Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 51 (2016GS)

Sponsor

Rep. Powell, K.

Final action

Governor Signed 3/28/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• recodifies postretirement employment provisions;
• clarifies amortization rate payments for certain reemployed retirees; and
• makes technical changes.

Every vote on this bill

Bill text

RECODIFICATION OF POSTRETIREMENT REEMPLOYMENT
PROVISIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kraig Powell
Senate Sponsor: 
Todd Weiler
LONG TITLE
General Description:
This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
postretirement reemployment provisions.
Highlighted Provisions:
This bill:
▸ recodifies postretirement employment provisions;
▸ clarifies amortization rate payments for certain reemployed retirees; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a coordination clause.
Utah Code Sections Affected:
AMENDS:
49-11-102
, as last amended by Laws of Utah 2014, Chapter 15
49-11-405
, as last amended by Laws of Utah 2010, Chapter 264
49-11-504
, as last amended by Laws of Utah 2013, Chapter 316
49-12-401
, as last amended by Laws of Utah 2015, Chapter 256
49-12-701
, as last amended by Laws of Utah 2010, Chapter 264
49-13-401
, as last amended by Laws of Utah 2015, Chapter 256
49-13-701
, as last amended by Laws of Utah 2010, Chapter 264
49-14-401
, as last amended by Laws of Utah 2015, Chapter 256
49-15-401
, as last amended by Laws of Utah 2015, Chapter 256
49-16-203
, as last amended by Laws of Utah 2010, Chapter 264
49-16-401
, as last amended by Laws of Utah 2015, Chapter 256
49-22-304
, as last amended by Laws of Utah 2015, Chapter 256
49-23-303
, as last amended by Laws of Utah 2015, Chapter 256
67-19-43
, as last amended by Laws of Utah 2015, Chapter 248
ENACTS:
49-11-1201
, Utah Code Annotated 1953
49-11-1202
, Utah Code Annotated 1953
49-11-1203
, Utah Code Annotated 1953
49-11-1204
, Utah Code Annotated 1953
49-11-1205
, Utah Code Annotated 1953
49-11-1206
, Utah Code Annotated 1953
49-11-1207
, Utah Code Annotated 1953
49-11-1208
, Utah Code Annotated 1953
REPEALS:
49-11-505
, as last amended by Laws of Utah 2015, Chapters 243 and 256
Utah Code Sections Affected by Coordination Clause:
49-11-1202
, Utah Code Annotated 1953
49-11-1206
, Utah Code Annotated 1953
49-11-1302
, Utah Code Annotated 1953
49-11-1306
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
49-11-102
 is amended to read:
49-11-102.
 Definitions.
As used in this title:
(1) (a) "Active member" means a member who:
(i) is employed by a participating employer and accruing service credit; or
(ii) within the previous 120 days:
(A) has been employed by a participating employer; and
(B) accrued service credit.
(b) "Active member" does not include a retiree.
(2) "Actuarial equivalent" means a benefit of equal value when computed upon the
basis of mortality tables as recommended by the actuary and adopted by the executive director,
including regular interest.
(3) "Actuarial interest rate" means the interest rate as recommended by the actuary and
adopted by the board upon which the funding of system costs and benefits are computed.
(4) (a) "Agency" means:
(i) a department, division, agency, office, authority, commission, board, institution, or
hospital of the state;
(ii) a county, municipality, school district, local district, or special service district;
(iii) a state college or university; or
(iv) any other participating employer.
(b) "Agency" does not include an entity listed under Subsection (4)(a)(i) that is a
subdivision of another entity listed under Subsection (4)(a).
(5) "Allowance" or "retirement allowance" means the pension plus the annuity,
including any cost of living or other authorized adjustments to the pension and annuity.
(6) "Alternate payee" means a member's former spouse or family member eligible to
receive payments under a Domestic Relations Order in compliance with Section 
49-11-612
.
(7) "Amortization rate" means the board certified percent of salary required to amortize
the unfunded actuarial accrued liability in accordance with policies established by the board
upon the advice of the actuary.
(8) "Annuity" means monthly payments derived from member contributions.
(9) "Appointive officer" means an employee appointed to a position for a definite and
fixed term of office by official and duly recorded action of a participating employer whose
appointed position is designated in the participating employer's charter, creation document, or
similar document, and:
(a) who earns $500 or more per month, indexed as of January 1, 1990, as provided in
Section 
49-12-407
 for a Tier I appointive officer; and
(b) whose appointive position is full-time as certified by the participating employer for
a Tier II appointive officer.
(10) (a) "At-will employee" means a person who is employed by a participating
employer and:
(i) who is not entitled to merit or civil service protection and is generally considered
exempt from a participating employer's merit or career service personnel systems;
(ii) whose on-going employment status is entirely at the discretion of the person's
employer; or
(iii) who may be terminated without cause by a designated supervisor, manager, or
director.
(b) "At-will employee" does not include a career employee who has obtained a
reasonable expectation of continued employment based on inclusion in a participating
employer's merit system, civil service protection system, or career service personnel systems,
policies, or plans.
(11) "Beneficiary" means any person entitled to receive a payment under this title
through a relationship with or designated by a member, participant, covered individual, or
alternate payee of a defined contribution plan.
(12) "Board" means the Utah State Retirement Board established under Section
49-11-202
.
(13) "Board member" means a person serving on the Utah State Retirement Board as
established under Section 
49-11-202
.
(14) "Certified contribution rate" means the board certified percent of salary paid on
behalf of an active member to the office to maintain the system on a financially and actuarially
sound basis.
(15) "Contributions" means the total amount paid by the participating employer and the
member into a system or to the Utah Governors' and Legislators' Retirement Plan under
Chapter 19, Utah Governors' and Legislators' Retirement Act.
(16) "Council member" means a person serving on the Membership Council
established under Section 
49-11-202
.
(17) "Covered individual" means any individual covered under Chapter 20, Public
Employees' Benefit and Insurance Program Act.
(18) "Current service" means covered service under:
(a) Chapter 12, Public Employees' Contributory Retirement Act;
(b) Chapter 13, Public Employees' Noncontributory Retirement Act;
(c) Chapter 14, Public Safety Contributory Retirement Act;
(d) Chapter 15, Public Safety Noncontributory Retirement Act;
(e) Chapter 16, Firefighters' Retirement Act;
(f) Chapter 17, Judges' Contributory Retirement Act;
(g) Chapter 18, Judges' Noncontributory Retirement Act;
(h) Chapter 19, Utah Governors' and Legislators' Retirement Act;
(i) Chapter 22, New Public Employees' Tier II Contributory Retirement Act; or
(j) Chapter 23, New Public Safety and Firefighter Tier II Contributory Retirement Act.
