Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 239 First Substitute (2015GS)

Sponsor

Sen. Weiler, T.

Final action

Governor Signed 3/30/2015

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• allows certain withdrawing entities to make an election to withdraw from participation in a Utah retirement system or plan for current and future employees in certain circumstances;
• requires the withdrawing entity to pay certain costs that arise out of the election of the withdrawal;
• excludes all employees of a withdrawing entity from participation in the Public Employees' Contributory Retirement System, the Public Employees' Noncontributory Retirement System, and the New Public Employees' Tier II Contributory Retirement Act under certain circumstances; and
• makes technical changes.

Every vote on this bill

Bill text

RETIREMENT WITHDRAWAL MODIFICATIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Todd Weiler
House Sponsor: 
Kraig Powell
LONG TITLE
General Description:
This bill modifies the Utah State Retirement and Insurance Benefit Act by providing for
the withdrawal of employees of a withdrawing entity.
Highlighted Provisions:
This bill:
▸ allows certain withdrawing entities to make an election to withdraw from
participation in a Utah retirement system or plan for current and future employees in
certain circumstances;
▸ requires the withdrawing entity to pay certain costs that arise out of the election of
the withdrawal;
▸ excludes all employees of a withdrawing entity from participation in the Public
Employees' Contributory Retirement System, the Public Employees'
Noncontributory Retirement System, and the New Public Employees' Tier II
Contributory Retirement Act under certain circumstances; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
49-11-623
, as enacted by Laws of Utah 2014, Chapter 365
49-12-203
, as last amended by Laws of Utah 2014, Chapters 15, 201, and 365
49-13-203
, as last amended by Laws of Utah 2014, Chapters 15 and 365
49-22-203
, as last amended by Laws of Utah 2014, Chapters 15 and 365
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
49-11-623
 is amended to read:
49-11-623.
Withdrawing entity -- Participation election date -- Withdrawal costs
-- Rulemaking.
(1) As used in this section, "withdrawing entity" means an entity that:
(a) participates in a system or plan under this title prior to July 1, 2014;
(b) provides mental health and substance abuse services for a county under Section
17-50-318
;
(c) after beginning participation with a system or plan under this title, has modified its
federal tax status to a nonprofit organization that qualifies under Section 501(c)(3) of the
Internal Revenue Code; and
(d) is not a state institution of higher education as described in Section 
53B-2-101
.
(2) Notwithstanding any other provision of this title, a withdrawing entity may provide
for the participation of its employees with that system or plan as follows:
(a) the withdrawing entity shall determine a date that is no later than January 1, 2017,
on which the withdrawing entity shall make an election under Subsection (3); and
(b) 
subject to the provisions of Subsection (6),
 the withdrawing entity shall pay to the
office any reasonable actuarial and administrative costs determined by the office to have arisen
out of an election made under this section.
(3) The withdrawing entity described under Subsection (2) may elect to:
(a) 
(i)
 continue its participation for all current employees of the withdrawing entity,
who are covered by a system or plan as of the date set under Subsection (2)(a); and
[
(b)
] 
(ii)
 withdraw from participation in all systems or plans for all persons initially
entering employment with the withdrawing entity, beginning on the date set under Subsection
(2)(a)[
.
]
; or
(b) withdraw from participation in all systems or plans for all current and future
employees of the withdrawing entity, beginning on the date set under Subsection (2)(a).
(4) (a) An election provided under Subsection (3):
(i) is a one-time election made no later than the date specified under Subsection (2)(a);
(ii) shall be documented by a resolution adopted by the governing body of the
withdrawing entity;
(iii) is irrevocable; and
(iv) applies to the withdrawing entity as the employer and to all employees of the
withdrawing entity.
(b) Notwithstanding an election made under Subsection (3), any eligibility for service
credit earned by an employee under this title before the date specified under Subsection (2)(a)
is not affected by this section.
(5) If a withdrawing entity elects to continue participation under Subsection (3), the
withdrawing entity shall continue to be subject to the laws and the rules governing the system
or plan in which an employee participates, including the accrual of service credit and payment
of contributions.
(6) Before a withdrawing entity may withdraw under this section, the withdrawing
entity and the office shall enter into an agreement on:
(a) the costs described under Subsection (2)(b); and
(b) arrangements for the payment of the costs described under Subsection (2)(b).
[
(6)
] 
(7)
 The board shall make rules to implement this section.
Section 2. Section 
49-12-203
 is amended to read:
49-12-203.
Exclusions from membership in system.
(1) The following employees are not eligible for service credit in this system:
(a) subject to the requirements of Subsection (2), an employee whose employment
status is temporary in nature due to the nature or the type of work to be performed;
(b) except as provided under Subsection (3)(a), an employee of an institution of higher
education who participates in a retirement system with a public or private retirement system,
organization, or company designated by the State Board of Regents during any period in which
required contributions based on compensation have been paid on behalf of the employee by the
employer;
(c) an employee serving as an exchange employee from outside the state;
(d) an executive department head of the state, a member of the State Tax Commission,
