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SB 63 - Retirement System Amendments - Key Vote

Utah Key Votes

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Note

NOTE: THIS IS A SUBSTITUTE BILL, MEANING THE LANGUAGE OF THE ORIGINAL BILL HAS BEEN REPLACED. THE DEGREE TO WHICH THE SUBSTITUTE BILL TEXT DIFFERS FROM THE PREVIOUS VERSION OF THE TEXT CAN VARY GREATLY.

Stage Details

Legislation - Signed (Executive) -

Title: Retirement System Amendments

Legislation - Concurrence Vote Passed (Senate) (18-8) - (Key vote)

Title: Retirement System Amendments

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that establishes the Tier II Contributory Retirement System for state employees commencing employment on or after July 1, 2011, and the Firefighter Tier II Contributory Retirement System for public safety and firefighter employees commencing employment on or after July 1, 2011.

Highlights:
-Establishes contribution requirements for the Tier II Contributory Retirement System and New Public Safety and Firefighter Tier II Contributory Retirement System, including, but not limited to, the following (Secs. 29, 31, 49 & 50):
    -Employers shall pay 10 percent of compensation, or 12 percent if the member is a public safety or firefighter employee; -Employers shall pay, in addition to the amount paid to the employer contribution, the amortization rate of the system or plan that would have covered the member if the member had initially entered employment before July 1, 2011; -Members are authorized to make additional payments to a qualified 401(k) plan or another contribution plan established by the employer; -All contributions made by an employer shall be forfeited if the member terminates his or her employment within 4 years, unless the member is reemployed by a participating employer within 10 years of the termination date; and -No loans or hardship distributions shall be available from contributions made by employers.
-Establishes the following retirement options for members enrolled in the Tier II Contributory Retirement System and New Public Safety and Firefighter Tier II Contributory Retirement System (Secs. 33 & 52):
    -Option 1: An allowance calculated as follows:
      -If the retiree is at least 65 years of age or has accrued 35 years of service credit, or 25 years if the member is a public safety or firefighter employee, the allowance is equal to 1.5 percent of the retiree's final average salary multiplied by the number of years of service credit accrued on and after July 1, 2011; or -If the retiree is less than 65 years of age, the allowance shall be reduced by the full actuarial amount for each year of retirement from age 60 to 65, unless then member has accrued 35 years of service, or 25 years if the member is a public safety or firefighter employee, in which event no reduction is made to the allowance;
    -Option 2: A reduced Option 1 allowance paid to and throughout the lifetime of the retiree, and, if the retiree receives less in annuity payments than the amount of the retiree's member contributions, the remaining balance shall be paid out according to existing law (§49-11-609 & §49-11-610); -Option 3: A reduced Option 1 allowance paid to and throughout the lifetime of the retiree, and upon the death of the retiree, the same reduced allowance is paid to and throughout the lifetime of the retiree's spouse at the time of retirement; -Option 4: A reduced Option 1 allowance paid to and throughout the lifetime of the retiree, and upon the death of the retiree, an amount equal to half of the allowance is paid to and throughout the lifetime of the retiree's spouse at the time of retirement; -Option 5: A modification of Option 3 so that if the retiree's spouse at the time of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time of initial retirement under Option 1 shall be paid to the retiree for the remainder of the retiree's life; and -Option 6: A modification of Option 4 so that if the lawful spouse at the time of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time of initial retirement under Option 1 shall be paid to the retiree for the remainder of the retiree's life.
-Establishes an annual cost-of-living adjustment for the retirement allowance of members enrolled in the Tier II Contributory Retirement System and New Public Safety and Firefighter Tier II Contributory Retirement System equal to the annual increase in the Consumer Price Index, provided the increase does not exceed 2.5 percent (Secs. 36 & 55). -Authorizes members enrolled in the Tier II Contributory Retirement System and New Public Safety and Firefighter Tier II Contributory Retirement System to receive retirement allowances if any of the following criteria is met (Secs. 32 & 51):
    -The member is at least 65 years of age and has accrued at least 4 years of service credit; -The member is at least 62 years of age and has accrued at least 10 years of service; -The member is at least 60 years of age and has accrued at least 20 years of service; or -The member has accrued at least 35 years of service credit, or 25 years if the member is a public safety or firefighter employee.
-Requires the Utah Retirement Office to establish death benefits for members enrolled in the Tier II Contributory Retirement System and New Public Safety and Firefighter Tier II Contributory Retirement System, in which a lump-sum payment consisting of any remaining member contributions and a percentage of the final average salary, as determined by the Board of Directors, is paid to beneficiaries (Secs. 40 & 59). -Establishes a line-of-duty death benefit for members enrolled in the New Public Safety and Firefighter Tier II Contributory Retirement System equal to the following (Sec. 61):
    -For members that have accrued less than 20 years of public service credit, $1,000 lump sum payment and an allowance equal to 30 percent of the member's final average monthly salary; and -For members that have accrued 20 or more years of public service credit, the member is considered to have retired with an Option 1 allowance calculated without an actuarial reduction.
-Requires employers enrolled in the Tier II Contributory Retirement System and New Public Safety and Firefighter Tier II Contributory Retirement System to cover employees under Title 49, Chapter 21 of the Public Employee's Long Term-Disability Act (Secs. 42 & 62). -This is a substitute bill sponsored by the Rep. Brad Dee.
Legislation - Bill Passed With Amendment (House) (46-26) - (Key vote)

Title: Retirement System Amendments

Vote Smart's Synopsis:

Vote to pass a bill that establishes the Tier II Contributory Retirement System for state employees commencing employment on or after July 1, 2011, and the Firefighter Tier II Contributory Retirement System for public safety and firefighter employees commencing employment on or after July 1, 2011.