(19) "Defined benefit" or "defined benefit plan" or "defined benefit system" means a
system or plan offered under this title to provide a specified allowance to a retiree or a retiree's
spouse after retirement that is based on a set formula involving one or more of the following
factors:
(a) years of service;
(b) final average monthly salary; or
(c) a retirement multiplier.
(20) "Defined contribution" or "defined contribution plan" means any defined
contribution plan or deferred compensation plan authorized under the Internal Revenue Code
and administered by the board.
(21) "Educational institution" means a political subdivision or instrumentality of the
state or a combination thereof primarily engaged in educational activities or the administration
or servicing of educational activities, including:
(a) the State Board of Education and its instrumentalities;
(b) any institution of higher education and its branches;
(c) any school district and its instrumentalities;
(d) any vocational and technical school; and
(e) any entity arising out of a consolidation agreement between entities described under
this Subsection (21).
(22) "Elected official":
(a) means a person elected to a state office, county office, municipal office, school
board or school district office, local district office, or special service district office;
(b) includes a person who is appointed to serve an unexpired term of office described
under Subsection (22)(a); and
(c) does not include a judge or justice who is subject to a retention election under
Section 
20A-12-201
.
(23) (a) "Employer" means any department, educational institution, or political
subdivision of the state eligible to participate in a government-sponsored retirement system
under federal law.
(b) "Employer" may also include an agency financed in whole or in part by public
funds.
(24) "Exempt employee" means an employee working for a participating employer:
(a) who is not eligible for service credit under Section 
49-12-203
, 
49-13-203
,
49-14-203
, 
49-15-203
, or 
49-16-203
; and
(b) for whom a participating employer is not required to pay contributions or
nonelective contributions.
(25) "Final average monthly salary" means the amount computed by dividing the
compensation received during the final average salary period under each system by the number
of months in the final average salary period.
(26) "Fund" means any fund created under this title for the purpose of paying benefits
or costs of administering a system, plan, or program.
(27) (a) "Inactive member" means a member who has not been employed by a
participating employer for a period of at least 120 days.
(b) "Inactive member" does not include retirees.
(28) (a) "Initially entering" means hired, appointed, or elected for the first time, in
current service as a member with any participating employer.
(b) "Initially entering" does not include a person who has any prior service credit on
file with the office.
(c) "Initially entering" includes an employee of a participating employer, except for an
employee that is not eligible under a system or plan under this title, who:
(i) does not have any prior service credit on file with the office;
(ii) is covered by a retirement plan other than a retirement plan created under this title;
and
(iii) moves to a position with a participating employer that is covered by this title.
(29) "Institution of higher education" means an institution described in Section
53B-1-102
.
(30) (a) "Member" means a person, except a retiree, with contributions on deposit with
a system, the Utah Governors' and Legislators' Retirement Plan under Chapter 19, Utah
Governors' and Legislators' Retirement Act, or with a terminated system.
(b) "Member" also includes leased employees within the meaning of Section 414(n)(2)
of the Internal Revenue Code, if the employees have contributions on deposit with the office. 
If leased employees constitute less than 20% of the participating employer's work force that is
not highly compensated within the meaning of Section 414(n)(5)(c)(ii), Internal Revenue Code,
"member" does not include leased employees covered by a plan described in Section 414(n)(5)
of the federal Internal Revenue Code.
(31) "Member contributions" means the sum of the contributions paid to a system or
the Utah Governors' and Legislators' Retirement Plan, including refund interest if allowed by a
system, and which are made by:
(a) the member; and
(b) the participating employer on the member's behalf under Section 414(h) of the
Internal Revenue Code.
(32) "Nonelective contribution" means an amount contributed by a participating
employer into a participant's defined contribution account.
(33) "Normal cost rate":
(a) means the percent of salary that is necessary for a retirement system that is fully
funded to maintain its fully funded status; and
(b) is determined by the actuary based on the assumed rate of return established by the
board.
(34) "Office" means the Utah State Retirement Office.
(35) "Participant" means an individual with voluntary deferrals or nonelective
contributions on deposit with the defined contribution plans administered under this title.
(36) "Participating employer" means a participating employer, as defined by Chapter
12, Public Employees' Contributory Retirement Act, Chapter 13, Public Employees'
Noncontributory Retirement Act, Chapter 14, Public Safety Contributory Retirement Act,
Chapter 15, Public Safety Noncontributory Retirement Act, Chapter 16, Firefighters'
Retirement Act, Chapter 17, Judges' Contributory Retirement Act, and Chapter 18, Judges'
Noncontributory Retirement Act, or an agency financed in whole or in part by public funds
which is participating in a system or plan as of January 1, 2002.
(37) "Part-time appointed board member" means a person:
(a) who is appointed to serve as a member of a board, commission, council, committee,
or panel of a participating employer; and
(b) whose service as a part-time appointed board member does not qualify as a regular
full-time employee as defined under Section 
49-12-102
, 
49-13-102
, or 
49-22-102
.
(38) "Pension" means monthly payments derived from participating employer
contributions.
(39) "Plan" means the Utah Governors' and Legislators' Retirement Plan created by
Chapter 19, Utah Governors' and Legislators' Retirement Act, the New Public Employees' Tier
II Defined Contribution Plan created by Chapter 22, Part 4, Tier II Defined Contribution Plan,
the New Public Safety and Firefighter Tier II Defined Contribution Plan created by Chapter 23,
Part 4, Tier II Defined Contribution Plan, or the defined contribution plans created under
Section 
49-11-801
.
(40) (a) "Political subdivision" means any local government entity, including cities,
towns, counties, and school districts, but only if the subdivision is a juristic entity that is legally
separate and distinct from the state and only if its employees are not by virtue of their
relationship to the entity employees of the state.
(b) "Political subdivision" includes local districts, special service districts, or
authorities created by the Legislature or by local governments, including the office.
(c) "Political subdivision" does not include a project entity created under Title 11,
Chapter 13, Interlocal Cooperation Act, that was formed prior to July 1, 1987.
(41) "Program" means the Public Employees' Insurance Program created under Chapter
20, Public Employees' Benefit and Insurance Program Act, or the Public Employees'
Long-Term Disability program created under Chapter 21, Public Employees' Long-Term
Disability Act.
(42) "Public funds" means those funds derived, either directly or indirectly, from public
taxes or public revenue, dues or contributions paid or donated by the membership of the
organization, used to finance an activity whose objective is to improve, on a nonprofit basis,
the governmental, educational, and social programs and systems of the state or its political
subdivisions.
