Senator Wayne A. Harper proposes the following substitute bill:


1     
UTAH RETIREMENT SYSTEMS AMENDMENTS

2     
2021 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Wayne A. Harper

5     
House Sponsor: Craig Hall

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Utah State Retirement and Insurance Benefit Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     clarifies that an employee does not receive service credit until required
13     contributions are paid to the Utah State Retirement Office;
14          ▸     provides that additional acts relating to unlawfully obtaining or appropriating
15     benefit payments are criminal violations;
16          ▸     amends the procedures for making an appeal related to a benefit, right, obligation,
17     or employment right;
18          ▸     clarifies that a person is still convicted of an employment related offense if the
19     person pleads guilty, even if a charge is reduced or dismissed under a plea
20     agreement;
21          ▸     allows certain independent entities to make an election to withdraw from
22     participation in a Utah retirement system or plan for current and future employees;
23          ▸     requires the independent entities that make the withdrawal to pay certain costs that
24     arise out of the election to withdraw;
25          ▸     imposes minimum age requirements on certain retirees who will receive in-service

26     retirement distributions;
27          ▸     amends certain provisions that govern a participating employer's purchase of service
28     credit on behalf of an employee for years of service provided before the
29     participating employer's admission to the Utah Retirement System;
30          ▸     amends the process for establishing the service status of justice court judges with
31     multiple employers; and
32          ▸     makes technical and conforming changes.
33     Money Appropriated in this Bill:
34          None
35     Other Special Clauses:
36          This bill provides a special effective date.
37     Utah Code Sections Affected:
38     AMENDS:
39          49-11-401, as last amended by Laws of Utah 2010, Chapter 266
40          49-11-608, as renumbered and amended by Laws of Utah 2002, Chapter 250
41          49-11-613, as last amended by Laws of Utah 2016, Chapter 251
42          49-11-613.5, as enacted by Laws of Utah 2016, Chapter 251
43          49-11-1205, as last amended by Laws of Utah 2020, Chapter 449
44          49-11-1303, as last amended by Laws of Utah 2020, Chapter 98
45          49-11-1401, as last amended by Laws of Utah 2020, Chapter 24
46          49-12-202, as last amended by Laws of Utah 2018, Chapter 415
47          49-12-203, as last amended by Laws of Utah 2020, Chapters 24 and 365
48          49-12-406, as last amended by Laws of Utah 2019, Chapter 31
49          49-13-202, as last amended by Laws of Utah 2018, Chapter 415
50          49-13-203, as last amended by Laws of Utah 2020, Chapters 24 and 365
51          49-13-406, as last amended by Laws of Utah 2019, Chapter 31
52          49-15-202, as last amended by Laws of Utah 2014, Chapter 15
53          49-22-203, as last amended by Laws of Utah 2020, Chapters 24 and 365
54          49-23-202, as last amended by Laws of Utah 2012, Chapter 298
55     ENACTS:
56          49-11-625, Utah Code Annotated 1953

57     

58     Be it enacted by the Legislature of the state of Utah:
59          Section 1. Section 49-11-401 is amended to read:
60          49-11-401. Transfer of service credit -- Eligibility for service credit --
61     Computation of service credit -- Retirement from most recent system.
62          (1) (a) The office shall make the transfer of service credit, together with related
63     member and participating employer contributions, from one system to another upon terms and
64     conditions established by the board.
65          (b) The terms and conditions may not result in a loss of accrued benefits.
66          (2) [Transfer of] An employee does not lose active member status by transferring
67     employment from a position covered by one system to a position covered by another system
68     [does not cause the employee to lose active member status].
69          (3) In the accrual of service credit, the following provisions apply:
70          (a) [A] (i) a person employed and compensated by a participating employer who meets
71     the eligibility requirements for membership in a system or the Utah Governors' and Legislators'
72     Retirement Plan shall receive service credit for the term of the employment provided that all
73     required contributions are paid to the office[.]; and
74          (ii) the person may not receive service credit for a term of employment until all
75     required contributions related to that service credit have been paid to the office;
76          (b) [An] an allowance or other benefit may not accrue under this title which is based
77     upon the same period of employment as has been the basis for any retirement benefits under
78     some other public retirement system[.];
79          (c) (i) [The] the board shall fix the minimum time per day, per month, and per year
80     upon the basis of which one year of service and proportionate parts of a year shall be credited
81     toward qualification for retirement[.];
82          (ii) [Service] service may be computed on a fiscal or calendar year basis and portions
83     of years served shall be accumulated and counted as service[.]; and
84          (iii) [In] in any event, all of the service rendered in any one fiscal or calendar year may
85     not count for more than one year[.];
86          (d) [Service] service credit shall be accrued on a fiscal or calendar year basis as
87     determined by the participating employer[.];

88          (e) [A] a member may not accrue more than one year of service credit per fiscal or
89     calendar year as determined by the office[.]; and
90          (f) [Fractions] fractions of years of service credit shall be accumulated and counted in
91     proportion to the work performed.
92          (4) The office may estimate the amount of service credit, compensation, or age of any
93     member, participant, or alternate payee, if information is not contained in the records.
94          (5) A member shall retire from the system [which] that most recently covered the
95     member.
96          (6) (a) Under no circumstances may service credit earned by a member under Chapter
97     22, New Public Employees' Tier II Contributory Retirement Act, or Chapter 23, New Public
98     Safety and Firefighter Tier II Contributory Retirement Act, be transferable to any other system
99     or plan under this title.
100          (b) Under no circumstances may service credit earned by a member under one of the
101     following systems be transferable to the system created under Chapter 22, New Public
102     Employees' Tier II Contributory Retirement Act, or under Chapter 23, New Public Safety and
103     Firefighter Tier II Contributory Retirement Act:
104          (i) Chapter 12, Public Employees' Contributory Retirement Act;
105          (ii) Chapter 13, Public Employees' Noncontributory Retirement Act;
106          (iii) Chapter 14, Public Safety Contributory Retirement Act;
107          (iv) Chapter 15, Public Safety Noncontributory Retirement Act;
108          (v) Chapter 16, Firefighters' Retirement Act; or
109          (vi) Chapter 19, Utah Governors' and Legislators' Retirement Act.
110          Section 2. Section 49-11-608 is amended to read:
111          49-11-608. False statements or records -- Unlawfully cashing benefit checks --
112     Unlawfully obtaining or appropriating benefit payments.
113          (1) A person who knowingly makes any false statement, or who falsifies or permits to
114     be falsified any record necessary for carrying out the intent of this title is in violation of Section
115     76-6-504.
116          (2) A person cashing a benefit check to which that person is not entitled is in violation
117     of Section 76-6-501.
118          (3) A person who obtains a benefit payment, including a direct deposit or electronic

119     benefit payment, to which that person is not entitled and who fails to take reasonable measures
120     to return the benefit payment to the office is in violation of Section 76-6-407.
121          (4) A person who appropriates property or a benefit of another person, including a
122     direct deposit or electronic benefit payment, by obtaining or exercising unauthorized control
123     over the property or the benefit is in violation of Section 76-6-407.
124          Section 3. Section 49-11-613 is amended to read:
125          49-11-613. Appeals procedure -- Right of appeal to hearing officer -- Board
126     reconsideration -- Judicial review.
127          (1) (a) A member, retiree, participant, alternative payee, covered individual, employer,
128     participating employer, and covered employer shall inform themselves of their benefits, rights
129     [and], obligations, and employment rights under this title.
130          (b) Subject to [the provisions in] Subsection (8), any dispute regarding a benefit, right,
131     obligation, or employment right under this title is subject to the procedures provided under this
132     section.
133          (c) (i) A person who disputes a benefit, right, obligation, or employment right under
134     this title shall request a ruling by the executive director who may delegate the decision to the
135     deputy director.
136          (ii) A request for a ruling to the executive director under this section shall constitute
137     the initiation of an action for purposes of the limitations periods [prescribed] described in
138     Section 49-11-613.5.
139          (d) A person who is dissatisfied by a ruling under Subsection (1)(c) with respect to any
140     benefit, right, obligation, or employment right under this title [shall have 30 days from the date
141     of the ruling to] may request a review of that claim by a hearing officer within the time period
142     described in Section 49-11-613.5.
143          (e) (i) The executive director, on behalf of the board, may request that the hearing
144     officer review a dispute regarding any benefit, right, obligation, or employment right under this
145     title by filing a notice of board action and providing notice to all affected parties in accordance
146     with rules adopted by the board.
147          (ii) The filing of a notice of board action shall constitute the initiation of an action for
148     purposes of the limitations periods described in Section 49-11-613.5.
149          (2) The hearing officer shall:

