Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 16 First Substitute (2021GS)

Sponsor

Sen. Harper, W.

Final action

Governor Signed 3/16/2021

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• clarifies that an employee does not receive service credit until required contributions are paid to the Utah State Retirement Office;
• provides that additional acts relating to unlawfully obtaining or appropriating benefit payments are criminal violations;
• amends the procedures for making an appeal related to a benefit, right, obligation, or employment right;
• clarifies that a person is still convicted of an employment related offense if the person pleads guilty, even if a charge is reduced or dismissed under a plea agreement;
• allows certain independent entities to make an election to withdraw from participation in a Utah retirement system or plan for current and future employees;
• requires the independent entities that make the withdrawal to pay certain costs that arise out of the election to withdraw;
• imposes minimum age requirements on certain retirees who will receive in-service retirement distributions;
• amends certain provisions that govern a participating employer's purchase of service credit on behalf of an employee for years of service provided before the participating employer's admission to the Utah Retirement System;
• amends the process for establishing the service status of justice court judges with multiple employers; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

UTAH RETIREMENT SYSTEMS AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: 
Craig Hall
LONG TITLE
General Description:
This bill modifies the Utah State Retirement and Insurance Benefit Act.
Highlighted Provisions:
This bill:
▸ clarifies that an employee does not receive service credit until required
contributions are paid to the Utah State Retirement Office;
▸ provides that additional acts relating to unlawfully obtaining or appropriating
benefit payments are criminal violations;
▸ amends the procedures for making an appeal related to a benefit, right, obligation,
or employment right;
▸ clarifies that a person is still convicted of an employment related offense if the
person pleads guilty, even if a charge is reduced or dismissed under a plea
agreement;
▸ allows certain independent entities to make an election to withdraw from
participation in a Utah retirement system or plan for current and future employees;
▸ requires the independent entities that make the withdrawal to pay certain costs that
arise out of the election to withdraw;
▸ imposes minimum age requirements on certain retirees who will receive in-service
retirement distributions;
▸ amends certain provisions that govern a participating employer's purchase of service
credit on behalf of an employee for years of service provided before the
participating employer's admission to the Utah Retirement System;
▸ amends the process for establishing the service status of justice court judges with
multiple employers; 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:
49-11-401
, as last amended by Laws of Utah 2010, Chapter 266
49-11-608
, as renumbered and amended by Laws of Utah 2002, Chapter 250
49-11-613
, as last amended by Laws of Utah 2016, Chapter 251
49-11-613.5
, as enacted by Laws of Utah 2016, Chapter 251
49-11-1205
, as last amended by Laws of Utah 2020, Chapter 449
49-11-1303
, as last amended by Laws of Utah 2020, Chapter 98
49-11-1401
, as last amended by Laws of Utah 2020, Chapter 24
49-12-202
, as last amended by Laws of Utah 2018, Chapter 415
49-12-203
, as last amended by Laws of Utah 2020, Chapters 24 and 365
49-12-406
, as last amended by Laws of Utah 2019, Chapter 31
49-13-202
, as last amended by Laws of Utah 2018, Chapter 415
49-13-203
, as last amended by Laws of Utah 2020, Chapters 24 and 365
49-13-406
, as last amended by Laws of Utah 2019, Chapter 31
49-15-202
, as last amended by Laws of Utah 2014, Chapter 15
49-22-203
, as last amended by Laws of Utah 2020, Chapters 24 and 365
49-23-202
, as last amended by Laws of Utah 2012, Chapter 298
ENACTS:
49-11-625
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
49-11-401
 is amended to read:
49-11-401.
Transfer of service credit -- Eligibility for service credit --
Computation of service credit -- Retirement from most recent system.
(1) (a) The office shall make the transfer of service credit, together with related
member and participating employer contributions, from one system to another upon terms and
conditions established by the board.
(b) The terms and conditions may not result in a loss of accrued benefits.
(2) [
Transfer of
] 
An employee does not lose active member status by transferring
employment from a position covered by one system to a position covered by another system
[
does not cause the employee to lose active member status
].
(3) In the accrual of service credit, the following provisions apply:
(a) [
A
] 
(i) a
 person employed and compensated by a participating employer who meets
the eligibility requirements for membership in a system or the Utah Governors' and Legislators'
Retirement Plan shall receive service credit for the term of the employment provided that all
required contributions are paid to the office[
.
]
; and
(ii) the person may not receive service credit for a term of employment until all
required contributions related to that service credit have been paid to the office;
(b) [
An
] 
an
 allowance or other benefit may not accrue under this title which is based
upon the same period of employment as has been the basis for any retirement benefits under
some other public retirement system[
.
]
;
(c) 
(i)
 [
The
] 
the
 board shall fix the minimum time per day, per month, and per year
upon the basis of which one year of service and proportionate parts of a year shall be credited
toward qualification for retirement[
.
]
;
(ii)
 [
Service
] 
service
 may be computed on a fiscal or calendar year basis and portions
of years served shall be accumulated and counted as service[
.
]
; and
(iii)
 [
In
] 
in
 any event, all of the service rendered in any one fiscal or calendar year may
not count for more than one year[
.
]
;
(d) [
Service
] 
service
 credit shall be accrued on a fiscal or calendar year basis as
determined by the participating employer[
.
]
;
(e) [
A
] 
a
 member may not accrue more than one year of service credit per fiscal or
calendar year as determined by the office[
.
]
; and
(f) [
Fractions
] 
fractions
 of years of service credit shall be accumulated and counted in
proportion to the work performed.
(4) The office may estimate the amount of service credit, compensation, or age of any
member, participant, or alternate payee, if information is not contained in the records.
(5) A member shall retire from the system [
which
] 
that
 most recently covered the
member.
