This document includes Senate Committee Amendments incorporated into the bill on Thu, Feb 1, 2018 at 9:06 AM by lpoole.
1     
POSTRETIREMENT REEMPLOYMENT REVISIONS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jani Iwamoto

5     
House Sponsor: Lee B. Perry

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Postretirement Reemployment Restrictions Act by amending
10     provisions relating to postretirement reemployment for public safety service employees
11     and firefighter service employees.
12     Highlighted Provisions:
13          This bill:
14          ▸     defines terms;
15          ▸     allows certain public safety service and firefighter service retirees to be reemployed
16     with a participating employer after a certain period from the retiree's retirement date
17     if the retiree:
18               •     does not receive certain employer provided retirement benefits for the
19     reemployment; and
20               •     is reemployed by a different participating employer than the participating
21     employer that employed the retiree at the time of retirement Ŝ→ except in limited
21a     circumstances ←Ŝ ;
22          ▸     requires a participating employer to pay certain amounts for a reemployed retiree in
23     certain circumstances;
23a     Ŝ→      ▸ requires certain member certifications on the retirement application form; ←Ŝ
24          ▸     requires the Utah State Retirement Office to report certain information to an interim
25     committee of the Legislature;
26          ▸     specifies penalties for violating the reemployment provisions; and
27          ▸     makes technical changes.
28     Money Appropriated in this Bill:
29          None
30     Other Special Clauses:
31          This bill provides a special effective date.
32     Utah Code Sections Affected:
33     AMENDS:
34          49-11-1202, as enacted by Laws of Utah 2016, Chapter 310 and last amended by
35     Coordination Clause, Laws of Utah 2016, Chapter 310
36          49-11-1205, as last amended by Laws of Utah 2017, Chapter 141
37          49-11-1206, as enacted by Laws of Utah 2016, Chapter 310 and last amended by
38     Coordination Clause, Laws of Utah 2016, Chapter 310
39          49-11-1207, as last amended by Laws of Utah 2017, Chapter 141
40     

41     Be it enacted by the Legislature of the state of Utah:
42          Section 1. Section 49-11-1202 is amended to read:
43          49-11-1202. Definitions.
44          As used in this part:
45          (1) (a) "Affiliated emergency services worker" means a person who:
46          (i) is employed by a participating employer;
47          (ii) performs emergency services for another participating employer that is a different
48     agency;
49          (iii) is trained in techniques and skills required for the emergency service;
50          (iv) continues to receive regular training required for the service;
51          (v) is on the rolls as a trained affiliated emergency services worker of the participating
52     employer; and
53          (vi) provides ongoing service for a participating employer, which service may include
54     service as a volunteer firefighter, reserve law enforcement officer, search and rescue worker,
55     emergency medical technician, ambulance worker, park ranger, or public utilities worker.
56          (b) "Affiliated emergency services worker" does not include a person who performs
57     work or service but does not meet the requirements of Subsection (1)(a).
58          (2) "Amortization rate" means the amortization rate, as defined in Section 49-11-102,

59     to be applied to the system that would have covered the retiree if the retiree's reemployed
60     position were deemed to be an eligible, full-time position within that system.
61          (3) (a) "Reemployed," "reemploy," or "reemployment" means work or service
62     performed for a participating employer after retirement, in exchange for compensation.
63          (b) Reemployment includes work or service performed on a contract for a participating
64     employer if the retiree is:
65          (i) listed as the contractor; or
66          (ii) an owner, partner, or principal of the contractor.
67          (4) "Retiree":
68          (a) means a person who:
69          (i) retired from a participating employer; and
70          (ii) begins reemployment on or after July 1, 2010, with a participating employer; and
71          (b) does not include a person:
72          (i) (A) who was reemployed by a participating employer before July 1, 2010; and
73          (B) whose participating employer that reemployed the person under Subsection
74     (4)(b)(i)(A) was dissolved, consolidated, merged, or structurally changed in accordance with
75     Section 49-11-621 on or after July 1, 2010; or
76          (ii) who is working under a phased retirement agreement in accordance with Title 49,
77     Chapter 11, Part 13, Phased Retirement.
78          (5) "Retiree surcharge" means the board certified percent of a reemployed retiree's
79     salary:
80          (a) paid on behalf of a reemployed retiree to the office;
81          (b) that is required to amortize the actuarial loss that would occur due to eligible
82     retirees being authorized to:
83          (i) commence their benefits at an earlier age; and
84          (ii) return to the workforce with a participating employer; and
85          (c) set in accordance with policies established by the board upon the advice of the
86     actuary.
87          Section 2. Section 49-11-1205 is amended to read:
88          49-11-1205. Postretirement reemployment restriction exceptions.
89          (1) (a) The office may not cancel the retirement allowance of a retiree who is