150          (a) be hired by the executive director after consultation with the board;
151          (b) follow and enforce the procedures and requirements of:
152          (i) this title;
153          (ii) the rules adopted by the board in accordance with Subsection (9); and
154          (iii) Title 63G, Chapter 4, Administrative Procedures Act, except as specifically
155     modified under this title or the rules adopted by the board in accordance with Subsection (9);
156          (c) hear and determine all facts relevant to a decision, including facts pertaining to
157     applications for benefits under any system, plan, or program under this title and all matters
158     pertaining to the administration of the office; and
159          (d) make conclusions of law in determining the person's rights under any system, plan,
160     or program under this title and matters pertaining to the administration of the office.
161          (3) The board shall review and approve or deny all decisions of the hearing officer in
162     accordance with rules adopted by the board in accordance with Subsection (9).
163          (4) The moving party in any proceeding brought under this section shall bear the
164     burden of proof.
165          (5) A party may file an application for reconsideration by the board upon any of the
166     following grounds:
167          (a) that the board acted in excess of [its] the board's powers;
168          (b) that the order or the award was procured by fraud;
169          (c) that the evidence does not justify the determination of the hearing officer; or
170          (d) that the party has discovered new material evidence that could not, with reasonable
171     diligence, have been discovered or procured prior to the hearing.
172          (6) The board shall affirm, reverse, or modify the decision of the hearing officer, or
173     remand the application to the hearing officer for further consideration.
174          (7) A party aggrieved by the board's final decision under Subsection (6) may obtain
175     judicial review by complying with the procedures and requirements of:
176          (a) this title;
177          (b) rules adopted by the board in accordance with Subsection (9); and
178          (c) Title 63G, Chapter 4, Administrative Procedures Act, except as specifically
179     modified under this title or the rules adopted by the board in accordance with Subsection (9).
180          (8) The program shall provide an appeals process for medical claims that complies

181     with federal law.
182          (9) (a) The board [may] shall make rules to implement this section and to establish
183     procedures and requirements for adjudicative proceedings.
184          (b) The rules shall be substantially similar to or incorporate provisions of the Utah
185     Rules of Civil Procedure, the Utah Rules of Evidence, and Title 63G, Chapter 4,
186     Administrative Procedures Act.
187          Section 4. Section 49-11-613.5 is amended to read:
188          49-11-613.5. Limitation of actions -- Cause of action.
189          (1) (a) Subject to the procedures provided in Section 49-11-613 and except as provided
190     in Subsection (3), an action regarding a benefit, right, obligation, or employment right brought
191     under this title may be commenced only within four years of the [date that] day on which the
192     cause of action accrues.
193          (b) A person who is dissatisfied with an executive director's ruling under Section
194     49-11-613 and who seeks a review of that claim by a hearing officer shall file a request for
195     board action within 30 days of the day on which the hearing officer issues the ruling.
196          (2) (a) A cause of action accrues under this title and the limitation period in this section
197     runs from the [date when] day on which the aggrieved party became aware, or through the
198     exercise of reasonable diligence should have become aware, of the facts giving rise to the cause
199     of action, including when:
200          (i) a benefit, right, or employment right is or should have been granted;
201          (ii) a payment is or should have been made; or
202          (iii) an obligation is or should have been performed.
203          (b) If a claim involves a retirement service credit issue under this title:
204          (i) a cause of action specifically accrues at the time the requisite retirement
205     contributions relating to that retirement service credit are paid or should have been paid to the
206     office; and
207          (ii) the person is deemed to be on notice of the payment or nonpayment of those
208     retirement contributions.
209          (3) If an aggrieved party fails to discover the facts giving rise to the cause of action due
210     to misrepresentation, fraud, intentional nondisclosure, or other affirmative steps to conceal the
211     cause of action, a limitation period prescribed in this section does not begin to run until the

212     aggrieved party actually discovers the existence of the cause of action.
213          (4) The person claiming a benefit, right, obligation, or employment right arising under
214     this title has the burden of bringing the action within the period prescribed in this section.
215          (5) Nothing in this section relieves a member, retiree, participant, alternative payee,
216     covered individual, employer, participating employer, or covered employer of the obligations
217     under this title.
218          (6) The office is not required to bring a claim on behalf of a member, retiree,
219     participant, alternative payee, covered individual, employer, participating employer, or covered
220     employer.
221          (7) (a) A limitation period provided in this section does not apply to actions for which
222     a specific limit is otherwise specified in this title or by contract, including master policies or
223     other insurance contracts.
224          (b) For actions arising under this title, this section supersedes any applicable limitation
225     period provided in Title 78B, Chapter 2, Statutes of Limitations.
226          Section 5. Section 49-11-625 is enacted to read:
227          49-11-625. Withdrawing independent entity -- Participation election date --
228     Withdrawal costs -- Rulemaking.
229          (1) As used in this section, "withdrawing entity" means an entity that:
230          (a) participates in a system or plan under this title before January 1, 2021;
231          (b) is an independent entity listed under Subsection 63E-1-102(4)(b); and
232          (c) after beginning participation with a system or plan under this title, has restructured
233     the entity's business operations and employment of employees under contract through a
234     regional, multi-state partnership.
235          (2) A withdrawing entity may elect to withdraw from participation in all systems or
236     plans for all current and future employees of the withdrawing entity, beginning on the date set
237     in accordance with Subsection (3)(a).
238          (3) Notwithstanding any other provision of this title, a withdrawing entity may provide
239     for the participation of the withdrawing entity's employees with the system or plan as follows:
240          (a) the withdrawing entity shall determine a date that is before July 1, 2022, on which
241     the withdrawing entity shall make an election under Subsection (2); and
242          (b) subject to Subsection (6), the withdrawing entity shall pay to the office any

243     reasonable actuarial and administrative costs determined by the office to have arisen out of an
244     election made under this section.
245          (4) (a) An election made under Subsection (2):
246          (i) shall be made on or before the date specified under Subsection (3)(a);
247          (ii) shall be documented by a resolution adopted by the governing body of the
248     withdrawing entity;
249          (iii) remains in effect unless and until the withdrawing entity again becomes a
250     participating entity with the office in accordance with Subsection (5); and
251          (iv) applies to a withdrawing entity as the employer and to all employees of the
252     withdrawing entity.
253          (b) Notwithstanding an election made under Subsection (2), any eligibility for service
254     credit earned by an employee under this title before the date specified under Subsection (3)(a)
255     is not affected by this section.
256          (c) Notwithstanding any other provision of this title, a withdrawing entity that makes
257     an election under Subsection (2) may provide or participate in any type of public or private
258     retirement for the withdrawing entity's employees.
259          (5) After the withdrawal and subject to the laws and rules governing participating
260     employer admission, the withdrawing entity may elect, by resolution of the withdrawing
261     entity's governing body, to resume participation with the office and apply for admission as a
262     participating employer in a system or plan under this title.
263          (6) Before a withdrawing entity may withdraw under this section, the withdrawing
264     entity and the office shall enter into an agreement on:
265          (a) the costs described in Subsection (3)(b); and
266          (b) arrangements for the payment of the costs described in Subsection (3)(b).
267          (7) The board shall make rules to implement this section.
268          Section 6. Section 49-11-1205 is amended to read:
269          49-11-1205. Postretirement reemployment restriction exceptions.
270          (1) (a) The office may not cancel the retirement allowance of a retiree who is
271     reemployed with a participating employer within one year of the retiree's retirement date if:
272          (i) the retiree is not reemployed by a participating employer for a period of at least 60
273     days from the retiree's retirement date;

