1     
UTAH RETIREMENT SYSTEMS REVISIONS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Walt Brooks

5     
Senate Sponsor: Wayne A. Harper

6     

7     LONG TITLE
8     General Description:
9          This bill amends the Utah State Retirement and Insurance Benefit Act (the Act).
10     Highlighted Provisions:
11          This bill:
12          ▸     authorizes the docketing of an abstract of a final administrative order with the court
13     for purposes of creating a lien and other collection remedies against a person who
14     owes money under the Act;
15          ▸     clarifies whose decision triggers the time period for a person to request a review of
16     a decision related to a benefit, right, obligation, or employment right under the Act;
17          ▸     updates terminology to reflect defined terms;
18          ▸     creates review and compliance requirements for an individual receiving a long-term
19     disability benefit; and
20          ▸     makes technical and conforming changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:
26     AMENDS:
27          49-11-613, as last amended by Laws of Utah 2021, Chapter 193
28          49-11-613.5, as last amended by Laws of Utah 2021, Chapter 193
29          49-14-201, as last amended by Laws of Utah 2022, Chapter 171

30          49-16-102, as last amended by Laws of Utah 2022, Chapter 171
31          49-16-701, as last amended by Laws of Utah 2011, Chapter 439
32          49-21-402, as last amended by Laws of Utah 2019, Chapter 349
33          49-21-406, as last amended by Laws of Utah 2019, Chapter 349
34          49-23-301, as last amended by Laws of Utah 2020, Chapter 437
35          49-23-601, as last amended by Laws of Utah 2012, Chapter 298
36     

37     Be it enacted by the Legislature of the state of Utah:
38          Section 1. Section 49-11-613 is amended to read:
39          49-11-613. Appeals procedure -- Right of appeal to hearing officer -- Board
40     reconsideration -- Judicial review -- Docketing abstract of final administrative order.
41          (1) (a) A member, retiree, participant, alternative payee, covered individual, employer,
42     participating employer, and covered employer shall inform themselves of their benefits, rights,
43     obligations, and employment rights under this title.
44          (b) Subject to Subsection (8), any dispute regarding a benefit, right, obligation, or
45     employment right under this title is subject to the procedures provided under this section.
46          (c) (i) A person who disputes a benefit, right, obligation, or employment right under
47     this title shall request a ruling by the executive director who may delegate the decision to the
48     deputy director.
49          (ii) A request for a ruling to the executive director under this section shall constitute
50     the initiation of an action for purposes of the limitations periods described in Section
51     49-11-613.5.
52          (d) A person who is dissatisfied by a ruling under Subsection (1)(c) with respect to any
53     benefit, right, obligation, or employment right under this title may request a review of that
54     claim by a hearing officer within the time period described in Section 49-11-613.5.
55          (e) (i) The executive director, on behalf of the board, may request that the hearing
56     officer review a dispute regarding any benefit, right, obligation, or employment right under this
57     title by filing a notice of board action and providing notice to all affected parties in accordance

58     with rules adopted by the board.
59          (ii) The filing of a notice of board action shall constitute the initiation of an action for
60     purposes of the limitations periods described in Section 49-11-613.5.
61          (2) The hearing officer shall:
62          (a) be hired by the executive director after consultation with the board;
63          (b) follow and enforce the procedures and requirements of:
64          (i) this title;
65          (ii) the rules adopted by the board in accordance with Subsection [(9)] (10); and
66          (iii) Title 63G, Chapter 4, Administrative Procedures Act, except as specifically
67     modified under this title or the rules adopted by the board in accordance with Subsection [(9)]
68     (10);
69          (c) hear and determine all facts relevant to a decision, including facts pertaining to
70     applications for benefits under any system, plan, or program under this title and all matters
71     pertaining to the administration of the office; and
72          (d) make conclusions of law in determining the person's rights under any system, plan,
73     or program under this title and matters pertaining to the administration of the office.
74          (3) The board shall review and approve or deny all decisions of the hearing officer in
75     accordance with rules adopted by the board in accordance with Subsection [(9)] (10).
76          (4) The moving party in any proceeding brought under this section shall bear the
77     burden of proof.
78          (5) A party may file an application for reconsideration by the board upon any of the
79     following grounds:
80          (a) that the board acted in excess of the board's powers;
81          (b) that the order or the award was procured by fraud;
82          (c) that the evidence does not justify the determination of the hearing officer; or
83          (d) that the party has discovered new material evidence that could not, with reasonable
84     diligence, have been discovered or procured prior to the hearing.
85          (6) The board shall affirm, reverse, or modify the decision of the hearing officer, or