the Public Service Commission, and a member of a full-time or part-time board or commission
who files a formal request for exemption;
(e) an employee of the Department of Workforce Services who is covered under
another retirement system allowed under Title 35A, Chapter 4, Employment Security Act;
(f) an employee who is employed on or after July 1, 2009, with an employer that has
elected, prior to July 1, 2009, to be excluded from participation in this system under Subsection
49-12-202
(2)(c);
(g) an employee who is employed on or after July 1, 2014, with an employer that has
elected, prior to July 1, 2014, to be excluded from participation in this system under Subsection
49-12-202
(2)(d); or
(h) an employee who is employed with a withdrawing entity that has elected, prior to
January 1, 2017, to exclude
:
(i)
 new employees from participation in this system under Subsection
49-11-623
(3)[
.
]
(a); or
(ii) all employees from participation in this system under Subsection 
49-11-623
(3)(b).
(2) If an employee whose status is temporary in nature due to the nature of type of
work to be performed:
(a) is employed for a term that exceeds six months and the employee otherwise
qualifies for service credit in this system, the participating employer shall report and certify to
the office that the employee is a regular full-time employee effective the beginning of the
seventh month of employment; or
(b) was previously terminated prior to being eligible for service credit in this system
and is reemployed within three months of termination by the same participating employer, the
participating employer shall report and certify that the member is a regular full-time employee
when the total of the periods of employment equals six months and the employee otherwise
qualifies for service credits in this system.
(3) (a) Upon cessation of the participating employer contributions, an employee under
Subsection (1)(b) is eligible for service credit in this system.
(b) Notwithstanding the provisions of Subsection (1)(f), any eligibility for service
credit earned by an employee under this chapter before July 1, 2009 is not affected under
Subsection (1)(f).
(c) Notwithstanding the provisions of Subsection (1)(g), any eligibility for service
credit earned by an employee under this chapter before July 1, 2014, is not affected under
Subsection (1)(g).
(4) Upon filing a written request for exemption with the office, the following
employees shall be exempt from coverage under this system:
(a) a full-time student or the spouse of a full-time student and individuals employed in
a trainee relationship;
(b) an elected official;
(c) an executive department head of the state, a member of the State Tax Commission,
a member of the Public Service Commission, and a member of a full-time or part-time board or
commission;
(d) an employee of the Governor's Office of Management and Budget;
(e) an employee of the Governor's Office of Economic Development;
(f) an employee of the Commission on Criminal and Juvenile Justice;
(g) an employee of the Governor's Office;
(h) an employee of the State Auditor's Office;
(i) an employee of the State Treasurer's Office;
(j) any other member who is permitted to make an election under Section 
49-11-406
;
(k) a person appointed as a city manager or chief city administrator or another person
employed by a municipality, county, or other political subdivision, who is an at-will employee;
and
(l) an employee of an interlocal cooperative agency created under Title 11, Chapter 13,
Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided through
membership in a labor organization that provides retirement benefits to its members.
(5) (a) Each participating employer shall prepare a list designating those positions
eligible for exemption under Subsection (4).
(b) An employee may not be exempted unless the employee is employed in an
exempted position designated by the participating employer.
(6) (a) In accordance with this section, a municipality, county, or political subdivision
may not exempt more than 50 positions or a number equal to 10% of the employees of the
municipality, county, or political subdivision whichever is lesser.
(b) A municipality, county, or political subdivision may exempt at least one regular
full-time employee.
(7) Each participating employer shall:
(a) file employee exemptions annually with the office; and
(b) update the employee exemptions in the event of any change.
(8) The office may make rules to implement this section.
Section 3. Section 
49-13-203
 is amended to read:
49-13-203.
Exclusions from membership in system.
(1) The following employees are not eligible for service credit in this system:
(a) subject to the requirements of Subsection (2), an employee whose employment
status is temporary in nature due to the nature or the type of work to be performed;
(b) except as provided under Subsection (3)(a), an employee of an institution of higher
education who participates in a retirement system with a public or private retirement system,
organization, or company designated by the State Board of Regents during any period in which
required contributions based on compensation have been paid on behalf of the employee by the
employer;
(c) an employee serving as an exchange employee from outside the state;
(d) an executive department head of the state or a legislative director, senior executive
employed by the governor's office, a member of the State Tax Commission, a member of the
Public Service Commission, and a member of a full-time or part-time board or commission
who files a formal request for exemption;
(e) an employee of the Department of Workforce Services who is covered under
another retirement system allowed under Title 35A, Chapter 4, Employment Security Act;
(f) an employee who is employed with an employer that has elected to be excluded
from participation in this system under Subsection 
49-13-202
(5), effective on or after the date
of the employer's election under Subsection 
49-13-202
(5); or
(g) an employee who is employed with a withdrawing entity that has elected, prior to
