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7 LONG TITLE
8 General Description:
9 This bill modifies the Postretirement Reemployment Restrictions Act by amending
10 provisions relating to postretirement reemployment for certain members.
11 Highlighted Provisions:
12 This bill:
13 ▸ allows certain member retirees to be reemployed with a participating employer after
14 a certain period from the retiree's retirement date if the retiree:
15 • does not receive certain employer provided retirement benefits for the
16 reemployment; and
17 • is reemployed by a different participating employer than the participating
18 employer that employed the retiree at the time of retirement except in limited
19 circumstances;
20 ▸ requires a participating employer to pay certain amounts for a reemployed retiree;
21 ▸ requires certain member certifications on the retirement application form;
22 ▸ specifies penalties for violating the reemployment provisions; and
23 ▸ makes technical changes.
24 Money Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 This bill provides a special effective date.
28 Utah Code Sections Affected:
29 AMENDS:
30 49-11-1205, as last amended by Laws of Utah 2017, Chapter 141
31 49-11-1206, as enacted by Laws of Utah 2016, Chapter 310 and last amended by
32 Coordination Clause, Laws of Utah 2016, Chapter 310
33 49-11-1207, as last amended by Laws of Utah 2017, Chapter 141
34
35 Be it enacted by the Legislature of the state of Utah:
36 Section 1. Section 49-11-1205 is amended to read:
37 49-11-1205. Postretirement reemployment restriction exceptions.
38 (1) (a) The office may not cancel the retirement allowance of a retiree who is
39 reemployed with a participating employer within one year of the retiree's retirement date if:
40 (i) the retiree is not reemployed by a participating employer for a period of at least 60
41 days from the retiree's retirement date;
42 (ii) upon reemployment after the break in service under Subsection (1)(a)(i), the retiree
43 does not receive any employer paid benefits, including:
44 (A) retirement service credit or retirement-related contributions;
45 (B) medical benefits;
46 (C) dental benefits;
47 (D) other insurance benefits except for workers' compensation as provided under Title
48 34A, Chapter 2, Workers' Compensation Act, Title 34A, Chapter 3, Utah Occupational Disease
49 Act, and withholdings required by federal or state law for social security, Medicare, and
50 unemployment insurance; or
51 (E) paid time off, including sick, annual, or other type of leave; and
52 (iii) (A) the retiree does not earn in any calendar year of reemployment an amount in
53 excess of the lesser of $15,000 or one-half of the retiree's final average salary upon which the
54 retiree's retirement allowance is based; or
55 (B) the retiree is reemployed as a judge as defined under Section 78A-11-102.
56 (b) Beginning January 1, 2013, the board shall adjust the amounts under Subsection
57 (1)(a)(iii) by the annual change in the Consumer Price Index during the previous calendar year
58 as measured by a United States Bureau of Labor Statistics Consumer Price Index average as
59 determined by the board.
60 (2) A retiree shall be considered as having completed the one-year separation from
61 employment with a participating employer required under Section 49-11-1204, if the retiree:
62 (a) before retiring:
63 (i) was employed with a participating employer as a public safety service employee as
64 defined in Section 49-14-102, 49-15-102, or 49-23-102;
65 (ii) and during the employment under Subsection (2)(a)(i), suffered a physical injury
66 resulting from external force or violence while performing the duties of the employment, and
67 for which injury the retiree would have been approved for total disability in accordance with
68 the provisions under Chapter 21, Public Employees' Long-Term Disability Act, if years of
69 service are not considered;
70 (iii) had less than 30 years of service credit but had sufficient service credit to retire,
71 with an unreduced allowance making the public safety service employee ineligible for
72 long-term disability payments under Chapter 21, Public Employees' Long-Term Disability Act,
73 or a substantially similar long-term disability program; and
74 (iv) does not receive any long-term disability benefits from any participating employer;
75 and
76 (b) is reemployed by a different participating employer.
77 (3) (a) The office may not cancel the retirement allowance of a retiree who is employed
78 as an affiliated emergency services worker within one year of the retiree's retirement date if the
79 affiliated emergency services worker does not receive any compensation, except for:
80 (i) a nominal fee, stipend, discount, tax credit, voucher, or other fixed sum of money or
81 cash equivalent payment not tied to productivity and paid periodically for services;
82 (ii) a length-of-service award;
83 (iii) insurance policy premiums paid by the participating employer in the event of death
84 of an affiliated emergency services worker or a line-of-duty accidental death or disability; or
85 (iv) reimbursement of expenses incurred in the performance of duties.
86 (b) For purposes of Subsections (3)(a)(i) and (ii), the total amount of any discounts, tax
87 credits, vouchers, and payments to an affiliated emergency services worker may not exceed
88 $500 per month.