86     remand the application to the hearing officer for further consideration.
87          (7) A party aggrieved by the board's final decision under Subsection (6) may obtain
88     judicial review by complying with the procedures and requirements of:
89          (a) this title;
90          (b) rules adopted by the board in accordance with Subsection [(9)] (10); and
91          (c) Title 63G, Chapter 4, Administrative Procedures Act, except as specifically
92     modified under this title or the rules adopted by the board in accordance with Subsection [(9)]
93     (10).
94          (8) The program shall provide an appeals process for medical claims that complies
95     with federal law.
96          (9) (a) (i) Any interested party may file, in a district court of any county in the state, an
97     abstract of a final administrative order approved by the board in accordance with this section.
98          (ii) Upon receiving the filing of an abstract, the clerk of the district court shall:
99          (A) docket the abstract; and
100          (B) note the date of the abstract's receipt on the abstract and in the docket.
101          (b) (i) From the day on which an interested party files the abstract with a district court,
102     the final administrative order approved by the board is a lien upon the real property of the
103     obligor situated in that county.
104          (ii) Unless satisfied, the lien is for a period of eight years after the day on which the
105     board approves the final administrative order.
106          (c) The final administrative order approved by the board fixing the liability of the
107     obligor has the same effect as any other money judgment entered by a district court.
108          (d) (i) Except as provided in Subsection (9)(d)(ii), an attachment, a garnishment, or an
109     execution on a judgment included in or accruing under a final administrative order approved by
110     the board and filed and docketed in accordance with Subsection (9)(a) has the same manner
111     and same effect as an attachment, a garnishment, or an execution on a judgment of a district
112     court.
113          (ii) A writ of garnishment on earnings continues to operate, and to require the

114     garnishee to withhold the nonexempt portion of earnings at each succeeding earnings
115     disbursement interval, until the office or a court releases the writ of garnishment in writing.
116          (e) The lien and enforcement remedies provided by this section are in addition to any
117     other lien or remedy provided by law.
118          (f) A party may bring an action upon a final administrative order approved by the board
119     within eight years after the day on which the board approves the final administrative order.
120          (g) A final administrative order may be renewed administratively by complying with
121     the procedures and requirements provided in rule adopted by the board in accordance with
122     Subsection (10).
123          [(9)] (10) (a) The board shall make rules to implement this section and to establish
124     procedures and requirements for adjudicative proceedings.
125          (b) The rules shall be substantially similar to or incorporate provisions of the Utah
126     Rules of Civil Procedure, the Utah Rules of Evidence, and Title 63G, Chapter 4,
127     Administrative Procedures Act.
128          Section 2. Section 49-11-613.5 is amended to read:
129          49-11-613.5. Limitation of actions -- Cause of action.
130          (1) (a) Subject to the procedures provided in Section 49-11-613 and except as provided
131     in Subsection (3), [an] a party may bring an action regarding a benefit, right, obligation, or
132     employment right brought under this title [may be commenced only] within four years [of]
133     after the day on which the cause of action accrues.
134          (b) A person who is dissatisfied with an executive director's ruling under Section
135     49-11-613 and who seeks a review of that claim by a hearing officer shall file a request for
136     board action within 30 days [of] after the day on which the [hearing officer] executive director
137     issues the ruling.
138          (2) (a) A cause of action accrues under this title and the limitation period in this section
139     runs from the day on which the aggrieved party became aware, or through the exercise of
140     reasonable diligence should have become aware, of the facts giving rise to the cause of action,
141     including when:

142          (i) a benefit, right, or employment right is or should have been granted;
143          (ii) a payment is or should have been made; or
144          (iii) an obligation is or should have been performed.
145          (b) If a claim involves a retirement service credit issue under this title:
146          (i) a cause of action specifically accrues at the time the requisite retirement
147     contributions relating to that retirement service credit are paid or should have been paid to the
148     office; and
149          (ii) the person is deemed to be on notice of the payment or nonpayment of those
150     retirement contributions.
151          (3) If an aggrieved party fails to discover the facts giving rise to the cause of action due
152     to misrepresentation, fraud, intentional nondisclosure, or other affirmative steps to conceal the
153     cause of action, a limitation period prescribed in this section does not begin to run until the
154     aggrieved party actually discovers the existence of the cause of action.
155          (4) The person claiming a benefit, right, obligation, or employment right arising under
156     this title has the burden of bringing the action within the period prescribed in this section.
157          (5) Nothing in this section relieves a member, retiree, participant, alternative payee,
158     covered individual, employer, participating employer, or covered employer of the obligations
159     under this title.
160          (6) The office is not required to bring a claim on behalf of a member, retiree,
161     participant, alternative payee, covered individual, employer, participating employer, or covered
162     employer.
163          (7) (a) A limitation period provided in this section does not apply to actions for which
164     a specific limit is otherwise specified in this title or by contract, including master policies or
165     other insurance contracts.
166          (b) For actions arising under this title, this section supersedes any applicable limitation
167     period provided in Title 78B, Chapter 2, Statutes of Limitations.
168          Section 3. Section 49-14-201 is amended to read:
169          49-14-201. System membership -- Eligibility.

170          (1) Except as provided in Section 49-15-201, a public safety service employee of a
171     participating employer participating in this system is eligible for service credit in this system at
172     the earliest of:
173          (a) July 1, 1969, if the public safety service employee was employed by the
174     participating employer on July 1, 1969, and the participating employer was participating in this
175     system on that date;
176          (b) the date the participating employer begins participating in this system if the public
177     safety service employee was employed by the participating employer on that date; or
178          (c) the date the public safety service employee is employed by the participating
179     employer and is eligible to perform public safety service, except that a public safety service
180     employee initially entering employment with a participating employer on or after July 1, 2011,
181     who does not have service credit accrued before July 1, 2011, in a Tier I system or plan
182     administered by the board, may not participate in this system.
183          (2) (a) (i) A participating employer that has public safety service and firefighter service
184     employees that require cross-training and duty shall enroll those dual purpose employees in the
185     system in which the greatest amount of time is actually worked.
186          (ii) The employees shall either be full-time public safety service or full-time firefighter
187     service employees of the participating employer.
188          (b) (i) Before transferring a dual purpose employee from one system to another, the
189     participating employer shall receive written permission from the office.
190          (ii) The office may request documentation to verify the appropriateness of the transfer.
191          (3) The board may combine or segregate the actuarial experience of participating
192     employers in this system for the purpose of setting contribution rates.
193          (4) (a) (i) Each participating employer participating in this system shall annually
194     submit to the office a schedule indicating the positions to be covered under this system in
195     accordance with this chapter.
196          (ii) The office may require documentation to justify the inclusion of any position under
197     this system.

198          (b) If there is a dispute between the office and a participating employer or employee
199     over any position to be covered, the disputed position shall be submitted to the Peace Officer
200     Standards and Training Council established under Section 53-6-106 for determination.
201          (c) (i) The Peace Officer Standards and Training Council's authority to decide
202     eligibility for public safety service credit is limited to claims for coverage under this system for
203     time periods after July 1, 1989.
204          (ii) A decision of the Peace Officer Standards and Training Council may not be applied
205     to service credit earned in another system before July 1, 1989.
206          (iii) Except as provided under Subsection (4)(c)(iv), a decision of the Peace Officer
207     Standards and Training Council granting a position coverage under this system may only be
208     applied prospectively from the date of that decision.
209          (iv) A decision of the Peace Officer Standards and Training Council granting a position
210     coverage under this system may be applied retroactively only if:
211          (A) the participating employer covered other similarly situated positions under this
212     system during the time period in question; and
213          (B) the position otherwise meets all eligibility requirements for receiving service credit
214     in this system during the period for which service credit is to be granted.
215          (5) The Peace Officer Standards and Training Council may use a subcommittee to
216     provide a recommendation to the council in determining disputes between the office and a
217     participating employer or employee over a position to be covered under this system.
218          (6) The Peace Officer Standards and Training Council shall comply with Title 63G,
219     Chapter 4, Administrative Procedures Act, in resolving coverage disputes in this system.
220          (7) A public safety service employee who is transferred or promoted to an
221     administration position requiring the performance of duties that consist primarily of
222     management or supervision of public safety service employees shall continue to earn public
223     safety service credit in this system during the period in which the employee remains employed
224     in the same department.
225          (8) An employee of the Department of Corrections shall continue to earn public safety