(43) "Qualified defined contribution plan" means a defined contribution plan that
meets the requirements of Section 401(k) or Section 403(b) of the Internal Revenue Code.
[
(44) (a) "Reemployed," "reemploy," or "reemployment" means work or service
performed for a participating employer after retirement, in exchange for compensation.
]
[
(b) Reemployment includes work or service performed on a contract for a
participating employer if the retiree is:
]
[
(i) listed as the contractor; or
]
[
(ii) an owner, partner, or principal of the contractor.
]
[
(45)
] 
(44)
 "Refund interest" means the amount accrued on member contributions at a
rate adopted by the board.
[
(46)
] 
(45)
 "Retiree" means an individual who has qualified for an allowance under this
title.
[
(47)
] 
(46)
 "Retirement" means the status of an individual who has become eligible,
applies for, and is entitled to receive an allowance under this title.
[
(48)
] 
(47)
 "Retirement date" means the date selected by the member on which the
member's retirement becomes effective with the office.
[
(49)
] 
(48)
 "Retirement related contribution":
(a) means any employer payment to any type of retirement plan or program made on
behalf of an employee; and
(b) does not include Social Security payments or Social Security substitute payments
made on behalf of an employee.
[
(50)
] 
(49)
 "Service credit" means:
(a) the period during which an employee is employed and compensated by a
participating employer and meets the eligibility requirements for membership in a system or the
Utah Governors' and Legislators' Retirement Plan, provided that any required contributions are
paid to the office; and
(b) periods of time otherwise purchasable under this title.
[
(51)
] 
(50)
 "System" means the individual retirement systems created by Chapter 12,
Public Employees' Contributory Retirement Act, Chapter 13, Public Employees'
Noncontributory Retirement Act, Chapter 14, Public Safety Contributory Retirement Act,
Chapter 15, Public Safety Noncontributory Retirement Act, Chapter 16, Firefighters'
Retirement Act, Chapter 17, Judges' Contributory Retirement Act, Chapter 18, Judges'
Noncontributory Retirement Act, and Chapter 19, Utah Governors' and Legislators' Retirement
Act, the defined benefit portion of the Tier II Hybrid Retirement System under Chapter 22, Part
3, Tier II Hybrid Retirement System, and the defined benefit portion of the Tier II Hybrid
Retirement System under Chapter 23, Part 3, Tier II Hybrid Retirement System.
[
(52)
] 
(51)
 "Tier I" means a system or plan under this title for which:
(a) an employee is eligible to participate if the employee initially enters regular
full-time employment before July 1, 2011; or
(b) a governor or legislator who initially enters office before July 1, 2011.
[
(53)
] 
(52)
 (a) "Tier II" means a system or plan under this title provided in lieu of a
Tier I system or plan for an employee, governor, legislator, or full-time elected official who
does not have Tier I service credit in a system or plan under this title:
(i) if the employee initially enters regular full-time employment on or after July 1,
2011; or
(ii) if the governor, legislator, or full-time elected official initially enters office on or
after July 1, 2011.
(b) "Tier II" includes:
(i) the Tier II hybrid system established under:
(A) Chapter 22, Part 3, Tier II Hybrid Retirement System; or
(B) Chapter 23, Part 3, Tier II Hybrid Retirement System; and
(ii) the Tier II Defined Contribution Plan (Tier II DC Plan) established under:
(A) Chapter 22, Part 4, Tier II Defined Contribution Plan; or
(B) Chapter 23, Part 4, Tier II Defined Contribution Plan.
[
(54)
] 
(53)
 "Unfunded actuarial accrued liability" or "UAAL":
(a) is determined by the system's actuary; and
(b) means the excess, if any, of the accrued liability of a retirement system over the
actuarial value of its assets.
[
(55)
] 
(54)
 "Voluntary deferrals" means an amount contributed by a participant into
that participant's defined contribution account.
Section 2. Section 
49-11-405
 is amended to read:
49-11-405.
Service credit from different systems or plans -- Eligibility and
calculation of service credit.
(1) (a) A member who has service credit from two or more systems or one or more
systems and the Utah Governors' and Legislators' Retirement Plan may combine service credit
for purposes of determining eligibility for retirement.
(b) The provisions of Subsection (1)(a) do not apply to concurrent service.
(2) To be eligible for the calculation under Subsection (3), the member's service credit
earned under the different systems or the Utah Governors' and Legislators' Retirement Plan
shall at least equal the minimum amount of service credit required to retire from the system
which most recently covered the member.
(3) If a member meets the requirements of Subsection (2), the office shall calculate the
member's allowance using all service credit earned from any system or the Utah Governors' and
Legislators' Retirement Plan, with no actuarial reduction applied to the allowance, except the
service credit used to calculate the benefit shall be increased or decreased to reflect the value of
the assets transferred.
(4) The office shall establish the standards used for calculating any increase or decrease
in the service credit.
(5) This section does not apply to a retiree who is subject to [
Sections
] 
Section
49-11-504
 and [
49-11-505
] 
Chapter 11, Part 12, Postretirement Reemployment Restrictions
Act
.
Section 3. Section 
49-11-504
 is amended to read:
49-11-504.
Reemployment of a retiree -- Restrictions.
(1) As used in this section[
,
]
:
(a)
 "full-time" means:
[
(a)
] 
(i)
 employment requiring 20 or more hours of work per week; or
[
(b)
] 
(ii)
 at least a half-time teaching contract.
(b) "Reemployed," "reemploy," or "reemployment" means the same as those terms are
defined in Section 
49-11-1202
.
(2) (a) Except for the provisions of Subsection (3), the provisions of this section do not
apply to a person who is subject to the provisions of [
Section 
49-11-505
] 
Chapter 11, Part 12,
Postretirement Reemployment Restrictions Act
.
(b) This section does not apply to employment as an elected official.
(3) A person who is not a retiree under this title is not subject to any postretirement
restrictions under this title.
(4) A retiree of an agency who is reemployed may not earn additional service credit, if
the retiree is reemployed by:
(a) a different agency; or
(b) the same agency after six months from the retirement date.
(5) A retiree of an agency who is reemployed on a full-time basis by the same agency
within six months of the date of retirement is subject to the following:
(a) the agency shall immediately notify the office;
(b) the office shall cancel the retiree's allowance and reinstate the retiree to active
member status;
(c) the allowance cancellation and reinstatement to active member status is effective on
the first day of the month following the date of reemployment;
(d) the reinstated retiree may not retire again with a recalculated benefit for a two-year
period from the date of cancellation of the original allowance, and if the retiree retires again
within the two-year period, the original allowance shall be resumed; and
(e) a reinstated retiree retiring after the two-year period shall be credited with the
service credit in the retiree's account at the time of the first retirement and from that time shall
be treated as a member of a system, including the accrual of additional service credit, but
subject to recalculation of the allowance under Subsection (9).
