1     
POSTRETIREMENT EMPLOYMENT RURAL AND TITLE I

2     
SCHOOL EXCEPTIONS

3     
2016 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Rich Cunningham

6     
Senate Sponsor: ____________

7     

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          ▸     allows a retiree to be reemployed with a participating employer after a certain
17     period from the retiree's retirement date if the retiree:
18               •     does not receive certain employer provided retirement benefits for the
19     reemployment;
20               •     is reemployed by a different agency; and
21               •     is reemployed by a participating employer that meets certain criteria;
22          ▸     requires a participating employer to pay the contribution rate for a reemployed
23     retiree in certain circumstances; and
24          ▸     makes technical changes.
25     Money Appropriated in this Bill:
26          None
27     Other Special Clauses:
28          None
29     Utah Code Sections Affected:
30     AMENDS:
31          49-11-505, as last amended by Laws of Utah 2015, Chapters 243 and 256
32     

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 49-11-505 is amended to read:
35          49-11-505. Reemployment of a retiree -- Restrictions -- Penalties.
36          (1) (a) For purposes of this section, "retiree":
37          (i) means a person who:
38          (A) retired from a participating employer; and
39          (B) begins reemployment on or after July 1, 2010, with a participating employer;
40          (ii) does not include a person:
41          (A) who was reemployed by a participating employer before July 1, 2010; and
42          (B) whose participating employer that reemployed the person under Subsection
43     (1)(a)(ii)(A) was dissolved, consolidated, merged, or structurally changed in accordance with
44     Section 49-11-621 after July 1, 2010; and
45          (iii) does not include a person who is reemployed as an active senior judge or an active
46     senior justice court judge as described by Utah State Court Rules, appointed to hear cases by
47     the Utah Supreme Court in accordance with Article VIII, Section 4, Utah Constitution.
48          (b) (i) This section does not apply to employment as an elected official if the elected
49     official's position is not full time as certified by the participating employer.
50          (ii) The provisions of this section apply to an elected official whose elected position is
51     full time as certified by the participating employer.
52          (c) (i) This section does not apply to employment as a part-time appointed board
53     member who does not receive any remuneration, stipend, or other benefit for the part-time
54     appointed board member's service.
55          (ii) For purposes of this Subsection (1)(c), remuneration, stipend, or other benefit does
56     not include receipt of per diem and travel expenses up to the amounts established by the
57     Division of Finance in:
58          (A) Section 63A-3-106;
59          (B) Section 63A-3-107; and
60          (C) rules made by the Division of Finance according to Sections 63A-3-106 and
61     63A-3-107.
62          (d) (i) For purposes of this Subsection (1)(d), "affiliated emergency services worker"
63     means a person who:
64          (A) is employed by a participating employer [and who];
65          (B) performs emergency services for another participating employer that is a different
66     agency [in which the person:];
67          [(A)] (C) [has been] is trained in techniques and skills required for the service the
68     person provides to the participating employer;
69          [(B)] (D) continues to receive regular training required for the service;
70          [(C)] (E) is on the rolls as a trained affiliated emergency services worker of the
71     participating employer; and
72          [(D)] (F) provides ongoing service for a participating employer, which service may
73     include service as a volunteer firefighter, reserve law enforcement officer, search and rescue
74     personnel, emergency medical technician, ambulance personnel, park ranger, or public utilities
75     worker.
76          (ii) A person who performs work or service but does not meet the requirements of
77     Subsection (1)(d)(i) is not an affiliated emergency services worker for purposes of this
78     Subsection (1)(d).
79          (iii) The office may not cancel the retirement allowance of a retiree who is employed as
80     an affiliated emergency services worker within one year of the retiree's retirement date if the
81     affiliated emergency services worker does not receive any compensation, except for:
82          (A) a nominal fee, stipend, discount, tax credit, voucher, or other fixed sum of money
83     or cash equivalent payment not tied to productivity and paid periodically for services;
84          (B) a length-of-service award;
85          (C) insurance policy premiums paid by the participating employer in the event of death
86     of an affiliated emergency services worker or a line-of-duty accidental death or disability; or
87          (D) reimbursement of expenses incurred in the performance of duties.
88          (iv) For purposes of Subsections (1)(d)(iii)(A) and (B), the total amount of any
89     discounts, tax credits, vouchers, and payments to a volunteer may not exceed $500 per month.
90          (v) Beginning January 1, 2016, the board shall adjust the amount under Subsection
91     (1)(d)(iv) by the annual change in the Consumer Price Index during the previous calendar year
92     as measured by a United States Bureau of Labor Statistics Consumer Price Index average as
93     determined by the board.
94          (vi) The office shall cancel the retirement allowance of a retiree for the remainder of
95     the calendar year if employment as an affiliated emergency services worker with a participating
96     employer exceeds the limitation under Subsection (1)(d)(iv).
97          (vii) If a retiree is employed as an affiliated emergency services worker under the
98     provisions of Subsection (1)(d), the termination date of the employment as an affiliated