226     service credit in this system if:
227          (a) the employee's position is no longer covered under this system for new employees
228     hired on or after July 1, 2015; and
229          (b) the employee:
230          (i) remains employed by the Department of Corrections;
231          (ii) meets the eligibility requirements of this system;
232          (iii) was hired into a position covered by this system before July 1, 2015; and
233          (iv) has not had a break in service on or after July 1, 2015.
234          (9) An employee who is reassigned to the Division of Technology Services or to the
235     Division of Human Resource Management, and who was a member of this system, is entitled
236     to remain a member of this system.
237          (10) (a) To determine that a position is covered under this system, the office and, if a
238     coverage dispute arises, the Peace Officer Standards and Training Council shall find that the
239     position requires the employee to:
240          (i) except for a dispatcher, place the employee's life or personal safety at risk; and
241          (ii) complete training as provided in Section 53-6-303, 53-13-103, 53-13-104, or
242     53-13-105.
243          (b) If a position satisfies the requirements of Subsection (10)(a), the office and the
244     Peace Officer Standards and Training Council shall consider whether or not the position
245     requires the employee to:
246          (i) perform duties that consist primarily of actively preventing or detecting crime and
247     enforcing criminal statutes or ordinances of this state or any of its political subdivisions;
248          (ii) perform duties that consist primarily of providing community protection; and
249          (iii) respond to situations involving threats to public safety and make emergency
250     decisions affecting the lives and health of others.
251          (11) If a subcommittee is used to recommend the determination of disputes to the
252     Peace Officer Standards and Training Council, the subcommittee shall comply with the
253     requirements of Subsection (10) in making the subcommittee's recommendation.

254          (12) A final order of the Peace Officer Standards and Training Council regarding a
255     dispute is a final agency action for purposes of Title 63G, Chapter 4, Administrative
256     Procedures Act.
257          (13) Except as provided under Subsection (14), if a participating employer's public
258     safety service employees are not covered by this system or under Chapter 15, Public Safety
259     Noncontributory Retirement Act, as of January 1, 1998, those public safety service employees
260     who may otherwise qualify for membership in this system shall, at the discretion of the
261     participating employer, remain in their current retirement system.
262          (14) (a) A public safety service employee employed by an airport police department,
263     which elects to cover the airport police department's public safety service employees under the
264     Public Safety Noncontributory Retirement System under Subsection (13), may elect to remain
265     in the public safety service employee's current retirement system.
266          (b) The public safety service employee's election to remain in the current retirement
267     system under Subsection (14)(a):
268          (i) shall be made at the time the employer elects to move the employer's public safety
269     service employees to a public safety retirement system;
270          (ii) documented by written notice to the participating employer; and
271          (iii) is irrevocable.
272          (15) (a) Subject to Subsection (16), beginning July 1, 2015, a public safety service
273     employee who is a dispatcher employed by:
274          (i) the state shall be eligible for service credit in this system; and
275          (ii) a participating employer other than the state shall be eligible for service credit in
276     this system if the dispatcher's participating employer elects to cover the participating
277     employer's dispatchers under this system.
278          (b) A participating employer's election to cover the participating employer's dispatchers
279     under this system under Subsection (15)(a)(ii) is irrevocable and shall be documented by a
280     resolution adopted by the governing body of the participating employer in accordance with
281     rules made by the office.