(6) A retiree of an agency who is reemployed by the same agency within six months of
retirement on a less than full-time basis by the same agency is subject to the following:
(a) the retiree may earn, without penalty, compensation from that position which is not
in excess of the exempt earnings permitted by Social Security;
(b) if a retiree receives compensation in a calendar year in excess of the Social Security
limitation, 25% of the allowance shall be suspended for the remainder of the six-month period;
(c) the effective date of a suspension and reinstatement of an allowance shall be set by
the office; and
(d) any suspension of a retiree's allowance under this Subsection (6) shall be applied on
a calendar year basis.
(7) For six months immediately following retirement, the retiree and participating
employer who are subject to Subsection (6) shall:
(a) maintain an accurate record of gross earnings in employment;
(b) report the gross earnings at least monthly to the office;
(c) immediately notify the office in writing of any postretirement earnings under
Subsection (6); and
(d) immediately notify the office in writing whether postretirement earnings equal or
exceed the exempt earnings under Subsection (6).
(8) (a) If a participating employer hires a retiree, the participating employer may not
make a retirement related contribution in an amount that exceeds the normal cost rate as
defined under Section 
49-11-102
 on behalf of the retiree under Subsections (8)(b) and (c).
(b) The contributions under Subsection (8)(a) are not required, but if paid, shall be paid
to a retiree-designated:
(i) qualified defined contribution plan administered by the board, if the participating
employer participates in a qualified defined contribution plan administered by the board; or
(ii) qualified defined contribution plan offered by the participating employer if the
participating employer does not participate in a qualified defined contribution plan
administered by the board.
(c) Notwithstanding the provisions of Subsection (8)(b), if an employer is not
participating in a qualified defined contribution plan administered by the board, the employer
may elect to pay the contributions under Subsection (8)(a) to a deferred compensation plan
administered by the board.
(9) A retiree who has returned to work, accrued additional service credit, and again
retires shall have the retiree's allowance recalculated using:
(a) the formula in effect at the date of the retiree's original retirement for all service
credit accrued prior to that date; and
(b) the formula in effect at the date of the subsequent retirement for all service credit
accrued between the first and subsequent retirement dates.
(10) The board may make rules to implement this section.
Section 4. Section 
49-11-1201
 is enacted to read:
Part 12. Postretirement Reemployment Restrictions Act
 49-11-1201.
Title.
This part is known as the "Postretirement Reemployment Restrictions Act."
Section 5. Section 
49-11-1202
 is enacted to read:
 49-11-1202.
Definitions.
As used in this part:
(1) (a) "Affiliated emergency services worker" means a person who:
(i) is employed by a participating employer;
(ii) performs emergency services for another participating employer that is a different
agency;
(iii) is trained in techniques and skills required for the emergency service;
(iv) continues to receive regular training required for the service;
(v) is on the rolls as a trained affiliated emergency services worker of the participating
employer; and
(vi) provides ongoing service for a participating employer, which service may include
service as a volunteer firefighter, reserve law enforcement officer, search and rescue worker,
emergency medical technician, ambulance worker, park ranger, or public utilities worker.
(b) "Affiliated emergency services worker" does not include a person who performs
work or service but does not meet the requirements of Subsection (1)(a).
(2) "Amortization rate" means the amortization rate, as defined in Section 
49-11-102
,
to be applied to the system that would have covered the retiree if the retiree's reemployed
position were deemed to be an eligible, full-time position within that system.
(3) (a) "Reemployed," "reemploy," or "reemployment" means work or service
performed for a participating employer after retirement, in exchange for compensation.
(b) Reemployment includes work or service performed on a contract for a participating
employer if the retiree is:
(i) listed as the contractor; or
(ii) an owner, partner, or principal of the contractor.
(4) "Retiree":
(a) means a person who:
(i) retired from a participating employer; and
(ii) begins reemployment on or after July 1, 2010, with a participating employer; and
(b) does not include a person:
(i) who was reemployed by a participating employer before July 1, 2010; and
(ii) whose participating employer that reemployed the person under Subsection
(4)(b)(i) was dissolved, consolidated, merged, or structurally changed in accordance with
Section 
49-11-621
 on or after July 1, 2010.
Section 6. Section 
49-11-1203
 is enacted to read:
 49-11-1203.
Applicability.
(1) (a) This part 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.
(b) The provisions of this part apply to an elected official whose elected position is full
time as certified by the participating employer.
(2) (a) This part 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.
(b) For purposes of this Subsection (2), 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:
(i) Section 
63A-3-106
;
(ii) Section 
63A-3-107
; and
(iii) rules made by the Division of Finance according to Sections 
63A-3-106
 and
63A-3-107
.
(3) This part does not apply to 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.
Section 7. Section 
49-11-1204
 is enacted to read:
 49-11-1204.
General Restrictions -- Election following one-year separation --
Amortization rate.
(1) 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.
(2) Except as provided under Section 
49-11-1205
, 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.
(3) If a reemployed retiree has completed the one-year separation from employment
with a participating employer required under Subsection (2), the retiree may elect to:
(a) cancel the retiree's retirement allowance and instead earn additional service credit in
accordance with this title; or
(b) continue to receive the retiree's retirement allowance, forfeit earning additional
service credit, and forfeit any retirement-related contribution from the participating employer
that reemployed the retiree.
(4) (a) If the office receives notice of the election of a reemployed retiree under
Subsection (3)(a), the office shall immediately cancel the retiree's retirement allowance.
(b) (i) If the retiree under Subsection (4)(a) is eligible for retirement coverage in the
reemployed position, the office shall reinstate the retiree to active member status on the first
day of the month following the date of the employee's election.
(ii) Except as provided under Subsection (4)(c), if the retiree is not otherwise eligible
for retirement coverage in the reemployed position, the participating employer that reemploys
the retiree shall contribute the amortization rate to the office on behalf of the retiree.
(c) A participating employer that reemploys a retiree in accordance with Subsection
49-11-1205
(1) is not required to contribute the amortization rate to the office.
(5) (a) For a retiree under Subsection (4)(b) who retires within two years from the date
of reemployment, the office:
(i) may not recalculate a retirement benefit for the retiree; and
(ii) shall resume the allowance that was being paid to the retiree at the time of the
cancellation.
(b) Subject to Subsection (1), for a retiree who is reinstated to active membership
under Subsection (4)(b) and retires two or more years after the date of reinstatement to active
membership, the office shall:
(i) resume the allowance that was being paid at the time of cancellation; and
(ii) calculate an additional allowance for the retiree 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.
