This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Tue, Mar 8, 2016 at 12:04 PM by lpoole.
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8 LONG TITLE
9 Committee Note:
10 The Retirement and Independent Entities Interim Committee recommended this bill.
11 General Description:
12 This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
13 postretirement reemployment provisions.
14 Highlighted Provisions:
15 This bill:
16 ▸ recodifies postretirement employment provisions;
17 ▸ clarifies amortization rate payments for certain reemployed retirees; and
18 ▸ makes technical changes.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 Ŝ→ [
23 Utah Code Sections Affected:
24 AMENDS:
25 49-11-102, as last amended by Laws of Utah 2014, Chapter 15
26 49-11-405, as last amended by Laws of Utah 2010, Chapter 264
27 49-11-504, as last amended by Laws of Utah 2013, Chapter 316
28 49-12-401, as last amended by Laws of Utah 2015, Chapter 256
29 49-12-701, as last amended by Laws of Utah 2010, Chapter 264
30 49-13-401, as last amended by Laws of Utah 2015, Chapter 256
31 49-13-701, as last amended by Laws of Utah 2010, Chapter 264
32 49-14-401, as last amended by Laws of Utah 2015, Chapter 256
33 49-15-401, as last amended by Laws of Utah 2015, Chapter 256
34 49-16-203, as last amended by Laws of Utah 2010, Chapter 264
35 49-16-401, as last amended by Laws of Utah 2015, Chapter 256
36 49-22-304, as last amended by Laws of Utah 2015, Chapter 256
37 49-23-303, as last amended by Laws of Utah 2015, Chapter 256
38 67-19-43, as last amended by Laws of Utah 2015, Chapter 248
39 ENACTS:
40 49-11-1201, Utah Code Annotated 1953
41 49-11-1202, Utah Code Annotated 1953
42 49-11-1203, Utah Code Annotated 1953
43 49-11-1204, Utah Code Annotated 1953
44 49-11-1205, Utah Code Annotated 1953
45 49-11-1206, Utah Code Annotated 1953
46 49-11-1207, Utah Code Annotated 1953
47 49-11-1208, Utah Code Annotated 1953
48 REPEALS:
49 49-11-505, as last amended by Laws of Utah 2015, Chapters 243 and 256
50
51 Be it enacted by the Legislature of the state of Utah:
52 Section 1. Section 49-11-102 is amended to read:
53 49-11-102. Definitions.
54 As used in this title:
55 (1) (a) "Active member" means a member who:
56 (i) is employed by a participating employer and accruing service credit; or
57 (ii) within the previous 120 days:
58 (A) has been employed by a participating employer; and
59 (B) accrued service credit.
60 (b) "Active member" does not include a retiree.
61 (2) "Actuarial equivalent" means a benefit of equal value when computed upon the
62 basis of mortality tables as recommended by the actuary and adopted by the executive director,
63 including regular interest.
64 (3) "Actuarial interest rate" means the interest rate as recommended by the actuary and
65 adopted by the board upon which the funding of system costs and benefits are computed.
66 (4) (a) "Agency" means:
67 (i) a department, division, agency, office, authority, commission, board, institution, or
68 hospital of the state;
69 (ii) a county, municipality, school district, local district, or special service district;
70 (iii) a state college or university; or
71 (iv) any other participating employer.
72 (b) "Agency" does not include an entity listed under Subsection (4)(a)(i) that is a
73 subdivision of another entity listed under Subsection (4)(a).
74 (5) "Allowance" or "retirement allowance" means the pension plus the annuity,
75 including any cost of living or other authorized adjustments to the pension and annuity.
76 (6) "Alternate payee" means a member's former spouse or family member eligible to
77 receive payments under a Domestic Relations Order in compliance with Section 49-11-612.
78 (7) "Amortization rate" means the board certified percent of salary required to amortize
79 the unfunded actuarial accrued liability in accordance with policies established by the board
80 upon the advice of the actuary.
81 (8) "Annuity" means monthly payments derived from member contributions.
82 (9) "Appointive officer" means an employee appointed to a position for a definite and
83 fixed term of office by official and duly recorded action of a participating employer whose
84 appointed position is designated in the participating employer's charter, creation document, or
85 similar document, and:
86 (a) who earns $500 or more per month, indexed as of January 1, 1990, as provided in
87 Section 49-12-407 for a Tier I appointive officer; and
88 (b) whose appointive position is full-time as certified by the participating employer for
89 a Tier II appointive officer.
90 (10) (a) "At-will employee" means a person who is employed by a participating
91 employer and:
92 (i) who is not entitled to merit or civil service protection and is generally considered
93 exempt from a participating employer's merit or career service personnel systems;
94 (ii) whose on-going employment status is entirely at the discretion of the person's
95 employer; or
96 (iii) who may be terminated without cause by a designated supervisor, manager, or
97 director.
98 (b) "At-will employee" does not include a career employee who has obtained a
99 reasonable expectation of continued employment based on inclusion in a participating
100 employer's merit system, civil service protection system, or career service personnel systems,
101 policies, or plans.
102 (11) "Beneficiary" means any person entitled to receive a payment under this title
103 through a relationship with or designated by a member, participant, covered individual, or
104 alternate payee of a defined contribution plan.
105 (12) "Board" means the Utah State Retirement Board established under Section
106 49-11-202.
107 (13) "Board member" means a person serving on the Utah State Retirement Board as
108 established under Section 49-11-202.
109 (14) "Certified contribution rate" means the board certified percent of salary paid on
110 behalf of an active member to the office to maintain the system on a financially and actuarially
111 sound basis.
112 (15) "Contributions" means the total amount paid by the participating employer and the
113 member into a system or to the Utah Governors' and Legislators' Retirement Plan under
114 Chapter 19, Utah Governors' and Legislators' Retirement Act.
115 (16) "Council member" means a person serving on the Membership Council
116 established under Section 49-11-202.
117 (17) "Covered individual" means any individual covered under Chapter 20, Public
118 Employees' Benefit and Insurance Program Act.
119 (18) "Current service" means covered service under:
120 (a) Chapter 12, Public Employees' Contributory Retirement Act;
121 (b) Chapter 13, Public Employees' Noncontributory Retirement Act;
122 (c) Chapter 14, Public Safety Contributory Retirement Act;
123 (d) Chapter 15, Public Safety Noncontributory Retirement Act;
124 (e) Chapter 16, Firefighters' Retirement Act;
125 (f) Chapter 17, Judges' Contributory Retirement Act;
126 (g) Chapter 18, Judges' Noncontributory Retirement Act;
127 (h) Chapter 19, Utah Governors' and Legislators' Retirement Act;
128 (i) Chapter 22, New Public Employees' Tier II Contributory Retirement Act; or
129 (j) Chapter 23, New Public Safety and Firefighter Tier II Contributory Retirement Act.
130 (19) "Defined benefit" or "defined benefit plan" or "defined benefit system" means a
131 system or plan offered under this title to provide a specified allowance to a retiree or a retiree's
132 spouse after retirement that is based on a set formula involving one or more of the following
133 factors:
134 (a) years of service;
135 (b) final average monthly salary; or
136 (c) a retirement multiplier.
137 (20) "Defined contribution" or "defined contribution plan" means any defined
138 contribution plan or deferred compensation plan authorized under the Internal Revenue Code
139 and administered by the board.