January 1, 2017, to exclude
:
(i)
 new employees from participation in this system under Subsection
49-11-623
(3)[
.
]
(a); or
(ii) all employees from participation in this system under Subsection 
49-11-623
(3)(b).
(2) If an employee whose status is temporary in nature due to the nature of type of
work to be performed:
(a) is employed for a term that exceeds six months and the employee otherwise
qualifies for service credit in this system, the participating employer shall report and certify to
the office that the employee is a regular full-time employee effective the beginning of the
seventh month of employment; or
(b) was previously terminated prior to being eligible for service credit in this system
and is reemployed within three months of termination by the same participating employer, the
participating employer shall report and certify that the member is a regular full-time employee
when the total of the periods of employment equals six months and the employee otherwise
qualifies for service credits in this system.
(3) (a) Upon cessation of the participating employer contributions, an employee under
Subsection (1)(b) is eligible for service credit in this system.
(b) Notwithstanding the provisions of Subsection (1)(f), any eligibility for service
credit earned by an employee under this chapter before the date of the election under
Subsection 
49-13-202
(5) is not affected under Subsection (1)(f).
(4) Upon filing a written request for exemption with the office, the following
employees shall be exempt from coverage under this system:
(a) a full-time student or the spouse of a full-time student and individuals employed in
a trainee relationship;
(b) an elected official;
(c) an executive department head of the state, a member of the State Tax Commission,
a member of the Public Service Commission, and a member of a full-time or part-time board or
commission;
(d) an employee of the Governor's Office of Management and Budget;
(e) an employee of the Governor's Office of Economic Development;
(f) an employee of the Commission on Criminal and Juvenile Justice;
(g) an employee of the Governor's Office;
(h) an employee of the State Auditor's Office;
(i) an employee of the State Treasurer's Office;
(j) any other member who is permitted to make an election under Section 
49-11-406
;
(k) a person appointed as a city manager or chief city administrator or another person
employed by a municipality, county, or other political subdivision, who is an at-will employee;
(l) an employee of an interlocal cooperative agency created under Title 11, Chapter 13,
Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided through
membership in a labor organization that provides retirement benefits to its members; and
(m) an employee of the Utah Science Technology and Research Initiative created under
Title 63M, Chapter 2, Utah Science Technology and Research Governing Authority Act.
(5) (a) Each participating employer shall prepare a list designating those positions
eligible for exemption under Subsection (4).
(b) An employee may not be exempted unless the employee is employed in a position
designated by the participating employer.
(6) (a) In accordance with this section, a municipality, county, or political subdivision
may not exempt more than 50 positions or a number equal to 10% of the employees of the
municipality, county, or political subdivision, whichever is lesser.
(b) A municipality, county, or political subdivision may exempt at least one regular
full-time employee.
(7) Each participating employer shall:
(a) file employee exemptions annually with the office; and
(b) update the employee exemptions in the event of any change.
(8) The office may make rules to implement this section.
Section 4. Section 
49-22-203
 is amended to read:
49-22-203.
Exclusions from membership in system.
(1) The following employees are not eligible for service credit in this system:
(a) subject to the requirements of Subsection (2), an employee whose employment
status is temporary in nature due to the nature or the type of work to be performed;
(b) except as provided under Subsection (3), an employee of an institution of higher
education who participates in a retirement system with a public or private retirement system,
organization, or company designated by the State Board of Regents during any period in which
required contributions based on compensation have been paid on behalf of the employee by the
employer;
(c) an employee serving as an exchange employee from outside the state;
(d) an employee of the Department of Workforce Services who is covered under
another retirement system allowed under Title 35A, Chapter 4, Employment Security Act; or
(e) an employee who is employed with a withdrawing entity that has elected, prior to
January 1, 2017, to exclude
:
(i)
 new employees from participation in this system under Subsection
49-11-623
(3)[
.
]
(a); or
(ii) all employees from participation in this system under Subsection 
49-11-623
(3)(b).
(2) If an employee whose status is temporary in nature due to the nature of type of
work to be performed:
(a) is employed for a term that exceeds six months and the employee otherwise
qualifies for service credit in this system, the participating employer shall report and certify to
the office that the employee is a regular full-time employee effective the beginning of the
seventh month of employment; or
(b) was previously terminated prior to being eligible for service credit in this system
and is reemployed within three months of termination by the same participating employer, the
participating employer shall report and certify that the member is a regular full-time employee
when the total of the periods of employment equals six months and the employee otherwise
qualifies for service credits in this system.
(3) Upon cessation of the participating employer contributions, an employee under
Subsection (1)(b) is eligible for service credit in this system.
Section 5. 
Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
the date of veto override.