This document includes House Committee Amendments incorporated into the bill on Mon, Feb 14, 2022 at 8:54 AM by pflowers.
Representative Matthew H. Gwynn proposes the following substitute bill:


1     
PUBLIC SAFETY RETIREMENT AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Matthew H. Gwynn

5     
Senate Sponsor: Don L. Ipson

6     

7     LONG TITLE
8     General Description:
9          This bill modifies requirements related to retirement from a public safety or firefighter
10     retirement system.
11     Highlighted Provisions:
12          This bill:
13          ▸     reduces the length of the period of separation for postretirement reemployment of a
14     retiree from a public safety system or a firefighter retirement system;
15          ▸     schedules the termination of the reduced period of separation but requires legislative
16     review before termination;
17          ▸     provides the circumstances that constitute a separation from employment for
18     purposes of being eligible for postretirement employment; and
19          ▸     makes conforming 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          49-11-1204, as last amended by Laws of Utah 2020, Chapter 24
27          49-11-1205, as last amended by Laws of Utah 2021, Chapter 193
28          49-11-1302, 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 2021, Chapter 195
31     

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 49-11-1204 is amended to read:
34          49-11-1204. General restrictions -- Election following period of separation --
35     Amortization rate.
36          (1) A retiree may not for the same period of reemployment:
37          (a) (i) earn additional service credit; or
38          (ii) receive any retirement related contribution from a participating employer; and
39          (b) receive a retirement allowance.
40          (2) (a) Except as provided under Section 49-11-1205, the office shall cancel the
41     retirement allowance of a retiree if the reemployment with a participating employer begins
42     within [one year of the retiree's retirement date.]:
43          (i) Ĥ→ [60] 90 ←Ĥ days of the retiree's retirement date, if the retiree is retiring from one of
43a     the
44     following retirement systems:
45          (A) Chapter 14, Public Safety Contributory Retirement Act;
46          (B) Chapter 15, Public Safety Noncontributory Retirement Act;
47          (C) Chapter 16, Firefighters' Retirement Act; or
48          (D) Chapter 23, New Public Safety and Firefighter Tier II Contributory Retirement
49     Act; or
50          (ii) one year of the retiree's retirement date, if the retiree retires from a system other
51     than a system described in Subsection (2)(a)(i).
52          (b) If the office cancels the retiree's retirement allowance under Subsection (2)(a), the
53     retiree may be eligible to earn additional service credit in the reemployed position and receive
54     an allowance in accordance with Subsections (4)(a) and (5) and other provisions of this title.
55          (c) For purposes of determining whether the separation period described in Subsection
56     (2)(a) has been met, a retiree:
57          (i) shall have a bona fide termination from all participating employers; and
58          (ii) may not have, before the retiree retires, a prearrangement that anticipates
59     postretirement reemployment with a participating employer.
60          (3) If a reemployed retiree, in accordance with Subsection (2)(a), is exempt from
61     having the allowance cancelled, including for completing the [one-year] period of separation
62     from employment with a participating employer, the retiree may elect to:
63          (a) cancel the retiree's retirement allowance and instead earn additional service credit in
64     the reemployed position and receive an allowance in accordance with Subsections (4)(a) and
65     (5) and other provisions of this title; or
66          (b) continue to receive the retiree's retirement allowance, forfeit earning additional
67     service credit, and forfeit any retirement-related contribution from the participating employer
68     that reemployed the retiree.
69          (4) (a) If a retiree's retirement allowance is cancelled and the retiree is eligible for
70     retirement coverage in a reemployed position, the office shall reinstate the retiree to active
71     member status on the first day of the month following the date of the employee's eligible
72     reemployment.
73          (b) Except as provided under Subsection (4)(c), if the retiree is not otherwise eligible
74     for retirement coverage in the reemployed position, the participating employer that reemploys
75     the retiree shall contribute the amortization rate to the office on behalf of the retiree.
76          (c) A participating employer that reemploys a retiree in accordance with Subsection
77     49-11-1205(1) is not required to contribute the amortization rate to the office.
78          (5) (a) For a retiree reinstated to active member status under Subsection (4)(a) who
79     retires within two years from the date of reemployment, the office:
80          (i) may not recalculate a retirement benefit for the retiree; and
81          (ii) shall resume the allowance that was being paid to the retiree at the time of the
82     cancellation.