140 (21) "Educational institution" means a political subdivision or instrumentality of the
141 state or a combination thereof primarily engaged in educational activities or the administration
142 or servicing of educational activities, including:
143 (a) the State Board of Education and its instrumentalities;
144 (b) any institution of higher education and its branches;
145 (c) any school district and its instrumentalities;
146 (d) any vocational and technical school; and
147 (e) any entity arising out of a consolidation agreement between entities described under
148 this Subsection (21).
149 (22) "Elected official":
150 (a) means a person elected to a state office, county office, municipal office, school
151 board or school district office, local district office, or special service district office;
152 (b) includes a person who is appointed to serve an unexpired term of office described
153 under Subsection (22)(a); and
154 (c) does not include a judge or justice who is subject to a retention election under
155 Section 20A-12-201.
156 (23) (a) "Employer" means any department, educational institution, or political
157 subdivision of the state eligible to participate in a government-sponsored retirement system
158 under federal law.
159 (b) "Employer" may also include an agency financed in whole or in part by public
160 funds.
161 (24) "Exempt employee" means an employee working for a participating employer:
162 (a) who is not eligible for service credit under Section 49-12-203, 49-13-203,
163 49-14-203, 49-15-203, or 49-16-203; and
164 (b) for whom a participating employer is not required to pay contributions or
165 nonelective contributions.
166 (25) "Final average monthly salary" means the amount computed by dividing the
167 compensation received during the final average salary period under each system by the number
168 of months in the final average salary period.
169 (26) "Fund" means any fund created under this title for the purpose of paying benefits
170 or costs of administering a system, plan, or program.
171 (27) (a) "Inactive member" means a member who has not been employed by a
172 participating employer for a period of at least 120 days.
173 (b) "Inactive member" does not include retirees.
174 (28) (a) "Initially entering" means hired, appointed, or elected for the first time, in
175 current service as a member with any participating employer.
176 (b) "Initially entering" does not include a person who has any prior service credit on
177 file with the office.
178 (c) "Initially entering" includes an employee of a participating employer, except for an
179 employee that is not eligible under a system or plan under this title, who:
180 (i) does not have any prior service credit on file with the office;
181 (ii) is covered by a retirement plan other than a retirement plan created under this title;
182 and
183 (iii) moves to a position with a participating employer that is covered by this title.
184 (29) "Institution of higher education" means an institution described in Section
185 53B-1-102.
186 (30) (a) "Member" means a person, except a retiree, with contributions on deposit with
187 a system, the Utah Governors' and Legislators' Retirement Plan under Chapter 19, Utah
188 Governors' and Legislators' Retirement Act, or with a terminated system.
189 (b) "Member" also includes leased employees within the meaning of Section 414(n)(2)
190 of the Internal Revenue Code, if the employees have contributions on deposit with the office.
191 If leased employees constitute less than 20% of the participating employer's work force that is
192 not highly compensated within the meaning of Section 414(n)(5)(c)(ii), Internal Revenue Code,
193 "member" does not include leased employees covered by a plan described in Section 414(n)(5)
194 of the federal Internal Revenue Code.
195 (31) "Member contributions" means the sum of the contributions paid to a system or
196 the Utah Governors' and Legislators' Retirement Plan, including refund interest if allowed by a
197 system, and which are made by:
198 (a) the member; and
199 (b) the participating employer on the member's behalf under Section 414(h) of the
200 Internal Revenue Code.
201 (32) "Nonelective contribution" means an amount contributed by a participating
202 employer into a participant's defined contribution account.
203 (33) "Normal cost rate":
204 (a) means the percent of salary that is necessary for a retirement system that is fully
205 funded to maintain its fully funded status; and
206 (b) is determined by the actuary based on the assumed rate of return established by the
207 board.
208 (34) "Office" means the Utah State Retirement Office.
209 (35) "Participant" means an individual with voluntary deferrals or nonelective
210 contributions on deposit with the defined contribution plans administered under this title.
211 (36) "Participating employer" means a participating employer, as defined by Chapter
212 12, Public Employees' Contributory Retirement Act, Chapter 13, Public Employees'
213 Noncontributory Retirement Act, Chapter 14, Public Safety Contributory Retirement Act,
214 Chapter 15, Public Safety Noncontributory Retirement Act, Chapter 16, Firefighters'
215 Retirement Act, Chapter 17, Judges' Contributory Retirement Act, and Chapter 18, Judges'
216 Noncontributory Retirement Act, or an agency financed in whole or in part by public funds
217 which is participating in a system or plan as of January 1, 2002.
218 (37) "Part-time appointed board member" means a person:
219 (a) who is appointed to serve as a member of a board, commission, council, committee,
220 or panel of a participating employer; and
221 (b) whose service as a part-time appointed board member does not qualify as a regular
222 full-time employee as defined under Section 49-12-102, 49-13-102, or 49-22-102.
223 (38) "Pension" means monthly payments derived from participating employer
224 contributions.
225 (39) "Plan" means the Utah Governors' and Legislators' Retirement Plan created by
226 Chapter 19, Utah Governors' and Legislators' Retirement Act, the New Public Employees' Tier
227 II Defined Contribution Plan created by Chapter 22, Part 4, Tier II Defined Contribution Plan,
228 the New Public Safety and Firefighter Tier II Defined Contribution Plan created by Chapter 23,
229 Part 4, Tier II Defined Contribution Plan, or the defined contribution plans created under
230 Section 49-11-801.
231 (40) (a) "Political subdivision" means any local government entity, including cities,
232 towns, counties, and school districts, but only if the subdivision is a juristic entity that is legally
233 separate and distinct from the state and only if its employees are not by virtue of their
234 relationship to the entity employees of the state.
235 (b) "Political subdivision" includes local districts, special service districts, or
236 authorities created by the Legislature or by local governments, including the office.
237 (c) "Political subdivision" does not include a project entity created under Title 11,
238 Chapter 13, Interlocal Cooperation Act, that was formed prior to July 1, 1987.
239 (41) "Program" means the Public Employees' Insurance Program created under Chapter
240 20, Public Employees' Benefit and Insurance Program Act, or the Public Employees'
241 Long-Term Disability program created under Chapter 21, Public Employees' Long-Term
242 Disability Act.
243 (42) "Public funds" means those funds derived, either directly or indirectly, from public
244 taxes or public revenue, dues or contributions paid or donated by the membership of the
245 organization, used to finance an activity whose objective is to improve, on a nonprofit basis,
246 the governmental, educational, and social programs and systems of the state or its political
247 subdivisions.
248 (43) "Qualified defined contribution plan" means a defined contribution plan that
249 meets the requirements of Section 401(k) or Section 403(b) of the Internal Revenue Code.
250 [
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254 [
255 [
256 [
257 rate adopted by the board.
258 [
259 title.
260 [
261 applies for, and is entitled to receive an allowance under this title.
262 [
263 member's retirement becomes effective with the office.
264 [
265 (a) means any employer payment to any type of retirement plan or program made on
266 behalf of an employee; and
267 (b) does not include Social Security payments or Social Security substitute payments
268 made on behalf of an employee.
269 [
270 (a) the period during which an employee is employed and compensated by a
271 participating employer and meets the eligibility requirements for membership in a system or the
272 Utah Governors' and Legislators' Retirement Plan, provided that any required contributions are
273 paid to the office; and
274 (b) periods of time otherwise purchasable under this title.
