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7 LONG TITLE
8 General Description:
9 This bill modifies the Utah State Retirement and Insurance Benefit Act by enacting
10 provisions relating to firefighter retirement funding.
11 Highlighted Provisions:
12 This bill:
13 ▸ provides definitions; and
14 ▸ requires the Utah State Retirement Office to determine and report certain
15 information about state funding of the Firefighters' Retirement System to the
16 governor and Legislature.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 This bill provides a special effective date.
21 Utah Code Sections Affected:
22 ENACTS:
23 49-11-903, Utah Code Annotated 1953
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25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 49-11-903 is enacted to read:
27 49-11-903. State appropriation funding offset -- Proportionate share
28 determination and reporting.
29 (1) As used in this section:
30 (a) "Baseline period" means calendar years 2013, 2014, and 2015.
31 (b) "Premium tax receipts" means the money received by the office under Subsection
32 49-11-901.5(1) and paid in accordance with Subsections 49-11-901.5(2)(a) and (b).
33 (c) "State appropriation" means the ongoing state appropriation from the General Fund
34 to the Firefighters Retirement Trust and Agency Fund that offsets the gross expense of the
35 Firefighters' Retirement System.
36 (2) The office shall make a determination for the Firefighters' Retirement System, as
37 recommended by the actuary and adopted by the executive director, as follows:
38 (a) determine for the baseline period:
39 (i) the average annual dollar amount of premium tax receipts;
40 (ii) the average annual dollar amount of total employer contributions; and
41 (iii) the proportionate share of total dollar employer contributions funded by premium
42 tax receipts for the baseline period, which is calculated as the average annual dollar amount of
43 premium tax receipts divided by the average annual dollar amount of total employer
44 contributions;
45 (b) determine for each calendar year, beginning after calendar year 2020, the
46 proportionate share of total dollar employer contributions funded by the state appropriation,
47 which is calculated as the dollar amount of the state appropriation divided by the total dollar
48 employer contributions; and
49 (c) if the proportionate share for the year exceeds the proportionate share for the
50 baseline period under Subsection (2)(a)(iii), recommend the actuarially determined dollar
51 amount, if any, that the state appropriation may be reduced by in the future to maintain an
52 equivalent proportionate share that is not expected to exceed the proportionate share for the
53 baseline period.
54 (3) (a) If the determination under Subsection (2)(c) results in recommending a
55 reduction to the state appropriation, the office shall report the dollar amount of the
56 recommended reduction to the governor and Legislature, which may be included in the annual
57 report on contribution rates required under Subsection 49-11-203(1)(h).
58 (b) If the Legislature reduces the state appropriation, the board's subsequent certified
59 contribution rates for the Firefighters' Retirement System shall include any additional member
60 or employer contributions required to maintain the system on a financially and actuarially
61 sound basis due to the reduced funding offset dollars.
62 (4) As required to implement this section, the office may make the determinations
63 using actuarial assumptions and methods adopted by the board.
64 Section 2. Effective date.
65 This bill takes effect on July 1, 2019.