Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 165 (2017GS)

Sponsor

Rep. Westwood, J.

Final action

Governor Signed 3/15/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• provides definitions;
• provides that the Board of Directors of each applied technology college, rather than the State Board of Regents, shall designate the public or private retirement systems, organizations, or companies that a regular full-time employee of each applied technology college is eligible to participate in under certain retirement systems or plans; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

HIGHER EDUCATION RETIREMENT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: John R. Westwood
Senate Sponsor: 
Evan J. Vickers
LONG TITLE
General Description:
This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
provisions relating to higher education retirement participation.
Highlighted Provisions:
This bill:
▸ provides definitions;
▸ provides that the Board of Directors of each applied technology college, rather than
the State Board of Regents, shall designate the public or private retirement systems,
organizations, or companies that a regular full-time employee of each applied
technology college is eligible to participate in under certain retirement systems or
plans; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
49-11-102
, as last amended by Laws of Utah 2016, Chapters 84 and 310
49-12-203
, as last amended by Laws of Utah 2015, Chapters 315 and 364
49-12-204
, as last amended by Laws of Utah 2014, Chapter 15
49-13-203
, as last amended by Laws of Utah 2015, Chapters 315 and 364
49-13-204
, as last amended by Laws of Utah 2014, Chapter 15
49-22-203
, as last amended by Laws of Utah 2015, Chapters 315 and 364
49-22-204
, as last amended by Laws of Utah 2014, Chapter 15
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) "Applied technology college" means the same as that term is defined in Section
53B-2a-101
.
[
(9)
] 
(10)
 "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)
] 
(11)
 (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)
] 
(12)
 "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)
] 
(13)
 "Board" means the Utah State Retirement Board established under Section
49-11-202
.
[
(13)
] 
(14)
 "Board member" means a person serving on the Utah State Retirement
Board as established under Section 
49-11-202
.
(15) "Board of Regents" or "State Board of Regents" means the State Board of Regents
established in Section 
53B-1-103
.
[
(14)
] 
(16)
 "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)
] 
(17)
 "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)
] 
(18)
 "Council member" means a person serving on the Membership Council
established under Section 
49-11-202
.
[
(17)
] 
(19)
 "Covered individual" means any individual covered under Chapter 20,
Public Employees' Benefit and Insurance Program Act.
[
(18)
] 
(20)
 "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)
] 
(21)
 "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)
] 
(22)
 "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)
] 
(23)
 "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)
] 
(23)
.
[
(22)
] 
(24)
 "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)
] 
(24)
(a); and
(c) does not include a judge or justice who is subject to a retention election under
Section 
20A-12-201
.
[
(23)
] 
(25)
 (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)
] 
(26)
 "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)
] 
(27)
 "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)
] 
(28)
 "Fund" means any fund created under this title for the purpose of paying
benefits or costs of administering a system, plan, or program.
[
(27)
] 
(29)
 (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)
] 
(30)
 (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)
] 
(31)
 "Institution of higher education" means an institution described in Section
53B-1-102
.
[
(30)
] 
(32)
 (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)
] 
(33)
 "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)
] 
(34)
 "Nonelective contribution" means an amount contributed by a participating
employer into a participant's defined contribution account.
[
(33)
] 
(35)
 "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)
] 
(36)
 "Office" means the Utah State Retirement Office.
[
(35)
] 
(37)
 "Participant" means an individual with voluntary deferrals or nonelective
contributions on deposit with the defined contribution plans administered under this title.
[
(36)
] 
(38)
 "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)
] 
(39)
 "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)
] 
(40)
 "Pension" means monthly payments derived from participating employer
contributions.
[
(39)
] 
(41)
 "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)
] 
(42)
 (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)
] 
(43)
 "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)
] 
(44)
 "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)
] 
(45)
 "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)
] 
(46)
 "Refund interest" means the amount accrued on member contributions at a
rate adopted by the board.
[
(45)
] 
(47)
 "Retiree" means an individual who has qualified for an allowance under this
title.
[
(46)
] 
(48)
 "Retirement" means the status of an individual who has become eligible,
applies for, and is entitled to receive an allowance under this title.
[
(47)
] 
(49)
 "Retirement date" means the date selected by the member on which the
member's retirement becomes effective with the office.
[
(48)
] 
(50)
 "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.
[
(49)
] 
(51)
 "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.
[
(50)
] 
(52)
 "Surviving spouse" means:
(a) the lawful spouse who has been married to a member for at least six months
immediately before the death date of the member; or
(b) a former lawful spouse of a member with a valid domestic relations order benefits
on file with the office before the member's death date in accordance with Section 
49-11-612
.
[
(51)
] 
(53)
 "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)
] 
(54)
 "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)
] 
(55)
 (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)
] 
(56)
 "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)
] 
(57)
 "Voluntary deferrals" means an amount contributed by a participant into
that participant's defined contribution account.
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
