This document includes Senate Committee Amendments incorporated into the bill on Thu, Feb 1, 2018 at 9:33 AM by lpoole.
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8 LONG TITLE
9 General Description:
10 This bill modifies the Postretirement Reemployment Restrictions Act by amending
11 provisions relating to postretirement reemployment for educators.
12 Highlighted Provisions:
13 This bill:
14 ▸ provides definitions;
15 ▸ allows certain educator retirees to be reemployed with a participating employer after
16 a certain period from the retiree's retirement date if the retiree:
17 • does not receive certain employer provided retirement benefits for the
18 reemployment; and
19 • is reemployed by a different participating employer than the participating
20 employer that employed the retiree at the time of retirement Ŝ→ except in limited circumstances
20a ←Ŝ ; and
21 ▸ requires a participating employer to pay certain amounts for a reemployed retiree in
22 certain circumstances;
22a Ŝ→ ▸ requires certain member certifications on the retirement application form; ←Ŝ
23 ▸ requires the Utah State Retirement Office to report certain information to an interim
24 committee of the Legislature;
25 ▸ specifies penalties for violating the reemployment provisions; and
26 ▸ makes technical changes.
27 Money Appropriated in this Bill:
28 None
29 Other Special Clauses:
30 This bill provides a special effective date.
31 Utah Code Sections Affected:
32 AMENDS:
33 49-11-1202, as enacted by Laws of Utah 2016, Chapter 310 and last amended by
34 Coordination Clause, Laws of Utah 2016, Chapter 310
35 49-11-1205, as last amended by Laws of Utah 2017, Chapter 141
36 49-11-1206, as enacted by Laws of Utah 2016, Chapter 310 and last amended by
37 Coordination Clause, Laws of Utah 2016, Chapter 310
38 49-11-1207, as last amended by Laws of Utah 2017, Chapter 141
39
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 49-11-1202 is amended to read:
42 49-11-1202. Definitions.
43 As used in this part:
44 (1) (a) "Affiliated emergency services worker" means a person who:
45 (i) is employed by a participating employer;
46 (ii) performs emergency services for another participating employer that is a different
47 agency;
48 (iii) is trained in techniques and skills required for the emergency service;
49 (iv) continues to receive regular training required for the service;
50 (v) is on the rolls as a trained affiliated emergency services worker of the participating
51 employer; and
52 (vi) provides ongoing service for a participating employer, which service may include
53 service as a volunteer firefighter, reserve law enforcement officer, search and rescue worker,
54 emergency medical technician, ambulance worker, park ranger, or public utilities worker.
55 (b) "Affiliated emergency services worker" does not include a person who performs
56 work or service but does not meet the requirements of Subsection (1)(a).
57 (2) "Amortization rate" means the amortization rate, as defined in Section 49-11-102,
58 to be applied to the system that would have covered the retiree if the retiree's reemployed
59 position were deemed to be an eligible, full-time position within that system.
60 (3) (a) "Reemployed," "reemploy," or "reemployment" means work or service
61 performed for a participating employer after retirement, in exchange for compensation.
62 (b) Reemployment includes work or service performed on a contract for a participating
63 employer if the retiree is:
64 (i) listed as the contractor; or
65 (ii) an owner, partner, or principal of the contractor.
66 (4) "Retiree":
67 (a) means a person who:
68 (i) retired from a participating employer; and
69 (ii) begins reemployment on or after July 1, 2010, with a participating employer; and
70 (b) does not include a person:
71 (i) (A) who was reemployed by a participating employer before July 1, 2010; and
72 (B) whose participating employer that reemployed the person under Subsection
73 (4)(b)(i)(A) was dissolved, consolidated, merged, or structurally changed in accordance with
74 Section 49-11-621 on or after July 1, 2010; or
75 (ii) who is working under a phased retirement agreement in accordance with Title 49,
76 Chapter 11, Part 13, Phased Retirement.
77 (5) "Retiree surcharge" means the board certified percent of a reemployed retiree's
78 salary:
79 (a) paid on behalf of a reemployed retiree to the office;
80 (b) that is required to amortize the actuarial loss that would occur due to eligible
81 retirees being authorized to:
82 (i) commence their benefits at an earlier age; and
83 (ii) return to the workforce with a participating employer; and
84 (c) set in accordance with policies established by the board upon the advice of the
85 actuary.
86 Section 2. Section 49-11-1205 is amended to read:
87 49-11-1205. Postretirement reemployment restriction exceptions.