(6) (a) Under no circumstances may service credit earned by a member under Chapter
22, New Public Employees' Tier II Contributory Retirement Act, or Chapter 23, New Public
Safety and Firefighter Tier II Contributory Retirement Act, be transferable to any other system
or plan under this title.
(b) Under no circumstances may service credit earned by a member under one of the
following systems be transferable to the system created under Chapter 22, New Public
Employees' Tier II Contributory Retirement Act, or under Chapter 23, New Public Safety and
Firefighter Tier II Contributory Retirement Act:
(i) Chapter 12, Public Employees' Contributory Retirement Act;
(ii) Chapter 13, Public Employees' Noncontributory Retirement Act;
(iii) Chapter 14, Public Safety Contributory Retirement Act;
(iv) Chapter 15, Public Safety Noncontributory Retirement Act;
(v) Chapter 16, Firefighters' Retirement Act; or
(vi) Chapter 19, Utah Governors' and Legislators' Retirement Act.
Section 2. Section 
49-11-608
 is amended to read:
49-11-608.
False statements or records -- Unlawfully cashing benefit checks --
Unlawfully obtaining or appropriating benefit payments.
(1) A person who knowingly makes any false statement, or who falsifies or permits to
be falsified any record necessary for carrying out the intent of this title is in violation of Section
76-6-504
.
(2) A person cashing a benefit check to which that person is not entitled is in violation
of Section 
76-6-501
.
(3) A person who obtains a benefit payment, including a direct deposit or electronic
benefit payment, to which that person is not entitled and who fails to take reasonable measures
to return the benefit payment to the office is in violation of Section 
76-6-407
.
(4) A person who appropriates property or a benefit of another person, including a
direct deposit or electronic benefit payment, by obtaining or exercising unauthorized control
over the property or the benefit is in violation of Section 
76-6-407
.
Section 3. Section 
49-11-613
 is amended to read:
49-11-613.
Appeals procedure -- Right of appeal to hearing officer -- Board
reconsideration -- Judicial review.
(1) (a) A member, retiree, participant, alternative payee, covered individual, employer,
participating employer, and covered employer shall inform themselves of their 
benefits,
 rights
[
and
]
,
 obligations
, and employment rights
 under this title.
(b) Subject to [
the provisions in
] Subsection (8), any dispute regarding a benefit, right,
obligation, or employment right under this title is subject to the procedures provided under this
section.
(c) (i) A person who disputes a benefit, right, obligation, or employment right under
this title shall request a ruling by the executive director who may delegate the decision to the
deputy director.
(ii) A request for a ruling to the executive director under this section shall constitute
the initiation of an action for purposes of the limitations periods [
prescribed
] 
described
 in
Section 
49-11-613.5
.
(d) A person who is dissatisfied by a ruling under Subsection (1)(c) with respect to any
benefit, right, obligation, or employment right under this title [
shall have 30 days from the date
of the ruling to
] 
may
 request a review of that claim by a hearing officer 
within the time period
described in Section 
49-11-613.5
.
(e) 
(i)
 The executive director, on behalf of the board, may request that the hearing
officer review a dispute regarding any benefit, right, obligation, or employment right under this
title by filing a notice of board action and providing notice to all affected parties in accordance
with rules adopted by the board.
(ii) The filing of a notice of board action shall constitute the initiation of an action for
purposes of the limitations periods described in Section 
49-11-613.5
.
(2) The hearing officer shall:
(a) be hired by the executive director after consultation with the board;
(b) follow 
and enforce
 the procedures and requirements of
:
(i) this title;
(ii) the rules adopted by the board in accordance with Subsection (9); and
(iii)
 Title 63G, Chapter 4, Administrative Procedures Act, except as specifically
modified under this title 
or the rules adopted by the board in accordance with Subsection (9)
;
(c) hear and determine all facts relevant to a decision, including facts pertaining to
applications for benefits under any system, plan, or program under this title and all matters
pertaining to the administration of the office; and
(d) make conclusions of law in determining the person's rights under any system, plan,
or program under this title and matters pertaining to the administration of the office.
(3) The board shall review and approve or deny all decisions of the hearing officer in
accordance with rules adopted by the board 
in accordance with Subsection (9)
.
(4) The moving party in any proceeding brought under this section shall bear the
burden of proof.
(5) A party may file an application for reconsideration by the board upon any of the
following grounds:
(a) that the board acted in excess of [
its
] 
the board's
 powers;
(b) that the order or 
the
 award was procured by fraud;
(c) that the evidence does not justify the determination of the hearing officer; or
(d) that the party has discovered new material evidence that could not, with reasonable
diligence, have been discovered or procured prior to the hearing.
(6) The board shall affirm, reverse, or modify the decision of the hearing officer, or
remand the application to the hearing officer for further consideration.
(7) A party aggrieved by the board's 
final
 decision 
under Subsection (6)
 may obtain
judicial review by complying with the procedures and requirements of
:
(a) this title;
(b) rules adopted by the board in accordance with Subsection (9); and
(c)
 Title 63G, Chapter 4, Administrative Procedures Act
, except as specifically
modified under this title or the rules adopted by the board in accordance with Subsection (9)
.
(8) The program shall provide an appeals process for medical claims that complies
with federal law.
(9) 
(a)
 The board [
may
] 
shall
 make rules to implement this section 
and to establish
procedures and requirements for adjudicative proceedings
.
(b) The rules shall be substantially similar to or incorporate provisions of the Utah
Rules of Civil Procedure, the Utah Rules of Evidence, and Title 63G, Chapter 4,
Administrative Procedures Act.
Section 4. Section 
49-11-613.5
 is amended to read:
49-11-613.5.
Limitation of actions -- Cause of action.
