1     
MODIFICATIONS TO POSTRETIREMENT REEMPLOYMENT

2     
RESTRICTIONS

3     
2016 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Rich Cunningham

6     
Senate Sponsor: ____________

7     

8     LONG TITLE
9     General Description:
10          This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
11     postretirement reemployment provisions.
12     Highlighted Provisions:
13          This bill:
14          ▸     allows a retiree to be reemployed with a participating employer after a certain
15     period from the retiree's retirement date if the retiree:
16               •     does not receive certain employer provided retirement benefits for the
17     reemployment;
18               •     is reemployed by a different agency; and
19               •     is reemployed by a participating employer that employs the retiree as an
20     educator at a school that receives Title I funding;
21          ▸     requires a participating employer to pay the contribution rate for a reemployed
22     retiree in certain circumstances; and
23          ▸     makes technical changes.
24     Money Appropriated in this Bill:
25          None
26     Other Special Clauses:
27          None
28     Utah Code Sections Affected:
29     AMENDS:
30          49-11-505, as last amended by Laws of Utah 2015, Chapters 243 and 256
31     

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




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