282          (c) A dispatcher's service before July 1, 2015, or before a date specified by resolution
283     of a participating employer under Subsection (15)(b), is not eligible for service credit in this
284     system.
285          (16) Notwithstanding any other provision of this section, a person initially entering
286     employment with a participating employer on or after July 1, 2011, who does not have service
287     credit accrued before July 1, 2011, in a Tier I system or plan administered by the board, may
288     not participate in this system.
289          Section 4. Section 49-16-102 is amended to read:
290          49-16-102. Definitions.
291          As used in this chapter:
292          (1) (a) "Compensation" means the total amount of payments that are includable as
293     gross income received by a firefighter service employee as base income for the regularly
294     scheduled work period. The participating employer shall establish the regularly scheduled
295     work period. Base income shall be determined prior to the deduction of member contributions
296     or any amounts the firefighter service employee authorizes to be deducted for salary deferral or
297     other benefits authorized by federal law.
298          (b) "Compensation" includes performance-based bonuses and cost-of-living
299     adjustments.
300          (c) "Compensation" does not include:
301          (i) overtime;
302          (ii) sick pay incentives;
303          (iii) retirement pay incentives;
304          (iv) remuneration paid in kind such as a residence, use of equipment, uniforms, travel,
305     or similar payments;
306          (v) a lump-sum payment or special payments covering accumulated leave; and
307          (vi) all contributions made by a participating employer under this system or under any
308     other employee benefit system or plan maintained by a participating employer for the benefit of
309     a member or participant.

310          (d) "Compensation" for purposes of this chapter may not exceed the amount allowed
311     under Section 401(a)(17), Internal Revenue Code.
312          (2) (a) "Disability" means the complete inability, due to objective medical impairment,
313     whether physical or mental, to perform firefighter service.
314          (b) "Disability" does not include the inability to meet an employer's required standards
315     or tests relating to fitness, physical ability, or agility that is not a result of a disability as defined
316     under Subsection (2)(a).
317          (3) (a) "Final average salary" means the amount calculated by averaging the highest
318     three years of annual compensation preceding retirement subject to Subsections (3)(b), (c), and
319     (d).
320          (b) Except as provided in Subsection (3)(c), the percentage increase in annual
321     compensation in any one of the years used may not exceed the previous year's compensation by
322     more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power
323     of the dollar during the previous year, as measured by a United States Bureau of Labor
324     Statistics Consumer Price Index average as determined by the board.
325          (c) In cases where the participating employer provides acceptable documentation to the
326     office, the limitation in Subsection [(3)(a)] (3)(b) may be exceeded if:
327          (i) the member has transferred from another agency; or
328          (ii) the member has been promoted to a new position.
329          (d) The annual compensation used to calculate final average salary shall be based on a
330     period, as determined by the board, consistent with the period used to determine years of
331     service credit in accordance with Subsection (13).
332          (4) (a) "Firefighter service" means employment normally requiring an average of 2,080
333     hours of regularly scheduled employment per year rendered by a member who is:
334          (i) a firefighter service employee trained in firefighter techniques and assigned to a
335     position of hazardous duty with a regularly constituted fire department; or
336          (ii) the state fire marshal appointed under Section 53-7-103 or a deputy state fire
337     marshal.

