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H.B. 105
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PUBLIC EMPLOYEES - 25-YEAR RETIREMENT
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Neil A. Hansen
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AN ACT RELATING TO RETIREMENT; AMENDING ELIGIBILITY FOR SERVICE
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RETIREMENT PROVISIONS; AND PROVIDING AN EFFECTIVE DATE.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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49-3-401, as last amended by Chapter 292, Laws of Utah 1999
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49-3-402, as last amended by Chapter 231, Laws of Utah 1996
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
49-3-401
is amended to read:
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49-3-401. Eligibility for service retirement -- Date of retirement -- Qualifications.
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(1) (a) Any member who qualifies for service retirement may retire by submitting to the
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retirement office an application form notarized by a notary public. The application shall state the
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proposed effective date of retirement, which may not be more than 90 days before or after the date
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of application.
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(b) The effective date shall be the 1st or 16th day of the month, as selected by the member,
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but must be after the last day of actual work.
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(c) The member shall actually terminate employment and provide evidence of termination.
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(2) The member is qualified to retire upon termination of services on or before the
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effective date of retirement if one of the following requirements on that date is met:
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(a) the member has been credited with at least four years of service and has attained an age
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of 65 years or more;
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(b) the member has been credited with at least ten years of service and has attained an age
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of 62 years or more;
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(c) the member has been credited with at least 20 years of service and has attained an age
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of 60 years or more; or
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(d) the member has been credited with at least [30] 25 years of service[; or].
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[(e) the member is credited with at least 25 years of service, in which case the member
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shall be subject to the reduction set out under Subsection
49-3-402
(2)(b).]
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Section 2.
Section
49-3-402
is amended to read:
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49-3-402. Service retirement plans -- Calculation of retirement benefit -- Social
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Security limitations -- Board authority to adjust formula -- Computation of benefits for
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segments of service.
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(1) There are six service retirement plans available to members of the system. Plan One
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is as follows, with Plans Two, Three, Four, Five, and Six established under Section
49-3-403
.
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(2) Except for members of this system who meet the requirements of Section
49-3-802
,
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upon the service retirement of a member under Section
49-3-401
, the member shall receive a
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retirement allowance consisting of a pension based on service determined as follows:
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(a) If the member has attained the age of 65 years, the retirement allowance is an amount
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equal to 2% of the final average monthly salary multiplied by the number of years of service
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credited to the member.
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(b) If the member is less than 65 years old, the retirement allowance shall be reduced 3%
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for each year of retirement from age 60 to age 65, plus a full actuarial reduction for each year of
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retirement prior to age 60, unless the member has [30] 25 or more years of credit, in which event
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no reduction is made to the allowance.
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(3) Years of service include any fractions of years of service to which the member may be
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entitled. Service amounting to 9/10 of one year constitutes a year of service credit in the
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computation of a retirement benefit.
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(4) (a) The final average salary is limited in the computation of that part of a member's
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prior service retirement allowance based on service rendered during a period when the member
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received employer contributions on a portion of compensation from an educational institution
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toward the payment of the premium required on a retirement annuity contract with the Teachers'
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Insurance and Annuity Association of America or with any other public or private system,
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organization, or company to $4,800. This limitation is not applicable to members who elected to
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continue in the state retirement system by July 1, 1967.
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(b) Periods of service which are exempt from this system as permitted under Subsection
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49-3-206
(3), not to exceed four years, may be purchased by the member for the purpose of
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retirement.
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Section 3. Effective date.
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This act takes effect on July 1, 2000.
Legislative Review Note
as of 1-25-00 4:40 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.