274          (ii) upon reemployment after the break in service under Subsection (1)(a)(i), the retiree
275     does not receive any employer paid benefits, including:
276          (A) retirement service credit or retirement-related contributions;
277          (B) medical benefits;
278          (C) dental benefits;
279          (D) other insurance benefits except for workers' compensation as provided under Title
280     34A, Chapter 2, Workers' Compensation Act, Title 34A, Chapter 3, Utah Occupational Disease
281     Act, and withholdings required by federal or state law for social security, Medicare, and
282     unemployment insurance; or
283          (E) paid time off, including sick, annual, or other type of leave; and
284          (iii) (A) the retiree does not earn in any calendar year of reemployment an amount in
285     excess of the lesser of $15,000 or one-half of the retiree's final average salary upon which the
286     retiree's retirement allowance is based; or
287          (B) the retiree is reemployed as a judge as defined under Section 78A-11-102.
288          (b) [Beginning January 1, 2013, the] The board shall adjust the amounts under
289     Subsection (1)(a)(iii) by the annual change in the Consumer Price Index during the previous
290     calendar year as measured by a United States Bureau of Labor Statistics Consumer Price Index
291     average as determined by the board.
292          (2) A retiree shall be considered as having completed the one-year separation from
293     employment with a participating employer required under Section 49-11-1204, if the retiree:
294          (a) before retiring:
295          (i) was employed with a participating employer as a public safety service employee as
296     defined in Section 49-14-102, 49-15-102, or 49-23-102;
297          (ii) [and] during the employment under Subsection (2)(a)(i), suffered a physical injury
298     resulting from external force or violence while performing the duties of the employment, [and]
299     for which injury the retiree would have been approved for total disability in accordance with
300     the provisions under Chapter 21, Public Employees' Long-Term Disability Act, if years of
301     service are not considered;
302          (iii) had less than 30 years of service credit but had sufficient service credit to retire,
303     with an unreduced allowance making the public safety service employee ineligible for
304     long-term disability payments under Chapter 21, Public Employees' Long-Term Disability Act,

305     or a substantially similar long-term disability program; [and]
306          (iv) does not receive any long-term disability benefits from any participating employer;
307     and
308          (v) is at least 50 years old; and
309          (b) is reemployed by a different participating employer.
310          (3) (a) The office may not cancel the retirement allowance of a retiree who is employed
311     as an affiliated emergency services worker within one year of the retiree's retirement date if the
312     affiliated emergency services worker does not receive any compensation, except for:
313          (i) a nominal fee, stipend, discount, tax credit, voucher, or other fixed sum of money or
314     cash equivalent payment not tied to productivity and paid periodically for services;
315          (ii) a length-of-service award;
316          (iii) insurance policy premiums paid by the participating employer in the event of death
317     of an affiliated emergency services worker or a line-of-duty accidental death or disability; or
318          (iv) reimbursement of expenses incurred in the performance of duties.
319          (b) For purposes of Subsections (3)(a)(i) and (ii), the total amount of any discounts, tax
320     credits, vouchers, and payments to an affiliated emergency services worker may not exceed
321     $500 per month.
322          (c) [Beginning January 1, 2016, the] The board shall adjust the amount under
323     Subsection (3)(b) by the annual change in the Consumer Price Index during the previous
324     calendar year as measured by a United States Bureau of Labor Statistics Consumer Price Index
325     average as determined by the board.
326          (d) A retiree is eligible for an exemption from the requirement to cease service without
327     cancellation of a retirement allowance under this Subsection (3) only if the retiree, at the time
328     of retirement, is at least:
329          (i) 50 years old, if the retiree is retiring from a public safety system or a firefighter
330     system; or
331          (ii) 55 years old.
332          (4) (a) The office may not cancel the retirement allowance of a retiree employed as a
333     part-time appointed or elected board member within one year after the retiree's retirement date
334     if the part-time appointed or elected board member does not receive any compensation
335     exceeding the amount described in this Subsection (4).

336          (b) A retiree who is a part-time appointed or elected board member for one or more
337     boards, commissions, councils, committees, panels, or other bodies of participating employers:
338          (i) may receive an aggregate amount of compensation, remuneration, a stipend, or other
339     benefit for service on a single or multiple boards, commissions, councils, committees, panels,
340     or other bodies of no more than $5,000 per year; and
341          (ii) may not receive an employer paid retirement service credit or retirement-related
342     contribution.
343          (c) For purposes of Subsection (4)(b)(i):
344          (i) a part-time appointed or elected board member's compensation includes:
345          (A) an amount paid for the part-time appointed or elected board member's coverage in
346     a group insurance plan provided by the participating employer; and
347          (B) the part-time appointed or elected board member's receipt of any other benefit
348     provided by the participating employer; and
349          (ii) the part-time appointed or elected board member's compensation does not include:
350          (A) an amount the participating employer pays for employer-matching employment
351     taxes, if the participating employer treats the part-time appointed or elected board member as
352     an employee for federal tax purposes; or
353          (B) an amount that the part-time appointed or elected board member receives for per
354     diem and travel expenses for up to 12 approved meetings or activities of the government board
355     per year, if the per diem and travel expenses do not exceed the amounts established by the
356     Division of Finance under Sections 63A-3-106 and 63A-3-107 or by rules made by the
357     Division of Finance according to Sections 63A-3-106 and 63A-3-107.
358          (d) [Beginning January 1, 2021, the] The board shall adjust the amount under
359     Subsection (4)(b)(i) by the annual change in the Consumer Price Index during the previous
360     calendar year as measured by a United States Bureau of Labor Statistics Consumer Price Index
361     average, as determined by the board.
362          (5) (a) If a retiree is reemployed under the provisions of Subsection (1) or (4), the
363     termination date of the reemployment, as confirmed in writing by the participating employer, is
364     considered the retiree's retirement date for the purpose of calculating the separation
365     requirement under Section 49-11-1204.
366          (b) The office shall cancel the retirement allowance of a retiree for the remainder of the

367     calendar year if the reemployment with a participating employer exceeds the limitation under
368     Subsection (1)(a)(iii), (3)(b), or (4)(b).
369          Section 7. Section 49-11-1303 is amended to read:
370          49-11-1303. Phased retirement -- Eligibility -- Restrictions -- Amortization rate --
371     Public safety service or firefighter service employees.
372          (1) A retiree is eligible for employment with only one position for only one
373     participating employer under phased retirement following the retiree's retirement date if:
374          (a) the retiree:
375          (i) is eligible to retire and retires in accordance with this title;
376          (ii) has been employed full time, for not less than four years immediately before the
377     retiree's retirement date;
378          (iii) [for a retiree employed as a public safety service employee or a firefighter service
379     employee, is at least 50 years old;] is, at the time of retirement, at least:
380          (A) 50 years old, if the retiree is employed as a public safety service employee or a
381     firefighter service employee; or
382          (B) 55 years old;
383          (iv) completes and submits all required retirement forms to the office; and
384          (v) prior to the retiree's retirement date, completes and submits all required phased
385     retirement forms to the office; and
386          (b) the retiree and the participating employer enter into an agreement described under
387     Section 49-11-1304.
388          (2) A retiree shall begin phased retirement employment after the retiree's retirement
389     date but no later than 120 days after the retiree's retirement date.
390          (3) Except as provided in Subsection (4), for the period of the phased retirement:
391          (a) the retiree receives 50% of the retiree's monthly allowance;
392          (b) the participating employer employs the retiree on a half-time basis;
393          (c) a participating employer that employs the retiree shall contribute the amortization
394     rate to the office;
395          (d) the retiree or an alternate payee may not receive an annual cost-of-living adjustment
396     to the retiree's or alternate payee's allowance;
397          (e) any death benefits payable to a surviving spouse or other beneficiary shall be paid