Section 8. Section 
49-11-1205
 is enacted to read:
 49-11-1205.
Postretirement reemployment restriction exceptions.
(1) (a) The office may not cancel the retirement allowance of a retiree who is
reemployed with a participating employer within one year 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 (1)(a)(i), the retiree
does not receive any employer paid benefits, including:
(A) retirement service credit or retirement-related contributions;
(B) medical benefits;
(C) dental benefits;
(D) other insurance benefits except for workers' compensation as provided under Title
34A, Chapter 2, Workers' Compensation Act, Title 34A, Chapter 3, Utah Occupational Disease
Act, and withholdings required by federal or state law for social security, Medicare, and
unemployment insurance; or
(E) paid time off, including sick, annual, or other type of leave; and
(iii) 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.
(b) Beginning January 1, 2013, the board shall adjust the amounts under Subsection
(1)(a)(iii) 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.
(2) A retiree shall be considered as having completed the one-year separation from
employment with a participating employer required under Section 
49-11-1204
, 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 (2)(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 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 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.
(3) (a) The office may not cancel the retirement allowance of a retiree who is employed
as an affiliated emergency services worker within one year of the retiree's retirement date if the
affiliated emergency services worker does not receive any compensation, except for:
(i) a nominal fee, stipend, discount, tax credit, voucher, or other fixed sum of money or
cash equivalent payment not tied to productivity and paid periodically for services;
(ii) a length-of-service award;
(iii) insurance policy premiums paid by the participating employer in the event of death
of an affiliated emergency services worker or a line-of-duty accidental death or disability; or
(iv) reimbursement of expenses incurred in the performance of duties.
(b) For purposes of Subsections (3)(a)(i) and (ii), the total amount of any discounts, tax
credits, vouchers, and payments to an affiliated emergency services worker may not exceed
$500 per month.
(c) Beginning January 1, 2016, the board shall adjust the amount under Subsection
(3)(b) 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.
(4) (a) If a retiree is reemployed under the provisions of Subsection (1) or (3), 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 Section 
49-11-1204
.
(b) 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 (1)(a)(iii) or (3)(b).
Section 9. Section 
49-11-1206
 is enacted to read:
 49-11-1206.
Notice of postretirement reemployment.
(1) A participating employer shall immediately notify the office:
(a) if the participating employer reemploys a retiree;
(b) whether the reemployment is subject to Section 
49-11-1204
 or Subsection
49-11-1205
(1), (2), or (3); and
(c) of any election by the retiree under Section 
49-11-1204
.
(2) A participating employer shall certify to the office whether the position of an
elected official is or is not full time.
(3) A retiree subject to this part shall report to the office the status of the reemployment
under Section 
49-11-1204
 or 
49-11-1205
.
Section 10. Section 
49-11-1207
 is enacted to read:
 49-11-1207.
Postretirement reemployment -- Violations -- Penalties.
(1) (a) If the office receives notice or learns of the reemployment of a retiree in
violation of Section 
49-11-1204
 or 
49-11-1205
, the office shall:
(i) immediately cancel the retiree's retirement allowance;
(ii) keep the retiree's retirement allowance cancelled for the remainder of the calendar
year if the reemployment with a participating employer exceeded the limitation under
Subsection 
49-11-1205
(1)(a)(iii) or (3)(b); and
(iii) recover any overpayment resulting from the violation in accordance with the
provisions of Section 
49-11-607
 before the allowance may be reinstated.
(b) Reinstatement of an allowance following cancellation for a violation under this
section is subject to the procedures and provisions under Section 
49-11-1204
.
(2) If a retiree or participating employer failed to report reemployment in violation of
Section 
49-11-1206
, the retiree, participating employer, or both, who are found to be
responsible for the failure to report, are liable to the office for the amount of any overpayment
resulting from the violation.
(3) A participating employer is liable to the office for a payment or failure to make a
payment in violation of this part.
(4) If a participating employer fails to notify the office in accordance with Section
49-11-1206
, the participating employer is immediately subject to a compliance audit by the
office.
Section 11. Section 
49-11-1208
 is enacted to read:
 49-11-1208.
Rulemaking.
The board may make rules to implement this part.
Section 12. Section 
49-12-401
 is amended to read:
49-12-401.
Eligibility for an allowance -- Date of retirement -- Qualifications.
(1) A member is qualified to receive an allowance from this system when:
(a) except as provided under Subsection (3), the member ceases actual work for every
participating employer that employs the member before the member's retirement date and
provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the
member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date:
(i) the member has accrued at least four years of service credit and has attained an age
of 65 years;
(ii) the member has accrued at least 10 years of service credit and has attained an age
of 62 years;
(iii) the member has accrued at least 20 years of service credit and has attained an age
of 60 years; or
(iv) the member has accrued at least 30 years of service credit.
(2) (a) The member's retirement date:
(i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by
the office.
(b) Except as provided under Subsection (3), a member may not be employed by a
participating employer in the system established by this chapter on the retirement date selected
under Subsection (2)(a)(i).
(3) (a) A member who is employed by a participating employer and who is also an
elected official is not required to cease service as an elected official to be qualified to receive
an allowance under Subsection (1), unless the member is retiring from service as an elected
official.
(b) A member who is employed by a participating employer and who is also a part-time
appointed board member is not required to cease service as a part-time appointed board
member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated
emergency services worker as defined in [
Subsection 
49-11-505
(1)(d)
] 
Section 
49-11-1202
 for
a different agency, is not required to cease service as an affiliated emergency services worker to
be qualified to receive an allowance under Subsection (1).
Section 13. Section 
49-12-701
 is amended to read:
49-12-701.
 Early retirement incentive -- Eligibility -- Calculation of benefit --
Payment of costs -- Savings to be appropriated by Legislature -- Restrictions on
reemployment.
(1) Any member of this system may retire and receive the allowance allowed under
Subsection (2) if the member meets the following requirements as of the member's retirement
date:
(a) the member is eligible for retirement under Section 
49-12-401
, or has 25 years of
service credit;
(b) the member elects to forfeit any stipend for retirement offered by the participating
employer; and
(c) the member elects to retire from this system by applying for retirement by the date
established under Subsection (3)(a) or (3)(b).
(2) (a) A member who retires under Subsection (1) shall receive 2% of that member's
final average salary for all years of service credit.
(b) An actuarial reduction may not be applied to the allowance granted under this
section.