(1) 
(a)
 Subject to the procedures provided in Section 
49-11-613
 and except as provided
in Subsection (3), an action regarding a benefit, right, obligation, or employment right brought
under this title may be commenced only within four years of the [
date that
] 
day on which
 the
cause of action accrues.
(b) A person who is dissatisfied with an executive director's ruling under Section
49-11-613
 and who seeks a review of that claim by a hearing officer shall file a request for
board action within 30 days of the day on which the hearing officer issues the ruling.
(2) (a) A cause of action accrues under this title and the limitation period in this section
runs from the [
date when
] 
day on which
 the aggrieved party became aware, or through the
exercise of reasonable diligence should have become aware, of the facts giving rise to the cause
of action, including when:
(i) a benefit, right, or employment right is or should have been granted;
(ii) a payment is or should have been made; or
(iii) an obligation is or should have been performed.
(b) If a claim involves a retirement service credit issue under this title:
(i) a cause of action specifically accrues at the time the requisite retirement
contributions relating to that retirement service credit are paid or should have been paid to the
office; and
(ii) the person is deemed to be on notice of the payment or nonpayment of those
retirement contributions.
(3) If an aggrieved party fails to discover the facts giving rise to the cause of action due
to misrepresentation, fraud, intentional nondisclosure, or other affirmative steps to conceal the
cause of action, a limitation period prescribed in this section does not begin to run until the
aggrieved party actually discovers the existence of the cause of action.
(4) The person claiming a benefit, right, obligation, or employment right arising under
this title has the burden of bringing the action within the period prescribed in this section.
(5) Nothing in this section relieves a member, retiree, participant, alternative payee,
covered individual, employer, participating employer, or covered employer of the obligations
under this title.
(6) The office is not required to bring a claim on behalf of a member, retiree,
participant, alternative payee, covered individual, employer, participating employer, or covered
employer.
(7) (a) A limitation period provided in this section does not apply to actions for which
a specific limit is otherwise specified in this title or by contract, including master policies or
other insurance contracts.
(b) For actions arising under this title, this section supersedes any applicable limitation
period provided in Title 78B, Chapter 2, Statutes of Limitations.
Section 5. Section 
49-11-625
 is enacted to read:
 49-11-625.
Withdrawing independent entity -- Participation election date --
Withdrawal costs -- Rulemaking.
(1) As used in this section, "withdrawing entity" means an entity that:
(a) participates in a system or plan under this title before January 1, 2021;
(b) is an independent entity listed under Subsection 
63E-1-102
(4)(b); and
(c) after beginning participation with a system or plan under this title, has restructured
the entity's business operations and employment of employees under contract through a
regional, multi-state partnership.
(2) A withdrawing entity may elect to withdraw from participation in all systems or
plans for all current and future employees of the withdrawing entity, beginning on the date set
in accordance with Subsection (3)(a).
(3) Notwithstanding any other provision of this title, a withdrawing entity may provide
for the participation of the withdrawing entity's employees with the system or plan as follows:
(a) the withdrawing entity shall determine a date that is before July 1, 2022, on which
the withdrawing entity shall make an election under Subsection (2); and
(b) subject to Subsection (6), the withdrawing entity shall pay to the office any
reasonable actuarial and administrative costs determined by the office to have arisen out of an
election made under this section.
(4) (a) An election made under Subsection (2):
(i) shall be made on or before the date specified under Subsection (3)(a);
(ii) shall be documented by a resolution adopted by the governing body of the
withdrawing entity;
(iii) remains in effect unless and until the withdrawing entity again becomes a
participating entity with the office in accordance with Subsection (5); and
(iv) applies to a withdrawing entity as the employer and to all employees of the
withdrawing entity.
(b) Notwithstanding an election made under Subsection (2), any eligibility for service
credit earned by an employee under this title before the date specified under Subsection (3)(a)
is not affected by this section.
(c) Notwithstanding any other provision of this title, a withdrawing entity that makes
an election under Subsection (2) may provide or participate in any type of public or private
retirement for the withdrawing entity's employees.
(5) After the withdrawal and subject to the laws and rules governing participating
employer admission, the withdrawing entity may elect, by resolution of the withdrawing
entity's governing body, to resume participation with the office and apply for admission as a
participating employer in a system or plan under this title.
(6) Before a withdrawing entity may withdraw under this section, the withdrawing
entity and the office shall enter into an agreement on:
(a) the costs described in Subsection (3)(b); and
(b) arrangements for the payment of the costs described in Subsection (3)(b).
(7) The board shall make rules to implement this section.
Section 6. 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
] 
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
(v) is at least 50 years old; 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
] 
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.
(d) A retiree is eligible for an exemption from the requirement to cease service without
cancellation of a retirement allowance under this Subsection (3) only if the retiree, at the time
of retirement, is at least:
(i) 50 years old, if the retiree is retiring from a public safety system or a firefighter
system; or
(ii) 55 years old.
(4) (a) The office may not cancel the retirement allowance of a retiree employed as a
part-time appointed or elected board member within one year after the retiree's retirement date
if the part-time appointed or elected board member does not receive any compensation
exceeding the amount described in this Subsection (4).
(b) A retiree who is a part-time appointed or elected board member for one or more
boards, commissions, councils, committees, panels, or other bodies of participating employers:
(i) may receive an aggregate amount of compensation, remuneration, a stipend, or other
benefit for service on a single or multiple boards, commissions, councils, committees, panels,
or other bodies of no more than $5,000 per year; and
(ii) may not receive an employer paid retirement service credit or retirement-related
contribution.