398     based on 100% of the retiree's retirement allowance;
399          (f) the retiree may not receive any employer provided retirement benefits, service credit
400     accruals, or any retirement related contributions from the participating employer; and
401          (g) except as specified under this section, a retiree working under phased retirement
402     shall be treated in the same manner as any other part-time employee working a similar position
403     and number of hours with the participating employer, including:
404          (i) any non-retirement related benefits;
405          (ii) leave benefits;
406          (iii) medical benefits; and
407          (iv) other benefits.
408          (4) (a) If a retiree is employed as a public safety service employee or a firefighter
409     service employee, for the period of the phased retirement the requirements of Subsection (3) or
410     (4)(b) are satisfied.
411          (b) For the period of the phased retirement:
412          (i) the retiree is employed as a public safety service employee or a firefighter service
413     employee;
414          (ii) the retiree receives 25% of the retiree's monthly allowance;
415          (iii) the participating employer employs the retiree on a three-quarter time basis;
416          (iv) a participating employer that employs the retiree shall contribute to the office the
417     certified contribution rate applicable to the system that would have covered the retiree if the
418     retiree's part-time position were considered to be an eligible, full-time position within the
419     system;
420          (v) the retiree or an alternate payee may not receive an annual cost-of-living adjustment
421     to the retiree's or alternate payee's allowance;
422          (vi) any death benefits payable to a surviving spouse or other beneficiary shall be paid
423     based on 100% of the retiree's retirement allowance;
424          (vii) the retiree may not receive any employer provided retirement benefits, service
425     credit accruals, or any retirement related contributions from the participating employer; and
426          (viii) except as specified under this section, a retiree working under phased retirement
427     shall be treated in the same manner as any other part-time employee working a similar position
428     and number of hours with the participating employer, including:

429          (A) any non-retirement related benefits;
430          (B) leave benefits;
431          (C) medical benefits; and
432          (D) other benefits.
433          (5) The office shall begin paying 100% of the retiree's retirement allowance on the first
434     day of the month following the month in which the office receives written notification and any
435     required supporting documentation that the retiree's phased retirement has been irrevocably
436     terminated.
437          Section 8. Section 49-11-1401 is amended to read:
438          49-11-1401. Forfeiture of retirement benefits for employees for employment
439     related offense convictions -- Notifications -- Investigations -- Appeals.
440          (1) As used in this section:
441          (a) "Convicted" means a conviction by plea or by verdict, including a plea of guilty or a
442     plea of no contest that is held in abeyance under Title 77, Chapter 2a, Pleas in Abeyance,
443     regardless of whether the charge was, or is, subsequently reduced in accordance with the plea
444     agreement or reduced or dismissed in accordance with the plea agreement or the plea in
445     abeyance agreement.
446          (b) "Employee" means a member of a system or plan administered by the board.
447          (c) (i) "Employment related offense" means a felony committed during employment or
448     the term of an elected or appointed office with a participating employer that is:
449          (A) during the performance of the employee's duties;
450          (B) within the scope of the employee's employment; or
451          (C) under color of the employee's authority.
452          (ii) "Employment related offense" does not include any federal offense for conduct that
453     is lawful under Title 26, Chapter 61a, Utah Medical Cannabis Act.
454          (2) (a) Notwithstanding any other provision of this title, an employee shall forfeit
455     accrual of service credit, employer retirement related contributions, including employer
456     contributions to the employer sponsored defined contribution plans, or other retirement related
457     benefits from a system or plan under this title in accordance with this section.
458          (b) The forfeiture of retirement related benefits under Subsection (2)(a) does not
459     include the employee's contribution to a defined contribution plan.

460          (3) An employee shall forfeit the benefits described under Subsection (2)(a):
461          (a) if the employee is convicted of an employment related offense;
462          (b) beginning on the day on which the employment related offense occurred; and
463          (c) until the employee is either:
464          (i) re-elected or reappointed to office; or
465          (ii) (A) terminated from the position for which the employee was found to have
466     committed an employment related offense; and
467          (B) rehired or hired as an employee who is eligible to be a member of a Utah state
468     retirement system or plan.
469          (4) The employee's participating employer shall:
470          (a) immediately notify the office:
471          (i) if an employee is charged with an offense that is or may be an employment related
472     offense under this section; and
473          (ii) if the employee described in Subsection (4)(a)(i) is acquitted of the offense that is
474     or may be an employment related offense under this section; and
475          (b) if the employee is convicted of an offense that may be an employment related
476     offense:
477          (i) conduct an investigation, which may rely on the conviction, to determine:
478          (A) whether the conviction is for an employment related offense; and
479          (B) the date on which the employment related offense was initially committed; and
480          (ii) after the period of time for an appeal by an employee under Subsection (5),
481     immediately notify the office of the employer's determination under this Subsection (4)(b).
482          (5) An employee may appeal the employee's participating employer's determination
483     under Subsection (4)(b) in accordance with the participating employer's procedures for
484     appealing agency action, including Title 63G, Chapter 4, Administrative Procedures Act, if
485     applicable.
486          (6) (a) Notwithstanding Subsection (4), a district attorney, a county attorney, the
487     attorney general's office, or the state auditor may notify the office and the employee's
488     participating employer if an employee is charged with an offense that is or may be an
489     employment related offense under this section.
490          (b) If the employee's participating employer receives a notification under Subsection

491     (6)(a), the participating employer shall immediately report to the entity that provided the
492     notification under Subsection (6)(a):
493          (i) if the employee is acquitted of the offense;
494          (ii) if the employee is convicted of an offense that may be an employment related
495     offense; and
496          (iii) when the participating employer has concluded [its] the participating employer's
497     duties under this section if the employee is convicted, including conducting an investigation,
498     making a determination under Subsection (4)(b) that the conviction was for an employment
499     related offense, and notifying the office under Subsection (7).
500          (c) The notifying entity under Subsection (6)(a) may assist the employee's participating
501     employer with the investigation and determination described under Subsection (4)(b).
502          (7) Upon receiving a notification from a participating employer that the participating
503     employer has made a determination under Subsection (4)(b) that the conviction was for an
504     employment related offense, the office shall immediately forfeit any service credit, employer
505     retirement related contributions, including employer contributions to the employer sponsored
506     contribution plans, or other retirement related benefits accrued by or made for the benefit of the
507     employee, beginning on the date of the initial employment related offense determined under
508     Subsection (4)(b).
509          (8) This section applies to an employee who is convicted on or after the effective date
510     of this act for an employment related offense.
511          (9) The board may make rules to implement this section.
512          (10) If any provision of this section, or the application of any provision to any person
513     or circumstance, is held invalid, the remainder of this section shall be given effect without the
514     invalid provision or application.
515          Section 9. Section 49-12-202 is amended to read:
516          49-12-202. Participation of employers -- Limitations -- Exclusions -- Admission
517     requirements -- Exceptions -- Nondiscrimination requirements.
518          (1) (a) Unless excluded under Subsection (2), an employer is a participating employer
519     and may not withdraw from participation in this system.
520          (b) In addition to [their] participation in this system, a participating [employers]
521     employer may provide or participate in public or private retirement, supplemental or defined

