsection (3), the member ceases actual work for every
628     participating employer that employs the member before the member's retirement date and
629     provides evidence of the termination;
630          (b) the member has submitted to the office a retirement application form that states the
631     member's proposed retirement date; and
632          (c) one of the following conditions is met as of the member's retirement date:
633          (i) the member has accrued at least four years of service credit and has attained an age
634     of 65 years;
635          (ii) the member has accrued at least 10 years of service credit and has attained an age
636     of 62 years;
637          (iii) the member has accrued at least 20 years of service credit and has attained an age
638     of 60 years; or
639          (iv) the member has accrued at least 35 years of service credit.
640          (2) (a) The member's retirement date:
641          (i) shall be the 1st or the 16th day of the month, as selected by the member;
642          (ii) shall be on or after the date of termination; and
643          (iii) may not be more than 90 days before or after the date the application is received by
644     the office.
645          (b) Except as provided under Subsection (3), a member may not be employed by a
646     participating employer in the system established by this chapter on the retirement date selected
647     under Subsection (2)(a)(i).

648          (3) (a) A member who is employed by a participating employer and who is also an
649     elected official is not required to cease service as an elected official to be qualified to receive
650     an allowance under Subsection (1), unless the member is retiring from service as an elected
651     official.
652          (b) A member who is employed by a participating employer and who is also a part-time
653     appointed board member is not required to cease service as a part-time appointed board
654     member to be qualified to receive an allowance under Subsection (1).
655          (c) A member who is employed by a participating employer and who is also a part-time
656     employee of a different agency is not required to cease service as a part-time employee of the
657     different agency to be qualified to receive an allowance under Subsection (1), if the member
658     has been continuously employed in the part-time position for a period of at least three years
659     before the member's retirement date.
660          Section 9. Section 49-23-303 is amended to read:
661          49-23-303. Defined benefit eligibility for an allowance -- Date of retirement --
662     Qualifications.
663          (1) A member is qualified to receive an allowance from this system when:
664          (a) except as provided under Subsection (3), the member ceases actual work for every
665     participating employer that employs the member before the member's retirement date and
666     provides evidence of the termination;
667          (b) the member has submitted to the office a retirement application form that states the
668     member's proposed retirement date; and
669          (c) one of the following conditions is met as of the member's retirement date:
670          (i) the member has accrued at least four years of service credit and has attained an age
671     of 65 years;
672          (ii) the member has accrued at least 10 years of service credit and has attained an age
673     of 62 years;
674          (iii) the member has accrued at least 20 years of service credit and has attained an age
675     of 60 years; or
676          (iv) the member has accrued at least 25 years of service credit.
677          (2) (a) The member's retirement date:
678          (i) shall be the 1st or the 16th day of the month, as selected by the member;

679          (ii) shall be on or after the date of termination; and
680          (iii) may not be more than 90 days before or after the date the application is received by
681     the office.
682          (b) Except as provided under Subsection (3), a member may not be employed by a
683     participating employer in the system established by this chapter on the retirement date selected
684     under Subsection (2)(a)(i).
685          (3) (a) A member who is employed by a participating employer and who is also an
686     elected official is not required to cease service as an elected official to be qualified to receive
687     an allowance under Subsection (1), unless the member is retiring from service as an elected
688     official.
689          (b) A member who is employed by a participating employer and who is also a part-time
690     appointed board member is not required to cease service as a part-time appointed board
691     member to be qualified to receive an allowance under Subsection (1).
692          (c) A member who is employed by a participating employer and who is also a part-time
693     employee of a different agency is not required to cease service as a part-time employee of the
694     different agency to be qualified to receive an allowance under Subsection (1), if the member
695     has been continuously employed in the part-time position for a period of at least three years
696     before the member's retirement date.






Legislative Review Note
     as of 1-15-15 11:21 AM


Office of Legislative Research and General Counsel