(c) For purposes of Subsection (4)(b)(i):
(i) a part-time appointed or elected board member's compensation includes:
(A) an amount paid for the part-time appointed or elected board member's coverage in
a group insurance plan provided by the participating employer; and
(B) the part-time appointed or elected board member's receipt of any other benefit
provided by the participating employer; and
(ii) the part-time appointed or elected board member's compensation does not include:
(A) an amount the participating employer pays for employer-matching employment
taxes, if the participating employer treats the part-time appointed or elected board member as
an employee for federal tax purposes; or
(B) an amount that the part-time appointed or elected board member receives for per
diem and travel expenses for up to 12 approved meetings or activities of the government board
per year, if the per diem and travel expenses do not exceed the amounts established by the
Division of Finance under Sections 
63A-3-106
 and 
63A-3-107
 or by rules made by the
Division of Finance according to Sections 
63A-3-106
 and 
63A-3-107
.
(d) [
Beginning January 1, 2021, the
] 
The
 board shall adjust the amount under
Subsection (4)(b)(i) 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.
(5) (a) If a retiree is reemployed under the provisions of Subsection (1) or (4), 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), (3)(b), or (4)(b).
Section 7. Section 
49-11-1303
 is amended to read:
49-11-1303.
Phased retirement -- Eligibility -- Restrictions -- Amortization rate --
Public safety service or firefighter service employees.
(1) A retiree is eligible for employment with only one position for only one
participating employer under phased retirement following the retiree's retirement date if:
(a) the retiree:
(i) is eligible to retire and retires in accordance with this title;
(ii) has been employed full time, for not less than four years immediately before the
retiree's retirement date;
(iii) [
for a retiree employed as a public safety service employee or a firefighter service
employee, is at least 50 years old;
] 
is, at the time of retirement, at least:
(A) 50 years old, if the retiree is employed as a public safety service employee or a
firefighter service employee; or
(B) 55 years old;
(iv) completes and submits all required retirement forms to the office; and
(v) prior to the retiree's retirement date, completes and submits all required phased
retirement forms to the office; and
(b) the retiree and the participating employer enter into an agreement described under
Section 
49-11-1304
.
(2) A retiree shall begin phased retirement employment after the retiree's retirement
date but no later than 120 days after the retiree's retirement date.
(3) Except as provided in Subsection (4), for the period of the phased retirement:
(a) the retiree receives 50% of the retiree's monthly allowance;
(b) the participating employer employs the retiree on a half-time basis;
(c) a participating employer that employs the retiree shall contribute the amortization
rate to the office;
(d) the retiree or an alternate payee may not receive an annual cost-of-living adjustment
to the retiree's or alternate payee's allowance;
(e) any death benefits payable to a surviving spouse or other beneficiary shall be paid
based on 100% of the retiree's retirement allowance;
(f) the retiree may not receive any employer provided retirement benefits, service credit
accruals, or any retirement related contributions from the participating employer; and
(g) except as specified under this section, a retiree working under phased retirement
shall be treated in the same manner as any other part-time employee working a similar position
and number of hours with the participating employer, including:
(i) any non-retirement related benefits;
(ii) leave benefits;
(iii) medical benefits; and
(iv) other benefits.
(4) (a) If a retiree is employed as a public safety service employee or a firefighter
service employee, for the period of the phased retirement the requirements of Subsection (3) or
(4)(b) are satisfied.
(b) For the period of the phased retirement:
(i) the retiree is employed as a public safety service employee or a firefighter service
employee;
(ii) the retiree receives 25% of the retiree's monthly allowance;
(iii) the participating employer employs the retiree on a three-quarter time basis;
(iv) a participating employer that employs the retiree shall contribute to the office the
certified contribution rate applicable to the system that would have covered the retiree if the
retiree's part-time position were considered to be an eligible, full-time position within the
system;
(v) the retiree or an alternate payee may not receive an annual cost-of-living adjustment
to the retiree's or alternate payee's allowance;
(vi) any death benefits payable to a surviving spouse or other beneficiary shall be paid
based on 100% of the retiree's retirement allowance;
(vii) the retiree may not receive any employer provided retirement benefits, service
credit accruals, or any retirement related contributions from the participating employer; and
(viii) except as specified under this section, a retiree working under phased retirement
shall be treated in the same manner as any other part-time employee working a similar position
and number of hours with the participating employer, including:
(A) any non-retirement related benefits;
(B) leave benefits;
(C) medical benefits; and
(D) other benefits.
(5) The office shall begin paying 100% of the retiree's retirement allowance on the first
day of the month following the month in which the office receives written notification and any
required supporting documentation that the retiree's phased retirement has been irrevocably
terminated.
Section 8. Section 
49-11-1401
 is amended to read:
49-11-1401.
Forfeiture of retirement benefits for employees for employment
related offense convictions -- Notifications -- Investigations -- Appeals.
(1) As used in this section:
(a) "Convicted" means a conviction by plea or by verdict, including a plea of guilty or a
plea of no contest that is held in abeyance under Title 77, Chapter 2a, Pleas in Abeyance,
regardless of whether the charge was, or is, subsequently reduced in accordance with the plea
agreement or reduced or dismissed in accordance with 
the plea agreement or
 the plea in
abeyance agreement.
(b) "Employee" means a member of a system or plan administered by the board.
(c) (i) "Employment related offense" means a felony committed during employment or
the term of an elected or appointed office with a participating employer that is:
(A) during the performance of the employee's duties;
(B) within the scope of the employee's employment; or
(C) under color of the employee's authority.
(ii) "Employment related offense" does not include any federal offense for conduct that
is lawful under Title 26, Chapter 61a, Utah Medical Cannabis Act.
(2) (a) Notwithstanding any other provision of this title, an employee shall forfeit
accrual of service credit, employer retirement related contributions, including employer
contributions to the employer sponsored defined contribution plans, or other retirement related
benefits from a system or plan under this title in accordance with this section.