522     contribution plan, either directly or indirectly, for [their] the participating employer's
523     employees.
524          (2) The following employers may be excluded from participation in this system:
525          (a) an employer not initially admitted or included as a participating employer in this
526     system prior to January 1, 1982, if:
527          (i) the employer elects not to provide or participate in any type of private or public
528     retirement, supplemental or defined contribution plan, either directly or indirectly, for [its] the
529     employer's employees, except for Social Security; or
530          (ii) the employer offers another collectively bargained retirement benefit and has
531     continued to do so on an uninterrupted basis since that date;
532          (b) an employer that is a charter school authorized under Title 53G, Chapter 5, Part 3,
533     Charter School Authorization, and does not elect to participate in accordance with Section
534     53G-5-407;
535          (c) an employer that is a hospital created as a special service district under Title 17D,
536     Chapter 1, Special Service District Act, that makes an election of nonparticipation in
537     accordance with Subsection (4); or
538          (d) an employer that is licensed as a nursing care facility under Title 26, Chapter 21,
539     Health Care Facility Licensing and Inspection Act, and created as a special service district
540     under Title 17D, Chapter 1, Special Service District Act, in a rural area of the state that makes
541     an election of nonparticipation in accordance with Subsection (4).
542          (3) An employer who did not become a participating employer in this system prior to
543     July 1, 1986, may not participate in this system.
544          (4) (a) (i) Until June 30, 2009, a employer that is a hospital created as a special service
545     district under Title 17D, Chapter 1, Special Service District Act, may make an election of
546     nonparticipation as an employer for retirement programs under this chapter.
547          (ii) Until June 30, 2014, an employer that is licensed as a nursing care facility under
548     Title 26, Chapter 21, Health Care Facility Licensing and Inspection Act, and created as a
549     special service district under Title 17D, Chapter 1, Special Service District Act, in a rural area
550     of the state may make an election of nonparticipation as an employer for retirement programs
551     under this chapter.
552          (b) An election provided under Subsection (4)(a):

553          (i) is a one-time election made no later than the time specified under Subsection (4)(a);
554          (ii) shall be documented by a resolution adopted by the governing body of the special
555     service district;
556          (iii) is irrevocable; and
557          (iv) applies to the special service district as the employer and to all employees of the
558     special service district.
559          (c) The governing body of the special service district may offer employee benefit plans
560     for [its] special service district's employees:
561          (i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
562     or
563          (ii) under any other program.
564          (5) (a) If a participating employer purchases service credit on behalf of a regular
565     full-time [employees] employee for service rendered prior to the participating employer's
566     admission to this system, the participating employer shall:
567          (i) purchase service credit [shall be purchased] in a nondiscriminatory manner on
568     behalf of all current and former regular full-time employees who were eligible for service
569     credit at the time service was rendered[.]; and
570          (ii) comply with the provisions of Section 49-11-403, except for the requirement
571     described in Subsection 49-11-403(2)(a).
572          (b) For a purchase made under this Subsection (5), an employee is not required to:
573          (i) have at least four years of service credit before the purchase can be made; or
574          (ii) forfeit service credit or any defined contribution balance based on the employer
575     contributions under any other retirement system or plan based on the period of employment for
576     which service credit is being purchased.
577          Section 10. Section 49-12-203 is amended to read:
578          49-12-203. Exclusions from membership in system.
579          (1) The following employees are not eligible for service credit in this system:
580          (a) subject to the requirements of Subsection (2), an employee whose employment
581     status is temporary in nature due to the nature or the type of work to be performed;
582          (b) except as provided under Subsection (3)(a), an employee of an institution of higher
583     education who participates in a retirement system with a public or private retirement system,

584     organization, or company designated by the Utah Board of Higher Education, or the technical
585     college board of trustees for an employee of each technical college, during any period in which
586     required contributions based on compensation have been paid on behalf of the employee by the
587     employer;
588          (c) an employee serving as an exchange employee from outside the state for an
589     employer who has not elected to make all of the employer's exchange employees eligible for
590     service credit in this system;
591          (d) an executive department head of the state, a member of the State Tax Commission,
592     the Public Service Commission, and a member of a full-time or part-time board or commission
593     who files a formal request for exemption;
594          (e) an employee of the Department of Workforce Services who is covered under
595     another retirement system allowed under Title 35A, Chapter 4, Employment Security Act;
596          (f) an employee who is employed on or after July 1, 2009, with an employer that has
597     elected, prior to July 1, 2009, to be excluded from participation in this system under Subsection
598     49-12-202(2)(c);
599          (g) an employee who is employed on or after July 1, 2014, with an employer that has
600     elected, prior to July 1, 2014, to be excluded from participation in this system under Subsection
601     49-12-202(2)(d);
602          (h) an employee who is employed with a withdrawing entity that has elected under
603     Section 49-11-623, prior to January 1, 2017, to exclude:
604          (i) new employees from participation in this system under Subsection 49-11-623(3)(a);
605     or
606          (ii) all employees from participation in this system under Subsection 49-11-623(3)(b);
607     [or]
608          (i) an employee described in Subsection (1)(i)(i) or (ii) who is employed with a
609     withdrawing entity that has elected under Section 49-11-624, before January 1, 2018, to
610     exclude:
611          (i) new employees from participation in this system under Subsection 49-11-624(3)(a);
612     or
613          (ii) all employees from participation in this system under Subsection
614     49-11-624(3)(b)[.]; or

615          (j) an employee who is employed with a withdrawing entity that has elected under
616     Section 49-11-625, before July 1, 2022, to exclude all employees from participation in this
617     system.
618          (2) If an employee whose status is temporary in nature due to the nature of type of
619     work to be performed:
620          (a) is employed for a term that exceeds six months and the employee otherwise
621     qualifies for service credit in this system, the participating employer shall report and certify to
622     the office that the employee is a regular full-time employee effective the beginning of the
623     seventh month of employment; or
624          (b) was previously terminated prior to being eligible for service credit in this system
625     and is reemployed within three months of termination by the same participating employer, the
626     participating employer shall report and certify that the member is a regular full-time employee
627     when the total of the periods of employment equals six months and the employee otherwise
628     qualifies for service credits in this system.
629          (3) (a) Upon cessation of the participating employer contributions, an employee under
630     Subsection (1)(b) is eligible for service credit in this system.
631          (b) Notwithstanding the provisions of Subsection (1)(f), any eligibility for service
632     credit earned by an employee under this chapter before July 1, 2009 is not affected under
633     Subsection (1)(f).
634          (c) Notwithstanding the provisions of Subsection (1)(g), any eligibility for service
635     credit earned by an employee under this chapter before July 1, 2014, is not affected under
636     Subsection (1)(g).
637          (4) Upon filing a written request for exemption with the office, the following
638     employees shall be exempt from coverage under this system:
639          (a) a full-time student or the spouse of a full-time student and individuals employed in
640     a trainee relationship;
641          (b) an elected official;
642          (c) an executive department head of the state, a member of the State Tax Commission,
643     a member of the Public Service Commission, and a member of a full-time or part-time board or
644     commission;
645          (d) an employee of the Governor's Office of Management and Budget;