, or the Board of Directors
of each applied technology college for an employee of each applied technology college,
 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, Section 
49-13-203
, and Section 
49-22-205
, a
municipality, county, or political subdivision may not exempt a total of more than 50 positions
or a number equal to 10% of the employees of the municipality, county, or political
subdivision, whichever is less.
(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 
49-12-204
 is amended to read:
49-12-204.
Higher education employees' eligibility requirements -- Election
between different retirement plans -- Classification requirements -- Transfer between
systems -- One-time election window -- Rulemaking.
(1) (a) A regular full-time employee of an institution of higher education who is
eligible to participate in either this system or a public or private retirement system,
organization, or company, designated [
by the Board of Regents
] 
as described in Subsection
(1)(c) or (d)
, shall, not later than January 1, 1979, elect to participate exclusively in this system
or in an annuity contract allowed under this Subsection (1).
(b) The election is final, and no right exists to make any further election.
(c) Except as provided in Subsection (1)(d), the Board of Regents shall designate the
public or private retirement systems, organizations, or companies that a regular full-time
employee of an institution of higher education is eligible to participate in under Subsection
(1)(a).
(d) The Board of Directors of each applied technology college shall designate the
public or private retirement systems, organizations, or companies that a regular full-time
employee of each applied technology college is eligible to participate in under Subsection
(1)(a).
(2) (a) Except as provided under Subsection (2)(c), a regular full-time employee hired
by an institution of higher education after January 1, 1979, may participate only in the
retirement plan which attaches to the person's employment classification.
(b) Each institution of higher education shall prepare or amend existing employment
classifications, under the direction of the Board of Regents
, or the Board of Directors of each
applied technology college for each applied technology college
, so that each classification is
assigned with either:
(i) this system; or
(ii) a public or private system, organization, or company designated by
:
(A) except as provided in Subsection (2)(b)(ii)(B),
 the Board of Regents
; or
(B) the Board of Directors of each applied technology college for regular full-time
employees of each applied technology college
.
(c) Notwithstanding a person's employment classification assignment under Subsection
(2)(b), a regular full-time employee who begins employment with an institution of higher
education on or after May 11, 2010, has a one-time irrevocable election to continue
participation in this system, if the employee has service credit in this system before the date of
employment.
(3) Notwithstanding an employment classification assignment change made under
Subsection (2)(b), a regular full-time employee hired by an institution of higher education after
January 1, 1979, whose employment classification requires participation in this system may
elect to continue participation in this system.
(4) A regular full-time employee hired by an institution of higher education after
January 1, 1979, whose employment classification requires participation in this system shall
participate in this system.
(5) (a) Notwithstanding any other provision of this section, a regular full-time
employee of an institution of higher education shall have a one-time irrevocable election to
participate in this system if the employee:
(i) was hired after January 1, 1979;
(ii) whose employment classification assignment under Subsection (2)(b) required
participation in a retirement program other than this system; and
(iii) has service credit in a system under this title.
(b) The election under Subsection (5)(a) shall be made before June 30, 2010.
(c) All forms required by the office must be completed and received by the office no
later than June 30, 2010, for the election to participate in this system to be effective.
(d) Beginning July 1, 2010, a regular full-time employee of an institution of higher
education who elects to be covered by this system under Subsection (5)(a) may begin to accrue
service credit in this system.
(6) A regular full-time employee of an institution of higher education who elects to be
covered by this system under Subsection (2)(c) or (5)(a), may purchase periods of employment
while covered under another retirement program sponsored by the institution of higher
education by complying with the requirements of Section 
49-11-403
.
(7) The board shall make rules to implement this section.
Section 4. 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
, or the Board of Directors
of each applied technology college for an employee of each applied technology college,
 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, Section 
49-12-203
, and Section 
49-22-205
, a
municipality, county, or political subdivision may not exempt a total of more than 50 positions
or a number equal to 10% of the employees of the municipality, county, or political
subdivision, whichever is less.
(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 5. Section 
49-13-204
 is amended to read:
49-13-204.
Higher education employees' eligibility requirements -- Election
between different retirement plans -- Classification requirements -- Transfer between
systems -- One-time election window -- Rulemaking.
(1) (a) A regular full-time employee of an institution of higher education who is
eligible to participate in either this system or in a retirement system with a public or private
retirement system, organization, or company, designated [
by the Board of Regents
] 
as
described in Subsection (1)(c) or (d)
, shall, not later than January 1, 1979, elect to participate
exclusively in this system or in an annuity contract allowed under this Subsection (1)(a).
(b) The election is final, and no right exists to make any further election.
(c) Except as provided in Subsection (1)(d), the Board of Regents shall designate the
public or private retirement systems, organizations, or companies that a regular full-time
employee of an institution of higher education is eligible to participate in under Subsection
(1)(a).
(d) The Board of Directors of each applied technology college shall designate the
