ON APRIL 1, 2024, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 2683, AS AMENDED.
AMENDMENT #1 rewrites the bill as follows:
(1) Establishes that members employed as public safety officers are eligible to receive a hazardous duty supplemental benefit in addition to the member's retirement allowance if they meet the following criteria:
(A) The member meets the eligibility requirements for retirement;
(B) The member has at least 20 years of creditable service in the retirement system as a public safety officer;
(C) The member retires on a service retirement allowance or early service retirement allowance, and does not retire under disability retirement;
(D) The chief governing body of the political subdivision passes a resolution authorizing an actuarial study to determine the liability associated with providing the hazardous duty supplemental benefit and accepting responsibility for the costs of the study;
(E) Following receipt of the actuarial study, the governing body of the political subdivision passes a resolution authorizing the supplemental benefit and accepting the liability for the benefit; however, the political subdivision must not establish the supplemental benefit unless the political subdivision's funded status in the retirement system will be at least 70 percent after implementation of the supplemental benefit. All costs associated with providing the supplemental benefit must be paid by the political subdivision and not the state; and
(F) After authorizing the supplemental benefit, the political subdivision pays the estimated increased pension liability through one of the following methods: (i) a lump sum; (ii) an increase in the employer's contribution rate over the course of the fiscal year following the adoption of the authorizing resolution; or (iii) amortizing the unfunded accrued liability over a period of time not to exceed 10 years from the date of the adoption of the resolution;
HAZARDOUS DUTY SUPPLEMENTAL BENEFIT CALCULATION
(2) Establishes that the hazardous duty supplemental benefit is calculated as follows:
(A) For any such member retiring on a service retirement allowance, the hazardous duty supplemental benefit is equal to 3/8 of one percent of the member's average final compensation multiplied by the member's years of creditable service as a public safety officer with a political subdivision that has adopted the hazardous duty supplemental benefit;
(B) For any such member participating in the legacy plan retiring on an early service retirement allowance, the hazardous duty supplemental benefit is computed in accordance with (2)(A), but is reduced by 4/10 of one percent for each month by which the member's date of early service retirement precedes the member's service retirement date; and
(C) For any such member participating in the alternate defined benefit plan, hybrid plan, or the hybrid retirement plan for state employees and teachers retiring on an early service retirement allowance, the hazardous duty supplemental benefit is computed in accordance with (2)(A), but is reduced by an actuarially determined factor as set by the board from time to time;
OTHER SUPPLEMENTAL BENEFIT PROVISIONS
(3) Establishes that a retired member covered by this bill is entitled to receive an adjustment in the retiree's hazardous duty supplemental benefit for cost-of-living adjustments, except as otherwise provided in the hybrid retirement plans for state employees and teachers. Any such adjustment to the hazardous duty supplemental benefit is computed separately from the member's service retirement allowance;
(4) Establishes that state laws relative to the limitation on amount of retirement allowance, maximum allowance, establishment of a hybrid plan, and determination of amount of annual service retirement allowance do not reduce or eliminate the supplemental benefit provided by this bill, and the supplemental benefit must not be reduced as a result of any optional retirement allowance selected by the member pursuant to state law on election of options for retirement allowances;
(5) Establishes that the hazardous duty supplemental benefit begins on the member's effective date of retirement or on the first day of the month following the month the member reaches age 60, whichever is later;
(6) Establishes that the hazardous duty supplemental benefit, including any cost-of-living adjustments attributable to that benefit, ceases on the first day of the month following the month in which the member dies, or on the first day of the month following the month in which the member reaches full retirement age for receipt of old age and survivors benefits under Title II of the Social Security Act;
(7) Establishes that the hazardous duty supplemental benefit provided by this bill applies to all current and future retired members who meet the eligibility criteria for the supplemental benefit; however, the benefit must not be paid retroactively; and
(8) Defines, for this bill, a "public safety officer" as a full-time, salaried employee of a political subdivision who is a sheriff, sheriff's deputy, police officer, chief of police, or any other law enforcement officer with the political subdivision whose primary responsibility is the prevention and detection of crime and apprehension of offenders. The term also means a full-time, salaried employee of a political subdivision who is a correctional officer or firefighter.
Statutes affected: Introduced: 8-37-309