90     reemployed with a participating employer within one year of the retiree's retirement date if:
91          (i) the retiree is not reemployed by a participating employer for a period of at least 60
92     days from the retiree's retirement date;
93          (ii) upon reemployment after the break in service under Subsection (1)(a)(i), the retiree
94     does not receive any employer paid benefits, including:
95          (A) retirement service credit or retirement-related contributions;
96          (B) medical benefits;
97          (C) dental benefits;
98          (D) other insurance benefits except for workers' compensation as provided under Title
99     34A, Chapter 2, Workers' Compensation Act, Title 34A, Chapter 3, Utah Occupational Disease
100     Act, and withholdings required by federal or state law for social security, Medicare, and
101     unemployment insurance; or
102          (E) paid time off, including sick, annual, or other type of leave; and
103          (iii) (A) the retiree does not earn in any calendar year of reemployment an amount in
104     excess of the lesser of $15,000 or one-half of the retiree's final average salary upon which the
105     retiree's retirement allowance is based; or
106          (B) the retiree is reemployed as a judge as defined under Section 78A-11-102.
107          (b) Beginning January 1, 2013, the board shall adjust the amounts under Subsection
108     (1)(a)(iii) by the annual change in the Consumer Price Index during the previous calendar year
109     as measured by a United States Bureau of Labor Statistics Consumer Price Index average as
110     determined by the board.
111          (2) A retiree shall be considered as having completed the one-year separation from
112     employment with a participating employer required under Section 49-11-1204, if the retiree:
113          (a) before retiring:
114          (i) was employed with a participating employer as a public safety service employee as
115     defined in Section 49-14-102, 49-15-102, or 49-23-102;
116          (ii) and during the employment under Subsection (2)(a)(i), suffered a physical injury
117     resulting from external force or violence while performing the duties of the employment, and
118     for which injury the retiree would have been approved for total disability in accordance with
119     the provisions under Chapter 21, Public Employees' Long-Term Disability Act, if years of
120     service are not considered;

121          (iii) had less than 30 years of service credit but had sufficient service credit to retire,
122     with an unreduced allowance making the public safety service employee ineligible for
123     long-term disability payments under Chapter 21, Public Employees' Long-Term Disability Act,
124     or a substantially similar long-term disability program; and
125          (iv) does not receive any long-term disability benefits from any participating employer;
126     and
127          (b) is reemployed by a different participating employer.
128          (3) (a) The office may not cancel the retirement allowance of a retiree who is employed
129     as an affiliated emergency services worker within one year of the retiree's retirement date if the
130     affiliated emergency services worker does not receive any compensation, except for:
131          (i) a nominal fee, stipend, discount, tax credit, voucher, or other fixed sum of money or
132     cash equivalent payment not tied to productivity and paid periodically for services;
133          (ii) a length-of-service award;
134          (iii) insurance policy premiums paid by the participating employer in the event of death
135     of an affiliated emergency services worker or a line-of-duty accidental death or disability; or
136          (iv) reimbursement of expenses incurred in the performance of duties.
137          (b) For purposes of Subsections (3)(a)(i) and (ii), the total amount of any discounts, tax
138     credits, vouchers, and payments to an affiliated emergency services worker may not exceed
139     $500 per month.
140          (c) Beginning January 1, 2016, the board shall adjust the amount under Subsection
141     (3)(b) by the annual change in the Consumer Price Index during the previous calendar year as
142     measured by a United States Bureau of Labor Statistics Consumer Price Index average as
143     determined by the board.
144          (4) (a) The office may not cancel the retirement allowance of a retiree who is
145     reemployed with a participating employer within one year of the retiree's retirement date if:
146          (i) the retiree:
147          (A) is not reemployed by a participating employer for a period of at least 60 days from
148     the retiree's retirement date;
149          (B) except as provided in Subsection (8), is reemployed by a participating employer
150     that is a different participating employer than the participating employer the reemployed retiree
151     was employed by at the time of retirement;

152          (C) is reemployed by a participating employer as a:
153          (I) public safety service employee as defined in Section 49-14-102, 49-15-102, or
154     49-23-102; or
155          (II) firefighter service employee as defined in Section 49-16-102 or 49-23-102; and
156          (D) does not receive any employer paid retirement service credit or retirement related
157     contributions from the participating employer; and
158          (ii) the participating employer that reemploys the retiree pays to the office on behalf of
159     the retiree:
160          (A) the amortization rate; and
161          (B) the retiree surcharge.
162          (b) Any contribution paid to the office under Subsection (4)(a)(ii) shall be applied to
163     the system that would have covered the retiree if the retiree's reemployed position were
164     considered to be an eligible, full-time position within that system.
165          (c) The office shall, on or before November 30, 2024, study, evaluate, and report on the
166     actuarial costs and effectiveness of implementing the Ŝ→ [
educator] public safety service and
166a     firefighter service ←Ŝ retiree reemployment exception
167     authorized under this Subsection (4) to the Retirement and Independent Entities Committee of
168     the Legislature.
169          (5) (a) (i) A retiree receiving a retirement allowance may be reemployed under the
170     provisions of Subsections (1), (3), and (4) in only one position for only one participating
171     employer at a time following the retiree's retirement date.
172          (ii) The participating employer shall notify the office which postretirement
173     reemployment exception under this section will govern the retiree's reemployment.
174          (b) A retiree reemployed under the provisions of Subsection (1), (3), or (4) may change
175     reemployment to a new position under the provisions of Subsection (1), (3), or (4) only if:
176          (i) the retiree ceases actual work and is terminated from the current reemployed
177     position;
178          (ii) except as provided in Subsection (8), begins the subsequent reemployment with a
179     participating employer that is a different participating employer than:
180          (A) the participating employer for the retiree's current reemployment; and
181          (B) the participating employer that employed the retiree at the retiree's original time of
182     retirement; and

