1     
PUBLIC SAFETY AND FIREFIGHTER RETIREMENT

2     
DEATH BENEFIT AMENDMENTS

3     
2018 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Karen Mayne

6     
House Sponsor: Carol Spackman Moss

7     

8     LONG TITLE
9     General Description:
10          This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
11     provisions relating to retirement death benefits for certain public safety service
12     employees and firefighter service employees.
13     Highlighted Provisions:
14          This bill:
15          ▸     amends the death benefits payable to a member of Division A or Division B in the
16     Public Safety Contributory Retirement Act;
17          ▸     amends the death benefits payable to a member of Division B in the Public Safety
18     Noncontributory Retirement Act;
19          ▸     amends the death benefits payable to a member of the Firefighters' Retirement Act;
20     and
21          ▸     makes technical changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          This bill provides a special effective date.
26     Utah Code Sections Affected:
27     AMENDS:
28          49-14-501, as last amended by Laws of Utah 2016, Chapter 84
29          49-14-502, as last amended by Laws of Utah 2016, Chapter 84

30          49-15-502, as last amended by Laws of Utah 2016, Chapter 84
31          49-16-501, as last amended by Laws of Utah 2016, Chapter 84
32     

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 49-14-501 is amended to read:
35          49-14-501. Death of active member in Division A -- Payment of benefits.
36          (1) If an active member of this system enrolled in Division A under Section 49-14-301
37     dies, benefits are payable as follows:
38          (a) If the death is classified by the office as a line-of-duty death, the surviving spouse
39     shall receive:
40          (i) a lump sum equal to six months of the active member's final average salary; and
41          (ii) (A) an allowance equal to 30% of the deceased member's final average monthly
42     salary[.]; or
43          (B) if the member has accrued 20 or more years of public safety service credit, the
44     death benefit payable to a surviving spouse under Section 49-14-504.
45          (b) If the death is not classified by the office as a line-of-duty death, benefits are
46     payable as follows:
47          (i) If the member has accrued less than 10 years of public safety service credit, the
48     beneficiary shall receive the sum of $1,000 or a refund of the member's member contributions,
49     whichever is greater.
50          (ii) If the member has accrued 10 or more years of public safety service credit but less
51     than 20 years of public safety service credit at the time of death, the surviving spouse shall
52     receive the sum of $500, plus an allowance equal to 2% of the member's final average monthly
53     salary for each year of service credit accrued by the member up to a maximum of 30% of the
54     member's final average monthly salary.
55          (iii) If the member has accrued 20 or more years of public safety service credit:
56          (A) the member shall be considered to have retired with an allowance calculated under
57     Section 49-14-402; and

58          (B) the surviving spouse shall receive the death benefit payable to a surviving spouse
59     under Section 49-14-504.
60          (2) Except as provided under Subsection (1)(b)(i), benefits are not payable to minor
61     children of members covered under Division A.
62          (3) If a benefit is not distributed under this section, and the member has designated a
63     beneficiary, the member's member contributions shall be paid to the beneficiary.
64          (4) (a) A surviving spouse who requests a benefit under this section shall apply in
65     writing to the office.
66          (b) The allowance shall begin on the first day of the month following the month in
67     which the:
68          (i) member died, if the application is received by the office within 90 days of the
69     member's death; or
70          (ii) application is received by the office, if the application is received by the office
71     more than 90 days after the member's death.
72          Section 2. Section 49-14-502 is amended to read:
73          49-14-502. Death of active member in Division B -- Payment of benefits.
74          (1) If an active member of this system enrolled in Division B under Section 49-14-301
75     dies, benefits are payable as follows:
76          (a) If the death is classified by the office as a line-of-duty death, the surviving spouse
77     shall receive:
78          (i) a lump sum equal to six months of the active member's final average salary; and
79          (ii) (A) an allowance equal to 37.5% of the member's final average monthly salary[.];
80     or
81          (B) if the member has accrued 20 or more years of public safety service credit, the
82     greater of:
83          (I) an allowance equal to 37.5% of the member's final average monthly salary; or
84          (II) the death benefit payable to a surviving spouse under Section 49-14-504.
85          (b) If the death is not classified by the office as a line-of-duty death, benefits are

86     payable as follows:
87          (i) If the member has accrued two or more years of public safety service credit at the
88     time of death, the death is considered a line-of-duty death and the surviving spouse shall
89     receive:
90          (A) a lump sum of $1,500; and
91          (B) an allowance as provided under Subsection (1)(a)(ii).
92          (ii) If the member has accrued less than two years of public safety service credit at the
93     time of death, the surviving spouse shall receive a refund of the member's member
94     contributions, plus 50% of the member's most recent 12 months' compensation.
95          (c) (i) If the member has accrued two or more years of public safety service credit at
96     the time of death, each of the member's unmarried children to age 18 or dependent unmarried
97     children with a mental or physical disability shall receive a monthly allowance of $50.
98          (ii) Payments shall be made to the surviving parent or to a duly appointed guardian, or
99     as otherwise provided under Sections 49-11-609 and 49-11-610.
100          (2) If the member dies and there is no surviving spouse, any amounts that would have
101     been the surviving spouse's benefit shall be prorated and paid to each of the member's
102     unmarried children to age 18.
103          (3) If a benefit is not distributed under Subsection (1) or (2), and the member has
104     designated a beneficiary, the member's member contributions shall be paid to the beneficiary.
105          (4) The combined annual payments made to the beneficiaries of any member under this
106     section may not exceed 75% of the member's final average monthly salary.
107          (5) (a) A surviving spouse who requests a benefit under this section shall apply in
108     writing to the office.
109          (b) The allowance shall begin on the first day of the month:
110          (i) following the month in which the member died, if the application is received by the
111     office within 90 days of the member's death; or
112          (ii) following the month in which the application is received by the office, if the
113     application is received by the office more than 90 days after the member's death.