275 [
276 Public Employees' Contributory Retirement Act, Chapter 13, Public Employees'
277 Noncontributory Retirement Act, Chapter 14, Public Safety Contributory Retirement Act,
278 Chapter 15, Public Safety Noncontributory Retirement Act, Chapter 16, Firefighters'
279 Retirement Act, Chapter 17, Judges' Contributory Retirement Act, Chapter 18, Judges'
280 Noncontributory Retirement Act, and Chapter 19, Utah Governors' and Legislators' Retirement
281 Act, the defined benefit portion of the Tier II Hybrid Retirement System under Chapter 22, Part
282 3, Tier II Hybrid Retirement System, and the defined benefit portion of the Tier II Hybrid
283 Retirement System under Chapter 23, Part 3, Tier II Hybrid Retirement System.
284 [
285 (a) an employee is eligible to participate if the employee initially enters regular
286 full-time employment before July 1, 2011; or
287 (b) a governor or legislator who initially enters office before July 1, 2011.
288 [
289 Tier I system or plan for an employee, governor, legislator, or full-time elected official who
290 does not have Tier I service credit in a system or plan under this title:
291 (i) if the employee initially enters regular full-time employment on or after July 1,
292 2011; or
293 (ii) if the governor, legislator, or full-time elected official initially enters office on or
294 after July 1, 2011.
295 (b) "Tier II" includes:
296 (i) the Tier II hybrid system established under:
297 (A) Chapter 22, Part 3, Tier II Hybrid Retirement System; or
298 (B) Chapter 23, Part 3, Tier II Hybrid Retirement System; and
299 (ii) the Tier II Defined Contribution Plan (Tier II DC Plan) established under:
300 (A) Chapter 22, Part 4, Tier II Defined Contribution Plan; or
301 (B) Chapter 23, Part 4, Tier II Defined Contribution Plan.
302 [
303 (a) is determined by the system's actuary; and
304 (b) means the excess, if any, of the accrued liability of a retirement system over the
305 actuarial value of its assets.
306 [
307 that participant's defined contribution account.
308 Section 2. Section 49-11-405 is amended to read:
309 49-11-405. Service credit from different systems or plans -- Eligibility and
310 calculation of service credit.
311 (1) (a) A member who has service credit from two or more systems or one or more
312 systems and the Utah Governors' and Legislators' Retirement Plan may combine service credit
313 for purposes of determining eligibility for retirement.
314 (b) The provisions of Subsection (1)(a) do not apply to concurrent service.
315 (2) To be eligible for the calculation under Subsection (3), the member's service credit
316 earned under the different systems or the Utah Governors' and Legislators' Retirement Plan
317 shall at least equal the minimum amount of service credit required to retire from the system
318 which most recently covered the member.
319 (3) If a member meets the requirements of Subsection (2), the office shall calculate the
320 member's allowance using all service credit earned from any system or the Utah Governors' and
321 Legislators' Retirement Plan, with no actuarial reduction applied to the allowance, except the
322 service credit used to calculate the benefit shall be increased or decreased to reflect the value of
323 the assets transferred.
324 (4) The office shall establish the standards used for calculating any increase or decrease
325 in the service credit.
326 (5) This section does not apply to a retiree who is subject to [
327 49-11-504 and [
328 Act.
329 Section 3. Section 49-11-504 is amended to read:
330 49-11-504. Reemployment of a retiree -- Restrictions.
331 (1) As used in this section[
332 (a) "full-time" means:
333 [
334 [
335 (b) "Reemployed," "reemploy," or "reemployment" means the same as those terms are
336 defined in Section 49-11-1202.
337 (2) (a) Except for the provisions of Subsection (3), the provisions of this section do not
338 apply to a person who is subject to the provisions of [
339 Postretirement Reemployment Restrictions Act.
340 (b) This section does not apply to employment as an elected official.
341 (3) A person who is not a retiree under this title is not subject to any postretirement
342 restrictions under this title.
343 (4) A retiree of an agency who is reemployed may not earn additional service credit, if
344 the retiree is reemployed by:
345 (a) a different agency; or
346 (b) the same agency after six months from the retirement date.
347 (5) A retiree of an agency who is reemployed on a full-time basis by the same agency
348 within six months of the date of retirement is subject to the following:
349 (a) the agency shall immediately notify the office;
350 (b) the office shall cancel the retiree's allowance and reinstate the retiree to active
351 member status;
352 (c) the allowance cancellation and reinstatement to active member status is effective on
353 the first day of the month following the date of reemployment;
354 (d) the reinstated retiree may not retire again with a recalculated benefit for a two-year
355 period from the date of cancellation of the original allowance, and if the retiree retires again
356 within the two-year period, the original allowance shall be resumed; and
357 (e) a reinstated retiree retiring after the two-year period shall be credited with the
358 service credit in the retiree's account at the time of the first retirement and from that time shall
359 be treated as a member of a system, including the accrual of additional service credit, but
360 subject to recalculation of the allowance under Subsection (9).
361 (6) A retiree of an agency who is reemployed by the same agency within six months of
362 retirement on a less than full-time basis by the same agency is subject to the following:
363 (a) the retiree may earn, without penalty, compensation from that position which is not
364 in excess of the exempt earnings permitted by Social Security;
365 (b) if a retiree receives compensation in a calendar year in excess of the Social Security
366 limitation, 25% of the allowance shall be suspended for the remainder of the six-month period;
367 (c) the effective date of a suspension and reinstatement of an allowance shall be set by
368 the office; and
369 (d) any suspension of a retiree's allowance under this Subsection (6) shall be applied on
370 a calendar year basis.
371 (7) For six months immediately following retirement, the retiree and participating
372 employer who are subject to Subsection (6) shall:
373 (a) maintain an accurate record of gross earnings in employment;
374 (b) report the gross earnings at least monthly to the office;
375 (c) immediately notify the office in writing of any postretirement earnings under
376 Subsection (6); and
377 (d) immediately notify the office in writing whether postretirement earnings equal or
378 exceed the exempt earnings under Subsection (6).
379 (8) (a) If a participating employer hires a retiree, the participating employer may not
380 make a retirement related contribution in an amount that exceeds the normal cost rate as
381 defined under Section 49-11-102 on behalf of the retiree under Subsections (8)(b) and (c).
382 (b) The contributions under Subsection (8)(a) are not required, but if paid, shall be paid
383 to a retiree-designated:
384 (i) qualified defined contribution plan administered by the board, if the participating
385 employer participates in a qualified defined contribution plan administered by the board; or
386 (ii) qualified defined contribution plan offered by the participating employer if the
387 participating employer does not participate in a qualified defined contribution plan
388 administered by the board.
389 (c) Notwithstanding the provisions of Subsection (8)(b), if an employer is not
390 participating in a qualified defined contribution plan administered by the board, the employer
391 may elect to pay the contributions under Subsection (8)(a) to a deferred compensation plan
392 administered by the board.
393 (9) A retiree who has returned to work, accrued additional service credit, and again
394 retires shall have the retiree's allowance recalculated using:
395 (a) the formula in effect at the date of the retiree's original retirement for all service
396 credit accrued prior to that date; and
397 (b) the formula in effect at the date of the subsequent retirement for all service credit
398 accrued between the first and subsequent retirement dates.
399 (10) The board may make rules to implement this section.
400 Section 4. Section 49-11-1201 is enacted to read:
401
402 49-11-1201. Title.
403 This part is known as the "Postretirement Reemployment Restrictions Act."
404 Section 5. Section 49-11-1202 is enacted to read:
405 49-11-1202. Definitions.