99     emergency services worker, as confirmed in writing by the participating employer, is
100     considered the retiree's retirement date for the purpose of calculating the separation
101     requirement under Subsection (3)(a).
102          (2) A retiree may not for the same period of reemployment:
103          (a) (i) earn additional service credit; or
104          (ii) receive any retirement related contribution from a participating employer; and
105          (b) receive a retirement allowance.
106          (3) (a) Except as provided under Subsection (1)(d), (3)(b), (3)(e), or (10), the office
107     shall cancel the retirement allowance of a retiree if the reemployment with a participating
108     employer begins within one year of the retiree's retirement date.
109          (b) The office may not cancel the retirement allowance of a retiree who is reemployed
110     with a participating employer within one year of the retiree's retirement date if:
111          (i) the retiree is not reemployed by a participating employer for a period of at least 60
112     days from the retiree's retirement date;
113          (ii) upon reemployment after the break in service under Subsection (3)(b)(i), the retiree
114     does not receive any employer [provided] paid benefits, including:
115          (A) retirement service credit or retirement related contributions;
116          [(A)] (B) medical benefits;
117          [(B)] (C) dental benefits;
118          [(C)] (D) other insurance benefits except for workers' compensation as provided under
119     Title 34A, Chapter 2, Workers' Compensation Act, and Chapter 3, Utah Occupational Disease
120     Act, and withholdings required by federal or state law for Social Security, Medicare, and
121     unemployment insurance; or
122          [(D)] (E) paid time off, including sick, annual, or other type of leave; and
123          (iii) (A) the retiree does not earn in any calendar year of reemployment an amount in
124     excess of the lesser of $15,000 or one-half of the retiree's final average salary upon which the
125     retiree's retirement allowance is based; or
126          (B) the retiree is reemployed as a judge as defined under Section 78A-11-102.
127          (c) Beginning January 1, 2013, the board shall adjust the amounts under Subsection
128     (3)(b)(iii)(A) by the annual change in the Consumer Price Index during the previous calendar
129     year as measured by a United States Bureau of Labor Statistics Consumer Price Index average
130     as determined by the board.
131          (d) The office shall cancel the retirement allowance of a retiree for the remainder of the
132     calendar year if the reemployment with a participating employer exceeds the limitation under
133     Subsection (3)(b)(iii)(A).
134          (e) The office may not cancel the retirement allowance of a retiree who is reemployed
135     with a participating employer within one year of the retiree's retirement date if:
136          (i) the retiree:
137          (A) is not reemployed by a participating employer for a period of at least 60 days from
138     the retiree's retirement date;
139          (B) is reemployed by a different agency;
140          (C) is reemployed by a participating employer with a principal place of employment for
141     the retiree in:
142          (I) a county with a population of less than 45,000;
143          (II) a municipality or town with a population of less than 10,000 that is located within a
144     county with a population of less than 45,000; or
145          (III) a school that receives funding under Title I of the Elementary and Secondary
146     Education Act, 20 U.S.C. Sec. 6301 and the retiree is reemployed as an educator, as defined in
147     Section 53A-6-103; and
148          (D) does not receive any employer paid retirement service credit or retirement related
149     contributions from the participating employer; and
150          (ii) the participating employer pays the contribution rate to the office as if the retiree's
151     reemployed position were considered to be an eligible, full-time position within that system,
152     but the retiree does not earn additional service credit.
153          (f) Any contribution paid to the office under Subsection (3)(e)(ii) shall be applied to
154     the system that would have covered the retiree if the retiree's reemployed position were
155     considered to be an eligible, full-time position within that system.
156          [(e)] (g) If a retiree is reemployed under the provisions of Subsection (3)(b)[,] or (3)(e),
157     the termination date of the reemployment, as confirmed in writing by the participating
158     employer, is considered the retiree's retirement date for the purpose of calculating the
159     separation requirement under Subsection (3)(a).
160          [(f) If a retiree received a retirement allowance in error, due to reemployment in
161     violation of this section:]
162          [(i) the office shall cancel the retiree's retirement allowance; and]
163          [(ii) if the retiree applies for a future benefit, the office shall recover any overpayment
164     in accordance with the provisions of Section 49-11-607.]
165          (4) If a reemployed retiree has completed the one-year separation from employment
166     with a participating employer required under Subsection (3)(a), the retiree may elect to:
167          (a) earn additional service credit in accordance with this title and cancel the retiree's
168     retirement allowance; or
169          (b) continue to receive the retiree's retirement allowance and forfeit any retirement
170     related contribution from the participating employer who reemployed the retiree.
171          (5) (a) As used in this Subsection (5), "amortization rate" means the amortization rate,
172     as defined in Section 49-11-102, to be applied to the system that would have covered the retiree
173     if the retiree's reemployed position were deemed to be an eligible, full-time position within that
174     system.
175          (b) A participating employer who reemploys a retiree shall contribute to the office the