88 (1) (a) The office may not cancel the retirement allowance of a retiree who is
89 reemployed with a participating employer within one year of the retiree's retirement date if:
90 (i) the retiree is not reemployed by a participating employer for a period of at least 60
91 days from the retiree's retirement date;
92 (ii) upon reemployment after the break in service under Subsection (1)(a)(i), the retiree
93 does not receive any employer paid benefits, including:
94 (A) retirement service credit or retirement-related contributions;
95 (B) medical benefits;
96 (C) dental benefits;
97 (D) other insurance benefits except for workers' compensation as provided under Title
98 34A, Chapter 2, Workers' Compensation Act, Title 34A, Chapter 3, Utah Occupational Disease
99 Act, and withholdings required by federal or state law for social security, Medicare, and
100 unemployment insurance; or
101 (E) paid time off, including sick, annual, or other type of leave; and
102 (iii) (A) the retiree does not earn in any calendar year of reemployment an amount in
103 excess of the lesser of $15,000 or one-half of the retiree's final average salary upon which the
104 retiree's retirement allowance is based; or
105 (B) the retiree is reemployed as a judge as defined under Section 78A-11-102.
106 (b) Beginning January 1, 2013, the board shall adjust the amounts under Subsection
107 (1)(a)(iii) by the annual change in the Consumer Price Index during the previous calendar year
108 as measured by a United States Bureau of Labor Statistics Consumer Price Index average as
109 determined by the board.
110 (2) A retiree shall be considered as having completed the one-year separation from
111 employment with a participating employer required under Section 49-11-1204, if the retiree:
112 (a) before retiring:
113 (i) was employed with a participating employer as a public safety service employee as
114 defined in Section 49-14-102, 49-15-102, or 49-23-102;
115 (ii) and during the employment under Subsection (2)(a)(i), suffered a physical injury
116 resulting from external force or violence while performing the duties of the employment, and
117 for which injury the retiree would have been approved for total disability in accordance with
118 the provisions under Chapter 21, Public Employees' Long-Term Disability Act, if years of
119 service are not considered;
120 (iii) had less than 30 years of service credit but had sufficient service credit to retire,
121 with an unreduced allowance making the public safety service employee ineligible for
122 long-term disability payments under Chapter 21, Public Employees' Long-Term Disability Act,
123 or a substantially similar long-term disability program; and
124 (iv) does not receive any long-term disability benefits from any participating employer;
125 and
126 (b) is reemployed by a different participating employer.
127 (3) (a) The office may not cancel the retirement allowance of a retiree who is employed
128 as an affiliated emergency services worker within one year of the retiree's retirement date if the
129 affiliated emergency services worker does not receive any compensation, except for:
130 (i) a nominal fee, stipend, discount, tax credit, voucher, or other fixed sum of money or
131 cash equivalent payment not tied to productivity and paid periodically for services;
132 (ii) a length-of-service award;
133 (iii) insurance policy premiums paid by the participating employer in the event of death
134 of an affiliated emergency services worker or a line-of-duty accidental death or disability; or
135 (iv) reimbursement of expenses incurred in the performance of duties.
136 (b) For purposes of Subsections (3)(a)(i) and (ii), the total amount of any discounts, tax
137 credits, vouchers, and payments to an affiliated emergency services worker may not exceed
138 $500 per month.
139 (c) Beginning January 1, 2016, the board shall adjust the amount under Subsection
140 (3)(b) by the annual change in the Consumer Price Index during the previous calendar year as
141 measured by a United States Bureau of Labor Statistics Consumer Price Index average as
142 determined by the board.
143 (4) (a) The office may not cancel the retirement allowance of a retiree who is
144 reemployed with a participating employer within one year of the retiree's retirement date if:
145 (i) the retiree:
146 (A) is not reemployed by a participating employer for a period of at least 60 days from
147 the retiree's retirement date;
148 (B) except as provided in Subsection (8), is reemployed by a participating employer
149 that is a different participating employer than the participating employer the reemployed retiree
150 was employed by at the time of retirement;
151 (C) is reemployed by a public education participating employer in a position as an
152 educator as defined under Section Ŝ→ [
153 (D) does not receive any employer paid retirement service credit or retirement related
154 contributions from the participating employer; and
155 (ii) the participating employer that reemploys the retiree pays to the office on behalf of
156 the retiree:
157 (A) the amortization rate; and
158 (B) the retiree surcharge.
159 (b) Any contribution paid to the office under Subsection (4)(a)(ii) shall be applied to
160 the system that would have covered the retiree if the retiree's reemployed position were
161 considered to be an eligible, full-time position within that system.
162 (c) The office shall, on or before November 30, 2024, study, evaluate, and report on the
163 actuarial costs and effectiveness of implementing the educator retiree reemployment exception
164 authorized under this Subsection (4) to the Retirement and Independent Entities Committee of
165 the Legislature.
166 (5) (a) (i) A retiree receiving a retirement allowance may be reemployed under the
167 provisions of Subsections (1), (3), and (4) in only one position for only one participating
168 employer at a time following the retiree's retirement date.
169 (ii) The participating employer shall notify the office which postretirement
170 reemployment exception under this section will govern the retiree's reemployment.