406 As used in this part:
407 (1) (a) "Affiliated emergency services worker" means a person who:
408 (i) is employed by a participating employer;
409 (ii) performs emergency services for another participating employer that is a different
410 agency;
411 (iii) is trained in techniques and skills required for the emergency service;
412 (iv) continues to receive regular training required for the service;
413 (v) is on the rolls as a trained affiliated emergency services worker of the participating
414 employer; and
415 (vi) provides ongoing service for a participating employer, which service may include
416 service as a volunteer firefighter, reserve law enforcement officer, search and rescue worker,
417 emergency medical technician, ambulance worker, park ranger, or public utilities worker.
418 (b) "Affiliated emergency services worker" does not include a person who performs
419 work or service but does not meet the requirements of Subsection (1)(a).
420 (2) "Amortization rate" means the amortization rate, as defined in Section 49-11-102,
421 to be applied to the system that would have covered the retiree if the retiree's reemployed
422 position were deemed to be an eligible, full-time position within that system.
423 (3) (a) "Reemployed," "reemploy," or "reemployment" means work or service
424 performed for a participating employer after retirement, in exchange for compensation.
425 (b) Reemployment includes work or service performed on a contract for a participating
426 employer if the retiree is:
427 (i) listed as the contractor; or
428 (ii) an owner, partner, or principal of the contractor.
429 (4) "Retiree":
430 (a) means a person who:
431 (i) retired from a participating employer; and
432 (ii) begins reemployment on or after July 1, 2010, with a participating employer; and
433 (b) does not include a person:
434 (i) who was reemployed by a participating employer before July 1, 2010; and
435 (ii) whose participating employer that reemployed the person under Subsection
436 (3)(b)(i) was dissolved, consolidated, merged, or structurally changed in accordance with
437 Section 49-11-621 on or after July 1, 2010.
438 Section 6. Section 49-11-1203 is enacted to read:
439 49-11-1203. Applicability.
440 (1) (a) This part does not apply to employment as an elected official if the elected
441 official's position is not full time as certified by the participating employer.
442 (b) The provisions of this part apply to an elected official whose elected position is full
443 time as certified by the participating employer.
444 (2) (a) This part does not apply to employment as a part-time appointed board member
445 who does not receive any remuneration, stipend, or other benefit for the part-time appointed
446 board member's service.
447 (b) For purposes of this Subsection (2), remuneration, stipend, or other benefit does not
448 include receipt of per diem and travel expenses up to the amounts established by the Division
449 of Finance in:
450 (i) Section 63A-3-106;
451 (ii) Section 63A-3-107; and
452 (iii) rules made by the Division of Finance according to Sections 63A-3-106 and
453 63A-3-107.
454 (3) This part does not apply to a person who is reemployed as an active senior judge or
455 an active senior justice court judge as described by Utah State Court Rules, appointed to hear
456 cases by the Utah Supreme Court in accordance with Article VIII, Section 4, Utah Constitution.
457 Section 7. Section 49-11-1204 is enacted to read:
458 49-11-1204. General Restrictions -- Election following one-year separation --
459 Amortization rate.
460 (1) A retiree may not for the same period of reemployment:
461 (a) (i) earn additional service credit; or
462 (ii) receive any retirement related contribution from a participating employer; and
463 (b) receive a retirement allowance.
464 (2) Except as provided under Section 49-11-1205, the office shall cancel the retirement
465 allowance of a retiree if the reemployment with a participating employer begins within one year
466 of the retiree's retirement date.
467 (3) If a reemployed retiree has completed the one-year separation from employment
468 with a participating employer required under Subsection (2), the retiree may elect to:
469 (a) cancel the retiree's retirement allowance and instead earn additional service credit in
470 accordance with this title; or
471 (b) continue to receive the retiree's retirement allowance, forfeit earning additional
472 service credit, and forfeit any retirement-related contribution from the participating employer
473 that reemployed the retiree.
474 (4) (a) If the office receives notice of the election of a reemployed retiree under
475 Subsection (3)(a), the office shall immediately cancel the retiree's retirement allowance.
476 (b) (i) If the retiree under Subsection (4)(a) is eligible for retirement coverage in the
477 reemployed position, the office shall reinstate the retiree to active member status on the first
478 day of the month following the date of the employee's election.
479 (ii) Except as provided under Subsection (4)(c), if the retiree is not otherwise eligible
480 for retirement coverage in the reemployed position, the participating employer that reemploys
481 the retiree shall contribute the amortization rate to the office on behalf of the retiree.
482 (c) A participating employer that reemploys a retiree in accordance with Subsection
483 49-11-1205(1) is not required to contribute the amortization rate to the office.
484 (5) (a) For a retiree under Subsection (4)(b) who retires within two years from the date
485 of reemployment, the office:
486 (i) may not recalculate a retirement benefit for the retiree; and
487 (ii) shall resume the allowance that was being paid to the retiree at the time of the
488 cancellation.
489 (b) Subject to Subsection (1), for a retiree who is reinstated to active membership
490 under Subsection (4)(b) and retires two or more years after the date of reinstatement to active
491 membership, the office shall:
492 (i) resume the allowance that was being paid at the time of cancellation; and
493 (ii) calculate an additional allowance for the retiree based on the formula in effect at
494 the date of the subsequent retirement for all service credit accrued between the first and
495 subsequent retirement dates.
496 Section 8. Section 49-11-1205 is enacted to read:
497 49-11-1205. Postretirement reemployment restriction exceptions.
498 (1) (a) The office may not cancel the retirement allowance of a retiree who is
499 reemployed with a participating employer within one year of the retiree's retirement date if:
500 (i) the retiree is not reemployed by a participating employer for a period of at least 60
501 days from the retiree's retirement date;
502 (ii) upon reemployment after the break in service under Subsection (1)(a)(i), the retiree
503 does not receive any employer paid benefits, including:
504 (A) retirement service credit or retirement-related contributions;
505 (B) medical benefits;
506 (C) dental benefits;
507 (D) other insurance benefits except for workers' compensation as provided under Title
508 34A, Chapter 2, Workers' Compensation Act, Title 34A, Chapter 3, Utah Occupational Disease
509 Act, and withholdings required by federal or state law for social security, Medicare, and
510 unemployment insurance; or
511 (E) paid time off, including sick, annual, or other type of leave; and
512 (iii) the retiree does not earn in any calendar year of reemployment an amount in excess
513 of the lesser of $15,000 or one-half of the retiree's final average salary upon which the retiree's
514 retirement allowance is based.
515 (b) Beginning January 1, 2013, the board shall adjust the amounts under Subsection
516 (1)(a)(iii) by the annual change in the Consumer Price Index during the previous calendar year
517 as measured by a United States Bureau of Labor Statistics Consumer Price Index average as
518 determined by the board.
519 (2) A retiree shall be considered as having completed the one-year separation from
520 employment with a participating employer required under Section 49-11-1204, if the retiree:
521 (a) before retiring:
522 (i) was employed with a participating employer as a public safety service employee as
523 defined in Section 49-14-102, 49-15-102, or 49-23-102;
524 (ii) and during the employment under Subsection (2)(a)(i), suffered a physical injury
525 resulting from external force or violence while performing the duties of the employment, and
526 for which injury the retiree would have been approved for total disability in accordance with
527 the provisions under Chapter 21, Public Employees' Long-Term Disability Act, if years of
528 service are not considered;
529 (iii) had less than 30 years of service credit but had sufficient service credit to retire,
530 with an unreduced allowance making the public safety service employee ineligible for
531 long-term disability payments under Chapter 21, Public Employees' Long-Term Disability Act,
532 or a substantially similar long-term disability program; and
533 (iv) does not receive any long-term disability benefits from any participating employer;
534 and
535 (b) is reemployed by a different participating employer.