(3) In order to receive the allowance allowed by this section, a member shall submit an
application to the office as follows:
(a) (i) For state and school employees under Level A, the application shall be filed by
May 31, 1987. The member's retirement date shall then be set by the member on the 1st or 16th
day of July, August, or September, 1987.
(ii) If a Level A member elects to retire, the executive director or participating
employer may request the member to delay the retirement date until a later date, but no later
than June 30, 1988.
(iii) If the member agrees to delay the retirement date, the retirement date shall be
delayed, but service credit may not be accrued after the member's original retirement date
elected by the member, and compensation earned after the member's original retirement date
may not be used in the calculation of the final average salary for determining the retirement
allowance.
(b) (i) For political subdivision employees under Level B, the application shall be filed
by September 30, 1987.
(ii) The retirement date shall then be set by the member on the 1st or 16th day of July,
August, September, October, November, or December, 1987.
(4) (a) The cost of providing the allowance under this section shall be funded in fiscal
year 1987-88 by a supplemental appropriation in the 1988 General Session based on the
retirement contribution rate increase established by the consulting actuary and approved by the
board.
(b) The cost of providing the allowance under this section shall be funded beginning
July 1, 1988, by means of an increase in the retirement contribution rate established by the
consulting actuary and approved by the board.
(c) The rate increase under Subsections (4)(a) and (b) shall be funded:
(i) for state employees, by an appropriation from the account established by the
Division of Finance under Subsection (4)(d), which is funded by savings derived from this
early retirement incentive and a work force reduction;
(ii) for school employees, by direct contributions from the employing unit, which may
not be funded through an increase in the retirement contribution amount established in Title
53A, Chapter 17a, Minimum School Program Act; and
(iii) for political subdivisions under Level B, by direct contributions by the
participating employer.
(d) (i) Each year, any excess savings derived from this early retirement incentive which
are above the costs of funding the increase and the costs of paying insurance, sick leave,
compensatory leave, and vacation leave under Subsections (4)(c)(i) and (c)(ii) shall be reported
to the Legislature and shall be appropriated as provided by law.
(ii) In the case of Subsection (4)(c)(i), the Division of Finance shall establish an
account into which all savings derived from this early retirement incentive shall be deposited as
the savings are realized.
(iii) In the case of Subsection (4)(c)(ii), the State Office of Education shall certify the
amount of savings derived from this early retirement incentive.
(iv) The State Office of Education and the participating employer may not spend the
savings until appropriated by the Legislature as provided by law.
(5) A member who retires under this section is subject to [
Sections
] 
Section
49-11-504
and [
49-11-505
] 
Chapter 11, Part 12, Postretirement Reemployment Restrictions Act
.
(6) The board may adopt rules to administer this section.
(7) The Legislative Auditor General shall perform an audit to ensure compliance with
this section.
Section 14. Section 
49-13-401
 is amended to read:
49-13-401.
Eligibility for an allowance -- Date of retirement -- Qualifications.
(1) A member is qualified to receive an allowance from this system when:
(a) except as provided under Subsection (3), the member ceases actual work for every
participating employer that employs the member before the member's retirement date and
provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the
member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date:
(i) the member has accrued at least four years of service credit and has attained an age
of 65 years;
(ii) the member has accrued at least 10 years of service credit and has attained an age
of 62 years;
(iii) the member has accrued at least 20 years of service credit and has attained an age
of 60 years;
(iv) the member has accrued at least 30 years of service credit; or
(v) the member has accrued at least 25 years of service credit, in which case the
member shall be subject to the reduction under Subsection 
49-13-402
(2)(b).
(2) (a) The member's retirement date:
(i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by
the office.
(b) Except as provided under Subsection (3), a member may not be employed by a
participating employer in the system established by this chapter on the retirement date selected
under Subsection (2)(a)(i).
(3) (a) A member who is employed by a participating employer and who is also an
elected official is not required to cease service as an elected official to be qualified to receive
an allowance under Subsection (1), unless the member is retiring from service as an elected
official.
(b) A member who is employed by a participating employer and who is also a part-time
appointed board member is not required to cease service as a part-time appointed board
member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated
emergency services worker as defined in [
Subsection 
49-11-505
(1)(d)
] 
Section 
49-11-1202
 for
a different agency, is not required to cease service as an affiliated emergency services worker to
be qualified to receive an allowance under Subsection (1).
Section 15. Section 
49-13-701
 is amended to read:
49-13-701.
Early retirement incentive -- Eligibility -- Calculation of benefit --
Payment of costs -- Savings to be appropriated by Legislature -- Restrictions on
reemployment.
(1) Any member of this system may retire and receive the allowance allowed under
Subsection (2) if the member meets the following requirements as of the member's retirement:
(a) the member is eligible for retirement under Section 
49-13-401
, or has 25 years of
service credit;
(b) the member elects to forfeit any stipend for retirement offered by the participating
employer; and
(c) the member elects to retire from this system by applying for retirement by the date
established under Subsection (3)(a) or (3)(b).
(2) (a) A member who retires under Subsection (1) shall receive 2% of that member's
final average salary for all years of service credit.
(b) No actuarial reduction may be applied to the allowance granted under this section.
(3) In order to receive the allowance allowed by this section, a member shall submit an
application to the office as follows:
(a) (i) For state and school employees under Level A, the application shall be filed by
May 31, 1987. The member's retirement date shall then be set by the member on the 1st or 16th
day of July, August, or September, 1987.
(ii) If a Level A member elects to retire, the executive director or participating
employer may request the member to delay the retirement date until a later date, but no later
than June 30, 1988.
(iii) If the member agrees to delay the retirement date, the retirement date shall be
delayed, but service credit may not be accrued after the member's original retirement date
elected by the member, and compensation earned after the member's original retirement date
may not be used in the calculation of the final average salary for determining the retirement
allowance.
(b) (i) For political subdivision employees under Level B, the application shall be filed
by September 30, 1987.
(ii) The member's retirement date shall then be set by the member on the 1st or 16th
day of July, August, September, October, November, or December, 1987.
(4) (a) The cost of providing the allowance under this section shall be funded in fiscal
year 1987-88 by a supplemental appropriation in the 1988 General Session based on the
retirement contribution rate increase established by the consulting actuary and approved by the
board.
(b) The cost of providing the allowance under this section shall be funded beginning
July 1, 1988, by means of an increase in the retirement contribution rate established by the
consulting actuary and approved by the board.
(c) The rate increase under Subsections (4)(a) and (b) shall be funded:
(i) for state employees, by an appropriation from the account established by the
Division of Finance under Subsection (4)(d), which is funded by savings derived from this
early retirement incentive and a work force reduction;
(ii) for school employees, by direct contributions from the employing unit, which may
not be funded through an increase in the retirement contribution amount established in Title
53A, Chapter 17a, Minimum School Program Act; and
(iii) for political subdivisions under Level B, by direct contributions by the
participating employer.