171 (b) A retiree reemployed under the provisions of Subsection (1), (3), or (4) may change
172 reemployment to a new position under the provisions of Subsection (1), (3), or (4) only if:
173 (i) the retiree ceases actual work and is terminated from the current reemployed
174 position;
175 (ii) except as provided in Subsection (8), begins the subsequent reemployment with a
176 participating employer that is a different participating employer than:
177 (A) the participating employer for the retiree's current reemployment; and
178 (B) the participating employer that employed the retiree at the retiree's original time of
179 retirement; and
180 (iii) the participating employer or retiree notifies the office of the change in
181 reemployment and provides evidence of the termination and change to the office.
182 [
183 or (4), the termination date of the reemployment, as confirmed in writing by the participating
184 employer, is considered the retiree's retirement date for the purpose of calculating the
185 separation requirement under Section 49-11-1204.
186 (b) If a retiree changes reemployment to another position under the provisions of
187 Subsection (1), (3), or (4), the final termination date of all reemployment, as confirmed in
188 writing by the last participating employer, is considered the retiree's retirement date for the
189 purpose of calculating the separation requirement under Subsection 49-11-505(3)(a).
190 [
191 of the calendar year if the reemployment with a participating employer exceeds the limitation
192 under Subsection (1)(a)(iii) or (3)(b).
193 (8) Notwithstanding Subsections (4)(a)(i)(B) and (5)(b)(ii), a reemployed retiree that
194 was employed by Ŝ→ :
194a (a) ←Ŝ the State of Utah at the time of retirement may be reemployed by the state
195 under Subsection (4) or (5) if the reemployment is with a different agency or office Ŝ→ [
195a (b) a participating employer located within a county of the fourth, fifth, or sixth class,
195b as classified under Section 17-50-501, may be reemployed by that participating employer
195c under Subsection (4) or (5) if before the retiree is reemployed:
195d (i) the participating employer certifies to the office, under penalty of fraud, the facts
195e and circumstances of rehire, including any prearrangement for reemployment before the
195f member's retirement date; and
195g (ii) the office performs a facts and circumstances review and determines there was a
195h bona fide termination of employment with that participating employer, including the specific
195i finding that there was not a prearrangement for reemployment before the member's
195j retirement date. ←Ŝ
196 Section 3. Section 49-11-1206 is amended to read:
197 49-11-1206. Notice of postretirement reemployment.
198 (1) A participating employer shall immediately notify the office:
199 (a) if the participating employer reemploys a retiree;
200 (b) whether the reemployment is subject to Section 49-11-1204 or Subsection
201 49-11-1205(1), (2), [
202 (c) of any election by the retiree under Section 49-11-1204.
203 (2) A participating employer shall certify to the office whether the position of an
204 elected official is or is not full time.
205 (3) A retiree subject to this part shall report to the office the status of the reemployment
206 under Section 49-11-1204 or 49-11-1205.
206a Ŝ→ (4) The retirement application form submitted to the office shall contain the retiring
206b member's certification, under penalty of fraud, of whether there was a prearrangement of
206c reemployment before the retiree's retirement date with the participating employer. ←Ŝ
207 Section 4. Section 49-11-1207 is amended to read:
208 49-11-1207. Postretirement reemployment -- Violations -- Penalties.
209 (1) (a) If the office receives notice or learns of the reemployment of a retiree in
210 violation of Section 49-11-1204 or 49-11-1205, the office shall:
211 (i) immediately cancel the retiree's retirement allowance;
212 (ii) keep the retiree's retirement allowance cancelled for the remainder of the calendar
213 year if the reemployment with a participating employer exceeded the limitation under
214 Subsection 49-11-1205(1)(a)(iii)(A) or (3)(b); and
215 (iii) recover any overpayment resulting from the violation in accordance with the
216 provisions of Section 49-11-607 before the allowance may be reinstated.
217 (b) Reinstatement of an allowance following cancellation for a violation under this
218 section is subject to the procedures and provisions under Section 49-11-1204.
219 (2) If a retiree or participating employer failed to report reemployment in violation of
220 Section 49-11-1206, the retiree, participating employer, or both, who are found to be
221 responsible for the failure to report, are liable to the office for the amount of any overpayment
222 resulting from the violation.
223 (3) (a) A participating employer is liable to the office for a payment or failure to make
224 a payment in violation of this part.
225 (b) In addition to other penalties under this section, if the reemployment of a retiree is
226 in violation of Subsection 49-11-1205(4), the participating employer shall pay the office any
227 delinquent retiree surcharge and amortization rate contributions, plus interest, under Section
228 49-11-503.
229 (4) If a participating employer fails to notify the office in accordance with Section
230 49-11-1206, the participating employer is immediately subject to a compliance audit by the
231 office.
232 Section 5. Effective date.
233 This bill takes effect on January 1, 2019.
Legislative Review Note
Office of Legislative Research and General Counsel