338          (b) "Firefighter service" does not include secretarial staff or other similar employees.
339          (5) (a) "Firefighter service employee" means an employee of a participating employer
340     who provides firefighter service under this chapter.
341          (b) "Firefighter service employee" does not include an employee of a regularly
342     constituted fire department who does not perform firefighter service.
343          (6) (a) "Line-of-duty death or disability" means a death or disability resulting from:
344          (i) external force, violence, or disease directly resulting from firefighter service; or
345          (ii) strenuous activity, including a heart attack or stroke, that occurs during strenuous
346     training or another strenuous activity required as an act of duty as a firefighter service
347     employee.
348          (b) "Line-of-duty death or disability" does not include a death or disability that:
349          (i) occurs during an activity that is required as an act of duty as a firefighter service
350     employee if the activity is not a strenuous activity, including an activity that is clerical,
351     administrative, or of a nonmanual nature;
352          (ii) occurs during the commission of a crime committed by the employee;
353          (iii) occurs when the employee's intoxication or use of alcohol or drugs, whether
354     prescribed or nonprescribed, contributes to the employee's death or disability; or
355          (iv) occurs in a manner other than as described in Subsection (6)(a).
356          (c) "Line-of-duty death or disability" includes the death or disability of a paid
357     firefighter resulting from heart disease, lung disease, or a respiratory tract condition if the paid
358     firefighter has five years of firefighter service credit.
359          (7) "Objective medical impairment" means an impairment resulting from an injury or
360     illness that is diagnosed by a physician or physician assistant and that is based on accepted
361     objective medical tests or findings rather than subjective complaints.
362          (8) "Participating employer" means an employer that meets the participation
363     requirements of Section 49-16-201.
364          (9) "Regularly constituted fire department" means a fire department that employs a fire
365     chief who performs firefighter service for at least 2,080 hours of regularly scheduled paid

366     employment per year.
367          (10) (a) "Strenuous activity" means engagement involving a difficult, stressful, or
368     vigorous fire suppression, rescue, hazardous material response, emergency medical service,
369     physical law enforcement, prison security, disaster relief, or other emergency response activity.
370          (b) "Strenuous activity" includes participating in a participating employer sanctioned
371     and funded training exercise that involves difficult, stressful, or vigorous physical activity.
372          (11) "System" means the Firefighters' Retirement System created under this chapter.
373          (12) (a) "Volunteer firefighter" means any individual who is not regularly employed as
374     a firefighter service employee, but who:
375          (i) has been trained in firefighter techniques and skills;
376          (ii) continues to receive regular firefighter training; and
377          (iii) is on the rolls of a legally organized volunteer fire department that provides
378     ongoing training and serves a political subdivision of the state.
379          (b) "Volunteer firefighter" does not include an individual who volunteers assistance but
380     does not meet the requirements of Subsection (12)(a).
381          (13) "Years of service credit" means the number of periods, each to consist of 12 full
382     months as determined by the board, whether consecutive or not, during which a firefighter
383     service employee was employed by a participating employer or received full-time pay while on
384     sick leave, including any time the firefighter service employee was absent in the service of the
385     United States on military duty.
386          Section 5. Section 49-16-701 is amended to read:
387          49-16-701. Volunteer firefighters eligible for line-of-duty death and disability
388     benefits in Division A -- Computation of benefit.
389          (1) A volunteer firefighter is only eligible for line-of-duty death and line-of-duty
390     disability benefits provided for firefighters enrolled in Division A, subject to Sections
391     49-16-602 and 49-16-603.
392          (2) The lowest monthly compensation of firefighters of a city of the first class in this
393     state at the time of death or disability shall be considered to be the final average monthly salary

394     of a volunteer firefighter for purposes of computing these benefits.
395          (3) Each volunteer fire department shall maintain a current roll of all volunteer
396     firefighters [which] that meet the requirements of Subsection [49-16-102(11)] 49-16-102(12)
397     to determine eligibility for this benefit.
398          Section 6. Section 49-21-402 is amended to read:
399          49-21-402. Reduction or reimbursement of benefit -- Circumstances --
400     Application for other benefits required.
401          (1) A monthly disability benefit may be reduced, suspended, or terminated unless:
402          (a) the eligible employee [is under the] participates in ongoing care and treatment [of a
403     physician or physician assistant other than the eligible employee; and] in accordance with
404     Subsection 49-21-406(3) or (4); and
405          (b) the eligible employee provides the information and documentation requested by the
406     office.
407          (2) (a) The monthly disability benefit shall be reduced or reimbursed by any amount
408     received by, or payable to, the eligible employee for the same injury or illness that is the basis
409     for the monthly disability benefit from the following sources:
410          (i) workers' compensation indemnity benefits, regardless of whether the amount is
411     received as an ongoing monthly benefit, as a lump sum, or in a settlement with a workers'
412     compensation indemnity carrier;
413          (ii) any money received by judgment, legal action, or settlement from a third party
414     liable to the employee for the monthly disability benefit;
415          (iii) automobile no-fault, medical payments, or similar insurance payments;
416          (iv) any money received by a judgment, settlement, or other payment as a result of a
417     claim against an employer; or
418          (v) annual leave or similar lump-sum payments.
419          (b) The monthly disability benefit shall be reduced or reimbursed by any amount
420     received by, or payable to, the eligible employee for the same period of time during which the
421     eligible employee is entitled to receive a monthly disability benefit from the following sources:

422          (i) social security disability benefits, including all benefits received by the eligible
423     employee, the eligible employee's spouse, and the eligible employee's children as determined
424     by the Social Security Administration;
425          (ii) unemployment compensation benefits;
426          (iii) sick leave benefits; or
427          (iv) compensation received for employment, including self-employment, except for
428     eligible amounts from approved rehabilitative employment in accordance with Section
429     49-21-406.
430          (3) The monthly disability benefit shall be reduced by any amount in excess of
431     one-third of the eligible employee's regular monthly salary received by, or payable to, the
432     eligible employee from the following sources for the same period of time during which the
433     eligible employee is entitled to receive a monthly disability benefit:
434          (a) any retirement payment earned through or provided by public or private
435     employment; and
436          (b) any disability benefit, other than social security or workers' compensation
437     indemnity benefits, resulting from the disability for which benefits are being received under
438     this chapter.
439          (4) After the date of disability, cost-of-living increases to any of the benefits listed in
440     Subsection (2) or (3) may not be considered in calculating a reduction to the monthly disability
441     benefit.
442          (5) Any amounts payable to the eligible employee from one or more of the sources
443     under Subsection (2) are considered as amounts received whether or not the amounts were
444     actually received by the eligible employee.
445          (6) (a) An eligible employee shall first apply for all disability benefits from
446     governmental entities under Subsection (2) to which the eligible employee is or may be
447     entitled, and provide to the office evidence of the applications.
448          (b) If the eligible employee fails to make application under this Subsection (6), the
449     monthly disability benefit shall be suspended.

450          (7) During a period of total disability, an eligible employee has an affirmative duty to
451     keep the program informed regarding:
452          (a) the award or receipt of an amount from a source that could result in the monthly
453     disability benefit being reduced or reimbursed under this section within 10 days of the award or
454     receipt of the amount; and
455          (b) any employment, including self-employment, of the eligible employee and the
456     compensation for that employment within 10 days of beginning the employment or a material
457     change in the compensation from that employment.
458          (8) The program shall use commercially reasonable means to collect any amounts of
459     overpayments and reimbursements.
460          (9) (a) If the program is unable to reduce or obtain reimbursement for the required
461     amount from the monthly disability benefit for any reason, the employee will have received an
462     overpayment of monthly disability benefits.
463          (b) If an eligible employee receives an overpayment of monthly disability benefits, the
464     eligible employee shall repay to the office the amount of the overpayment, plus interest as
465     determined by the program, within 30 days from the date the overpayment is received by:
466          (i) the eligible employee; or
467          (ii) a third party related to the eligible employee.
468          (c) The executive director may waive the interest on an overpayment of monthly
469     disability benefits under Subsection (9)(b) if good cause is shown for the delay in repayment of
470     the overpayment of monthly disability benefits.
471          Section 7. Section 49-21-406 is amended to read:
472          49-21-406. Rehabilitative employment -- Interview by disability specialist --
473     Maintaining eligibility -- Additional treatment and care.
474          (1) (a) If an eligible employee, during a period of total disability for which the monthly
475     disability benefit is payable, engages in approved rehabilitative employment, the monthly
476     disability benefit otherwise payable shall be reduced:
477          (i) by an amount equal to 50% of the income to which the eligible employee is entitled