89 (c) Beginning January 1, 2016, the board shall adjust the amount under Subsection
90 (3)(b) by the annual change in the Consumer Price Index during the previous calendar year as
91 measured by a United States Bureau of Labor Statistics Consumer Price Index average as
92 determined by the board.
93 (4) The office may not cancel the retirement allowance of a retiree if:
94 (a) the retiree retired from one of the following systems:
95 (i) Chapter 14, Public Safety Contributory Retirement Act;
96 (ii) Chapter 15, Public Safety Noncontributory Retirement Act; or
97 (iii) Chapter 16, Firefighters' Retirement Act;
98 (b) the retiree's reemployment with a participating employer:
99 (i) (A) begins 11 or more months after the retiree's retirement date; and
100 (B) the retiree retired with 21 or more years of service credit;
101 (ii) (A) begins 10 or months after the retiree's retirement date; and
102 (B) the retiree retired with 22 or more years of service credit;
103 (iii) (A) begins nine or more months after the retiree's retirement date; and
104 (B) the retiree retired with 23 or more years of service credit;
105 (iv) (A) begins eight or more months after the retiree's retirement date; and
106 (B) the retiree retired with 24 or more years of service credit;
107 (v) (A) begins seven or more months after the retiree's retirement date; and
108 (B) the retiree retired with 25 or more years of service credit;
109 (vi) (A) begins six or more months after the retiree's retirement date; and
110 (B) the retiree retired with 26 or more years of service credit;
111 (vii) (A) begins five or more months after the retiree's retirement date; and
112 (B) the retiree retired with 27 or more years of service credit;
113 (viii) (A) begins four or more months after the retiree's retirement date; and
114 (B) the retiree retired with 28 or more years of service credit;
115 (ix) (A) begins three or more months after the retiree's retirement date; and
116 (B) the retiree retired with 29 or more years of service credit;
117 (x) (A) begins 60 or more days after the retiree's retirement date; and
118 (B) the retiree retired with 30 or more years of service credit;
119 (c) except as provided in Subsection (10), the retiree is reemployed by a participating
120 employer that is a different participating employer than the participating employer the
121 reemployed retiree was employed by at the time of retirement;
122 (d) the retiree does not receive any employer paid retirement service credit or
123 retirement related contributions from the participating employer; and
124 (e) the participating employer that reemploys the retiree pays to the office, on behalf of
125 the retiree, the amortization rate.
126 (5) The office may not cancel the retirement allowance of a retiree if:
127 (a) the retiree retired from Chapter 23, New Public Safety and Firefighter Tier II
128 Contributory Retirement Act;
129 (b) the retiree's reemployment with a participating employer:
130 (i) (A) begins 11 or more months after the retiree's retirement date; and
131 (B) the retiree retired with 26 or more years of service credit;
132 (ii) (A) begins 10 or more months after the retiree's retirement date; and
133 (B) the retiree retired with 27 or more years of service credit;
134 (iii) (A) begins nine or more months after the retiree's retirement date; and
135 (B) the retiree retired with 28 or more years of service credit;
136 (iv) (A) begins eight or more months after the retiree's retirement date; and
137 (B) the retiree retired with 29 or more years of service credit;
138 (v) (A) begins seven or more months after the retiree's retirement date; and
139 (B) the retiree retired with 30 or more years of service credit;
140 (vi) (A) begins six or more months after the retiree's retirement date; and
141 (B) the retiree retired with 31 or more years of service credit;
142 (vii) (A) begins five or more months after the retiree's retirement date; and
143 (B) the retiree retired with 32 or more years of service credit;
144 (viii) (A) begins four or more months after the retiree's retirement date; and
145 (B) the retiree retired with 33 or more years of service credit;
146 (ix) (A) begins three or more months after the retiree's retirement date; and
147 (B) the retiree retired with 34 or more years of service credit;
148 (x) (A) begins 60 or more days after the retiree's retirement date; and
149 (B) the retiree retired with 35 or more years of service credit;
150 (c) except as provided in Subsection (10), the retiree is reemployed by a participating
151 employer that is a different participating employer than the participating employer the
152 reemployed retiree was employed by at the time of retirement;
153 (d) the retiree does not receive any employer paid retirement service credit or
154 retirement related contributions from the participating employer; and
155 (e) the participating employer that reemploys the retiree pays to the office, on behalf of
156 the retiree, the amortization rate.
157 (6) Any amortization rate paid to the office under Subsection (4)(e) or (5)(e) shall be
158 applied to the system that would have covered the retiree if the retiree's reemployed position
159 were considered to be an eligible, full-time position within that system.
160 (7) (a) (i) A retiree receiving a retirement allowance may be reemployed under the
161 provisions of Subsection (1), (3), (4), or (5) in only one position for only one participating
162 employer at a time following the retiree's retirement date.
163 (ii) The participating employer shall notify the office which postretirement
164 reemployment exception under this section will govern the retiree's reemployment.