(d) (i) Each year, any excess savings derived from this early retirement incentive which
are above the costs of funding the increase and the costs of paying insurance, sick leave,
compensatory leave, and vacation leave under Subsections (4)(c)(i) and (c)(ii) shall be reported
to the Legislature and shall be appropriated as provided by law.
(ii) In the case of Subsection (4)(c)(i), the Division of Finance shall establish an
account into which all savings derived from this early retirement incentive shall be deposited as
the savings are realized.
(iii) In the case of Subsection (4)(c)(ii), the State Office of Education shall certify the
amount of savings derived from this early retirement incentive.
(iv) The State Office of Education and the participating employer may not spend the
savings until appropriated by the Legislature as provided by law.
(5) A member who retires under this section is subject to [
Sections
] 
Section
49-11-504
and [
49-11-505
] 
Chapter 11, Part 12, Postretirement Reemployment Restrictions Act
.
(6) The board may make rules to administer this section.
(7) The Legislative Auditor General shall perform an audit to ensure compliance with
this section.
Section 16. Section 
49-14-401
 is amended to read:
49-14-401.
Eligibility for service retirement -- Date of retirement --
Qualifications.
(1) A member is qualified to receive an allowance from this system when:
(a) except as provided under Subsection (3), the member ceases actual work for every
participating employer that employs the member before the member's retirement date and
provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the
member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date:
(i) the member has accrued at least 20 years of service credit;
(ii) the member has accrued at least 10 years of service credit and has attained an age
of 60 years; or
(iii) the member has accrued at least four years of service credit and has attained an age
of 65 years.
(2) (a) The member's retirement date:
(i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by
the office.
(b) Except as provided under Subsection (3), a member may not be employed by a
participating employer in the system established by this chapter on the retirement date selected
under Subsection (2)(a)(i).
(3) (a) A member who is employed by a participating employer and who is also an
elected official is not required to cease service as an elected official to be qualified to receive
an allowance under Subsection (1), unless the member is retiring from service as an elected
official.
(b) A member who is employed by a participating employer and who is also a part-time
appointed board member is not required to cease service as a part-time appointed board
member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated
emergency services worker as defined in [
Subsection 
49-11-505
(1)(d)
] 
Section 
49-11-1202
 for
a different agency, is not required to cease service as an affiliated emergency services worker to
be qualified to receive an allowance under Subsection (1).
Section 17. Section 
49-15-401
 is amended to read:
49-15-401.
Eligibility for service retirement -- Date of retirement --
Qualifications.
(1) A member is qualified to receive an allowance from this system when:
(a) except as provided under Subsection (3), the member ceases actual work for every
participating employer that employs the member before the member's retirement date and
provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the
member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date:
(i) the member has accrued at least 20 years of service credit;
(ii) the member has accrued at least 10 years of service credit and has attained an age
of 60 years; or
(iii) the member has accrued at least four years of service and has attained an age of 65
years.
(2) (a) The member's retirement date:
(i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by
the office.
(b) Except as provided under Subsection (3), a member may not be employed by a
participating employer in the system established by this chapter on the retirement date selected
under Subsection (2)(a)(i).
(3) (a) A member who is employed by a participating employer and who is also an
elected official is not required to cease service as an elected official to be qualified to receive
an allowance under Subsection (1), unless the member is retiring from service as an elected
official.
(b) A member who is employed by a participating employer and who is also a part-time
appointed board member is not required to cease service as a part-time appointed board
member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated
emergency services worker as defined in [
Subsection 
49-11-505
(1)(d)
] 
Section 
49-11-1202
 for
a different agency, is not required to cease service as an affiliated emergency services worker to
be qualified to receive an allowance under Subsection (1).
Section 18. Section 
49-16-203
 is amended to read:
49-16-203.
Exemption of certain employees from coverage -- Exception.
(1) A firefighter service employee serving as the chief of any fire department or district
is excluded from coverage under this system if that firefighter service employee files a formal
written request seeking exemption.
(2) The chief of any fire department or district who retires from that position shall
comply with the provisions of [
Sections
] 
Section
49-11-504
 and [
49-11-505
] 
Chapter 11, Part
12, Postretirement Reemployment Restrictions Act,
 upon reemployment by the participating
employer.
Section 19. Section 
49-16-401
 is amended to read:
49-16-401.
Eligibility for service retirement -- Date of retirement --
Qualifications.
(1) A member is qualified to receive an allowance from this system when:
(a) except as provided under Subsection (3), the member ceases actual work for every
participating employer that employs the member before the member's retirement date and
provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the
member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date:
(i) the member has accrued at least 20 years of service credit;
(ii) the member has accrued at least 10 years of service credit and has attained an age
of 60 years; or
(iii) the member has accrued at least four years of service credit and has attained an age
of 65 years.
(2) (a) The member's retirement date:
(i) shall be the 1st or the 16th day of the month, as selected by the firefighter service
employee;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by
the office.
(b) Except as provided under Subsection (3), a member may not be employed by a
participating employer in the system established by this chapter on the retirement date selected
under Subsection (2)(a)(i).
(3) (a) A member who is employed by a participating employer and who is also an
elected official is not required to cease service as an elected official to be qualified to receive
an allowance under Subsection (1), unless the member is retiring from service as an elected
official.
(b) A member who is employed by a participating employer and who is also a part-time
appointed board member is not required to cease service as a part-time appointed board
member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated
emergency services worker as defined in [
Subsection 
49-11-505
(1)(d)
] 
Section 
49-11-1202
 for
a different agency, is not required to cease service as an affiliated emergency services worker to
be qualified to receive an allowance under Subsection (1).
Section 20. Section 
49-22-304
 is amended to read:
49-22-304.
Defined benefit eligibility for an allowance -- Date of retirement --
Qualifications.
(1) A member is qualified to receive an allowance from this system when:
(a) except as provided under Subsection (3), the member ceases actual work for every
participating employer that employs the member before the member's retirement date and
provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the
member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date:
(i) the member has accrued at least four years of service credit and has attained an age
of 65 years;
(ii) the member has accrued at least 10 years of service credit and has attained an age
of 62 years;
(iii) the member has accrued at least 20 years of service credit and has attained an age
of 60 years; or
(iv) the member has accrued at least 35 years of service credit.
(2) (a) The member's retirement date:
(i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by
the office.
(b) Except as provided under Subsection (3), a member may not be employed by a
participating employer in the system established by this chapter on the retirement date selected
under Subsection (2)(a)(i).