83          (b) Subject to Subsection (1), for a retiree who is reinstated to active membership
84     under Subsection (4)(a) and retires two or more years after the date of reinstatement to active
85     membership, the office shall:
86          (i) resume the allowance that was being paid at the time of cancellation; and
87          (ii) calculate an additional allowance for the retiree based on the formula in effect at
88     the date of the subsequent retirement for all service credit accrued between the first and
89     subsequent retirement dates.
90          Section 2. Section 49-11-1205 is amended to read:
91          49-11-1205. Postretirement reemployment restriction exceptions.
92          (1) (a) The office may not cancel the retirement allowance of a retiree who is
93     reemployed with a participating employer within [one year of the retiree's retirement date] the
94     period of separation required under Section 49-11-1204 if:
95          (i) the retiree is not reemployed by a participating employer for a period of at least 60
96     days from the retiree's retirement date;
97          (ii) upon reemployment after the break in service under Subsection (1)(a)(i), the retiree
98     does not receive any employer paid benefits, including:
99          (A) retirement service credit or retirement-related contributions;
100          (B) medical benefits;
101          (C) dental benefits;
102          (D) other insurance benefits except for workers' compensation as provided under Title
103     34A, Chapter 2, Workers' Compensation Act, Title 34A, Chapter 3, Utah Occupational Disease
104     Act, and withholdings required by federal or state law for social security, Medicare, and
105     unemployment insurance; or
106          (E) paid time off, including sick, annual, or other type of leave; and
107          (iii) (A) the retiree does not earn in any calendar year of reemployment an amount in
108     excess of the lesser of $15,000 or one-half of the retiree's final average salary upon which the
109     retiree's retirement allowance is based; or
110          (B) the retiree is reemployed as a judge as defined under Section 78A-11-102.
111          (b) The board shall adjust the amounts under Subsection (1)(a)(iii) by the annual change
112     in the Consumer Price Index during the previous calendar year as measured by a United States
113     Bureau of Labor Statistics Consumer Price Index average as determined by the board.
114          (2) A retiree shall be considered as having completed the [one-year] period of
115     separation from employment with a participating employer required under Section 49-11-1204,
116     if the retiree:
117          (a) before retiring:
118          (i) was employed with a participating employer as a public safety service employee as
119     defined in Section 49-14-102, 49-15-102, or 49-23-102;
120          (ii) during the employment under Subsection (2)(a)(i), suffered a physical injury
121     resulting from external force or violence while performing the duties of the employment, for
122     which injury the retiree would have been approved for total disability in accordance with the
123     provisions under Chapter 21, Public Employees' Long-Term Disability Act, if years of service
124     are not considered;
125          (iii) had less than 30 years of service credit but had sufficient service credit to retire,
126     with an unreduced allowance making the public safety service employee ineligible for
127     long-term disability payments under Chapter 21, Public Employees' Long-Term Disability Act,
128     or a substantially similar long-term disability program;
129          (iv) does not receive any long-term disability benefits from any participating employer;
130     and
131          (v) is at least 50 years old; and
132          (b) is reemployed by a different participating employer.
133          (3) (a) The office may not cancel the retirement allowance of a retiree who is employed
134     as an affiliated emergency services worker within [one year of the retiree's retirement date] the
135     period of separation required under Section 49-11-1204 if the affiliated emergency services
136     worker does not receive any compensation, except for:
137          (i) a nominal fee, stipend, discount, tax credit, voucher, or other fixed sum of money or
138     cash equivalent payment not tied to productivity and paid periodically for services;
139          (ii) a length-of-service award;
140          (iii) insurance policy premiums paid by the participating employer in the event of death
141     of an affiliated emergency services worker or a line-of-duty accidental death or disability; or
142          (iv) reimbursement of expenses incurred in the performance of duties.
143          (b) For purposes of Subsections (3)(a)(i) and (ii), the total amount of any discounts, tax
144     credits, vouchers, and payments to an affiliated emergency services worker may not exceed
145     $500 per month.
146          (c) The board shall adjust the amount under Subsection (3)(b) by the annual change in
147     the Consumer Price Index during the previous calendar year as measured by a United States
148     Bureau of Labor Statistics Consumer Price Index average as determined by the board.
149          (d) A retiree is eligible for an exemption from the requirement to cease service without