114          Section 3. Section 49-15-502 is amended to read:
115          49-15-502. Death of active member in Division B -- Payment of benefits.
116          (1) If an active member of this system enrolled in Division B under Section 49-15-301
117     dies, benefits are payable as follows:
118          (a) If the death is classified by the office as a line-of-duty death, the surviving spouse
119     shall receive:
120          (i) a lump sum equal to six months of the active member's final average salary; and
121          (ii) (A) an allowance equal to 37.5% of the member's final average monthly salary[.];
122     or
123          (B) if the member has accrued 20 or more years of public safety service credit, the
124     greater of:
125          (I) an allowance equal to 37.5% of the member's final average monthly salary; or
126          (II) the death benefit payable to a surviving spouse under Section 49-15-504.
127          (b) If the death is not classified by the office as a line-of-duty death, and the member
128     has accrued two or more years of public safety service credit at the time of death, the death is
129     considered line-of-duty and the surviving spouse shall receive:
130          (i) a lump sum of $1,500; and
131          (ii) an allowance as provided under Subsection (1)(a)(ii).
132          (c) If the death is not classified by the office as a line-of-duty death, and the member
133     has accrued less than two years of public safety service credit at the time of death, the surviving
134     spouse shall receive a refund of the member's member contributions, plus 50% of the member's
135     most recent 12 months' compensation.
136          (d) (i) If the member has accrued two or more years of public safety service credit at
137     the time of death, each of the member's unmarried children to age 18 or dependent unmarried
138     children with a mental or physical disability shall receive an allowance of $50.
139          (ii) Payments shall be made to the surviving parent or to a duly appointed guardian, or
140     as otherwise provided under Section 49-11-609 or 49-11-610.
141          (2) If the member dies and there is no surviving spouse, any amounts that would have

142     been the surviving spouse's benefit shall be prorated and paid to each of the member's
143     unmarried children to age 18.
144          (3) If a benefit is not distributed under Subsection (1) or (2), and the member has
145     designated a beneficiary, the member's member contributions shall be paid to the beneficiary.
146          (4) The combined payments to beneficiaries of any member under this section may not
147     exceed 75% of the member's final average monthly salary.
148          (5) (a) A surviving spouse who requests a benefit under this section shall apply in
149     writing to the office.
150          (b) The allowance shall begin on the first day of the month:
151          (i) following the month in which the member died, if the application is received by the
152     office within 90 days of the member's death; or
153          (ii) following the month in which the application is received by the office, if the
154     application is received by the office more than 90 days after the member's death.
155          Section 4. Section 49-16-501 is amended to read:
156          49-16-501. Death of active member in Division A -- Payment of benefits.
157          (1) If an active member of this system enrolled in Division A under Section 49-16-301
158     dies, benefits are payable as follows:
159          (a) If the death is classified by the office as a line-of-duty death, benefits are payable as
160     follows:
161          (i) If the member has accrued less than 20 years of firefighter service credit, the
162     surviving spouse shall receive a lump sum equal to six months of the active member's final
163     average salary and an allowance equal to 30% of the member's final average monthly salary.
164          (ii) If the member has accrued 20 or more years of firefighter service credit, the
165     member shall be considered to have retired with an allowance calculated under Section
166     49-16-402 and the surviving spouse shall receive the death benefit payable to a surviving
167     spouse under Section 49-16-504.
168          (b) If the death is not classified as a line-of-duty death by the office, benefits are
169     payable as follows:

170          (i) If the member has accrued less than 10 years of firefighter service credit, the
171     beneficiary shall receive a sum of $1,000 or a refund of the member's member contributions,
172     whichever is greater.
173          (ii) If the member has accrued 10 or more years of firefighter service credit but less
174     than 20 years of firefighter service credit, the surviving spouse shall receive a sum of $500,
175     plus an allowance equal to 2% of the member's final average monthly salary for each year of
176     service credit accrued by the member up to a maximum of 30% of the member's final average
177     monthly salary.
178          (iii) If the member has accrued 20 or more years of firefighter service credit:
179          (A) the member shall be considered to have retired with an allowance calculated under
180     Section 49-16-402; and
181          (B) the surviving spouse shall receive the death benefit payable to a surviving spouse
182     under Section 49-16-504.
183          (2) (a) If the member dies without a surviving spouse, the surviving spouse's allowance
184     shall be equally divided and paid to each unmarried child until the child reaches age 21.
185          (b) The payment shall be made to a duly appointed guardian or as provided under
186     Sections 49-11-609 and 49-11-610.
187          (3) If the benefit is not distributed under this section, and the member has designated a
188     beneficiary, the member's member contributions shall be paid to the beneficiary.
189          (4) (a) A surviving spouse who requests a benefit under this section shall apply in
190     writing to the office.
191          (b) The allowance shall begin on the first day of the month:
192          (i) following the month in which the member died, if the application is received by the
193     office within 90 days of the member's death; or
194          (ii) following the month in which the application is received by the office, if the
195     application is received by the office more than 90 days after the member's death.
196          Section 5. Effective date.
197          This bill takes effect on July 1, 2018.

198