(b) The forfeiture of retirement related benefits under Subsection (2)(a) does not
include the employee's contribution to a defined contribution plan.
(3) An employee shall forfeit the benefits described under Subsection (2)(a):
(a) if the employee is convicted of an employment related offense;
(b) beginning on the day on which the employment related offense occurred; and
(c) until the employee is either:
(i) re-elected or reappointed to office; or
(ii) (A) terminated from the position for which the employee was found to have
committed an employment related offense; and
(B) rehired or hired as an employee who is eligible to be a member of a Utah state
retirement system or plan.
(4) The employee's participating employer shall:
(a) immediately notify the office:
(i) if an employee is charged with an offense that is or may be an employment related
offense under this section; and
(ii) if the employee described in Subsection (4)(a)(i) is acquitted of the offense that is
or may be an employment related offense under this section; and
(b) if the employee is convicted of an offense that may be an employment related
offense:
(i) conduct an investigation, which may rely on the conviction, to determine:
(A) whether the conviction is for an employment related offense; and
(B) the date on which the employment related offense was initially committed; and
(ii) after the period of time for an appeal by an employee under Subsection (5),
immediately notify the office of the employer's determination under this Subsection (4)(b).
(5) An employee may appeal the employee's participating employer's determination
under Subsection (4)(b) in accordance with the participating employer's procedures for
appealing agency action, including Title 63G, Chapter 4, Administrative Procedures Act, if
applicable.
(6) (a) Notwithstanding Subsection (4), a district attorney, a county attorney, the
attorney general's office, or the state auditor may notify the office and the employee's
participating employer if an employee is charged with an offense that is or may be an
employment related offense under this section.
(b) If the employee's participating employer receives a notification under Subsection
(6)(a), the participating employer shall immediately report to the entity that provided the
notification under Subsection (6)(a):
(i) if the employee is acquitted of the offense;
(ii) if the employee is convicted of an offense that may be an employment related
offense; and
(iii) when the participating employer has concluded [
its
] 
the participating employer's
duties under this section if the employee is convicted, including conducting an investigation,
making a determination under Subsection (4)(b) that the conviction was for an employment
related offense, and notifying the office under Subsection (7).
(c) The notifying entity under Subsection (6)(a) may assist the employee's participating
employer with the investigation and determination described under Subsection (4)(b).
(7) Upon receiving a notification from a participating employer that the participating
employer has made a determination under Subsection (4)(b) that the conviction was for an
employment related offense, the office shall immediately forfeit any service credit, employer
retirement related contributions, including employer contributions to the employer sponsored
contribution plans, or other retirement related benefits accrued by or made for the benefit of the
employee, beginning on the date of the initial employment related offense determined under
Subsection (4)(b).
(8) This section applies to an employee who is convicted on or after the effective date
of this act for an employment related offense.
(9) The board may make rules to implement this section.
(10) If any provision of this section, or the application of any provision to any person
or circumstance, is held invalid, the remainder of this section shall be given effect without the
invalid provision or application.
Section 9. Section 
49-12-202
 is amended to read:
49-12-202.
Participation of employers -- Limitations -- Exclusions -- Admission
requirements -- Exceptions -- Nondiscrimination requirements.
(1) (a) Unless excluded under Subsection (2), an employer is a participating employer
and may not withdraw from participation in this system.
(b) In addition to [
their
] participation in this system, 
a
 participating [
employers
]
employer
 may provide or participate in public or private retirement, supplemental or defined
contribution plan, either directly or indirectly, for [
their
] 
the participating employer's
employees.
(2) The following employers may be excluded from participation in this system:
(a) an employer not initially admitted or included as a participating employer in this
system prior to January 1, 1982
,
 if:
(i) the employer elects not to provide or participate in any type of private or public
retirement, supplemental or defined contribution plan, either directly or indirectly, for [
its
] 
the
employer's
 employees, except for Social Security; or
(ii) the employer offers another collectively bargained retirement benefit and has
continued to do so on an uninterrupted basis since that date;
(b) an employer that is a charter school authorized under Title 53G, Chapter 5, Part 3,
Charter School Authorization, and does not elect to participate in accordance with Section
53G-5-407
;
(c) an employer that is a hospital created as a special service district under Title 17D,
Chapter 1, Special Service District Act, that makes an election of nonparticipation in
accordance with Subsection (4); or
(d) an employer that is licensed as a nursing care facility under Title 26, Chapter 21,
Health Care Facility Licensing and Inspection Act, and created as a special service district
under Title 17D, Chapter 1, Special Service District Act, in a rural area of the state that makes
an election of nonparticipation in accordance with Subsection (4).
(3) An employer who did not become a participating employer in this system prior to
July 1, 1986, may not participate in this system.
(4) (a) (i) Until June 30, 2009, a employer that is a hospital created as a special service
district under Title 17D, Chapter 1, Special Service District Act, may make an election of
nonparticipation as an employer for retirement programs under this chapter.
(ii) Until June 30, 2014, an employer that is licensed as a nursing care facility under
Title 26, Chapter 21, Health Care Facility Licensing and Inspection Act, and created as a
special service district under Title 17D, Chapter 1, Special Service District Act, in a rural area
of the state may make an election of nonparticipation as an employer for retirement programs
under this chapter.
(b) An election provided under Subsection (4)(a):
(i) is a one-time election made no later than the time specified under Subsection (4)(a);
(ii) shall be documented by a resolution adopted by the governing body of the special
service district;
(iii) is irrevocable; and
(iv) applies to the special service district as the employer and to all employees of the
special service district.
(c) The governing body of the special service district may offer employee benefit plans
for [
its
] 
special service district's
 employees:
(i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
or
(ii) under any other program.