(3) (a) A member who is employed by a participating employer and who is also an
elected official is not required to cease service as an elected official to be qualified to receive
an allowance under Subsection (1), unless the member is retiring from service as an elected
official.
(b) A member who is employed by a participating employer and who is also a part-time
appointed board member is not required to cease service as a part-time appointed board
member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated
emergency services worker as defined in [
Subsection 
49-11-505
(1)(d)
] 
Section 
49-11-1202
 for
a different agency, is not required to cease service as an affiliated emergency services worker to
be qualified to receive an allowance under Subsection (1).
Section 21. Section 
49-23-303
 is amended to read:
49-23-303.
Defined benefit eligibility for an allowance -- Date of retirement --
Qualifications.
(1) A member is qualified to receive an allowance from this system when:
(a) except as provided under Subsection (3), the member ceases actual work for every
participating employer that employs the member before the member's retirement date and
provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the
member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date:
(i) the member has accrued at least four years of service credit and has attained an age
of 65 years;
(ii) the member has accrued at least 10 years of service credit and has attained an age
of 62 years;
(iii) the member has accrued at least 20 years of service credit and has attained an age
of 60 years; or
(iv) the member has accrued at least 25 years of service credit.
(2) (a) The member's retirement date:
(i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by
the office.
(b) Except as provided under Subsection (3), a member may not be employed by a
participating employer in the system established by this chapter on the retirement date selected
under Subsection (2)(a)(i).
(3) (a) A member who is employed by a participating employer and who is also an
elected official is not required to cease service as an elected official to be qualified to receive
an allowance under Subsection (1), unless the member is retiring from service as an elected
official.
(b) A member who is employed by a participating employer and who is also a part-time
appointed board member is not required to cease service as a part-time appointed board
member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated
emergency services worker as defined in [
Subsection 
49-11-505
(1)(d)
] 
Section 
49-11-1202
 for
a different agency, is not required to cease service as an affiliated emergency services worker to
be qualified to receive an allowance under Subsection (1).
Section 22. Section 
67-19-43
 is amended to read:
67-19-43.
State employee matching supplemental defined contribution benefit.
(1) As used in this section:
(a) "Qualifying account" means:
(i) a defined contribution plan qualified under Section 401(k) of the Internal Revenue
Code, which is sponsored by the Utah State Retirement Board; or
(ii) a deemed Individual Retirement Account authorized under the Internal Revenue
Code, which is sponsored by the Utah State Retirement Board; or
(iii) a similar savings plan or account authorized under the Internal Revenue Code,
which is sponsored by the Utah State Retirement Board.
(b) "Qualifying employee" means an employee who is:
(i) in a position that is:
(A) receiving retirement benefits under Title 49, Utah State Retirement and Insurance
Benefit Act; and
(B) accruing paid leave benefits that can be used in the current and future calendar
years; and
(ii) not an employee who is reemployed as 
that term is:
(A)
 defined in Section [
49-11-102
.
] 
49-11-1202
; or
(B) used in Section 
49-11-504
.
(2) Subject to the requirements of Subsection (3) and beginning on or after January 4,
2014, an employer shall make a biweekly matching contribution to every qualifying employee's
defined contribution plan qualified under Section 401(k) of the Internal Revenue Code, subject
to federal requirements and limitations, which is sponsored by the Utah State Retirement
Board.
(3) (a) In accordance with the requirements of this Subsection (3), each qualifying
employee shall be eligible to receive the same dollar amount for the contribution under
Subsection (2).
(b) A qualifying employee:
(i) shall receive the contribution amount determined under Subsection (3)(c) if the
qualifying employee makes a voluntary personal contribution to one or more qualifying
accounts in an amount equal to or greater than the employer's contribution amount determined
in Subsection (3)(c);
(ii) shall receive a partial contribution amount that is equal to the qualifying employee's
personal contribution amount if the employee makes a voluntary personal contribution to one
or more qualifying accounts in an amount less than the employer's contribution amount
determined in Subsection (3)(c); or
(iii) may not receive a contribution under Subsection (2) if the qualifying employee
does not make a voluntary personal contribution to a qualifying account.
(c) (i) Subject to the maximum limit under Subsection (3)(c)(iii), the Legislature shall
annually determine the contribution amount that an employer shall provide to each qualifying
employee under Subsection (2).
(ii) The department shall make recommendations annually to the Legislature on the
contribution amount required under Subsection (2), in consultation with the Governor's Office
of Management and Budget and the Division of Finance.
(iii) The biweekly matching contribution amount required under Subsection (2) may
not exceed $26 for each qualifying employee.
(4) A qualifying employee is eligible to receive the biweekly contribution under this
section for any pay period in which the employee is in a paid status or other status protected by
federal or state law.
(5) The employer and employee contributions made and related earnings under this
section vest immediately upon deposit and can be withdrawn by the employee at any time,
subject to Internal Revenue Code regulations on the withdrawals.
(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
executive director shall make rules establishing procedures to implement the provisions of this
section.
Section 23. 
Repealer.
This bill repeals:
Section 
49-11-505
,
Reemployment of a retiree -- Restrictions.
Section 24. 
 Coordinating H.B. 51 with S.B. 19 -- Technical renumbering and
substantive amendments.
If this H.B. 51 and S.B. 19, Phased Retirement, both pass and become law, it is the
intent of the Legislature that the Office of Legislative Research and General Counsel prepare
the Utah Code database for publication by: 
(1) renumbering Part 12, Phased Retirement, enacted by S.B. 19 to Part 13, Phased
Retirement, and renumber and change all references from Part 12 to Part 13 accordingly;
(2) changing the reference to "Section 
49-11-505
" in Section 
49-11-1202
 enacted in
S.B. 19, which will be technically renumbered to Section 
49-11-1302
, to "Section
49-11-1204"
;
(3) changing the reference to "Subsection 
49-11-505
(3)(a)" in Section 
49-11-1206
enacted in S.B. 19, which will be technically renumbered to Section 
49-11-1306
, to
"Subsection 
49-11-1204
(2)"; and
(4) modifying Subsection 
49-11-1202
(4)(b) enacted by H.B. 51 to read:
"(b) does not include a person:
(i) (A) who was reemployed by a participating employer before July 1, 2010; and
(B) whose participating employer that reemployed the person under Subsection
(4)(b)(i)(A) was dissolved, consolidated, merged, or structurally changed in accordance with
Section 
49-11-621
 on or after July 1, 2010; or
(ii) does not include a person who is working under a phased retirement agreement in
accordance with Title 49, Chapter 11, Part 13, Phased Retirement."