Highlights:
-Establishes contribution requirements for the Tier II Contributory Retirement System and New Public Safety and Firefighter Tier II Contributory Retirement System, including, but not limited to, the following (Secs. 29, 31, 49 & 50):
    -Employers shall pay 10 percent of compensation, or 12 percent if the member is a public safety or firefighter employee; -Employers shall pay, in addition to the amount paid to the employer contribution, the amortization rate of the system or plan that would have covered the member if the member had initially entered employment before July 1, 2011; -Members are authorized to make additional payments to a qualified 401(k) plan or another contribution plan established by the employer; -All contributions made by an employer shall be forfeited if the member terminates his or her employment within 4 years, unless the member is reemployed by a participating employer within 10 years of the termination date; and -No loans or hardship distributions shall be available from contributions made by employers.
-Establishes the following retirement options for members enrolled in the Tier II Contributory Retirement System and New Public Safety and Firefighter Tier II Contributory Retirement System (Secs. 33 & 52):
    -Option 1: An allowance calculated as follows:
      -If the retiree is at least 65 years of age or has accrued 35 years of service credit, or 25 years if the member is a public safety or firefighter employee, the allowance is equal to 1.5 percent of the retiree's final average salary multiplied by the number of years of service credit accrued on and after July 1, 2011; or -If the retiree is less than 65 years of age, the allowance shall be reduced by the full actuarial amount for each year of retirement from age 60 to 65, unless then member has accrued 35 years of service, or 25 years if the member is a public safety or firefighter employee, in which event no reduction is made to the allowance;
    -Option 2: A reduced Option 1 allowance paid to and throughout the lifetime of the retiree, and, if the retiree receives less in annuity payments than the amount of the retiree's member contributions, the remaining balance shall be paid out according to existing law (§49-11-609 & §49-11-610); -Option 3: A reduced Option 1 allowance paid to and throughout the lifetime of the retiree, and upon the death of the retiree, the same reduced allowance is paid to and throughout the lifetime of the retiree's spouse at the time of retirement; -Option 4: A reduced Option 1 allowance paid to and throughout the lifetime of the retiree, and upon the death of the retiree, an amount equal to half of the allowance is paid to and throughout the lifetime of the retiree's spouse at the time of retirement; -Option 5: A modification of Option 3 so that if the retiree's spouse at the time of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time of initial retirement under Option 1 shall be paid to the retiree for the remainder of the retiree's life; and -Option 6: A modification of Option 4 so that if the lawful spouse at the time of retirement predeceases the retiree, an allowance equivalent to the amount payable at the time of initial retirement under Option 1 shall be paid to the retiree for the remainder of the retiree's life.
-Establishes an annual cost-of-living adjustment for the retirement allowance of members enrolled in the Tier II Contributory Retirement System and New Public Safety and Firefighter Tier II Contributory Retirement System equal to the annual increase in the Consumer Price Index, provided the increase does not exceed 2.5 percent (Secs. 36 & 55). -Authorizes members enrolled in the Tier II Contributory Retirement System and New Public Safety and Firefighter Tier II Contributory Retirement System to receive retirement allowances if any of the following criteria is met (Secs. 32 & 51):
    -The member is at least 65 years of age and has accrued at least 4 years of service credit; -The member is at least 62 years of age and has accrued at least 10 years of service; -The member is at least 60 years of age and has accrued at least 20 years of service; or -The member has accrued at least 35 years of service credit, or 25 years if the member is a public safety or firefighter employee.
-Requires the Utah Retirement Office to establish death benefits for members enrolled in the Tier II Contributory Retirement System and New Public Safety and Firefighter Tier II Contributory Retirement System, in which a lump-sum payment consisting of any remaining member contributions and a percentage of the final average salary, as determined by the Board of Directors, is paid to beneficiaries (Secs. 40 & 59). -Establishes a line-of-duty death benefit for members enrolled in the New Public Safety and Firefighter Tier II Contributory Retirement System equal to the following (Sec. 61):
    -For members that have accrued less than 20 years of public service credit, $1,000 lump sum payment and an allowance equal to 30 percent of the member's final average monthly salary; and -For members that have accrued 20 or more years of public service credit, the member is considered to have retired with an Option 1 allowance calculated without an actuarial reduction.
-Requires employers enrolled in the Tier II Contributory Retirement System and New Public Safety and Firefighter Tier II Contributory Retirement System to cover employees under Title 49, Chapter 21 of the Public Employee's Long Term-Disability Act (Secs. 42 & 62). -This is a substitute bill sponsored by the Rep. Brad Dee.
Legislation - Bill Passed (Senate) (19-9) -
Legislation - Introduced (House) -

Title: Retirement System Amendments

Sponsors

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