Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 77 Second Substitute (2015GS)

Sponsor

Rep. Cunningham, R.

Final action

House/ filed 3/12/2015

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• allows a retiree to be reemployed with a participating employer after 60 days from the retiree's retirement date if the retiree:
• does not receive certain employer provided benefits for the reemployment; and
• is reemployed by a different agency;
• repeals earning limitation provisions for a retiree who is reemployed with a participating employer after 60 days from the retiree's retirement date; and
• makes technical changes.

Every vote on this bill

Bill text

POSTRETIREMENT EMPLOYMENT
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Rich Cunningham
Senate Sponsor: 
 Ralph Okerlund
LONG TITLE
General Description:
This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
provisions for postretirement reemployment.
Highlighted Provisions:
This bill:
▸ allows a retiree to be reemployed with a participating employer after 60 days from
the retiree's retirement date if the retiree:
• does not receive certain employer provided benefits for the reemployment; and
• is reemployed by a different agency;
▸ repeals earning limitation provisions for a retiree who is reemployed with a
participating employer after 60 days from the retiree's retirement date; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
49-11-505
, as last amended by Laws of Utah 2014, Chapters 15, 175, and 311
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
49-11-505
 is amended to read:
49-11-505.
Reemployment of a retiree -- Restrictions.
(1) (a) For purposes of this section, "retiree":
(i) means a person who:
(A) retired from a participating employer; and
(B) begins reemployment on or after July 1, 2010, with a participating employer;
(ii) does not include a person:
(A) who was reemployed by a participating employer before July 1, 2010; and
(B) whose participating employer that reemployed the person under Subsection
(1)(a)(ii)(A) was dissolved, consolidated, merged, or structurally changed in accordance with
Section 
49-11-621
 after July 1, 2010; and
(iii) does not include a person who is reemployed as an active senior judge or an active
senior justice court judge as described by Utah State Court Rules, appointed to hear cases by
the Utah Supreme Court in accordance with Article VIII, Section 4, Utah Constitution.
(b) (i) This section does not apply to employment as an elected official if the elected
official's position is not full time as certified by the participating employer.
(ii) The provisions of this section apply to an elected official whose elected position is
full time as certified by the participating employer.
(c) (i) This section does not apply to employment as a part-time appointed board
member who does not receive any remuneration, stipend, or other benefit for the part-time
appointed board member's service.
(ii) For purposes of this Subsection (1)(c), remuneration, stipend, or other benefit does
not include receipt of per diem and travel expenses up to the amounts established by the
Division of Finance in:
(A) Section 
63A-3-106
;
(B) Section 
63A-3-107
; and
(C) rules made by the Division of Finance according to Sections 
63A-3-106
 and
63A-3-107
.
(2) A retiree may not for the same period of reemployment:
(a) (i) earn additional service credit; or
(ii) receive any retirement related contribution from a participating employer; and
(b) receive a retirement allowance.
(3) (a) Except as provided under Subsection (3)(b) or (10), the office shall cancel the
retirement allowance of a retiree if the reemployment with a participating employer begins
within one year of the retiree's retirement date.
(b) The office may not cancel the retirement allowance of a retiree who is reemployed
with a participating employer [
within one year
] 
after 60 days
 of the retiree's retirement date if: 
[
(i) the retiree is not reemployed by a participating employer for a period of at least 60
days from the retiree's retirement date;
]
[
(ii) upon reemployment after the break in service under Subsection (3)(b)(i),
]
(i)
 the retiree does not receive any 
of the following
 employer provided benefits[
,
including
] 
for the reemployment
:
(A) retirement benefits including any retirement related contributions from a
participating employer; or
[
(A) medical benefits;
]
[
(B) dental benefits;
]
[
(C) other insurance benefits except for workers' compensation as provided under Title
34A, Chapter 2, Workers' Compensation Act, and withholdings required by federal or state law
for Social Security, Medicare, and unemployment insurance; or
]
[
(D)
] 
(B)
 paid time off, including sick, annual, or other type of leave; and
[
(iii) (A) the retiree does not earn in any calendar year of reemployment an amount in
excess of the lesser of $15,000 or one-half of the retiree's final average salary upon which the
retiree's retirement allowance is based; or
]
[
(B) the retiree is reemployed as a judge as defined under Section 
78A-11-102
.
]
[
(c) Beginning January 1, 2013, the board shall adjust the amounts under Subsection
(3)(b)(iii)(A) by the annual change in the Consumer Price Index during the previous calendar
year as measured by a United States Bureau of Labor Statistics Consumer Price Index average
as determined by the board.
]
(ii) the retiree is reemployed by a different agency.
[
(d)
] 
(c)
 The office shall cancel the retirement allowance of a retiree for the remainder