(5) (a) If a participating employer purchases service credit on behalf of 
a
 regular
full-time [
employees
] 
employee
 for service rendered prior to the participating employer's
admission to this system, the 
participating employer shall:
(i) purchase
 service credit [
shall be purchased
] in a nondiscriminatory manner on
behalf of all current and former regular full-time employees who were eligible for service
credit at the time service was rendered[
.
]
; and
(ii) comply with the provisions of Section 
49-11-403
, except for the requirement
described in Subsection 
49-11-403
(2)(a).
(b) For a purchase made under this Subsection (5), an employee is not required to:
(i) have at least four years of service credit before the purchase can be made; or
(ii) forfeit service credit or any defined contribution balance based on the employer
contributions under any other retirement system or plan based on the period of employment for
which service credit is being purchased.
Section 10. 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 Utah Board of Higher Education, or the technical
college board of trustees for an employee of each technical 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 for an
employer who has not elected to make all of the employer's exchange employees eligible for
service credit in this system;
(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);
(h) an employee who is employed with a withdrawing entity that has elected under
Section 
49-11-623
, 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
]
(i) an employee described in Subsection (1)(i)(i) or (ii) who is employed with a
withdrawing entity that has elected under Section 
49-11-624
, before January 1, 2018, to
exclude:
(i) new employees from participation in this system under Subsection 
49-11-624
(3)(a);
or
(ii) all employees from participation in this system under Subsection
49-11-624
(3)(b)[
.
]
; or
(j) an employee who is employed with a withdrawing entity that has elected under
Section 
49-11-625
, before July 1, 2022, to exclude all employees from participation in this
system.
(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;
(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 serving as an exchange employee from outside the state for an
employer who has elected to make all of the employer's exchange employees eligible for
service credit in this system.
(5) (a) Each participating employer shall prepare and maintain 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 eligible 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) maintain a list of employee exemptions; and
(b) update the employee exemptions in the event of any change.
(8) The office may make rules to implement this section.
(9) An employee's exclusion, exemption, participation, or election described in this
section:
(a) shall be made in accordance with this section; and
(b) is subject to requirements under federal law and rules made by the board.
Section 11. Section 
49-12-406
 is amended to read:
49-12-406.
Exceptions for part-time elective or appointive service -- Computation
of allowance -- Justice court judges.
(1) Notwithstanding the provisions of Sections 
49-11-401
 and 
49-12-102
, and unless
otherwise provided in this section, a member's elective or appointive service rendered on a
basis not considered full-time by the office shall have a separate allowance computed on the
basis of compensation actually received by the member during the period of elective or
appointive service.
(2) (a) (i) A justice court judge who has service with only one participating employer
shall be considered part-time or full-time by the office as certified by the participating
employer.
(ii) If there is a dispute between the office and a participating employer or justice court
judge over whether service is full-time or part-time for any employment period, the disputed
service shall be submitted by the office to the Administrative Office of the Courts for
determination.
(b) If a justice court judge has a combination of part-time service and full-time position
service with one participating employer, the office shall compute separate allowances on the
basis of compensation actually received by the judge during the part-time and full-time periods
of service.
(3) (a) A justice court judge who has service with more than one participating
employer shall be considered full-time by the office for a period of service in which the judge
is certified as full-time by:
(i) a participating employer; [
or
]
(ii) a group of participating employers where the judge's part-time work for each
employer, when aggregated, amounts to full-time service; or
[
(ii)
] 
(iii)
 the Administrative Office of the Courts beginning on or after January 1,
2009, based on the judge's aggregate caseload of the multiple employers as determined by the
judge's caseloads of the individual courts of each employer in accordance with Subsection
78A-7-206
(1)(b)(ii).
(b) If a justice court judge has full-time service under Subsection (3)(a), the office shall
compute an allowance on the basis of total compensation actually received from all
participating employers by the judge during the total period of full-time service.
(c) If a justice court judge has part-time service performed that is not within a period
considered full-time service under Subsection (3)(a), the office shall compute a separate
allowance on the basis of compensation actually received by the member during the period of
part-time service.
(d) If there is a dispute between the office and a participating employer, a group of
participating employers, or a justice court judge over whether service is full-time or part-time
for any employment period, the disputed service shall be submitted by the office to the
Administrative Office of the Courts for determination.
(4) All of the service rendered by a justice court judge in any one fiscal or calendar
year may not count for more than one year of service credit.
Section 12. Section 
49-13-202
 is amended to read:
49-13-202.
Participation of employers -- Limitations -- Exclusions -- Admission
requirements -- Nondiscrimination requirements -- Service credit purchases.
(1) (a) Unless excluded under Subsection (2), an employer is a participating employer
and may not withdraw from participation in this system.
(b) In addition to [
their
] participation in this system, 
a
 participating [
employers
]
employer
 may provide or participate in any additional public or private retirement,
supplemental or defined contribution plan, either directly or indirectly, for [
their
] 
the
participating employer's
 employees.
(2) The following employers may be excluded from participation in this system:
(a) an employer not initially admitted or included as a participating employer in this
system before January 1, 1982, if:
(i) the employer elects not to provide or participate in any type of private or public
retirement, supplemental or defined contribution plan, either directly or indirectly, for [
its
] 
the
employer's
 employees, except for Social Security; or
(ii) the employer offers another collectively bargained retirement benefit and has
continued to do so on an uninterrupted basis since that date;
(b) an employer that is a charter school authorized under Title 53G, Chapter 5, Part 3,
Charter School Authorization, and does not elect to participate in accordance with Section
53G-5-407
;
(c) an employer that is a hospital created as a special service district under Title 17D,
Chapter 1, Special Service District Act, that makes an election of nonparticipation in
accordance with Subsection (5);
(d) an employer that is licensed as a nursing care facility under Title 26, Chapter 21,
Health Care Facility Licensing and Inspection Act, and created as a special service district
under Title 17D, Chapter 1, Special Service District Act, in a rural area of the state that makes
an election of nonparticipation in accordance with Subsection (5); or
(e) an employer that is a risk management association initially created by interlocal
agreement before 1986 for the purpose of implementing a self-insurance joint protection
program for the benefit of member municipalities of the association.
