Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 251 (2024GS)

Sponsor

Rep. Gwynn, M.

Final action

Governor Signed 3/19/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• creates an alternative method for a retiree within the Utah Retirement Systems (URS) to be eligible to return to work with a URS participating employer and receive a retirement allowance;
• establishes reporting requirements; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

This document includes Senate Committee Amendments incorporated into the bill on Thu, Feb 8, 2024 at 11:30 AM by lpoole.
POSTRETIREMENT REEMPLOYMENT RESTRICTIONS
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Matthew H. Gwynn
Senate Sponsor: 
Wayne A. Harper
LONG TITLE
General Description:
This bill modifies provisions governing postretirement reemployment.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ creates an alternative method for a retiree within the Utah Retirement Systems
(URS) to be eligible to return to work with a URS participating employer and
receive a retirement allowance;
▸ establishes reporting requirements; 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:
49-11-1202
, as last amended by Laws of Utah 2020, Chapter 449
49-11-1204
, as last amended by Laws of Utah 2020, Chapter 24
49-11-1205
, as last amended by Laws of Utah 2021, Chapter 193
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 2022, Chapter 171
ENACTS:
49-11-1209
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
49-11-1202
 is amended to read:
49-11-1202.
Definitions.
As used in this part:
(1) (a) "Affiliated emergency services worker" means [
a person
] 
an individual
 who:
(i) is employed by a participating employer;
(ii) performs emergency services for another participating employer that is a different
agency;
(iii) is trained in techniques and skills required for the emergency service;
(iv) continues to receive regular training required for the service;
(v) is on the rolls as a trained affiliated emergency services worker of the participating
employer; and
(vi) provides ongoing service for a participating employer, which service may include
service as a volunteer firefighter, reserve law enforcement officer, search and rescue worker,
emergency medical technician, ambulance worker, park ranger, or public utilities worker.
(b) "Affiliated emergency services worker" does not include [
a person
] 
an individual
who performs work or service but does not meet the requirements of Subsection (1)(a).
(2) "Amortization rate" means the amortization rate, as defined in Section 
49-11-102
,
to be applied to the system that would have covered the retiree if the retiree's reemployed
position were deemed to be an eligible, full-time position within that system.
(3) "Bona fide termination of employment" means:
(a) permanent separation from employment or a fee-for-service relationship with any
participating employer; and
(b) separation from employment without a prearrangement that anticipates
postretirement reemployment or a postretirement fee-for-service relationship with a
participating employer.
(4) "Normal cost rate" means the normal cost rate, as defined in Section 
49-11-102
, to
be applied to the system that would have covered the retiree if the retiree's reemployed position
were deemed to be an eligible, full-time position within that system.
[
(3)
] 
(5)
 "Part-time appointed or elected board member" means an individual who:
(a) serves in a position:
(i) as a member of a board, commission, council, committee, panel, or other body of a
participating employer; and
(ii) that is designated in the participating employer's governing statute, charter, creation
document, or similar document;
(b) is appointed or elected to the position for a definite and fixed term of office by
official and duly recorded action of the participating employer;
(c) except for the service in the position, does not perform other work or service for
compensation for the participating employer, whether as an employee or under a contract; and
(d) retires from a participating employer that is different than the participating
employer with the position in which the person serves.
(6) "Public employee retiree" means a retiree who retires under:
(a) Chapter 12, Public Employees' Contributory Retirement Act;
(b) Chapter 13, Public Employees' Noncontributory Retirement Act; or
(c) Chapter 22, Part 3, Tier II Hybrid Retirement System.
(7) "Public safety or firefighter retiree" means a retiree who retires under:
(a) Chapter 14, Public Safety Contributory Retirement Act;
(b) Chapter 15, Public Safety Noncontributory Retirement Act;
(c) Chapter 16, Firefighters' Retirement Act; or
(d) Chapter 23, Part 3, Tier II Hybrid Retirement System.
[
(4)
] 
(8)
 (a) "Reemployed," "reemploy," or "reemployment" means work or service
performed for a participating employer after retirement, in exchange for compensation.
(b) [
Reemployment
] 
"Reemployed," "reemploy," or "reemployment"
 includes work or
service performed on a contract for a participating employer if the retiree is:
(i) listed as the contractor; or
(ii) an owner, partner, or principal of the contractor.
[
(5)
] 
(9) (a)
 "Retiree":
[
(a)
] means [
a person
] 
an individual
 who:
(i) retired from a participating employer; and
(ii) begins reemployment on or after July 1, 2010, with a participating employer[
; and
]
.
(b) 
"Retiree"
 does not include [