150     cancellation of a retirement allowance under this Subsection (3) only if the retiree, at the time
151     of retirement, is at least:
152          (i) 50 years old, if the retiree is retiring from a public safety system or a firefighter
153     system; or
154          (ii) 55 years old.
155          (4) (a) The office may not cancel the retirement allowance of a retiree employed as a
156     part-time appointed or elected board member within [one year after the retiree's retirement
157     date] the period of separation required under Section 49-11-1204 if the part-time appointed or
158     elected board member does not receive any compensation exceeding the amount described in
159     this Subsection (4).
160          (b) A retiree who is a part-time appointed or elected board member for one or more
161     boards, commissions, councils, committees, panels, or other bodies of participating employers:
162          (i) may receive an aggregate amount of compensation, remuneration, a stipend, or other
163     benefit for service on a single or multiple boards, commissions, councils, committees, panels,
164     or other bodies of no more than $5,000 per year; and
165          (ii) may not receive an employer paid retirement service credit or retirement-related
166     contribution.
167          (c) For purposes of Subsection (4)(b)(i):
168          (i) a part-time appointed or elected board member's compensation includes:
169          (A) an amount paid for the part-time appointed or elected board member's coverage in
170     a group insurance plan provided by the participating employer; and
171          (B) the part-time appointed or elected board member's receipt of any other benefit
172     provided by the participating employer; and
173          (ii) the part-time appointed or elected board member's compensation does not include:
174          (A) an amount the participating employer pays for employer-matching employment
175     taxes, if the participating employer treats the part-time appointed or elected board member as
176     an employee for federal tax purposes; or
177          (B) an amount that the part-time appointed or elected board member receives for per
178     diem and travel expenses for up to 12 approved meetings or activities of the government board
179     per year, if the per diem and travel expenses do not exceed the amounts established by the
180     Division of Finance under Sections 63A-3-106 and 63A-3-107 or by rules made by the
181     Division of Finance according to Sections 63A-3-106 and 63A-3-107.
182          (d) The board shall adjust the amount under Subsection (4)(b)(i) by the annual change
183     in the Consumer Price Index during the previous calendar year as measured by a United States
184     Bureau of Labor Statistics Consumer Price Index average, as determined by the board.
185          (5) (a) If a retiree is reemployed under the provisions of Subsection (1) or (4), the
186     termination date of the reemployment, as confirmed in writing by the participating employer, is
187     considered the retiree's retirement date for the purpose of calculating the separation
188     requirement under Section 49-11-1204.
189          (b) The office shall cancel the retirement allowance of a retiree for the remainder of the
190     calendar year if the reemployment with a participating employer exceeds the limitation under
191     Subsection (1)(a)(iii), (3)(b), or (4)(b).
192          Section 3. Section 49-11-1302 is amended to read:
193          49-11-1302. Phased retirement -- Voluntary participation -- Employer duties.
194          A participating employer may elect to participate in phased retirement for a retiree who
195     has not completed the [one-year] employment separation requirement under Section
196     49-11-1204 under the conditions established under this part, if the participating employer:
197          (1) establishes written policies and procedures for phased retirement that shall include
198     provisions for:
199          (a) granting and denying a request for phased retirement;
200          (b) needed approvals within the participating employer;
201          (c) time limits or other restrictions;
202          (d) identifying positions that may be included or excluded; and
203          (e) the elements of a written agreement described under Section 49-11-1304;
204          (2) enters into an agreement described under Section 49-11-1304;
205          (3) submits an application to the office for phased retirement on behalf of the parties of
206     the agreement described under Section 49-11-1304; and
207          (4) complies with this part.
208          Section 4. Section 63I-1-249 is amended to read:
209          63I-1-249. Repeal dates, Title 49.
210          (1) Subsection 49-11-1204(2)(a)(i), relating to a Ĥ→ [60-day] 90-day ←Ĥ separation for
210a     public safety and
211     firefighter retirees, is repealed July 1, 2026.
212          (2) The language in Subsection 49-11-1204(2)(a)(ii), ", if the retiree retires from a
213     system other than a system described in Subsection (2)(a)(i)," is repealed July 1, 2026.
214          [(1)] (3) Title 49, Chapter 11, Part 13, Phased Retirement, is repealed January 1, 2025.
215          [(2)] (4) Section 49-20-418 is repealed January 1, 2025.
216          Section 5. Effective date.
217          This bill takes effect on January 1, 2023.