176     amortization rate if the reemployed retiree:
177          (i) has completed the one-year separation from employment with a participating
178     employer required under Subsection (3)(a); and
179          (ii) makes an election under Subsection (4)(b) to continue to receive a retirement
180     allowance while reemployed.
181          (c) A participating employer who reemploys a retiree in accordance with Subsection
182     (3)(b) is not required to contribute the amortization rate to the office.
183          (6) (a) A participating employer shall immediately notify the office:
184          (i) if the participating employer reemploys a retiree;
185          (ii) whether the reemployment is subject to Subsection (3)(b), (3)(e), or (4) of this
186     section; and
187          (iii) of any election by the retiree under Subsection (4).
188          (b) A participating employer shall certify to the office whether the position of an
189     elected official is or is not full time.
190          (c) A participating employer is liable to the office for a payment or failure to make a
191     payment in violation of this section.
192          (d) If a participating employer fails to notify the office in accordance with this section,
193     the participating employer is immediately subject to a compliance audit by the office.
194          (7) (a) The office shall immediately cancel the retirement allowance of a retiree in
195     accordance with Subsection (7)(b) if the office receives notice or learns of:
196          (i) the reemployment of a retiree in violation of Subsection (1)(d), or (3); or
197          (ii) the election of a reemployed retiree under Subsection (4)(a).
198          (b) If the retiree is eligible for retirement coverage in the reemployed position, the
199     office shall cancel the allowance of a retiree who is subject to Subsection (7)(a), and reinstate
200     the retiree to active member status on the first day of the month following the date of:
201          (i) reemployment if the retiree is subject to Subsection (3); or
202          (ii) an election by an employee under Subsection (4)(a).
203          (c) If the retiree is not otherwise eligible for retirement coverage in the reemployed
204     position:
205          (i) the office shall cancel the allowance of a retiree subject to Subsection (7)(a)(i); and
206          (ii) except as provided under Subsection (5)(c), the participating employer shall pay the
207     amortization rate to the office on behalf of the retiree.
208          (8) (a) [A] For a retiree subject to Subsection (7)(b) who retires within two years from
209     the date of reemployment, the office:
210          (i) [is not entitled to a recalculated] may not recalculate a retirement benefit for the
211     retiree; and
212          (ii) [will] shall resume the allowance that was being paid to the retiree at the time of
213     the cancellation.
214          (b) Subject to Subsection (2), for a retiree who is reinstated to active membership
215     under Subsection (7) and who retires two or more years after the date of reinstatement to active
216     membership, the office shall:
217          (i) resume [receiving] the allowance that was being paid at the time of cancellation;
218     and
219          (ii) [receive] calculate an additional allowance for the retiree based on the formula in
220     effect at the date of the subsequent retirement for all service credit accrued between the first
221     and subsequent retirement dates.
222          (9) (a) A retiree subject to this section shall report to the office the status of the
223     reemployment under Subsection (3) or (4).
224          (b) If the retiree fails to inform the office of an election under Subsection (4), the office
225     shall withhold one month's benefit for each month the retiree fails to inform the office under
226     Subsection (9)(a).
227          (10) A retiree shall be considered as having completed the one-year separation from
228     employment with a participating employer required under Subsection (3)(a), if the retiree:
229          (a) before retiring:
230          (i) was employed with a participating employer as a public safety service employee as
231     defined in Section 49-14-102, 49-15-102, or 49-23-102;
232          (ii) and during the employment under Subsection (10)(a)(i), suffered a physical injury
233     resulting from external force or violence while performing the duties of the employment, and
234     for which injury the retiree would have been approved for total disability in accordance with
235     the provisions under Title 49, Chapter 21, Public Employees' Long-Term Disability Act, if
236     years of service are not considered;
237          (iii) had less than 30 years of service credit but had sufficient service credit to retire,
238     with an unreduced allowance making the public safety service employee ineligible for
239     long-term disability payments under Title 49, Chapter 21, Public Employees' Long-Term
240     Disability Act, or a substantially similar long-term disability program; and
241          (iv) does not receive any long-term disability benefits from any participating employer;
242     and
243          (b) is reemployed by a different participating employer.
244          (11) If a retiree received a retirement allowance in error, due to reemployment in
245     violation of this section:
246          (a) the office shall cancel the retiree's retirement allowance;
247          (b) if the retiree applies for a future benefit, the office shall recover any overpayment in
248     accordance with the provisions of Section 49-11-607; and
249          (c) if a retiree or participating employer failed to report reemployment in violation of
250     this section, the retiree, participating employer, or both that are found to be responsible for the
251     failure to report are liable to the office for the amount of any overpayment resulting from the
252     violation.
253          [(11)] (12) The board may make rules to implement this section.




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