a person
] 
an individual
:
(i) (A) who was reemployed by a participating employer before July 1, 2010; and
(B) whose participating employer that reemployed the [
person
] 
individual
 under
Subsection [
(5)(b)(i)(A)
] 
(9)(b)(i)(A)
 was dissolved, consolidated, merged, or structurally
changed in accordance with Section 
49-11-621
 on or after July 1, 2010; or
(ii) who is working under a phased retirement agreement in accordance with [
Title 49,
Chapter 11, Part 13, Phased Retirement
] 
Chapter 11, Part 13, Phased Retirement
.
Section 2. Section 
49-11-1204
 is amended to read:
49-11-1204.
General restrictions -- Election following one-year separation --
Amortization rate.
(1) A retiree may not for the same period of reemployment:
(a) (i) earn additional service credit; or
(ii) receive any retirement related contribution from a participating employer; and
(b) receive a retirement allowance.
(2) (a) Except as provided under Section 
49-11-1205
, the office shall cancel the
retirement allowance of a retiree if the reemployment with a participating employer begins
within one year of the retiree's retirement date.
(b) If the office cancels the retiree's retirement allowance under Subsection (2)(a), the
retiree may be eligible to earn additional service credit in the reemployed position and receive
an allowance in accordance with Subsections (4)(a) and (5) and other provisions of this title.
(3) If a reemployed retiree, in accordance with Subsection (2)(a), is exempt from
having the allowance cancelled, including for completing the one-year separation from
employment with a participating employer, the retiree may elect to:
(a) cancel the retiree's retirement allowance and instead earn additional service credit in
the reemployed position and receive an allowance in accordance with Subsections (4)(a) and
(5) and other provisions of this title; or
(b) continue to receive the retiree's retirement allowance, [
forfeit earning
] 
not earn
additional service credit, and [
forfeit
] 
not receive
 any retirement-related contribution from the
participating employer that reemployed the retiree.
(4) (a) If a retiree's retirement allowance is cancelled and the retiree is eligible for
retirement coverage in a reemployed position, the office shall reinstate the retiree to active
member status on the first day of the month following the date of the employee's eligible
reemployment.
(b) Except as provided under Subsection (4)(c), if the retiree is not otherwise eligible
for retirement coverage in the reemployed position, the participating employer that reemploys
the retiree shall contribute the amortization rate to the office on behalf of the retiree.
(c) A participating employer that reemploys a retiree in accordance with Subsection
49-11-1205
(1) is not required to contribute the amortization rate to the office.
(5) (a) For a retiree reinstated to active member status under Subsection (4)(a) who
retires within two years from the date of reemployment, the office:
(i) may not recalculate a retirement benefit for the retiree; and
(ii) shall resume the allowance that was being paid to the retiree at the time of the
cancellation.
(b) Subject to Subsection (1), for a retiree who is reinstated to active membership
under Subsection (4)(a) and retires two or more years after the date of reinstatement to active
membership, the office shall:
(i) resume the allowance that was being paid at the time of cancellation; and
(ii) calculate an additional allowance for the retiree based on the formula in effect at
the date of the subsequent retirement for all service credit accrued between the first and
subsequent retirement dates.
Section 3. 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) the retiree has a bona fide termination of employment on the retiree's retirement
date;
[
(ii)
] 
(iii)
 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)
] 
(iv)
 (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) The board shall adjust the amounts under Subsection [
(1)(a)(iii)
] 
(1)(a)(iv)
 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
] 
described in
 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) 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, 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;
(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) 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 
who is
 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) 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) 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 has a bona fide termination of employment on the retiree's retirement
date;
(ii) the retiree is not employed, including by a fee-for-service relationship, with any
participating employer for a period of:
(A) at least 90 days if the retiree is a public employee retiree; or
(B) at least
Ŝ→ [
] 
 ←Ŝ
days if the retiree is a public safety or firefighter retiree;
(iii) the retiree agrees to a modified retirement allowance as described in Subsections
(5)(b), (c), and (d); and
(iv) the participating employer that reemploys the retiree agrees to pay to the office the
normal cost rate in addition to the amortization rate.
(b) During a period of reemployment, the retiree:
(i) receives a retirement allowance that is 20% less than the retirement allowance the
retiree is entitled to receive in accordance with:
(A) for a retiree who retired under Chapter 12, Public Employees' Contributory
