7 LONG TITLE
8 Committee Note:
9 The Retirement and Independent Entities Interim Committee recommended this bill.
10 General Description:
11 This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
12 provisions relating to phased retirement.
13 Highlighted Provisions:
14 This bill:
15 ▸ amends definitions;
16 ▸ modifies the application procedures for a phased retirement agreement;
17 ▸ modifies provisions regarding the beginning and termination periods for phased
18 retirement employment; and
19 ▸ makes technical changes.
20 Money Appropriated in this Bill:
22 Other Special Clauses:
23 This bill provides a special effective date.
24 Utah Code Sections Affected:
26 49-11-1301, as enacted by Laws of Utah 2016, Chapter 280
27 49-11-1303, as enacted by Laws of Utah 2016, Chapter 280
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 49-11-1301 is amended to read:
31 49-11-1301. Definitions.
32 As used in this part:
33 (1) "Amortization rate" means the amortization rate, as defined in Section 49-11-102,
34 to be applied to the system that would have covered the retiree if the retiree's part-time position
35 were considered to be an eligible, full-time position within that system.
36 (2) "Full-time" means a:
37 (a) regular full-time employee whose term of employment for a participating employer
38 contemplates continued employment during a fiscal or calendar year and whose employment
39 normally requires an average of 40 hours or more per week and who receives benefits normally
40 provided by the participating employer;
41 (b) teacher whose term of employment for a participating employer contemplates
42 continued employment during a school year and who teaches full time;
43 (c) firefighter service employee whose employment normally requires an average of
44 2,080 hours of regularly scheduled firefighter service per year; and
45 (d) public safety service employee whose employment normally requires an average of
46 2,080 hours of regularly scheduled public safety service per year.
47 (3) "Half-time" means a:
48 (a) regular employee whose term of employment for a participating employer
49 contemplates continued employment during a fiscal or calendar year and whose employment
50 normally requires an average of 20 hours per week and who receives benefits normally
51 provided by the participating employer;
52 (b) teacher whose term of employment for a participating employer contemplates
53 continued employment during a school year and who teaches half time;
54 (c) firefighter service employee whose employment normally requires an average of
55 1,040 hours of regularly scheduled firefighter service per year; and
56 (d) public safety service employee whose employment normally requires an average of
57 1,040 hours of regularly scheduled public safety service per year.
58 (4) "Phased retirement" means continuing employment on a half-time basis of a retiree
59 with the same participating employer [
60 while the retiree receives a reduced retirement allowance.
61 Section 2. Section 49-11-1303 is amended to read:
62 49-11-1303. Phased retirement -- Eligibility -- Restrictions -- Amortization rate.
63 (1) A retiree is eligible for employment with only one position for only one
64 participating employer under phased retirement following the retiree's retirement date if:
65 (a) the retiree:
66 (i) is eligible to retire and retires in accordance with this title;
67 (ii) has been employed full time, for not less than four years immediately before the
68 retiree's retirement date;
69 (iii) completes and submits all required retirement forms to the office; and
72 (iv) prior to the retiree's retirement date, completes and submits all required phased
73 retirement forms to the office; and
74 (b) the retiree and the participating employer enter into an agreement described under
75 Section 49-11-1304.
76 (2) A retiree shall begin phased retirement employment after the retiree's retirement
77 date but no later than 120 days after the retiree's retirement date.
79 (a) the retiree receives 50% of the retiree's monthly allowance;
80 (b) the participating employer employs the retiree on a half-time basis;
81 (c) a participating employer that employs the retiree shall contribute to the office the
82 amortization rate;
83 (d) the retiree or an alternate payee may not receive an annual cost-of-living adjustment
84 to the retiree's or alternate payee's allowance;
85 (e) any death benefits payable to a surviving spouse or other beneficiary shall be paid
86 based on 100% of the retiree's retirement allowance;
87 (f) the retiree may not receive any employer provided retirement benefits, service credit
88 accruals, or any retirement related contributions from the participating employer; and
89 (g) except as specified under this section, a retiree working under phased retirement
90 shall be treated in the same manner as any other part-time employee working a similar position
91 and number of hours with the participating employer, including:
92 (i) any non-retirement related benefits;
93 (ii) leave benefits;
94 (iii) medical benefits; and
95 (iv) other benefits.
96 (4) The office shall begin paying 100% of the retiree's retirement allowance on the first
97 day of the month following the month in which the office receives written notification and any
98 required supporting documentation that the retiree's phased retirement has been irrevocably
100 Section 3. Effective date.
101 If approved by two-thirds of all the members elected to each house, this bill takes effect
102 upon approval by the governor, or the day following the constitutional time limit of Utah
103 Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
104 the date of veto override.
Legislative Review Note
Office of Legislative Research and General Counsel