(3) If an employer that may be excluded under Subsection (2)(a)(i) elects at any time to
provide or participate in any type of public or private retirement, supplemental or defined
contribution plan, either directly or indirectly, except for Social Security, the employer shall be
a participating employer in this system regardless of whether the employer has applied for
admission under Subsection (4).
(4) (a) An employer may, by resolution of [
its
] 
the employer's
 governing body, apply
for admission to this system.
(b) Upon approval of the resolution by the board, the employer is a participating
employer in this system and is subject to this title.
(5) (a) (i) Until June 30, 2009, a employer that is a hospital created as a special service
district under Title 17D, Chapter 1, Special Service District Act, may make an election of
nonparticipation as an employer for retirement programs under this chapter.
(ii) Until June 30, 2014, an employer that is licensed as a nursing care facility under
Title 26, Chapter 21, Health Care Facility Licensing and Inspection Act, and created as a
special service district under Title 17D, Chapter 1, Special Service District Act, in a rural area
of the state may make an election of nonparticipation as an employer for retirement programs
under this chapter.
(iii) On or before July 1, 2010, an employer described in Subsection (2)(e) may make
an election of nonparticipation as an employer for retirement programs under this chapter.
(b) An election provided under Subsection (5)(a):
(i) is a one-time election made no later than the time specified under Subsection (5)(a);
(ii) shall be documented by a resolution adopted by the governing body of the
employer;
(iii) is irrevocable; and
(iv) applies to the employer as described in Subsection (5)(a)(i), (ii), or (iii) and to all
employees of that employer.
(c) The employer making an election under Subsection (5)(a) may offer employee
benefit plans for [
its
] 
the employer's
 employees:
(i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
or
(ii) under any other program.
(6) (a) If a participating employer purchases service credit on behalf of 
a
 regular
full-time [
employees
] 
employee
 for service rendered prior to the participating employer's
admission to this system, the 
participating employer shall:
(i) purchase
 service credit [
shall be purchased
] in a nondiscriminatory manner on
behalf of all current and former regular full-time employees who were eligible for service
credit at the time service was rendered[
.
]
; and
(ii) comply with the provisions of Section 
49-11-403
, except for the requirement
described in Subsection 
49-11-403
(2)(a).
(b) For a purchase made under this Subsection (6), an employee is not required to:
(i) have at least four years of service credit before the purchase can be made; or
(ii) forfeit service credit or any defined contribution balance based on the employer
contributions under any other retirement system or plan based on the period of employment for
which service credit is being purchased.
Section 13. 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 Utah Board of Higher Education, or the technical
college board of trustees for an employee of each technical 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 for an
employer who has not elected to make all of the employer's exchange employees eligible for
service credit in this system;
(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);
(g) an employee who is employed with a withdrawing entity that has elected under
Section 
49-11-623
, 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
]
(h) an employee described in Subsection (1)(h)(i) or (ii) who is employed with a
withdrawing entity that has elected under Section 
49-11-624
, before January 1, 2018, to
exclude:
(i) new employees from participation in this system under Subsection 
49-11-624
(3)(a);
or
(ii) all employees from participation in this system under Subsection
49-11-624
(3)(b)[
.
]
; or
(i) an employee who is employed with a withdrawing entity that has elected under
Section 
49-11-625
, before July 1, 2022, to exclude all employees from participation in this
system.
(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;
(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; and
(n) an employee serving as an exchange employee from outside the state for an
employer who has elected to make all of the employer's exchange employees eligible for
service credit in this system.
(5) (a) Each participating employer shall prepare and maintain 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 eligible 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) maintain a list of employee exemptions; and
(b) update the employee exemptions in the event of any change.
(8) The office may make rules to implement this section.
(9) An employee's exclusion, exemption, participation, or election described in this
section:
(a) shall be made in accordance with this section; and
(b) is subject to requirements under federal law and rules made by the board.
Section 14. Section 
49-13-406
 is amended to read:
49-13-406.
Exceptions for part-time elective or appointive service -- Computation
of allowance -- Justice court judges.
(1) Notwithstanding the provisions of Sections 
49-11-401
 and 
49-13-102
, and unless
otherwise provided in this section, a member's elective or appointive service rendered on a
basis not considered full-time by the office shall have a separate allowance computed on the
basis of compensation actually received by the member during the period of elective or
appointive service.
(2) (a) (i) A justice court judge who has service with only one participating employer
shall be considered part-time or full-time by the office as certified by the participating
employer.
(ii) If there is a dispute between the office and a participating employer or justice court
judge over whether service is full-time or part-time for any employment period, the disputed
service shall be submitted by the office to the Administrative Office of the Courts for
determination.
(b) If a justice court judge has a combination of part-time service and full-time position
service with one participating employer, the office shall compute separate allowances on the
basis of compensation actually received by the judge during the part-time and full-time periods
of service.
(3) (a) A justice court judge who has service with more than one participating
employer shall be considered full-time by the office for a period of service in which the judge
is certified as full-time by:
(i) a participating employer; [
or
]
(ii) a group of participating employers where the judge's part-time work for each
employer, when aggregated, amounts to full-time service; or
[
(ii)
] 
(iii)
 the Administrative Office of the Courts beginning on or after January 1,
2009, based on the judge's aggregate caseload of the multiple employers as determined by the
judge's caseloads of the individual courts of each employer in accordance with Subsection
78A-7-206
(1)(b)(ii).