646          (e) an employee of the Governor's Office of Economic Development;
647          (f) an employee of the Commission on Criminal and Juvenile Justice;
648          (g) an employee of the Governor's Office;
649          (h) an employee of the State Auditor's Office;
650          (i) an employee of the State Treasurer's Office;
651          (j) any other member who is permitted to make an election under Section 49-11-406;
652          (k) a person appointed as a city manager or chief city administrator or another person
653     employed by a municipality, county, or other political subdivision, who is an at-will employee;
654          (l) an employee of an interlocal cooperative agency created under Title 11, Chapter 13,
655     Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided through
656     membership in a labor organization that provides retirement benefits to its members; and
657          (m) an employee serving as an exchange employee from outside the state for an
658     employer who has elected to make all of the employer's exchange employees eligible for
659     service credit in this system.
660          (5) (a) Each participating employer shall prepare and maintain a list designating those
661     positions eligible for exemption under Subsection (4).
662          (b) An employee may not be exempted unless the employee is employed in an
663     exempted position designated by the participating employer.
664          (6) (a) In accordance with this section, Section 49-13-203, and Section 49-22-205, a
665     municipality, county, or political subdivision may not exempt a total of more than 50 positions
666     or a number equal to 10% of the eligible employees of the municipality, county, or political
667     subdivision, whichever is less.
668          (b) A municipality, county, or political subdivision may exempt at least one regular
669     full-time employee.
670          (7) Each participating employer shall:
671          (a) maintain a list of employee exemptions; and
672          (b) update the employee exemptions in the event of any change.
673          (8) The office may make rules to implement this section.
674          (9) An employee's exclusion, exemption, participation, or election described in this
675     section:
676          (a) shall be made in accordance with this section; and

677          (b) is subject to requirements under federal law and rules made by the board.
678          Section 11. Section 49-12-406 is amended to read:
679          49-12-406. Exceptions for part-time elective or appointive service -- Computation
680     of allowance -- Justice court judges.
681          (1) Notwithstanding the provisions of Sections 49-11-401 and 49-12-102, and unless
682     otherwise provided in this section, a member's elective or appointive service rendered on a
683     basis not considered full-time by the office shall have a separate allowance computed on the
684     basis of compensation actually received by the member during the period of elective or
685     appointive service.
686          (2) (a) (i) A justice court judge who has service with only one participating employer
687     shall be considered part-time or full-time by the office as certified by the participating
688     employer.
689          (ii) If there is a dispute between the office and a participating employer or justice court
690     judge over whether service is full-time or part-time for any employment period, the disputed
691     service shall be submitted by the office to the Administrative Office of the Courts for
692     determination.
693          (b) If a justice court judge has a combination of part-time service and full-time position
694     service with one participating employer, the office shall compute separate allowances on the
695     basis of compensation actually received by the judge during the part-time and full-time periods
696     of service.
697          (3) (a) A justice court judge who has service with more than one participating
698     employer shall be considered full-time by the office for a period of service in which the judge
699     is certified as full-time by:
700          (i) a participating employer; [or]
701          (ii) a group of participating employers where the judge's part-time work for each
702     employer, when aggregated, amounts to full-time service; or
703          [(ii)] (iii) the Administrative Office of the Courts beginning on or after January 1,
704     2009, based on the judge's aggregate caseload of the multiple employers as determined by the
705     judge's caseloads of the individual courts of each employer in accordance with Subsection
706     78A-7-206(1)(b)(ii).
707          (b) If a justice court judge has full-time service under Subsection (3)(a), the office shall

708     compute an allowance on the basis of total compensation actually received from all
709     participating employers by the judge during the total period of full-time service.
710          (c) If a justice court judge has part-time service performed that is not within a period
711     considered full-time service under Subsection (3)(a), the office shall compute a separate
712     allowance on the basis of compensation actually received by the member during the period of
713     part-time service.
714          (d) If there is a dispute between the office and a participating employer, a group of
715     participating employers, or a justice court judge over whether service is full-time or part-time
716     for any employment period, the disputed service shall be submitted by the office to the
717     Administrative Office of the Courts for determination.
718          (4) All of the service rendered by a justice court judge in any one fiscal or calendar
719     year may not count for more than one year of service credit.
720          Section 12. Section 49-13-202 is amended to read:
721          49-13-202. Participation of employers -- Limitations -- Exclusions -- Admission
722     requirements -- Nondiscrimination requirements -- Service credit purchases.
723          (1) (a) Unless excluded under Subsection (2), an employer is a participating employer
724     and may not withdraw from participation in this system.
725          (b) In addition to [their] participation in this system, a participating [employers]
726     employer may provide or participate in any additional public or private retirement,
727     supplemental or defined contribution plan, either directly or indirectly, for [their] the
728     participating employer's employees.
729          (2) The following employers may be excluded from participation in this system:
730          (a) an employer not initially admitted or included as a participating employer in this
731     system before January 1, 1982, if:
732          (i) the employer elects not to provide or participate in any type of private or public
733     retirement, supplemental or defined contribution plan, either directly or indirectly, for [its] the
734     employer's employees, except for Social Security; or
735          (ii) the employer offers another collectively bargained retirement benefit and has
736     continued to do so on an uninterrupted basis since that date;
737          (b) an employer that is a charter school authorized under Title 53G, Chapter 5, Part 3,
738     Charter School Authorization, and does not elect to participate in accordance with Section

739     53G-5-407;
740          (c) an employer that is a hospital created as a special service district under Title 17D,
741     Chapter 1, Special Service District Act, that makes an election of nonparticipation in
742     accordance with Subsection (5);
743          (d) an employer that is licensed as a nursing care facility under Title 26, Chapter 21,
744     Health Care Facility Licensing and Inspection Act, and created as a special service district
745     under Title 17D, Chapter 1, Special Service District Act, in a rural area of the state that makes
746     an election of nonparticipation in accordance with Subsection (5); or
747          (e) an employer that is a risk management association initially created by interlocal
748     agreement before 1986 for the purpose of implementing a self-insurance joint protection
749     program for the benefit of member municipalities of the association.
750          (3) If an employer that may be excluded under Subsection (2)(a)(i) elects at any time to
751     provide or participate in any type of public or private retirement, supplemental or defined
752     contribution plan, either directly or indirectly, except for Social Security, the employer shall be
753     a participating employer in this system regardless of whether the employer has applied for
754     admission under Subsection (4).
755          (4) (a) An employer may, by resolution of [its] the employer's governing body, apply
756     for admission to this system.
757          (b) Upon approval of the resolution by the board, the employer is a participating
758     employer in this system and is subject to this title.
759          (5) (a) (i) Until June 30, 2009, a employer that is a hospital created as a special service
760     district under Title 17D, Chapter 1, Special Service District Act, may make an election of
761     nonparticipation as an employer for retirement programs under this chapter.
762          (ii) Until June 30, 2014, an employer that is licensed as a nursing care facility under
763     Title 26, Chapter 21, Health Care Facility Licensing and Inspection Act, and created as a
764     special service district under Title 17D, Chapter 1, Special Service District Act, in a rural area
765     of the state may make an election of nonparticipation as an employer for retirement programs
766     under this chapter.
767          (iii) On or before July 1, 2010, an employer described in Subsection (2)(e) may make
768     an election of nonparticipation as an employer for retirement programs under this chapter.
769          (b) An election provided under Subsection (5)(a):