of the calendar year if the reemployment with a participating employer [
exceeds the limitation
under Subsection (3)(b)(iii)(A)
] 
is in violation of the provisions of this Subsection (3)
.
[
(e)
] 
(d)
 If a retiree is reemployed under the provisions of Subsection (3)(b), the
termination date of the reemployment, as confirmed in writing by the participating employer, is
considered the retiree's retirement date for the purpose of calculating the separation
requirement under Subsection (3)(a).
(4) If a reemployed retiree has completed the one-year separation from employment
with a participating employer required under Subsection (3)(a), the retiree may elect to:
(a) earn additional service credit in accordance with this title and cancel the retiree's
retirement allowance; or
(b) continue to receive the retiree's retirement allowance and forfeit any retirement
related contribution from the participating employer who reemployed the retiree.
(5) A participating employer who reemploys a retiree shall contribute to the office the
amortization rate, as defined in Section 
49-11-102
, to be applied to the system that would have
covered the retiree, if the reemployed retiree:
(a) has completed the one-year separation from employment with a participating
employer required under Subsection (3)(a); and
(b) makes an election under Subsection (4)(b) to continue to receive a retirement
allowance while reemployed.
(6) (a) A participating employer shall immediately notify the office:
(i) if the participating employer reemploys a retiree;
(ii) whether the reemployment is subject to Subsection (3)(b) or (4) of this section; and
(iii) of any election by the retiree under Subsection (4).
(b) A participating employer shall certify to the office whether the position of an
elected official is or is not full time.
(c) A participating employer is liable to the office for a payment or failure to make a
payment in violation of this section.
(d) If a participating employer fails to notify the office in accordance with this section,
the participating employer is immediately subject to a compliance audit by the office.
(7) (a) The office shall immediately cancel the retirement allowance of a retiree in
accordance with Subsection (7)(b) if the office receives notice or learns of:
(i) the reemployment of a retiree in violation of Subsection (3); or
(ii) the election of a reemployed retiree under Subsection (4)(a).
(b) If the retiree is eligible for retirement coverage in the reemployed position, the
office shall cancel the allowance of a retiree subject to Subsection (7)(a), and reinstate the
retiree to active member status on the first day of the month following the date of:
(i) reemployment if the retiree is subject to Subsection (3); or
(ii) an election by an employee under Subsection (4)(a).
(c) If the retiree is not otherwise eligible for retirement coverage in the reemployed
position:
(i) the office shall cancel the allowance of a retiree subject to Subsection (7)(a)(i); and
(ii) the participating employer shall pay the amortization rate to the office on behalf of
the retiree.
(8) (a) A retiree subject to Subsection (7)(b) who retires within two years from the date
of reemployment:
(i) is not entitled to a recalculated retirement benefit; and
(ii) will resume the allowance that was being paid at the time of cancellation.
(b) Subject to Subsection (2), a retiree who is reinstated to active membership under
Subsection (7) and who retires two or more years after the date of reinstatement to active
membership shall:
(i) resume receiving the allowance that was being paid at the time of cancellation; and
(ii) receive an additional allowance based on the formula in effect at the date of the
subsequent retirement for all service credit accrued between the first and subsequent retirement
dates.
(9) (a) A retiree subject to this section shall report to the office the status of the
reemployment under Subsection (3) or (4).
(b) If the retiree fails to inform the office of an election under Subsection (4), the office
shall withhold one month's benefit for each month the retiree fails to inform the office under
Subsection (9)(a).
(10) A retiree shall be considered as having completed the one-year separation from
employment with a participating employer required under Subsection (3)(a), if the retiree:
(a) before retiring:
(i) was employed with a participating employer as a public safety service employee as
defined in Section 
49-14-102
, 
49-15-102
, or 
49-23-102
;
(ii) and during the employment under Subsection (10)(a)(i), suffered a physical injury
resulting from external force or violence while performing the duties of the employment, and
for which injury the retiree would have been approved for total disability in accordance with
the provisions under Title 49, Chapter 21, Public Employees' Long-Term Disability Act, if
years of service are not considered;
(iii) had less than 30 years of service credit but had sufficient service credit to retire,
with an unreduced allowance making the public safety service employee ineligible for
long-term disability payments under Title 49, Chapter 21, Public Employees' Long-Term
Disability Act, or a substantially similar long-term disability program; and
(iv) does not receive any long-term disability benefits from any participating employer;
and
(b) is reemployed by a different participating employer.
(11) The board may make rules to implement this section.
Legislative Review Note
 as of 12-22-14 6:12 PM
Office of Legislative Research and General Counsel