478     for the employment during the month; and
479          (ii) so that the combined amount received from the rehabilitative employment and the
480     monthly disability payment does not exceed 100% of the eligible employee's monthly salary
481     prior to the employee's disability.
482          (b) This rehabilitative benefit is payable for up to two years or to the end of the
483     maximum benefit period, whichever occurs first.
484          (2) (a) The office shall review an eligible employee's total disability at least one time
485     each year.
486          (b) [Each] The office shall interview each eligible employee receiving a monthly
487     disability benefit [shall be interviewed by the office].
488          [(b)] (c) The office may refer the eligible employee to a rehabilitative or vocational
489     specialist for a review of the eligible employee's condition and a written rehabilitation plan and
490     return to work assistance.
491          (3) If an eligible employee receiving a monthly disability benefit fails to participate in
492     an office-approved rehabilitation program within the limitations set forth by a physician or
493     physician assistant, the monthly disability benefit may be reduced, suspended, or terminated.
494          (4) The office may, as a condition of paying a monthly disability benefit, require that
495     the eligible employee receive medical care and treatment if that treatment is reasonable or usual
496     according to current medical practices.
497          Section 8. Section 49-23-301 is amended to read:
498          49-23-301. Contributions.
499          (1) Participating employers and members shall pay the certified contribution rates to
500     the office to maintain the defined benefit portion of this system on a financially and actuarially
501     sound basis in accordance with Subsection (2).
502          (2) (a) A participating employer shall pay up to 14% of compensation toward the
503     certified contribution rate to the office for the defined benefit portion of this system.
504          (b) Except as provided in Subsection (2)(c), a member shall pay to the office the
505     amount, if any, of the certified contribution rate for the defined benefit portion of this system

506     that exceeds the percent of compensation paid by the participating employer under Subsection
507     (2)(a).
508          (c) A participating employer may elect to pay all or part of the required member
509     contribution under Subsection (2)(b) on behalf of the member as an employer pick up under 26
510     U.S.C. Sec. 414(h)(2), in addition to the required participating employer contribution under
511     Subsection (2)(a).
512          (d) In addition to the percent specified under Subsection (2)(a), the participating
513     employer shall pay the corresponding Tier I system amortization rate of the employee's
514     compensation to the office to be applied to the employer's corresponding Tier I system liability.
515          (3) (a) A member contribution is credited by the office to the account of the individual
516     member.
517          (b) This amount, together with refund interest, is held in trust for the payment of
518     benefits to the member or the member's beneficiaries.
519          (c) A member contribution is vested and nonforfeitable.
520          (4) (a) Each member is considered to consent to payroll deductions of member
521     contributions.
522          (b) The payment of compensation less these payroll deductions is considered full
523     payment for services rendered by the member.
524          (5) Except as provided under Subsection (6), benefits provided under the defined
525     benefit portion of the Tier II hybrid retirement system created under this part:
526          (a) may not be increased unless the actuarial funded ratios of all systems under this title
527     reach 100%; and
528          (b) may be decreased only in accordance with the provisions of Section 49-23-309.
529          (6) (a) The Legislature authorizes increases to the death benefit provided to a Tier II
530     public safety service employee or firefighter member's surviving spouse effective on May 12,
531     2015, and July 1, 2020, as provided in Section 49-23-503.
532          (b) (i) The Legislature authorizes an increase to the multiplier for the calculation of the
533     retirement allowance provided to a member of the New Public Safety and Firefighter Tier II

534     hybrid retirement system effective July 1, 2020, as provided in Section 49-23-304.
535          (ii) The requirements of Section [49-22-310] 49-23-309 do not apply to the benefit
536     adjustment described in this Subsection (6)(b).
537          Section 9. Section 49-23-601 is amended to read:
538          49-23-601. Long-term disability coverage.
539          (1) A participating employer shall cover a public safety service employee who initially
540     enters employment on or after July 1, 2011, under Chapter 21, Public Employees' Long-Term
541     Disability Act, or a substantially similar long-term disability program.
542          (2) (a) A participating employer shall cover a firefighter service employee who initially
543     enters employment on or after July 1, 2011, under Chapter 21, Public Employees' Long-Term
544     Disability Act.
545          (b) In accordance with this section, a participating employer shall provide long-term
546     disability benefit coverage for a volunteer firefighter as provided under Section 49-16-701.
547          (c) The office shall ensure that the cost of the long-term disability benefit coverage
548     provided under Subsections (2)(a) and (b) is funded with revenue received under Section
549     49-11-901.5.