770          (i) is a one-time election made no later than the time specified under Subsection (5)(a);
771          (ii) shall be documented by a resolution adopted by the governing body of the
772     employer;
773          (iii) is irrevocable; and
774          (iv) applies to the employer as described in Subsection (5)(a)(i), (ii), or (iii) and to all
775     employees of that employer.
776          (c) The employer making an election under Subsection (5)(a) may offer employee
777     benefit plans for [its] the employer's employees:
778          (i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
779     or
780          (ii) under any other program.
781          (6) (a) If a participating employer purchases service credit on behalf of a regular
782     full-time [employees] employee for service rendered prior to the participating employer's
783     admission to this system, the participating employer shall:
784          (i) purchase service credit [shall be purchased] in a nondiscriminatory manner on
785     behalf of all current and former regular full-time employees who were eligible for service
786     credit at the time service was rendered[.]; and
787          (ii) comply with the provisions of Section 49-11-403, except for the requirement
788     described in Subsection 49-11-403(2)(a).
789          (b) For a purchase made under this Subsection (6), an employee is not required to:
790          (i) have at least four years of service credit before the purchase can be made; or
791          (ii) forfeit service credit or any defined contribution balance based on the employer
792     contributions under any other retirement system or plan based on the period of employment for
793     which service credit is being purchased.
794          Section 13. Section 49-13-203 is amended to read:
795          49-13-203. Exclusions from membership in system.
796          (1) The following employees are not eligible for service credit in this system:
797          (a) subject to the requirements of Subsection (2), an employee whose employment
798     status is temporary in nature due to the nature or the type of work to be performed;
799          (b) except as provided under Subsection (3)(a), an employee of an institution of higher
800     education who participates in a retirement system with a public or private retirement system,

801     organization, or company designated by the Utah Board of Higher Education, or the technical
802     college board of trustees for an employee of each technical college, during any period in which
803     required contributions based on compensation have been paid on behalf of the employee by the
804     employer;
805          (c) an employee serving as an exchange employee from outside the state for an
806     employer who has not elected to make all of the employer's exchange employees eligible for
807     service credit in this system;
808          (d) an executive department head of the state or a legislative director, senior executive
809     employed by the governor's office, a member of the State Tax Commission, a member of the
810     Public Service Commission, and a member of a full-time or part-time board or commission
811     who files a formal request for exemption;
812          (e) an employee of the Department of Workforce Services who is covered under
813     another retirement system allowed under Title 35A, Chapter 4, Employment Security Act;
814          (f) an employee who is employed with an employer that has elected to be excluded
815     from participation in this system under Subsection 49-13-202(5), effective on or after the date
816     of the employer's election under Subsection 49-13-202(5);
817          (g) an employee who is employed with a withdrawing entity that has elected under
818     Section 49-11-623, prior to January 1, 2017, to exclude:
819          (i) new employees from participation in this system under Subsection 49-11-623(3)(a);
820     or
821          (ii) all employees from participation in this system under Subsection 49-11-623(3)(b);
822     [or]
823          (h) an employee described in Subsection (1)(h)(i) or (ii) who is employed with a
824     withdrawing entity that has elected under Section 49-11-624, before January 1, 2018, to
825     exclude:
826          (i) new employees from participation in this system under Subsection 49-11-624(3)(a);
827     or
828          (ii) all employees from participation in this system under Subsection
829     49-11-624(3)(b)[.]; or
830          (i) an employee who is employed with a withdrawing entity that has elected under
831     Section 49-11-625, before July 1, 2022, to exclude all employees from participation in this

832     system.
833          (2) If an employee whose status is temporary in nature due to the nature of type of
834     work to be performed:
835          (a) is employed for a term that exceeds six months and the employee otherwise
836     qualifies for service credit in this system, the participating employer shall report and certify to
837     the office that the employee is a regular full-time employee effective the beginning of the
838     seventh month of employment; or
839          (b) was previously terminated prior to being eligible for service credit in this system
840     and is reemployed within three months of termination by the same participating employer, the
841     participating employer shall report and certify that the member is a regular full-time employee
842     when the total of the periods of employment equals six months and the employee otherwise
843     qualifies for service credits in this system.
844          (3) (a) Upon cessation of the participating employer contributions, an employee under
845     Subsection (1)(b) is eligible for service credit in this system.
846          (b) Notwithstanding the provisions of Subsection (1)(f), any eligibility for service
847     credit earned by an employee under this chapter before the date of the election under
848     Subsection 49-13-202(5) is not affected under Subsection (1)(f).
849          (4) Upon filing a written request for exemption with the office, the following
850     employees shall be exempt from coverage under this system:
851          (a) a full-time student or the spouse of a full-time student and individuals employed in
852     a trainee relationship;
853          (b) an elected official;
854          (c) an executive department head of the state, a member of the State Tax Commission,
855     a member of the Public Service Commission, and a member of a full-time or part-time board or
856     commission;
857          (d) an employee of the Governor's Office of Management and Budget;
858          (e) an employee of the Governor's Office of Economic Development;
859          (f) an employee of the Commission on Criminal and Juvenile Justice;
860          (g) an employee of the Governor's Office;
861          (h) an employee of the State Auditor's Office;
862          (i) an employee of the State Treasurer's Office;

863          (j) any other member who is permitted to make an election under Section 49-11-406;
864          (k) a person appointed as a city manager or chief city administrator or another person
865     employed by a municipality, county, or other political subdivision, who is an at-will employee;
866          (l) an employee of an interlocal cooperative agency created under Title 11, Chapter 13,
867     Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided through
868     membership in a labor organization that provides retirement benefits to its members;
869          (m) an employee of the Utah Science Technology and Research Initiative created under
870     Title 63M, Chapter 2, Utah Science Technology and Research Governing Authority Act; and
871          (n) an employee serving as an exchange employee from outside the state for an
872     employer who has elected to make all of the employer's exchange employees eligible for
873     service credit in this system.
874          (5) (a) Each participating employer shall prepare and maintain a list designating those
875     positions eligible for exemption under Subsection (4).
876          (b) An employee may not be exempted unless the employee is employed in a position
877     designated by the participating employer.
878          (6) (a) In accordance with this section, Section 49-12-203, and Section 49-22-205, a
879     municipality, county, or political subdivision may not exempt a total of more than 50 positions
880     or a number equal to 10% of the eligible employees of the municipality, county, or political
881     subdivision, whichever is less.
882          (b) A municipality, county, or political subdivision may exempt at least one regular
883     full-time employee.
884          (7) Each participating employer shall:
885          (a) maintain a list of employee exemptions; and
886          (b) update the employee exemptions in the event of any change.
887          (8) The office may make rules to implement this section.
888          (9) An employee's exclusion, exemption, participation, or election described in this
889     section:
890          (a) shall be made in accordance with this section; and
891          (b) is subject to requirements under federal law and rules made by the board.
892          Section 14. Section 49-13-406 is amended to read:
893          49-13-406. Exceptions for part-time elective or appointive service -- Computation

894     of allowance -- Justice court judges.
895          (1) Notwithstanding the provisions of Sections 49-11-401 and 49-13-102, and unless
896     otherwise provided in this section, a member's elective or appointive service rendered on a
897     basis not considered full-time by the office shall have a separate allowance computed on the
898     basis of compensation actually received by the member during the period of elective or
899     appointive service.
900          (2) (a) (i) A justice court judge who has service with only one participating employer
901     shall be considered part-time or full-time by the office as certified by the participating
902     employer.
903          (ii) If there is a dispute between the office and a participating employer or justice court
904     judge over whether service is full-time or part-time for any employment period, the disputed
905     service shall be submitted by the office to the Administrative Office of the Courts for
906     determination.
907          (b) If a justice court judge has a combination of part-time service and full-time position
908     service with one participating employer, the office shall compute separate allowances on the
909     basis of compensation actually received by the judge during the part-time and full-time periods
910     of service.
911          (3) (a) A justice court judge who has service with more than one participating
912     employer shall be considered full-time by the office for a period of service in which the judge
913     is certified as full-time by:
914          (i) a participating employer; [or]
915          (ii) a group of participating employers where the judge's part-time work for each
916     employer, when aggregated, amounts to full-time service; or
917          [(ii)] (iii) the Administrative Office of the Courts beginning on or after January 1,
918     2009, based on the judge's aggregate caseload of the multiple employers as determined by the
919     judge's caseloads of the individual courts of each employer in accordance with Subsection
920     78A-7-206(1)(b)(ii).
921          (b) If a justice court judge has full-time service under Subsection (3)(a), the office shall
922     compute an allowance on the basis of total compensation actually received from all
923     participating employers by the judge during the total period of full-time service.
924          (c) If a justice court judge has part-time service performed that is not within a period