536 (3) (a) The office may not cancel the retirement allowance of a retiree who is employed
537 as an affiliated emergency services worker within one year of the retiree's retirement date if the
538 affiliated emergency services worker does not receive any compensation, except for:
539 (i) a nominal fee, stipend, discount, tax credit, voucher, or other fixed sum of money or
540 cash equivalent payment not tied to productivity and paid periodically for services;
541 (ii) a length-of-service award;
542 (iii) insurance policy premiums paid by the participating employer in the event of death
543 of an affiliated emergency services worker or a line-of-duty accidental death or disability; or
544 (iv) reimbursement of expenses incurred in the performance of duties.
545 (b) For purposes of Subsections (3)(a)(i) and (ii), the total amount of any discounts, tax
546 credits, vouchers, and payments to an affiliated emergency services worker may not exceed
547 $500 per month.
548 (c) Beginning January 1, 2016, the board shall adjust the amount under Subsection
549 (3)(b) by the annual change in the Consumer Price Index during the previous calendar year as
550 measured by a United States Bureau of Labor Statistics Consumer Price Index average as
551 determined by the board.
552 (4) (a) If a retiree is reemployed under the provisions of Subsection (1) or (3), the
553 termination date of the reemployment, as confirmed in writing by the participating employer, is
554 considered the retiree's retirement date for the purpose of calculating the separation
555 requirement under Section 49-11-1204.
556 (b) The office shall cancel the retirement allowance of a retiree for the remainder of the
557 calendar year if the reemployment with a participating employer exceeds the limitation under
558 Subsection (1)(a)(iii) or (3)(b).
559 Section 9. Section 49-11-1206 is enacted to read:
560 49-11-1206. Notice of postretirement reemployment.
561 (1) A participating employer shall immediately notify the office:
562 (a) if the participating employer reemploys a retiree;
563 (b) whether the reemployment is subject to Section 49-11-1204 or Subsection
564 49-11-1205(1), (2), or (3); and
565 (c) of any election by the retiree under Section 49-11-1204.
566 (2) A participating employer shall certify to the office whether the position of an
567 elected official is or is not full time.
568 (3) A retiree subject to this part shall report to the office the status of the reemployment
569 under Section 49-11-1204 or 49-11-1205.
570 Section 10. Section 49-11-1207 is enacted to read:
571 49-11-1207. Postretirement reemployment -- Violations -- Penalties.
572 (1) (a) If the office receives notice or learns of the reemployment of a retiree in
573 violation of Section 49-11-1204 or 49-11-1205, the office shall:
574 (i) immediately cancel the retiree's retirement allowance;
575 (ii) keep the retiree's retirement allowance cancelled for the remainder of the calendar
576 year if the reemployment with a participating employer exceeded the limitation under
577 Subsection 49-11-1205(1)(a)(iii) or (3)(b); and
578 (iii) recover any overpayment resulting from the violation in accordance with the
579 provisions of Section 49-11-607 before the allowance may be reinstated.
580 (b) Reinstatement of an allowance following cancellation for a violation under this
581 section is subject to the procedures and provisions under Section 49-11-1204.
582 (2) If a retiree or participating employer failed to report reemployment in violation of
583 Section 49-11-1206, the retiree, participating employer, or both, who are found to be
584 responsible for the failure to report, are liable to the office for the amount of any overpayment
585 resulting from the violation.
586 (3) A participating employer is liable to the office for a payment or failure to make a
587 payment in violation of this part.
588 (4) If a participating employer fails to notify the office in accordance with Section
589 49-11-1206, the participating employer is immediately subject to a compliance audit by the
590 office.
591 Section 11. Section 49-11-1208 is enacted to read:
592 49-11-1208. Rulemaking.
593 The board may make rules to implement this part.
594 Section 12. Section 49-12-401 is amended to read:
595 49-12-401. Eligibility for an allowance -- Date of retirement -- Qualifications.
596 (1) A member is qualified to receive an allowance from this system when:
597 (a) except as provided under Subsection (3), the member ceases actual work for every
598 participating employer that employs the member before the member's retirement date and
599 provides evidence of the termination;
600 (b) the member has submitted to the office a retirement application form that states the
601 member's proposed retirement date; and
602 (c) one of the following conditions is met as of the member's retirement date:
603 (i) the member has accrued at least four years of service credit and has attained an age
604 of 65 years;
605 (ii) the member has accrued at least 10 years of service credit and has attained an age
606 of 62 years;
607 (iii) the member has accrued at least 20 years of service credit and has attained an age
608 of 60 years; or
609 (iv) the member has accrued at least 30 years of service credit.
610 (2) (a) The member's retirement date:
611 (i) shall be the 1st or the 16th day of the month, as selected by the member;
612 (ii) shall be on or after the date of termination; and
613 (iii) may not be more than 90 days before or after the date the application is received by
614 the office.
615 (b) Except as provided under Subsection (3), a member may not be employed by a
616 participating employer in the system established by this chapter on the retirement date selected
617 under Subsection (2)(a)(i).
618 (3) (a) A member who is employed by a participating employer and who is also an
619 elected official is not required to cease service as an elected official to be qualified to receive
620 an allowance under Subsection (1), unless the member is retiring from service as an elected
621 official.
622 (b) A member who is employed by a participating employer and who is also a part-time
623 appointed board member is not required to cease service as a part-time appointed board
624 member to be qualified to receive an allowance under Subsection (1).
625 (c) A member who is employed by a participating employer, who is also an affiliated
626 emergency services worker as defined in [
627 a different agency, is not required to cease service as an affiliated emergency services worker to
628 be qualified to receive an allowance under Subsection (1).
629 Section 13. Section 49-12-701 is amended to read:
630 49-12-701. Early retirement incentive -- Eligibility -- Calculation of benefit --
631 Payment of costs -- Savings to be appropriated by Legislature -- Restrictions on
632 reemployment.
633 (1) Any member of this system may retire and receive the allowance allowed under
634 Subsection (2) if the member meets the following requirements as of the member's retirement
635 date:
636 (a) the member is eligible for retirement under Section 49-12-401, or has 25 years of
637 service credit;
638 (b) the member elects to forfeit any stipend for retirement offered by the participating
639 employer; and
640 (c) the member elects to retire from this system by applying for retirement by the date
641 established under Subsection (3)(a) or (3)(b).
642 (2) (a) A member who retires under Subsection (1) shall receive 2% of that member's
643 final average salary for all years of service credit.
644 (b) An actuarial reduction may not be applied to the allowance granted under this
645 section.
646 (3) In order to receive the allowance allowed by this section, a member shall submit an
647 application to the office as follows:
648 (a) (i) For state and school employees under Level A, the application shall be filed by
649 May 31, 1987. The member's retirement date shall then be set by the member on the 1st or 16th
650 day of July, August, or September, 1987.
651 (ii) If a Level A member elects to retire, the executive director or participating
652 employer may request the member to delay the retirement date until a later date, but no later
653 than June 30, 1988.
654 (iii) If the member agrees to delay the retirement date, the retirement date shall be
655 delayed, but service credit may not be accrued after the member's original retirement date
656 elected by the member, and compensation earned after the member's original retirement date
657 may not be used in the calculation of the final average salary for determining the retirement
658 allowance.
659 (b) (i) For political subdivision employees under Level B, the application shall be filed
660 by September 30, 1987.
