Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 311 (2018GS)

Sponsor

Rep. Perry, L.

Final action

House/ filed 3/8/2018

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• allows certain member retirees to be reemployed with a participating employer after a certain period from the retiree's retirement date if the retiree:
• does not receive certain employer provided retirement benefits for the reemployment; and
• is reemployed by a different participating employer than the participating employer that employed the retiree at the time of retirement except in limited circumstances;
• requires a participating employer to pay certain amounts for a reemployed retiree;
• requires certain member certifications on the retirement application form;
• specifies penalties for violating the reemployment provisions; and
• makes technical changes.

Every vote on this bill

Bill text

RETIREMENT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lee B. Perry
Senate Sponsor: 
 Don L. Ipson
LONG TITLE
General Description:
This bill modifies the Postretirement Reemployment Restrictions Act by amending
provisions relating to postretirement reemployment for certain members.
Highlighted Provisions:
This bill:
▸ allows certain member retirees to be reemployed with a participating employer after
a certain period from the retiree's retirement date if the retiree:
• does not receive certain employer provided retirement benefits for the
reemployment; and
• is reemployed by a different participating employer than the participating
employer that employed the retiree at the time of retirement except in limited
circumstances;
▸ requires a participating employer to pay certain amounts for a reemployed retiree;
▸ requires certain member certifications on the retirement application form;
▸ specifies penalties for violating the reemployment provisions; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
49-11-1205
, as last amended by Laws of Utah 2017, Chapter 141
49-11-1206
, as enacted by Laws of Utah 2016, Chapter 310 and last amended by
Coordination Clause, Laws of Utah 2016, Chapter 310
49-11-1207
, as last amended by Laws of Utah 2017, Chapter 141
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
49-11-1205
 is amended 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) (A) the retiree does not earn in any calendar year of reemployment an amount in
excess of the lesser of $15,000 or one-half of the retiree's final average salary upon which the
retiree's retirement allowance is based; or
(B) the retiree is reemployed as a judge as defined under Section 
78A-11-102
.
(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) The office may not cancel the retirement allowance of a retiree if:
(a) the retiree retired from one of the following systems:
(i) Chapter 14, Public Safety Contributory Retirement Act;
(ii) Chapter 15, Public Safety Noncontributory Retirement Act; or
(iii) Chapter 16, Firefighters' Retirement Act;
(b) the retiree's reemployment with a participating employer:
(i) (A) begins 11 or more months after the retiree's retirement date; and
(B) the retiree retired with 21 or more years of service credit;
(ii) (A) begins 10 or months after the retiree's retirement date; and
(B) the retiree retired with 22 or more years of service credit;
(iii) (A) begins nine or more months after the retiree's retirement date; and
(B) the retiree retired with 23 or more years of service credit;
(iv) (A) begins eight or more months after the retiree's retirement date; and
(B) the retiree retired with 24 or more years of service credit;
(v) (A) begins seven or more months after the retiree's retirement date; and
(B) the retiree retired with 25 or more years of service credit;
(vi) (A) begins six or more months after the retiree's retirement date; and
(B) the retiree retired with 26 or more years of service credit;
(vii) (A) begins five or more months after the retiree's retirement date; and
(B) the retiree retired with 27 or more years of service credit;
(viii) (A) begins four or more months after the retiree's retirement date; and
(B) the retiree retired with 28 or more years of service credit;
(ix) (A) begins three or more months after the retiree's retirement date; and
(B) the retiree retired with 29 or more years of service credit;
(x) (A) begins 60 or more days after the retiree's retirement date; and
(B) the retiree retired with 30 or more years of service credit;
(c) except as provided in Subsection (10), the retiree is reemployed by a participating
employer that is a different participating employer than the participating employer the
reemployed retiree was employed by at the time of retirement;
(d) the retiree does not receive any employer paid retirement service credit or
retirement related contributions from the participating employer; and
(e) the participating employer that reemploys the retiree pays to the office, on behalf of
the retiree, the amortization rate.
(5) The office may not cancel the retirement allowance of a retiree if:
(a) the retiree retired from Chapter 23, New Public Safety and Firefighter Tier II
Contributory Retirement Act;
(b) the retiree's reemployment with a participating employer:
(i) (A) begins 11 or more months after the retiree's retirement date; and
(B) the retiree retired with 26 or more years of service credit;
(ii) (A) begins 10 or more months after the retiree's retirement date; and
(B) the retiree retired with 27 or more years of service credit;
(iii) (A) begins nine or more months after the retiree's retirement date; and
(B) the retiree retired with 28 or more years of service credit;
