Bill Summary – FastDemocracy

Enrolled Copy                                                                        S.B. 217
                            STATE RETIREMENT AMENDMENTS
                                       2020 GENERAL SESSION
                                            STATE OF UTAH
                                Chief Sponsor: Daniel Hemmert
                                     House Sponsor: Joel Ferry
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 LONG TITLE
 General Description:
         This bill modifies provisions of the Utah State Retirement and Insurance Benefit Act.
 Highlighted Provisions:
         This bill:
         < provides that reemployment as a part-time appointed or elected board member is not
 subject to postretirement reemployment restrictions under certain circumstances;
         < provides that a member is not required to cease service as a part-time appointed or
 elected board member of a participating employer under certain circumstances to be
 eligible to retire; and
         < imposes minimum age requirements on certain retirees.
 Money Appropriated in this Bill:
         None
 Other Special Clauses:
         This bill provides a special effective date of July 1, 2020.
 Utah Code Sections Affected:
 AMENDS:
         49-11-1202, as enacted by Laws of Utah 2016, Chapter 310 and last amended by
 Coordination Clause, Laws of Utah 2016, Chapter 310
         49-11-1203, as enacted by Laws of Utah 2016, Chapter 310
         49-11-1205, as last amended by Laws of Utah 2018, Chapter 328
         49-12-401, as last amended by Laws of Utah 2016, Chapter 310
         49-13-401, as last amended by Laws of Utah 2016, Chapter 310
       S.B. 217                                                                       Enrolled Copy
        49-14-401, as last amended by Laws of Utah 2016, Chapter 310
        49-15-401, as last amended by Laws of Utah 2016, Chapter 310
        49-16-401, as last amended by Laws of Utah 2016, Chapter 310
        49-22-304, as last amended by Laws of Utah 2016, Chapter 310
        49-23-303, as last amended by Laws of Utah 2016, Chapter 310
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 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 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 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) "Part-time appointed or elected board member" means an individual who:
        (a) serves in a position:
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         (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.
         [(3)] (4) (a) "Reemployed," "reemploy," or "reemployment" means work or service
 performed for a participating employer after retirement, in exchange for compensation.
         (b) 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.
         [(4)] (5) "Retiree":
         (a) means a person who:
         (i) retired from a participating employer; and
         (ii) begins reemployment on or after July 1, 2010, with a participating employer; and
         (b) does not include a person:
         (i) (A) who was reemployed by a participating employer before July 1, 2010; and
         (B) whose participating employer that reemployed the person under Subsection
 (4)(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.
         Section 2. Section 49-11-1203 is amended to read:
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        S.B. 217                                                                         Enrolled Copy
         49-11-1203. Applicability.
         (1) (a) This part does not apply to employment as an elected official if the elected
 official's position is not full time as certified by the participating employer.
         (b) The provisions of this part apply to an elected official whose elected position is full
 time as certified by the participating employer.
         (2) (a) This part does not apply to employment as a part-time appointed board member
 who does not receive any remuneration, stipend, or other benefit for the part-time appointed
 board member's service.
         (b) For purposes of this Subsection (2), remuneration, stipend, or other benefit does not
 include receipt of per diem and travel expenses up to the amounts established by the Division
 of Finance in:
         (i) Section 63A-3-106;
         (ii) Section 63A-3-107; and
         (iii) rules made by the Division of Finance according to Sections 63A-3-106 and
 63A-3-107.
         (3) This part does not apply to a person who is reemployed as an active senior judge or
 an active senior justice court judge as described by Utah State Court Rules, appointed to hear
 cases by the Utah Supreme Court in accordance with Article VIII, Section 4, Utah Constitution.
         (4) An exemption under this section from the provisions of this part is available only
 for a member who, at the time of retirement, is at least:
         (a) 50 years old, if the member is retiring from a public safety system or firefighter
 retirement system; or
         (b) 55 years old.
         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
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        Enrolled Copy                                                                           S.B. 217
 days from the retiree's retirement date;
        (ii) upon reemployment after the break in service under Subsection (1)(a)(i), the retiree
 does not receive any employer paid benefits, including:
        (A) retirement service credit or retirement-related contributions;
        (B) medical benefits;
        (C) dental benefits;
        (D) other insurance benefits except for workers' compensation as provided under Title
 34A, Chapter 2, Workers' Compensation Act, Title 34A, Chapter 3, Utah Occupational Disease
 Act, and withholdings required by federal or state law for social security, Medicare, and
 unemployment insurance; or
        (E) paid time off, including sick, annual, or other type of leave; and
        (iii) (A) the retiree does not earn in any calendar year of reemployment an amount in
 excess of the lesser of $15,000 or one-half of the retiree's final average salary upon which the
 retiree's retirement allowance is based; or
        (B) the retiree is reemployed as a judge as defined under Section 78A-11-102.