661 (ii) The retirement date shall then be set by the member on the 1st or 16th day of July,
662 August, September, October, November, or December, 1987.
663 (4) (a) The cost of providing the allowance under this section shall be funded in fiscal
664 year 1987-88 by a supplemental appropriation in the 1988 General Session based on the
665 retirement contribution rate increase established by the consulting actuary and approved by the
666 board.
667 (b) The cost of providing the allowance under this section shall be funded beginning
668 July 1, 1988, by means of an increase in the retirement contribution rate established by the
669 consulting actuary and approved by the board.
670 (c) The rate increase under Subsections (4)(a) and (b) shall be funded:
671 (i) for state employees, by an appropriation from the account established by the
672 Division of Finance under Subsection (4)(d), which is funded by savings derived from this
673 early retirement incentive and a work force reduction;
674 (ii) for school employees, by direct contributions from the employing unit, which may
675 not be funded through an increase in the retirement contribution amount established in Title
676 53A, Chapter 17a, Minimum School Program Act; and
677 (iii) for political subdivisions under Level B, by direct contributions by the
678 participating employer.
679 (d) (i) Each year, any excess savings derived from this early retirement incentive which
680 are above the costs of funding the increase and the costs of paying insurance, sick leave,
681 compensatory leave, and vacation leave under Subsections (4)(c)(i) and (c)(ii) shall be reported
682 to the Legislature and shall be appropriated as provided by law.
683 (ii) In the case of Subsection (4)(c)(i), the Division of Finance shall establish an
684 account into which all savings derived from this early retirement incentive shall be deposited as
685 the savings are realized.
686 (iii) In the case of Subsection (4)(c)(ii), the State Office of Education shall certify the
687 amount of savings derived from this early retirement incentive.
688 (iv) The State Office of Education and the participating employer may not spend the
689 savings until appropriated by the Legislature as provided by law.
690 (5) A member who retires under this section is subject to [
691 and [
692 (6) The board may adopt rules to administer this section.
693 (7) The Legislative Auditor General shall perform an audit to ensure compliance with
694 this section.
695 Section 14. Section 49-13-401 is amended to read:
696 49-13-401. Eligibility for an allowance -- Date of retirement -- Qualifications.
697 (1) A member is qualified to receive an allowance from this system when:
698 (a) except as provided under Subsection (3), the member ceases actual work for every
699 participating employer that employs the member before the member's retirement date and
700 provides evidence of the termination;
701 (b) the member has submitted to the office a retirement application form that states the
702 member's proposed retirement date; and
703 (c) one of the following conditions is met as of the member's retirement date:
704 (i) the member has accrued at least four years of service credit and has attained an age
705 of 65 years;
706 (ii) the member has accrued at least 10 years of service credit and has attained an age
707 of 62 years;
708 (iii) the member has accrued at least 20 years of service credit and has attained an age
709 of 60 years;
710 (iv) the member has accrued at least 30 years of service credit; or
711 (v) the member has accrued at least 25 years of service credit, in which case the
712 member shall be subject to the reduction under Subsection 49-13-402(2)(b).
713 (2) (a) The member's retirement date:
714 (i) shall be the 1st or the 16th day of the month, as selected by the member;
715 (ii) shall be on or after the date of termination; and
716 (iii) may not be more than 90 days before or after the date the application is received by
717 the office.
718 (b) Except as provided under Subsection (3), a member may not be employed by a
719 participating employer in the system established by this chapter on the retirement date selected
720 under Subsection (2)(a)(i).
721 (3) (a) A member who is employed by a participating employer and who is also an
722 elected official is not required to cease service as an elected official to be qualified to receive
723 an allowance under Subsection (1), unless the member is retiring from service as an elected
724 official.
725 (b) A member who is employed by a participating employer and who is also a part-time
726 appointed board member is not required to cease service as a part-time appointed board
727 member to be qualified to receive an allowance under Subsection (1).
728 (c) A member who is employed by a participating employer, who is also an affiliated
729 emergency services worker as defined in [
730 a different agency, is not required to cease service as an affiliated emergency services worker to
731 be qualified to receive an allowance under Subsection (1).
732 Section 15. Section 49-13-701 is amended to read:
733 49-13-701. Early retirement incentive -- Eligibility -- Calculation of benefit --
734 Payment of costs -- Savings to be appropriated by Legislature -- Restrictions on
735 reemployment.
736 (1) Any member of this system may retire and receive the allowance allowed under
737 Subsection (2) if the member meets the following requirements as of the member's retirement:
738 (a) the member is eligible for retirement under Section 49-13-401, or has 25 years of
739 service credit;
740 (b) the member elects to forfeit any stipend for retirement offered by the participating
741 employer; and
742 (c) the member elects to retire from this system by applying for retirement by the date
743 established under Subsection (3)(a) or (3)(b).
744 (2) (a) A member who retires under Subsection (1) shall receive 2% of that member's
745 final average salary for all years of service credit.
746 (b) No actuarial reduction may be applied to the allowance granted under this section.
747 (3) In order to receive the allowance allowed by this section, a member shall submit an
748 application to the office as follows:
749 (a) (i) For state and school employees under Level A, the application shall be filed by
750 May 31, 1987. The member's retirement date shall then be set by the member on the 1st or 16th
751 day of July, August, or September, 1987.
752 (ii) If a Level A member elects to retire, the executive director or participating
753 employer may request the member to delay the retirement date until a later date, but no later
754 than June 30, 1988.
755 (iii) If the member agrees to delay the retirement date, the retirement date shall be
756 delayed, but service credit may not be accrued after the member's original retirement date
757 elected by the member, and compensation earned after the member's original retirement date
758 may not be used in the calculation of the final average salary for determining the retirement
759 allowance.
760 (b) (i) For political subdivision employees under Level B, the application shall be filed
761 by September 30, 1987.
762 (ii) The member's retirement date shall then be set by the member on the 1st or 16th
763 day of July, August, September, October, November, or December, 1987.
764 (4) (a) The cost of providing the allowance under this section shall be funded in fiscal
765 year 1987-88 by a supplemental appropriation in the 1988 General Session based on the
766 retirement contribution rate increase established by the consulting actuary and approved by the
767 board.
768 (b) The cost of providing the allowance under this section shall be funded beginning
769 July 1, 1988, by means of an increase in the retirement contribution rate established by the
770 consulting actuary and approved by the board.
771 (c) The rate increase under Subsections (4)(a) and (b) shall be funded:
772 (i) for state employees, by an appropriation from the account established by the
773 Division of Finance under Subsection (4)(d), which is funded by savings derived from this
774 early retirement incentive and a work force reduction;
775 (ii) for school employees, by direct contributions from the employing unit, which may
776 not be funded through an increase in the retirement contribution amount established in Title
777 53A, Chapter 17a, Minimum School Program Act; and
778 (iii) for political subdivisions under Level B, by direct contributions by the
779 participating employer.
780 (d) (i) Each year, any excess savings derived from this early retirement incentive which
781 are above the costs of funding the increase and the costs of paying insurance, sick leave,
782 compensatory leave, and vacation leave under Subsections (4)(c)(i) and (c)(ii) shall be reported
783 to the Legislature and shall be appropriated as provided by law.
784 (ii) In the case of Subsection (4)(c)(i), the Division of Finance shall establish an
785 account into which all savings derived from this early retirement incentive shall be deposited as
786 the savings are realized.
787 (iii) In the case of Subsection (4)(c)(ii), the State Office of Education shall certify the
788 amount of savings derived from this early retirement incentive.
789 (iv) The State Office of Education and the participating employer may not spend the
790 savings until appropriated by the Legislature as provided by law.
