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7 LONG TITLE
8 General Description:
9 This bill modifies phased retirement provisions of the Utah State Retirement and
10 Insurance Benefit Act.
11 Highlighted Provisions:
12 This bill:
13 ▸ modifies definitions applicable to the phased retirement program;
14 ▸ modifies phased retirement provisions applicable to public safety service employees
15 and firefighter service employees;
16 ▸ specifies provisions for a retiree employed on a three-quarter time basis who enters
17 a phased retirement agreement;
18 ▸ extends the repeal date for the phased retirement program; and
19 ▸ makes technical changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill provides a special effective date.
24 Utah Code Sections Affected:
25 AMENDS:
26 49-11-1301, as last amended by Laws of Utah 2017, Chapter 10
27 49-11-1303, as last amended by Laws of Utah 2017, Chapter 10
28 49-11-1306, as enacted by Laws of Utah 2016, Chapter 280 and last amended by
29 Coordination Clause, Laws of Utah 2016, Chapter 310
30 63I-1-249, as last amended by Laws of Utah 2018, Chapter 357
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 49-11-1301 is amended to read:
34 49-11-1301. Definitions.
35 As used in this part:
36 (1) "Amortization rate" means the amortization rate, as defined in Section 49-11-102,
37 to be applied to the system that would have covered the retiree if the retiree's part-time position
38 were considered to be an eligible, full-time position within that system.
39 (2) "Full-time" means a:
40 (a) regular full-time employee whose term of employment for a participating employer
41 contemplates continued employment during a fiscal or calendar year and whose employment
42 normally requires an average of 40 hours or more per week and who receives benefits normally
43 provided by the participating employer;
44 (b) teacher whose term of employment for a participating employer contemplates
45 continued employment during a school year and who teaches full time;
46 (c) firefighter service employee whose employment normally requires an average of
47 2,080 hours of regularly scheduled firefighter service per year; and
48 (d) public safety service employee whose employment normally requires an average of
49 2,080 hours of regularly scheduled public safety service per year.
50 (3) "Half-time" means [
51 (a) a regular employee whose term of employment for a participating employer
52 contemplates continued employment during a fiscal or calendar year and whose employment
53 normally requires an average of 20 hours per week and who receives benefits normally
54 provided by the participating employer;
55 (b) a teacher whose term of employment for a participating employer contemplates
56 continued employment during a school year and who teaches half time;
57 (c) a firefighter service employee whose employment normally requires an average of
58 1,040 hours of regularly scheduled firefighter service per year; [
59 (d) a public safety service employee whose employment normally requires an average
60 of 1,040 hours of regularly scheduled public safety service per year[
61 (e) for a retiree employed before retirement as a public safety service employee or a
62 firefighter service employee in a position for which the participating employer established a
63 regularly scheduled work period in excess of 2,080 hours per year, one-half of that regularly
64 scheduled work period as long as the retiree has continuing employment in that same position.
65 (4) "Phased retirement" means continuing employment:
66 (a) on a half-time basis of a retiree with the same participating employer following the
67 retiree's retirement date while the retiree receives a reduced retirement allowance[
68 (b) on a three-quarter time basis of a retiree with the same participating employer
69 following the retiree's retirement date while the retiree receives a reduced retirement allowance
70 if the retiree is employed as a public safety service employee or a firefighter service employee.
71 (5) "Three-quarter time" means:
72 (a) a firefighter service employee whose employment normally requires an average of
73 1,560 hours of regularly scheduled firefighter service per year;
74 (b) a public safety service employee whose employment normally requires an average
75 of 1,560 hours of regularly scheduled public safety service per year; and
76 (c) for a retiree who was employed before retirement as a public safety service
77 employee or a firefighter service employee in a position for which the participating employer
78 established a regularly scheduled work period in excess of 2,080 hours per year, three quarters
79 of that regularly scheduled work period as long as the retiree has continuing employment in
80 that same position.
81 Section 2. Section 49-11-1303 is amended to read:
82 49-11-1303. Phased retirement -- Eligibility -- Restrictions -- Amortization rate.
