49-11-505 - Reemployment of a retiree -- Restrictions.
49-11-505. Reemployment of a retiree -- Restrictions.
(1) For purposes of this section, "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 retiree who is reemployed as an active senior judge appointed tohear cases by the Utah Supreme Court in accordance with Article VIII, Section 4, UtahConstitution.
(2) A retiree may not for the same period of reemployment:
(a) (i) earn additional service credit; or
(ii) receive any retirement related contribution from a participating employer; and
(b) receive a retirement allowance.
(3) The office shall cancel the retirement allowance of a retiree if the reemployment witha participating employer begins within one year of the retiree's retirement date.
(4) If a retiree is not subject to Subsection (3), the retiree may elect to:
(a) earn additional service credit in accordance with this title and cancel the retiree'sretirement allowance; or
(b) continue to receive the retiree's retirement allowance and forfeit any retirementrelated contribution from the participating employer who reemployed the retiree.
(5) If an employee makes an election under Subsection (4)(b) to continue to receive aretirement allowance while reemployed, the participating employer shall contribute to the officethe amortization rate, as defined in Section 49-11-102, to be applied to the system that wouldhave covered the retiree.
(6) (a) A participating employer shall immediately notify the office:
(i) if the participating employer reemploys a retiree;
(ii) whether the remployment is subject to Subsection (3) or (4) of this section; and
(iii) any election by the retiree under Subsection (4).
(b) A participating employer is liable to the office for a payment or failure to make apayment in violation of this section.
(c) If a participating employer fails to notify the office in accordance with this section,the participating employer is immediately subject to a compliance audit by the office.
(7) (a) The office shall immediately cancel the retirement allowance of a retiree inaccordance with Subsection (7)(b) if the office receives notice or learns of:
(i) the reemployment of a retiree subject to Subsection (3); or
(ii) the election of a reemployed retiree under Subsection (4)(a).
(b) The office shall cancel the allowance of a retiree subject to Subsection (7)(a), andreinstate the retiree to active member status on the first day of the month following the date of:
(i) reemployment if the retiree is subject to Subsection (3); or
(ii) an election by an employee under Subsection (4)(a).
(8) (a) A retiree subject to Subsection (7)(b) who retires within two years from the dateof reemployment:
(i) is not entitled to a recalculated retirement benefit; and
(ii) will resume the allowance that was being paid at the time of cancellation.
(b) Subject to Subsection (2), a retiree who is re-instated to active membership underSubsection (7) and who retires two or more years after the date of re-instatement to active
membership shall:
(i) resume receiving the allowance that was being paid at the time of cancellation; and
(ii) receive an additional allowance based on the formula in effect at the date of thesubsequent retirement for all service credit accrued between the first and subsequent retirementdates.
(9) A retiree subject to this section shall report to the office the status of thereemployment under Subsection (3) or (4).
(10) The board may make rules to implement this section.
Enacted by Chapter 264, 2010 General Session