791 (5) A member who retires under this section is subject to [
792 and [
793 (6) The board may make rules to administer this section.
794 (7) The Legislative Auditor General shall perform an audit to ensure compliance with
795 this section.
796 Section 16. Section 49-14-401 is amended to read:
797 49-14-401. Eligibility for service retirement -- Date of retirement --
798 Qualifications.
799 (1) A member is qualified to receive an allowance from this system when:
800 (a) except as provided under Subsection (3), the member ceases actual work for every
801 participating employer that employs the member before the member's retirement date and
802 provides evidence of the termination;
803 (b) the member has submitted to the office a retirement application form that states the
804 member's proposed retirement date; and
805 (c) one of the following conditions is met as of the member's retirement date:
806 (i) the member has accrued at least 20 years of service credit;
807 (ii) the member has accrued at least 10 years of service credit and has attained an age
808 of 60 years; or
809 (iii) the member has accrued at least four years of service credit and has attained an age
810 of 65 years.
811 (2) (a) The member's retirement date:
812 (i) shall be the 1st or the 16th day of the month, as selected by the member;
813 (ii) shall be on or after the date of termination; and
814 (iii) may not be more than 90 days before or after the date the application is received by
815 the office.
816 (b) Except as provided under Subsection (3), a member may not be employed by a
817 participating employer in the system established by this chapter on the retirement date selected
818 under Subsection (2)(a)(i).
819 (3) (a) A member who is employed by a participating employer and who is also an
820 elected official is not required to cease service as an elected official to be qualified to receive
821 an allowance under Subsection (1), unless the member is retiring from service as an elected
822 official.
823 (b) A member who is employed by a participating employer and who is also a part-time
824 appointed board member is not required to cease service as a part-time appointed board
825 member to be qualified to receive an allowance under Subsection (1).
826 (c) A member who is employed by a participating employer, who is also an affiliated
827 emergency services worker as defined in [
828 a different agency, is not required to cease service as an affiliated emergency services worker to
829 be qualified to receive an allowance under Subsection (1).
830 Section 17. Section 49-15-401 is amended to read:
831 49-15-401. Eligibility for service retirement -- Date of retirement --
832 Qualifications.
833 (1) A member is qualified to receive an allowance from this system when:
834 (a) except as provided under Subsection (3), the member ceases actual work for every
835 participating employer that employs the member before the member's retirement date and
836 provides evidence of the termination;
837 (b) the member has submitted to the office a retirement application form that states the
838 member's proposed retirement date; and
839 (c) one of the following conditions is met as of the member's retirement date:
840 (i) the member has accrued at least 20 years of service credit;
841 (ii) the member has accrued at least 10 years of service credit and has attained an age
842 of 60 years; or
843 (iii) the member has accrued at least four years of service and has attained an age of 65
844 years.
845 (2) (a) The member's retirement date:
846 (i) shall be the 1st or the 16th day of the month, as selected by the member;
847 (ii) shall be on or after the date of termination; and
848 (iii) may not be more than 90 days before or after the date the application is received by
849 the office.
850 (b) Except as provided under Subsection (3), a member may not be employed by a
851 participating employer in the system established by this chapter on the retirement date selected
852 under Subsection (2)(a)(i).
853 (3) (a) A member who is employed by a participating employer and who is also an
854 elected official is not required to cease service as an elected official to be qualified to receive
855 an allowance under Subsection (1), unless the member is retiring from service as an elected
856 official.
857 (b) A member who is employed by a participating employer and who is also a part-time
858 appointed board member is not required to cease service as a part-time appointed board
859 member to be qualified to receive an allowance under Subsection (1).
860 (c) A member who is employed by a participating employer, who is also an affiliated
861 emergency services worker as defined in [
862 a different agency, is not required to cease service as an affiliated emergency services worker to
863 be qualified to receive an allowance under Subsection (1).
864 Section 18. Section 49-16-203 is amended to read:
865 49-16-203. Exemption of certain employees from coverage -- Exception.
866 (1) A firefighter service employee serving as the chief of any fire department or district
867 is excluded from coverage under this system if that firefighter service employee files a formal
868 written request seeking exemption.
869 (2) The chief of any fire department or district who retires from that position shall
870 comply with the provisions of [
871 12, Postretirement Reemployment Restrictions Act, upon reemployment by the participating
872 employer.
873 Section 19. Section 49-16-401 is amended to read:
874 49-16-401. Eligibility for service retirement -- Date of retirement --
875 Qualifications.
876 (1) A member is qualified to receive an allowance from this system when:
877 (a) except as provided under Subsection (3), the member ceases actual work for every
878 participating employer that employs the member before the member's retirement date and
879 provides evidence of the termination;
880 (b) the member has submitted to the office a retirement application form that states the
881 member's proposed retirement date; and
882 (c) one of the following conditions is met as of the member's retirement date:
883 (i) the member has accrued at least 20 years of service credit;
884 (ii) the member has accrued at least 10 years of service credit and has attained an age
885 of 60 years; or
886 (iii) the member has accrued at least four years of service credit and has attained an age
887 of 65 years.
888 (2) (a) The member's retirement date:
889 (i) shall be the 1st or the 16th day of the month, as selected by the firefighter service
890 employee;
891 (ii) shall be on or after the date of termination; and
892 (iii) may not be more than 90 days before or after the date the application is received by
893 the office.
894 (b) Except as provided under Subsection (3), a member may not be employed by a
895 participating employer in the system established by this chapter on the retirement date selected
896 under Subsection (2)(a)(i).
897 (3) (a) A member who is employed by a participating employer and who is also an
898 elected official is not required to cease service as an elected official to be qualified to receive
899 an allowance under Subsection (1), unless the member is retiring from service as an elected
900 official.
901 (b) A member who is employed by a participating employer and who is also a part-time
902 appointed board member is not required to cease service as a part-time appointed board
903 member to be qualified to receive an allowance under Subsection (1).
904 (c) A member who is employed by a participating employer, who is also an affiliated
905 emergency services worker as defined in [
906 a different agency, is not required to cease service as an affiliated emergency services worker to
907 be qualified to receive an allowance under Subsection (1).
908 Section 20. Section 49-22-304 is amended to read:
909 49-22-304. Defined benefit eligibility for an allowance -- Date of retirement --
910 Qualifications.
911 (1) A member is qualified to receive an allowance from this system when:
912 (a) except as provided under Subsection (3), the member ceases actual work for every
913 participating employer that employs the member before the member's retirement date and
914 provides evidence of the termination;
915 (b) the member has submitted to the office a retirement application form that states the
916 member's proposed retirement date; and
917 (c) one of the following conditions is met as of the member's retirement date:
918 (i) the member has accrued at least four years of service credit and has attained an age
919 of 65 years;
920 (ii) the member has accrued at least 10 years of service credit and has attained an age
921 of 62 years;
922 (iii) the member has accrued at least 20 years of service credit and has attained an age
923 of 60 years; or
924 (iv) the member has accrued at least 35 years of service credit.
925 (2) (a) The member's retirement date:
926 (i) shall be the 1st or the 16th day of the month, as selected by the member;
927 (ii) shall be on or after the date of termination; and
928 (iii) may not be more than 90 days before or after the date the application is received by
929 the office.
930 (b) Except as provided under Subsection (3), a member may not be employed by a
931 participating employer in the system established by this chapter on the retirement date selected
932 under Subsection (2)(a)(i).
933 (3) (a) A member who is employed by a participating employer and who is also an
934 elected official is not required to cease service as an elected official to be qualified to receive
935 an allowance under Subsection (1), unless the member is retiring from service as an elected
936 official.