Retirement Act, Section 
49-12-402
;
(B) for a retiree who retired under Chapter 13, Public Employees' Noncontributory
Retirement Act, Section 
49-13-402
; or
(C) for a retiree who retired under Chapter 22, Part 3, Tier II Hybrid Retirement
System, Section 
49-22-305
; or
(ii) a retirement allowance that is 15% less than the retirement allowance the retiree is
entitled to receive in accordance with:
(A) for a retiree who retired under Chapter 14, Public Safety Contributory Retirement
Act, Section 
49-14-402
;
(B) for a retiree who retired under Chapter 15, Public Safety Noncontributory
Retirement Act, Section 
49-15-402
;
(C) for a retiree who retired under Chapter 16, Firefighters' Retirement Act, Section
49-16-402
; or
(D) for a retiree who retired under Chapter 23, Part 3, Tier II Hybrid Retirement
System, Section 
49-23-304
.
(c) During the period of reemployment, the retiree does not receive the annual
cost-of-living adjustment described in:
(i) for a retiree who retired under Chapter 12, Public Employees' Contributory
Retirement Act, Section 
49-12-407
;
(ii) for a retiree who retired under Chapter 13, Public Employees' Noncontributory
Retirement Act, Section 
49-13-407
;
(iii) for a retiree who retired under Chapter 14, Public Safety Contributory Retirement
Act, Section 
49-14-403
;
(iv) for a retiree who retired under Chapter 15, Public Safety Noncontributory
Retirement Act, Section 
49-15-403
;
(v) for a retiree who retired under Chapter 16, Firefighters' Retirement Act, Section
49-16-403
;
(vi) for a retiree who retired under Chapter 22, Part 3, Tier II Hybrid Retirement
System, Section 
49-22-308
; or
(vii) for a retiree who retired under Chapter 23, Part 3, Tier II Hybrid Retirement
System, Section 
49-23-307
.
(d) (i) The office shall begin paying the retiree's full retirement allowance on the first
day of the month following the month in which the office receives written notification that the
reemployed retiree has a subsequent retirement date based on a termination of the
reemployment.
(ii) (A) For purposes of Subsection (5)(d)(i), the full retirement allowance includes the
elimination of the allowance reduction described in Subsection (5)(b)(i) or (4)(b)(ii) and the
annual cost-of-living adjustment that was prohibited under Subsection (5)(c) during the period
of reemployment.
(B) A retiree may not receive the difference between the full retirement allowance and
the reduced retirement allowance described in Subsection (5)(b)(i) or (5)(b)(ii) or the annual
cost-of-living adjustment that the retiree would have received if the retiree had not been
reemployed.
[
(5)
] 
(6)
 (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
] 
described in
 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)
] 
(1)(a)(iv)
, (3)(b), or (4)(b).
(7) A retiree who is reemployed under the provisions of Subsection (5) may not
subsequently be reemployed under Section 
49-11-1204
 unless the office cancels the retirement
allowance during the subsequent reemployment.
Section 4. 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)
, or (5)
; and
(c) of any election by the retiree under Section 
49-11-1204
.
(2) A participating employer shall certify to the office whether the position of an
elected official is or is not full time.
(3) A retiree subject to this part shall report to the office the status of the reemployment
under Section 
49-11-1204
 or 
49-11-1205
.
Section 5. 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)
] 
49-11-1205
(1)(a)(iv)
, (3)(b), or (4)(b); and
(iii) recover any overpayment resulting from the violation in accordance with the
provisions of Section 
49-11-607
 before the allowance may be reinstated.
(b) Reinstatement of an allowance following cancellation for a violation under this
section is subject to the procedures and provisions under Section 
49-11-1204
.
(2) If a retiree or participating employer failed to report reemployment in violation of
Section 
49-11-1206
, the retiree, participating employer, or both, who are found to be
responsible for the failure to report, are liable to the office for the amount of any overpayment
resulting from the violation.
(3) A participating employer is liable to the office for a payment or failure to make a
payment in violation of this part.
(4) If a participating employer fails to notify the office in accordance with Section
49-11-1206
, the participating employer is immediately subject to a compliance audit by the
office.
Section 6. Section 
49-11-1209
 is enacted to read:
 49-11-1209.
Reporting requirement.
(1) On or before October 1, 2027, and every other interim thereafter, the office shall
report to the Retirement and Independent Entities Committee:
(a) the number of retirees who are reemployed and receiving a retirement allowance;
(b) the number of retirees described in Subsection (1)(a) who are public employee
retirees and the number who are public safety or firefighter retirees;
(c) the average number of years of service credit before retirement for each type of
retiree; and
(d) the number of retirees who reemployed on or after July 1, 2025, and have
subsequently retired.
(2) The office shall report the information described in Subsection (1) separately for
retirees who reemploy under Section 
49-11-1204
 and Subsection 
49-11-1205
(5).
Section 7. 
Effective date.
This bill takes effect on July 1, 2025.