925     considered full-time service under Subsection (3)(a), the office shall compute a separate
926     allowance on the basis of compensation actually received by the member during the period of
927     part-time service.
928          (d) If there is a dispute between the office and a participating employer, a group of
929     participating employers, or a justice court judge over whether service is full-time or part-time
930     for any employment period, the disputed service shall be submitted by the office to the
931     Administrative Office of the Courts for determination.
932          (4) All of the service rendered by a justice court judge in any one fiscal or calendar
933     year may not count for more than one year of service credit.
934          Section 15. Section 49-15-202 is amended to read:
935          49-15-202. Participation of employers -- Requirements -- Admission -- Full
936     participation in system -- Supplemental programs authorized.
937          (1) An employer that employs public safety service employees and is required by
938     Section 49-12-202 or 49-13-202 to be a participating employer in the Public Employees'
939     Contributory Retirement System or the Public Employees' Noncontributory Retirement System
940     shall cover all [its] the employer's public safety service employees under one of the following
941     systems or plans:
942          (a) Chapter 12, Public Employees' Contributory Retirement Act;
943          (b) Chapter 13, Public Employees' Noncontributory Retirement Act;
944          (c) Chapter 14, Public Safety Contributory Retirement Act;
945          (d) Chapter 15, Public Safety Noncontributory Retirement Act; or
946          (e) Chapter 23, New Public Safety and Firefighter Tier II Contributory Retirement Act.
947          (2) An employer that covers [its] the employer's public safety employees under
948     Subsection (1)(d) is a participating employer in this system.
949          (3) If a participating employer under Subsection (1) covers any of [its] the participating
950     employer's public safety service employees under the Public Safety Contributory Retirement
951     System or the Public Safety Noncontributory Retirement System, that participating employer
952     shall cover all of [its] the participating employer's public safety service employees under one of
953     those systems, except for a public safety service employee initially entering employment with a
954     participating employer beginning on or after July 1, 2011.
955          (4) (a) Until June 30, 2011, an employer that is not participating in this system may by

956     resolution of [its] the employer's governing body apply for coverage of [its] the employer's
957     public safety service employees by this system.
958          (b) Upon approval of the board, the employer shall become a participating employer in
959     this system subject to this title.
960          (5) (a) If a participating employer purchases service credit on behalf of [employees] an
961     employee for service rendered prior to the participating employer's admission to this system,
962     the participating employer shall:
963          (i) purchase service credit [must be purchased] in a nondiscriminatory manner on
964     behalf of all current and former employees who were eligible for service credit at the time
965     service was rendered[.]; and
966          (ii) comply with the provisions of Section 49-11-403, except for the requirement
967     described in Subsection 49-11-403(2)(a).
968          (b) For a purchase made under this Subsection (5), an employee is not required to:
969          (i) have at least four years of service credit before the purchase can be made; or
970          (ii) forfeit service credit or any defined contribution balance based on the employer
971     contributions under any other retirement system or plan based on the period of employment for
972     which service credit is being purchased.
973          (6) A participating employer may not withdraw from this system.
974          (7) In addition to [their] participation in the system, a participating [employers]
975     employer may provide or participate in any additional public or private retirement,
976     supplemental or defined contribution plan, either directly or indirectly, for [their] the public
977     employer's employees.
978          Section 16. Section 49-22-203 is amended to read:
979          49-22-203. Exclusions from membership in system.
980          (1) The following employees are not eligible for service credit in this system:
981          (a) subject to the requirements of Subsection (2), an employee whose employment
982     status is temporary in nature due to the nature or the type of work to be performed;
983          (b) except as provided under Subsection (3), an employee of an institution of higher
984     education who participates in a retirement system with a public or private retirement system,
985     organization, or company designated by the Utah Board of Higher Education, or the technical
986     college board of trustees for an employee of each technical college, during any period in which

987     required contributions based on compensation have been paid on behalf of the employee by the
988     employer;
989          (c) an employee serving as an exchange employee from outside the state for an
990     employer who has not elected to make all of the employer's exchange employees eligible for
991     service credit in this system;
992          (d) an employee of the Department of Workforce Services who is covered under
993     another retirement system allowed under Title 35A, Chapter 4, Employment Security Act;
994          (e) an employee who is employed with a withdrawing entity that has elected under
995     Section 49-11-623, prior to January 1, 2017, to exclude:
996          (i) new employees from participation in this system under Subsection 49-11-623(3)(a);
997     or
998          (ii) all employees from participation in this system under Subsection 49-11-623(3)(b);
999          (f) a person who files a written request for exemption with the office under Section
1000     49-22-205; [or]
1001          (g) an employee described in Subsection (1)(g)(i) or (ii) who is employed with a
1002     withdrawing entity that has elected under Section 49-11-624, before January 1, 2018, to
1003     exclude:
1004          (i) new employees from participation in this system under Subsection 49-11-624(3)(a);
1005     or
1006          (ii) all employees from participation in this system under Subsection
1007     49-11-624(3)(b)[.]; or
1008          (h) an employee who is employed with a withdrawing entity that has elected under
1009     Section 49-11-625, before July 1, 2022, to exclude all employees from participation in this
1010     system.
1011          (2) If an employee whose status is temporary in nature due to the nature of type of
1012     work to be performed:
1013          (a) is employed for a term that exceeds six months and the employee otherwise
1014     qualifies for service credit in this system, the participating employer shall report and certify to
1015     the office that the employee is a regular full-time employee effective the beginning of the
1016     seventh month of employment; or
1017          (b) was previously terminated prior to being eligible for service credit in this system

1018     and is reemployed within three months of termination by the same participating employer, the
1019     participating employer shall report and certify that the member is a regular full-time employee
1020     when the total of the periods of employment equals six months and the employee otherwise
1021     qualifies for service credits in this system.
1022          (3) Upon cessation of the participating employer contributions, an employee under
1023     Subsection (1)(b) is eligible for service credit in this system.
1024          (4) An employee's exclusion, exemption, participation, or election described in this
1025     section:
1026          (a) shall be made in accordance with this section; and
1027          (b) is subject to requirements under federal law and rules made by the board.
1028          Section 17. Section 49-23-202 is amended to read:
1029          49-23-202. Participation of employers -- Admission requirements.
1030          (1) (a) An employer is a participating employer and may not withdraw from
1031     participation in this system.
1032          (b) A participating employer shall cover [its] the participating employer's:
1033          (i) public safety service employees in accordance with Section 49-15-202; and
1034          (ii) firefighter service employees in accordance with Section 49-16-202.
1035          (2) (a) An employer may, by resolution of [its] the employer's governing body, apply
1036     for admission to this system.
1037          (b) Upon approval of the resolution by the board, the employer is a participating
1038     employer in this system and is subject to this title.
1039          (3) If a participating employer purchases service credit on behalf of a public safety
1040     service [employees] employee or a or firefighter service [employees] employee for service
1041     rendered prior to the participating employer's admission to this system, the participating
1042     employer shall:
1043          (a) purchase service credit [shall be purchased] in a nondiscriminatory manner on
1044     behalf of all current and former public safety service employees or firefighter service
1045     employees who were eligible for service credit at the time service was rendered[.]; and
1046          (b) comply with the provisions of Section 49-11-403.
1047          Section 18. Effective date.
1048          (1) Except as provided in Subsection (2), this bill takes effect on May 5, 2021.

1049          (2) The changes affecting the following sections take effect on July 1, 2021:
1050          (a) Section 49-11-613;
1051          (b) Section 49-11-613.5;
1052          (c) Section 49-11-1205; and
1053          (d) Section 49-11-1303.