(iv) (A) begins eight or more months after the retiree's retirement date; and
(B) the retiree retired with 29 or more years of service credit;
(v) (A) begins seven or more months after the retiree's retirement date; and
(B) the retiree retired with 30 or more years of service credit;
(vi) (A) begins six or more months after the retiree's retirement date; and
(B) the retiree retired with 31 or more years of service credit;
(vii) (A) begins five or more months after the retiree's retirement date; and
(B) the retiree retired with 32 or more years of service credit;
(viii) (A) begins four or more months after the retiree's retirement date; and
(B) the retiree retired with 33 or more years of service credit;
(ix) (A) begins three or more months after the retiree's retirement date; and
(B) the retiree retired with 34 or more years of service credit;
(x) (A) begins 60 or more days after the retiree's retirement date; and
(B) the retiree retired with 35 or more years of service credit;
(c) except as provided in Subsection (10), the retiree is reemployed by a participating
employer that is a different participating employer than the participating employer the
reemployed retiree was employed by at the time of retirement;
(d) the retiree does not receive any employer paid retirement service credit or
retirement related contributions from the participating employer; and
(e) the participating employer that reemploys the retiree pays to the office, on behalf of
the retiree, the amortization rate.
(6) Any amortization rate paid to the office under Subsection (4)(e) or (5)(e) shall be
applied to the system that would have covered the retiree if the retiree's reemployed position
were considered to be an eligible, full-time position within that system.
(7) (a) (i) A retiree receiving a retirement allowance may be reemployed under the
provisions of Subsection (1), (3), (4), or (5) in only one position for only one participating
employer at a time following the retiree's retirement date.
(ii) The participating employer shall notify the office which postretirement
reemployment exception under this section will govern the retiree's reemployment.
(b) A retiree reemployed under the provisions of Subsection (1), (3), (4), or (5) may
change reemployment to a new position under the provisions of Subsection (1), (3), (4), or (5)
only if:
(i) the retiree ceases actual work and is terminated from the current reemployed
position;
(ii) except as provided in Subsection (7)(b)(ii)(B) or (10), begins the subsequent
reemployment with a participating employer that is a different participating employer than:
(A) the participating employer for the retiree's current reemployment; and
(B) the participating employer that employed the retiree at the retiree's original time of
retirement; and
(iii) the participating employer or retiree notifies the office of the change in
reemployment and provides evidence of the termination and change to the office.
[
(4)
] 
(8)
 (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) If a retiree changes reemployment to another position under the provisions of
Subsection (1), (3), (4), (5), or (7) the final termination date of all reemployment, as confirmed
in writing by the last participating employer, is considered the retiree's retirement date for the
purpose of calculating the separation requirement under Subsection 
49-11-505
(3)(a).
[
(b)
] 
(9)
 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).
(10) Notwithstanding Subsections (4)(c) and (5)(c), a reemployed retiree that was
employed by:
(a) the state of Utah at the time of retirement may be reemployed by the state under
Subsection (4), (5), or (7) if the reemployment is with a different agency or office; or
(b) a participating employer located in a county with a population of less than 75,000
may be reemployed by that participating employer under Subsection (4) or (5) if, before the
retiree is reemployed:
(i) the participating employer certifies to the office, under penalty of fraud, the facts
and circumstances of rehire, including any prearrangement for reemployment before the
member's retirement date; and
(ii) the office performs a facts and circumstances review and determines there was a
bona fide termination of employment with that participating employer, including the specific
finding that there was not a prearrangement for reemployment before the member's retirement
date.
Section 2. Section 
49-11-1206
 is amended 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)
, (4), (5), or (7)
; 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
.
(4) The retirement application form submitted to the office shall contain the retiring
member's certification, under penalty of fraud, of whether there was a prearrangement of
reemployment before the retiree's retirement date with the participating employer.
Section 3. Section 
49-11-1207
 is amended 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)(A) 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)
 A participating employer is liable to the office for a payment or failure to make
a payment in violation of this part.
(b) In addition to other penalties under this section, if the reemployment of a retiree is
in violation of Subsection 
49-11-1205
(4) or (5), the participating employer shall pay the office
any delinquent amortization rate contributions, plus interest, under Section 
49-11-503
.
(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 4. 
Effective date.
This bill takes effect on January 1, 2019.
Legislative Review Note
Office of Legislative Research and General Counsel