83 (1) A retiree is eligible for employment with only one position for only one
84 participating employer under phased retirement following the retiree's retirement date if:
85 (a) the retiree:
86 (i) is eligible to retire and retires in accordance with this title;
87 (ii) has been employed full time, for not less than four years immediately before the
88 retiree's retirement date;
89 (iii) for a retiree employed as a public safety service employee or a firefighter service
90 employee, is at least 50 years old;
91 [
92 [
93 phased retirement forms to the office; and
94 (b) the retiree and the participating employer enter into an agreement described under
95 Section 49-11-1304.
96 (2) A retiree shall begin phased retirement employment after the retiree's retirement
97 date but no later than 120 days after the retiree's retirement date.
98 (3) [
99 (a) the retiree receives 50% of the retiree's monthly allowance;
100 (b) the participating employer employs the retiree on a half-time basis;
101 (c) a participating employer that employs the retiree shall contribute the amortization
102 rate to the office [
103 (d) the retiree or an alternate payee may not receive an annual cost-of-living adjustment
104 to the retiree's or alternate payee's allowance;
105 (e) any death benefits payable to a surviving spouse or other beneficiary shall be paid
106 based on 100% of the retiree's retirement allowance;
107 (f) the retiree may not receive any employer provided retirement benefits, service credit
108 accruals, or any retirement related contributions from the participating employer; and
109 (g) except as specified under this section, a retiree working under phased retirement
110 shall be treated in the same manner as any other part-time employee working a similar position
111 and number of hours with the participating employer, including:
112 (i) any non-retirement related benefits;
113 (ii) leave benefits;
114 (iii) medical benefits; and
115 (iv) other benefits.
116 (4) (a) If a retiree is employed as a public safety service employee or a firefighter
117 service employee, for the period of the phased retirement the requirements of Subsection (3) or
118 (4)(b) are satisfied.
119 (b) For the period of the phased retirement:
120 (i) the retiree is employed as a public safety service employee or a firefighter service
121 employee;
122 (ii) the retiree receives 25% of the retiree's monthly allowance;
123 (iii) the participating employer employs the retiree on a three-quarter time basis;
124 (iv) a participating employer that employs the retiree shall contribute to the office the
125 certified contribution rate applicable to the system that would have covered the retiree if the
126 retiree's part-time position were considered to be an eligible, full-time position within the
127 system;
128 (v) the retiree or an alternate payee may not receive an annual cost-of-living adjustment
129 to the retiree's or alternate payee's allowance;
130 (vi) any death benefits payable to a surviving spouse or other beneficiary shall be paid
131 based on 100% of the retiree's retirement allowance;
132 (vii) the retiree may not receive any employer provided retirement benefits, service
133 credit accruals, or any retirement related contributions from the participating employer; and
134 (viii) except as specified under this section, a retiree working under phased retirement
135 shall be treated in the same manner as any other part-time employee working a similar position
136 and number of hours with the participating employer, including:
137 (A) any non-retirement related benefits;
138 (B) leave benefits;
139 (C) medical benefits; and
140 (D) other benefits.
141 [
142 the first day of the month following the month in which the office receives written notification
143 and any required supporting documentation that the retiree's phased retirement has been
144 irrevocably terminated.
145 Section 3. Section 49-11-1306 is amended to read:
146 49-11-1306. Reset of one year separation.
147 If a retiree is employed under a phased retirement agreement under this [
148 the termination date of the phased retirement employment, as confirmed in writing by the
149 participating employer, is considered the retiree's retirement date for the purpose of calculating
150 the separation requirement under Subsection 49-11-1204(2).
151 Section 4. Section 63I-1-249 is amended to read:
152 63I-1-249. Repeal dates, Title 49.
153 (1) Title 49, Chapter 11, Part 13, Phased Retirement, is repealed January 1, [
154 2025.
155 (2) Section 49-20-418 is repealed January 1, 2022.
156 Section 5. Effective date.
157 This bill takes effect on January 1, 2021.