        (b) Beginning January 1, 2013, the board shall adjust the amounts under Subsection
 (1)(a)(iii) by the annual change in the Consumer Price Index during the previous calendar year
 as measured by a United States Bureau of Labor Statistics Consumer Price Index average as
 determined by the board.
        (2) A retiree shall be considered as having completed the one-year separation from
 employment with a participating employer required under Section 49-11-1204, if the retiree:
        (a) before retiring:
        (i) was employed with a participating employer as a public safety service employee as
 defined in Section 49-14-102, 49-15-102, or 49-23-102;
        (ii) and during the employment under Subsection (2)(a)(i), suffered a physical injury
 resulting from external force or violence while performing the duties of the employment, and
 for which injury the retiree would have been approved for total disability in accordance with
 the provisions under Chapter 21, Public Employees' Long-Term Disability Act, if years of
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        S.B. 217                                                                         Enrolled Copy
 service are not considered;
        (iii) had less than 30 years of service credit but had sufficient service credit to retire,
 with an unreduced allowance making the public safety service employee ineligible for
 long-term disability payments under Chapter 21, Public Employees' Long-Term Disability Act,
 or a substantially similar long-term disability program; and
        (iv) does not receive any long-term disability benefits from any participating employer;
 and
        (b) is reemployed by a different participating employer.
        (3) (a) The office may not cancel the retirement allowance of a retiree who is employed
 as an affiliated emergency services worker within one year of the retiree's retirement date if the
 affiliated emergency services worker does not receive any compensation, except for:
        (i) a nominal fee, stipend, discount, tax credit, voucher, or other fixed sum of money or
 cash equivalent payment not tied to productivity and paid periodically for services;
        (ii) a length-of-service award;
        (iii) insurance policy premiums paid by the participating employer in the event of death
 of an affiliated emergency services worker or a line-of-duty accidental death or disability; or
        (iv) reimbursement of expenses incurred in the performance of duties.
        (b) For purposes of Subsections (3)(a)(i) and (ii), the total amount of any discounts, tax
 credits, vouchers, and payments to an affiliated emergency services worker may not exceed
 $500 per month.
        (c) Beginning January 1, 2016, the board shall adjust the amount under Subsection
 (3)(b) by the annual change in the Consumer Price Index during the previous calendar year as
 measured by a United States Bureau of Labor Statistics Consumer Price Index average as
 determined by the board.
        (4) (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).
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       Enrolled Copy                                                                            S.B. 217
        (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 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.
        [(4)] (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
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        S.B. 217                                                                       Enrolled Copy
 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) [or], (3)(b), or (4)(b).
         Section 4. Section 49-12-401 is amended to read:
         49-12-401. Eligibility for an allowance -- Date of retirement -- Qualifications.
         (1) A member is qualified to receive an allowance from this system when:
         (a) except as provided under Subsection (3), the member ceases actual work for every
 participating employer that employs the member before the member's retirement date and
 provides evidence of the termination;
         (b) the member has submitted to the office a retirement application form that states the
 member's proposed retirement date; and
         (c) one of the following conditions is met as of the member's retirement date:
         (i) the member has accrued at least four years of service credit and has attained an age
 of 65 years;
         (ii) the member has accrued at least 10 years of service credit and has attained an age
 of 62 years;
         (iii) the member has accrued at least 20 years of service credit and has attained an age
 of 60 years; or
         (iv) the member has accrued at least 30 years of service credit.
         (2) (a) The member's retirement date:
         (i) shall be the 1st or the 16th day of the month, as selected by the member;
         (ii) shall be on or after the date of termination; and
         (iii) may not be more than 90 days before or after the date the application is received by
 the office.
         (b) Except as provided under Subsection (3), a member may not be employed by a
 participating employer in the system established by this chapter on the retirement date selected
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        Enrolled Copy                                                                             S.B. 217
 under Subsection (2)(a)(i).
         (3) (a) A member who is employed by a participating employer and who is also an
 elected official is not required to cease service as an elected official to be qualified to receive
 an allowance under Subsection (1), unless the member is retiring from service as an elected
 official.
         (b) A member who is employed by a participating employer and who is also a part-time
 appoin