public or private retirement systems, organizations, or companies that a regular full-time
employee of each applied technology college is eligible to participate in under Subsection
(1)(a).
(2) (a) Except as provided under Subsection (2)(c), a regular full-time employee hired
by an institution of higher education after January 1, 1979, may participate only in the
retirement plan which attaches to the person's employment classification.
(b) Each institution of higher education shall prepare or amend existing employment
classifications, under the direction of the Board of Regents
, or the Board of Directors of each
applied technology college for regular full-time employees of each applied technology college
,
so that each classification is assigned with either:
(i) this system; or
(ii) a public or private system, organization, or company designated by
:
(A) except as provided in Subsection (2)(b)(ii)(B),
 the Board of Regents[
.
]
; or
(B) the Board of Directors of each applied technology college for regular full-time
employees of each applied technology college.
(c) Notwithstanding a person's employment classification assignment under Subsection
(2)(b), a regular full-time employee who begins employment with an institution of higher
education on or after May 11, 2010, has a one-time irrevocable election to continue
participation in this system, if the employee has service credit in this system before the date of
employment.
(3) Notwithstanding an employment classification assignment change made under
Subsection (2)(b), a regular full-time employee hired by an institution of higher education after
January 1, 1979, whose employment classification requires participation in this system may
elect to continue participation in this system.
(4) A regular full-time employee hired by an institution of higher education after
January 1, 1979, whose employment classification requires participation in this system shall
participate in this system.
(5) (a) Notwithstanding any other provision of this section, a regular full-time
employee of an institution of higher education whose employment classification assignment
under Subsection (2)(b) required participation in a retirement program other than this system
shall have a one-time irrevocable election to participate in this system.
(b) The election under Subsection (5)(a) shall be made before June 30, 2010.
(c) All forms required by the office must be completed and received by the office no
later than June 30, 2010, for the election to participate in this system to be effective.
(d) Beginning July 1, 2010, a regular full-time employee of an institution of higher
education who elects to be covered by this system under Subsection (5)(a) may begin to accrue
service credit in this system.
(6) A regular full-time employee of an institution of higher education who elects to be
covered by this system under Subsection (2)(c) or (5)(a) may purchase periods of employment
while covered under another retirement program by complying with the requirements of
Section 
49-11-403
.
(7) The board shall make rules to implement this section.
Section 6. 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
, or the Board of Directors
of each applied technology college for an employee of each applied technology college,
 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;
(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);
or
(f) a person who files a written request for exemption with the office under Section
49-22-205
.
(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 7. Section 
49-22-204
 is amended to read:
49-22-204.
Higher education employees' eligibility requirements -- Election
between different retirement plans -- Classification requirements -- Transfer between
systems.
(1) (a) 
A
 regular full-time [
employees of institutions
] 
employee of an institution
 of
higher education who [
are
] 
is
 eligible to participate in either this system or in a retirement
annuity contract with a public or private system, organization, or company, designated [
by the
Board of Regents
] 
as described in Subsection (1)(c) or (d)
, shall, not later than January 1, 1979,
elect to participate exclusively in this system or in an annuity contract allowed under this
Subsection (1)[
(a)
].
(b) The election is final, and no right exists to make any further election.
(c) Except as provided in Subsection (1)(d), the Board of Regents shall designate the
public or private retirement systems, organizations, or companies that a regular full-time
employee of an institution of higher education is eligible to participate in under Subsection
(1)(a).
(d) The Board of Directors of each applied technology college shall designate the
public or private retirement systems, organizations, or companies that a regular full-time
employee of each applied technology college is eligible to participate in under Subsection
(1)(a).
(2) (a) A regular full-time employee hired by an institution of higher education after
January 1, 1979, may participate only in the retirement plan which attaches to the person's
employment classification.
(b) Each institution of higher education shall prepare or amend existing employment
classifications, under the direction of the Board of Regents
, or the Board of Directors of each
applied technology college for each applied technology college
, so that each classification is
assigned with either:
(i) this system; or
(ii) a public or private system, organization, or company designated by
:
(A) except as provided under Subsection (2)(b)(ii)(B),
 the Board of Regents
; or
(B) the Board of Directors of each applied technology college for regular full-time
employees of each applied technology college
.
(3) A regular full-time employee hired by an institution of higher education on or after
July 1, 2011, whose employment classification requires participation in this system may elect
to continue participation in this system upon change to an employment classification which
requires participation in a public or private system, organization, or company designated by
:
(a) except as provided in Subsection (3)(b),
 the Board of Regents
; or
(b) the Board of Directors of each applied technology college for regular full-time
employees of each applied technology college
.
(4) A regular full-time employee hired by an institution of higher education on or after
July 1, 2011, whose employment classification requires participation in this system shall
participate in this system.
Section 8. 
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.