(b) If a justice court judge has full-time service under Subsection (3)(a), the office shall
compute an allowance on the basis of total compensation actually received from all
participating employers by the judge during the total period of full-time service.
(c) If a justice court judge has part-time service performed that is not within a period
considered full-time service under Subsection (3)(a), the office shall compute a separate
allowance on the basis of compensation actually received by the member during the period of
part-time service.
(d) If there is a dispute between the office and a participating employer, a group of
participating employers, or a justice court judge over whether service is full-time or part-time
for any employment period, the disputed service shall be submitted by the office to the
Administrative Office of the Courts for determination.
(4) All of the service rendered by a justice court judge in any one fiscal or calendar
year may not count for more than one year of service credit.
Section 15. Section 
49-15-202
 is amended to read:
49-15-202.
Participation of employers -- Requirements -- Admission -- Full
participation in system -- Supplemental programs authorized.
(1) An employer that employs public safety service employees and is required by
Section 
49-12-202
 or 
49-13-202
 to be a participating employer in the Public Employees'
Contributory Retirement System or the Public Employees' Noncontributory Retirement System
shall cover all [
its
] 
the employer's
 public safety service employees under one of the following
systems or plans:
(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; or
(e) Chapter 23, New Public Safety and Firefighter Tier II Contributory Retirement Act.
(2) An employer that covers [
its
] 
the employer's
 public safety employees under
Subsection (1)(d) is a participating employer in this system.
(3) If a participating employer under Subsection (1) covers any of [
its
] 
the participating
employer's
 public safety service employees under the Public Safety Contributory Retirement
System or the Public Safety Noncontributory Retirement System, that participating employer
shall cover all of [
its
] 
the participating employer's
 public safety service employees under one of
those systems, except for a public safety service employee initially entering employment with a
participating employer beginning on or after July 1, 2011.
(4) (a) Until June 30, 2011, an employer that is not participating in this system may by
resolution of [
its
] 
the employer's
 governing body apply for coverage of [
its
] 
the employer's
public safety service employees by this system.
(b) Upon approval of the board, the employer shall become a participating employer in
this system subject to this title.
(5) (a) If a participating employer purchases service credit on behalf of [
employees
] 
an
employee
 for service rendered prior to the participating employer's admission to this system,
the 
participating employer shall:
(i) purchase
 service credit [
must be purchased
] in a nondiscriminatory manner on
behalf of all current and former employees who were eligible for service credit at the time
service was rendered[
.
]
; and
(ii) comply with the provisions of Section 
49-11-403
, except for the requirement
described in Subsection 
49-11-403
(2)(a).
(b) For a purchase made under this Subsection (5), an employee is not required to:
(i) have at least four years of service credit before the purchase can be made; or
(ii) forfeit service credit or any defined contribution balance based on the employer
contributions under any other retirement system or plan based on the period of employment for
which service credit is being purchased.
(6) A participating employer may not withdraw from this system.
(7) In addition to [
their
] participation in the system, 
a
 participating [
employers
]
employer
 may provide or participate in any additional public or private retirement,
supplemental or defined contribution plan, either directly or indirectly, for [
their
] 
the public
employer's
 employees.
Section 16. 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 Utah Board of Higher Education, or the technical
college board of trustees for an employee of each technical 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 for an
employer who has not elected to make all of the employer's exchange employees eligible for
service credit in this system;
(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 under
Section 
49-11-623
, 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);
(f) a person who files a written request for exemption with the office under Section
49-22-205
; [
or
]
(g) an employee described in Subsection (1)(g)(i) or (ii) who is employed with a
withdrawing entity that has elected under Section 
49-11-624
, before January 1, 2018, to
exclude:
(i) new employees from participation in this system under Subsection 
49-11-624
(3)(a);
or
(ii) all employees from participation in this system under Subsection
49-11-624
(3)(b)[
.
]
; or
(h) an employee who is employed with a withdrawing entity that has elected under
Section 
49-11-625
, before July 1, 2022, to exclude all employees from participation in this
system.
(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.
(4) An employee's exclusion, exemption, participation, or election described in this
section:
(a) shall be made in accordance with this section; and
(b) is subject to requirements under federal law and rules made by the board.
Section 17. Section 
49-23-202
 is amended to read:
49-23-202.
Participation of employers -- Admission requirements.
(1) (a) An employer is a participating employer and may not withdraw from
participation in this system.
(b) A participating employer shall cover [
its
] 
the participating employer's
:
(i) public safety service employees in accordance with Section 
49-15-202
; and
(ii) firefighter service employees in accordance with Section 
49-16-202
.
(2) (a) An employer may, by resolution of [
its
] 
the employer's
 governing body, apply
for admission to this system.
(b) Upon approval of the resolution by the board, the employer is a participating
employer in this system and is subject to this title.
(3) If a participating employer purchases service credit on behalf of 
a
 public safety
service [
employees or
] 
employee or a
 firefighter service [
employees
] 
employee
 for service
rendered prior to the participating employer's admission to this system, the 
participating
employer shall:
(a) purchase
 service credit [
shall be purchased
] in a nondiscriminatory manner on
behalf of all current and former public safety service employees or firefighter service
employees who were eligible for service credit at the time service was rendered[
.
]
; and
(b) comply with the provisions of Section 
49-11-403
.
Section 18. 
Effective date.
(1) Except as provided in Subsection (2), this bill takes effect on May 5, 2021.
(2) The changes affecting the following sections take effect on July 1, 2021:
(a) Section 
49-11-613
;
(b) Section 
49-11-613.5
;
(c) Section 
49-11-1205
; and
(d) Section 
49-11-1303
.