49-11-504 - Reemployment of a retiree -- Restrictions.
49-11-504. Reemployment of a retiree -- Restrictions.
(1) As used in this section, "full-time" means:
(a) employment requiring 20 or more hours of work per week; or
(b) at least a half-time teaching contract.
(2) (a) Except for the provisions of Subsection (3), the provisions of this section do notapply to a person who is subject to the provisions of Section 49-11-505.
(b) This section does not apply to elected positions.
(3) A person who is not a retiree under this title is not subject to any postretirementrestrictions under this title.
(4) A retiree of an agency who is reemployed may not earn additional service credit, ifthe retiree is reemployed by:
(a) a different agency; or
(b) the same agency after six months from the retirement date.
(5) A retiree of an agency who is reemployed on a full-time basis by the same agencywithin six months of the date of retirement is subject to the following:
(a) the agency shall immediately notify the office;
(b) the office shall cancel the retiree's allowance and reinstate the retiree to activemember status;
(c) the allowance cancellation and reinstatement to active member status is effective onthe first day of the month following the date of reemployment;
(d) the reinstated retiree may not retire again with a recalculated benefit for a two-yearperiod from the date of cancellation of the original allowance, and if the retiree retires againwithin the two-year period, the original allowance shall be resumed; and
(e) a reinstated retiree retiring after the two-year period shall be credited with the servicecredit in the retiree's account at the time of the first retirement and from that time shall be treatedas a member of a system, including the accrual of additional service credit, but subject torecalculation of the allowance under Subsection (9).
(6) A retiree of an agency who is reemployed by the same agency within six months ofretirement on a less than full-time basis by the same agency is subject to the following:
(a) the retiree may earn, without penalty, compensation from that position which is not inexcess of the exempt earnings permitted by Social Security;
(b) if a retiree receives compensation in a calendar year in excess of the Social Securitylimitation, 25% of the allowance shall be suspended for the remainder of the six-month period;
(c) the effective date of a suspension and reinstatement of an allowance shall be set bythe office; and
(d) any suspension of a retiree's allowance under this Subsection (6) shall be applied ona calendar year basis.
(7) For six months immediately following retirement, the retiree and participatingemployer who are subject to Subsection (6) shall:
(a) maintain an accurate record of gross earnings in employment;
(b) report the gross earnings at least monthly to the office;
(c) immediately notify the office in writing of any postretirement earnings underSubsection (6); and
(d) immediately notify the office in writing whether postretirement earnings equal orexceed the exempt earnings under Subsection (6).
(8) (a) If a participating employer hires a retiree, on a full-time basis, who may not earnadditional service credit under Subsection (4), the participating employer may not contribute anamount that exceeds the normal cost rate as defined under Section 49-11-102 to a plan for theretiree under Subsection (8)(b).
(b) The contributions under Subsection (8)(a) are not required, but if paid, shall be paidto a retiree-designated:
(i) qualified defined contribution plan administered by the board, if the participatingemployer participates in a qualified defined contribution plan administered by the board; or
(ii) qualified defined contribution plan offered by the participating employer if theparticipating employer does not participate in a qualified defined contribution plan administeredby the board.
(c) Notwithstanding the provisions of Subsection (8)(b), if an employer is notparticipating in a qualified defined contribution plan administered by the board, the employermay elect to pay the contributions under Subsection (8)(a) to a nonqualified deferredcompensation plan administered by the board.
(9) A retiree who has returned to work, accrued additional service credit, and againretires shall have the retiree's allowance recalculated using:
(a) the formula in effect at the date of the retiree's original retirement for all servicecredit accrued prior to that date; and
(b) the formula in effect at the date of the subsequent retirement for all service creditaccrued between the first and subsequent retirement dates.
(10) The board may make rules to implement this section.
Amended by Chapter 264, 2010 General Session