165 (b) A retiree reemployed under the provisions of Subsection (1), (3), (4), or (5) may
166 change reemployment to a new position under the provisions of Subsection (1), (3), (4), or (5)
167 only if:
168 (i) the retiree ceases actual work and is terminated from the current reemployed
169 position;
170 (ii) except as provided in Subsection (7)(b)(ii)(B) or (10), begins the subsequent
171 reemployment with a participating employer that is a different participating employer than:
172 (A) the participating employer for the retiree's current reemployment; and
173 (B) the participating employer that employed the retiree at the retiree's original time of
174 retirement; and
175 (iii) the participating employer or retiree notifies the office of the change in
176 reemployment and provides evidence of the termination and change to the office.
177 [
178 termination date of the reemployment, as confirmed in writing by the participating employer, is
179 considered the retiree's retirement date for the purpose of calculating the separation
180 requirement under Section 49-11-1204.
181 (b) If a retiree changes reemployment to another position under the provisions of
182 Subsection (1), (3), (4), (5), or (7) the final termination date of all reemployment, as confirmed
183 in writing by the last participating employer, is considered the retiree's retirement date for the
184 purpose of calculating the separation requirement under Subsection 49-11-505(3)(a).
185 [
186 of the calendar year if the reemployment with a participating employer exceeds the limitation
187 under Subsection (1)(a)(iii) or (3)(b).
188 (10) Notwithstanding Subsections (4)(c) and (5)(c), a reemployed retiree that was
189 employed by:
190 (a) the state of Utah at the time of retirement may be reemployed by the state under
191 Subsection (4), (5), or (7) if the reemployment is with a different agency or office; or
192 (b) a participating employer located in a county with a population of less than 75,000
193 may be reemployed by that participating employer under Subsection (4) or (5) if, before the
194 retiree is reemployed:
195 (i) the participating employer certifies to the office, under penalty of fraud, the facts
196 and circumstances of rehire, including any prearrangement for reemployment before the
197 member's retirement date; and
198 (ii) the office performs a facts and circumstances review and determines there was a
199 bona fide termination of employment with that participating employer, including the specific
200 finding that there was not a prearrangement for reemployment before the member's retirement
201 date.
202 Section 2. Section 49-11-1206 is amended to read:
203 49-11-1206. Notice of postretirement reemployment.
204 (1) A participating employer shall immediately notify the office:
205 (a) if the participating employer reemploys a retiree;
206 (b) whether the reemployment is subject to Section 49-11-1204 or Subsection
207 49-11-1205(1), (2), [
208 (c) of any election by the retiree under Section 49-11-1204.
209 (2) A participating employer shall certify to the office whether the position of an
210 elected official is or is not full time.
211 (3) A retiree subject to this part shall report to the office the status of the reemployment
212 under Section 49-11-1204 or 49-11-1205.
213 (4) The retirement application form submitted to the office shall contain the retiring
214 member's certification, under penalty of fraud, of whether there was a prearrangement of
215 reemployment before the retiree's retirement date with the participating employer.
216 Section 3. Section 49-11-1207 is amended to read:
217 49-11-1207. Postretirement reemployment -- Violations -- Penalties.
218 (1) (a) If the office receives notice or learns of the reemployment of a retiree in
219 violation of Section 49-11-1204 or 49-11-1205, the office shall:
220 (i) immediately cancel the retiree's retirement allowance;
221 (ii) keep the retiree's retirement allowance cancelled for the remainder of the calendar
222 year if the reemployment with a participating employer exceeded the limitation under
223 Subsection 49-11-1205(1)(a)(iii)(A) or (3)(b); and
224 (iii) recover any overpayment resulting from the violation in accordance with the
225 provisions of Section 49-11-607 before the allowance may be reinstated.
226 (b) Reinstatement of an allowance following cancellation for a violation under this
227 section is subject to the procedures and provisions under Section 49-11-1204.
228 (2) If a retiree or participating employer failed to report reemployment in violation of
229 Section 49-11-1206, the retiree, participating employer, or both, who are found to be
230 responsible for the failure to report, are liable to the office for the amount of any overpayment
231 resulting from the violation.
232 (3) (a) A participating employer is liable to the office for a payment or failure to make
233 a payment in violation of this part.
234 (b) In addition to other penalties under this section, if the reemployment of a retiree is
235 in violation of Subsection 49-11-1205(4) or (5), the participating employer shall pay the office
236 any delinquent amortization rate contributions, plus interest, under Section 49-11-503.
237 (4) If a participating employer fails to notify the office in accordance with Section
238 49-11-1206, the participating employer is immediately subject to a compliance audit by the
239 office.
240 Section 4. Effective date.
241 This bill takes effect on January 1, 2019.
Legislative Review Note
Office of Legislative Research and General Counsel