183          (iii) the participating employer or retiree notifies the office of the change in
184     reemployment and provides evidence of the termination and change to the office.
185          [(4)] (6) (a) If a retiree is reemployed under the provisions of Subsection (1) [or], (3),
186     or (4), the termination date of the reemployment, as confirmed in writing by the participating
187     employer, is considered the retiree's retirement date for the purpose of calculating the
188     separation requirement under Section 49-11-1204.
189          (b) If a retiree changes reemployment to another position under the provisions of
190     Subsection (1), (3), or (4), the final termination date of all reemployment, as confirmed in
191     writing by the last participating employer, is considered the retiree's retirement date for the
192     purpose of calculating the separation requirement under Subsection 49-11-505(3)(a).
193          [(b)] (7) The office shall cancel the retirement allowance of a retiree for the remainder
194     of the calendar year if the reemployment with a participating employer exceeds the limitation
195     under Subsection (1)(a)(iii) or (3)(b).
196          (8) Notwithstanding Subsections (4)(a)(i)(B) and (5)(b)(ii), a reemployed retiree that
197     was employed by Ŝ→ :
197a          (a) ←Ŝ the state of Utah at the time of retirement may be reemployed by the state Ŝ→ [
of
198     Utah
] ←Ŝ
under Subsection (4) or (5) if the reemployment is with a different agency or
198a     office Ŝ→ [
.] ; or
198b          (b) a participating employer located within a county of the fourth, fifth, or sixth class,
198c     as classified under Section 17-50-501, may be reemployed by that participating employer
198d     under Subsection (4) or (5) if before the retiree is reemployed:
198e          (i) the participating employer certifies to the office, under penalty of fraud, the facts
198f     and circumstances of rehire, including any prearrangement for reemployment before the
198g     member's retirement date; and
198h           (ii) the office performs a facts and circumstances review and determines there was a
198i     bona fide termination of employment with that participating employer, including the specific
198j     finding that there was not a prearrangement for reemployment before the member's
198k     retirement date. ←Ŝ
199          Section 3. Section 49-11-1206 is amended to read:
200          49-11-1206. Notice of postretirement reemployment.
201          (1) A participating employer shall immediately notify the office:
202          (a) if the participating employer reemploys a retiree;
203          (b) whether the reemployment is subject to Section 49-11-1204 or Subsection
204     49-11-1205(1), (2), [or] (3), (4), or (5); and
205          (c) of any election by the retiree under Section 49-11-1204.
206          (2) A participating employer shall certify to the office whether the position of an
207     elected official is or is not full time.
208          (3) A retiree subject to this part shall report to the office the status of the reemployment
209     under Section 49-11-1204 or 49-11-1205.
209a     Ŝ→      (4) The retirement application form submitted to the office shall contain the retiring
209b     member's certification, under penalty of fraud, of whether there was a prearrangement of
209c     reemployment before the retiree's retirement date with the participating employer. ←Ŝ
210          Section 4. Section 49-11-1207 is amended to read:
211          49-11-1207. Postretirement reemployment -- Violations -- Penalties.
212          (1) (a) If the office receives notice or learns of the reemployment of a retiree in
213     violation of Section 49-11-1204 or 49-11-1205, the office shall:

214          (i) immediately cancel the retiree's retirement allowance;
215          (ii) keep the retiree's retirement allowance cancelled for the remainder of the calendar
216     year if the reemployment with a participating employer exceeded the limitation under
217     Subsection 49-11-1205(1)(a)(iii)(A) or (3)(b); and
218          (iii) recover any overpayment resulting from the violation in accordance with the
219     provisions of Section 49-11-607 before the allowance may be reinstated.
220          (b) Reinstatement of an allowance following cancellation for a violation under this
221     section is subject to the procedures and provisions under Section 49-11-1204.
222          (2) If a retiree or participating employer failed to report reemployment in violation of
223     Section 49-11-1206, the retiree, participating employer, or both, who are found to be
224     responsible for the failure to report, are liable to the office for the amount of any overpayment
225     resulting from the violation.
226          (3) (a) A participating employer is liable to the office for a payment or failure to make
227     a payment in violation of this part.
228          (b) In addition to other penalties under this section, if the reemployment of a retiree is
229     in violation of Subsection 49-11-1205(4), the participating employer shall pay the office any
230     delinquent retiree surcharge and amortization rate contributions, plus interest Ŝ→ , ←Ŝ under
230a     Section
231     49-11-503.
232          (4) If a participating employer fails to notify the office in accordance with Section
233     49-11-1206, the participating employer is immediately subject to a compliance audit by the
234     office.
235          Section 5. Effective date.
236          This bill takes effect on January 1, 2019.






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