937 (b) A member who is employed by a participating employer and who is also a part-time
938 appointed board member is not required to cease service as a part-time appointed board
939 member to be qualified to receive an allowance under Subsection (1).
940 (c) A member who is employed by a participating employer, who is also an affiliated
941 emergency services worker as defined in [
942 a different agency, is not required to cease service as an affiliated emergency services worker to
943 be qualified to receive an allowance under Subsection (1).
944 Section 21. Section 49-23-303 is amended to read:
945 49-23-303. Defined benefit eligibility for an allowance -- Date of retirement --
946 Qualifications.
947 (1) A member is qualified to receive an allowance from this system when:
948 (a) except as provided under Subsection (3), the member ceases actual work for every
949 participating employer that employs the member before the member's retirement date and
950 provides evidence of the termination;
951 (b) the member has submitted to the office a retirement application form that states the
952 member's proposed retirement date; and
953 (c) one of the following conditions is met as of the member's retirement date:
954 (i) the member has accrued at least four years of service credit and has attained an age
955 of 65 years;
956 (ii) the member has accrued at least 10 years of service credit and has attained an age
957 of 62 years;
958 (iii) the member has accrued at least 20 years of service credit and has attained an age
959 of 60 years; or
960 (iv) the member has accrued at least 25 years of service credit.
961 (2) (a) The member's retirement date:
962 (i) shall be the 1st or the 16th day of the month, as selected by the member;
963 (ii) shall be on or after the date of termination; and
964 (iii) may not be more than 90 days before or after the date the application is received by
965 the office.
966 (b) Except as provided under Subsection (3), a member may not be employed by a
967 participating employer in the system established by this chapter on the retirement date selected
968 under Subsection (2)(a)(i).
969 (3) (a) A member who is employed by a participating employer and who is also an
970 elected official is not required to cease service as an elected official to be qualified to receive
971 an allowance under Subsection (1), unless the member is retiring from service as an elected
972 official.
973 (b) A member who is employed by a participating employer and who is also a part-time
974 appointed board member is not required to cease service as a part-time appointed board
975 member to be qualified to receive an allowance under Subsection (1).
976 (c) A member who is employed by a participating employer, who is also an affiliated
977 emergency services worker as defined in [
978 a different agency, is not required to cease service as an affiliated emergency services worker to
979 be qualified to receive an allowance under Subsection (1).
980 Section 22. Section 67-19-43 is amended to read:
981 67-19-43. State employee matching supplemental defined contribution benefit.
982 (1) As used in this section:
983 (a) "Qualifying account" means:
984 (i) a defined contribution plan qualified under Section 401(k) of the Internal Revenue
985 Code, which is sponsored by the Utah State Retirement Board; or
986 (ii) a deemed Individual Retirement Account authorized under the Internal Revenue
987 Code, which is sponsored by the Utah State Retirement Board; or
988 (iii) a similar savings plan or account authorized under the Internal Revenue Code,
989 which is sponsored by the Utah State Retirement Board.
990 (b) "Qualifying employee" means an employee who is:
991 (i) in a position that is:
992 (A) receiving retirement benefits under Title 49, Utah State Retirement and Insurance
993 Benefit Act; and
994 (B) accruing paid leave benefits that can be used in the current and future calendar
995 years; and
996 (ii) not an employee who is reemployed as that term is:
997 (A) defined in Section [
998 (B) used in Section 49-11-504.
999 (2) Subject to the requirements of Subsection (3) and beginning on or after January 4,
1000 2014, an employer shall make a biweekly matching contribution to every qualifying employee's
1001 defined contribution plan qualified under Section 401(k) of the Internal Revenue Code, subject
1002 to federal requirements and limitations, which is sponsored by the Utah State Retirement
1003 Board.
1004 (3) (a) In accordance with the requirements of this Subsection (3), each qualifying
1005 employee shall be eligible to receive the same dollar amount for the contribution under
1006 Subsection (2).
1007 (b) A qualifying employee:
1008 (i) shall receive the contribution amount determined under Subsection (3)(c) if the
1009 qualifying employee makes a voluntary personal contribution to one or more qualifying
1010 accounts in an amount equal to or greater than the employer's contribution amount determined
1011 in Subsection (3)(c);
1012 (ii) shall receive a partial contribution amount that is equal to the qualifying employee's
1013 personal contribution amount if the employee makes a voluntary personal contribution to one
1014 or more qualifying accounts in an amount less than the employer's contribution amount
1015 determined in Subsection (3)(c); or
1016 (iii) may not receive a contribution under Subsection (2) if the qualifying employee
1017 does not make a voluntary personal contribution to a qualifying account.
1018 (c) (i) Subject to the maximum limit under Subsection (3)(c)(iii), the Legislature shall
1019 annually determine the contribution amount that an employer shall provide to each qualifying
1020 employee under Subsection (2).
1021 (ii) The department shall make recommendations annually to the Legislature on the
1022 contribution amount required under Subsection (2), in consultation with the Governor's Office
1023 of Management and Budget and the Division of Finance.
1024 (iii) The biweekly matching contribution amount required under Subsection (2) may
1025 not exceed $26 for each qualifying employee.
1026 (4) A qualifying employee is eligible to receive the biweekly contribution under this
1027 section for any pay period in which the employee is in a paid status or other status protected by
1028 federal or state law.
1029 (5) The employer and employee contributions made and related earnings under this
1030 section vest immediately upon deposit and can be withdrawn by the employee at any time,
1031 subject to Internal Revenue Code regulations on the withdrawals.
1032 (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1033 executive director shall make rules establishing procedures to implement the provisions of this
1034 section.
1035 Section 23. Repealer.
1036 This bill repeals:
1037 Section 49-11-505, Reemployment of a retiree -- Restrictions.
1037a Ŝ→ Section 24. Coordinating H.B. 51 with S.B. 19 -- Technical renumbering and
1037b substantive amendments.
1037c If this H.B. 51 and S.B. 19, Phased Retirement, both pass and become law, it is the
1037d intent of the Legislature that the Office of Legislative Research and General Counsel prepare
1037e the Utah Code database for publication by:
1037f (1) renumbering Part 12, Phased Retirement, enacted by S.B. 19 to Part 13, Phased
1037g Retirement, and renumber and change all references from Part 12 to Part 13 accordingly;
1037h (2) changing the reference to "Section 49-11-505" in Section 49-11-1202 enacted in S.B.
1037i 19, which will be technically renumbered to Section 49-11-1302, to "Section 49-11-1204";
1037j (3) changing the reference to "Subsection 49-11-505(3)(a)" in Section 49-11-1206
1037k enacted in S.B. 19, which will be technically renumbered to Section 49-11-1306, to "Subsection
1037l 49-11-1204(2)"; and
1037m (4) modifying Subsection 49-11-1202(4)(b) enacted by H.B. 51 to read:
1037n "(b) does not include a person:
1037o (i)(A) who was reemployed by a participating employer before July 1, 2010; and
1037p (B) whose participating employer that reemployed the person under ☆
1037q ☆ Subsection (4)(b)(i)(A) was dissolved consolidated, merged, or structurally changed in
1037r accordance with Section 49-11-621 on or after July 1, 2010; or
1037s (ii) does not include a person who is working under a phased retirement agreement in
1037t accordance with Title 49, Chapter 11, Part 13, Phased Retirement." ←Ŝ
Legislative Review Note
Office of Legislative Research and General Counsel