49-12-701 - Early retirement incentive -- Eligibility -- Calculation of benefit -- Payment of costs -- Savings to be appropriated by Legislature -- Restrictions on reemployment.
49-12-701. Early retirement incentive -- Eligibility -- Calculation of benefit --Payment of costs -- Savings to be appropriated by Legislature -- Restrictions onreemployment.
(1) Any member of this system may retire and receive the allowance allowed underSubsection (2) if the member meets the following requirements as of the member's retirementdate:
(a) the member is eligible for retirement under Section 49-12-401, or has 25 years ofservice credit;
(b) the member elects to forfeit any stipend for retirement offered by the participatingemployer; and
(c) the member elects to retire from this system by applying for retirement by the dateestablished under Subsection (3)(a) or (3)(b).
(2) (a) A member who retires under Subsection (1) shall receive 2% of that member'sfinal average salary for all years of service credit.
(b) An actuarial reduction may not be applied to the allowance granted under this section.
(3) In order to receive the allowance allowed by this section, a member shall submit anapplication to the office as follows:
(a) (i) For state and school employees under Level A, the application shall be filed byMay 31, 1987. The member's retirement date shall then be set by the member on the 1st or 16thday of July, August, or September, 1987.
(ii) If a Level A member elects to retire, the executive director or participating employermay request the member to delay the retirement date until a later date, but no later than June 30,1988.
(iii) If the member agrees to delay the retirement date, the retirement date shall bedelayed, but service credit may not be accrued after the member's original retirement date electedby the member, and compensation earned after the member's original retirement date may not beused in the calculation of the final average salary for determining the retirement allowance.
(b) (i) For political subdivision employees under Level B, the application shall be filedby September 30, 1987.
(ii) The retirement date shall then be set by the member on the 1st or 16th day of July,August, September, October, November, or December, 1987.
(4) (a) The cost of providing the allowance under this section shall be funded in fiscalyear 1987-88 by a supplemental appropriation in the 1988 General Session based on theretirement contribution rate increase established by the consulting actuary and approved by theboard.
(b) The cost of providing the allowance under this section shall be funded beginning July1, 1988, by means of an increase in the retirement contribution rate established by the consultingactuary and approved by the board.
(c) The rate increase under Subsections (4)(a) and (b) shall be funded:
(i) for state employees, by an appropriation from the account established by the Divisionof Finance under Subsection (4)(d), which is funded by savings derived from this early retirementincentive and a work force reduction;
(ii) for school employees, by direct contributions from the employing unit, which maynot be funded through an increase in the retirement contribution amount established in Title 53A,Chapter 17a, Minimum School Program Act; and
(iii) for political subdivisions under Level B, by direct contributions by the participatingemployer.
(d) (i) Each year, any excess savings derived from this early retirement incentive whichare above the costs of funding the increase and the costs of paying insurance, sick leave,compensatory leave, and vacation leave under Subsections (4)(c)(i) and (c)(ii) shall be reportedto the Legislature and shall be appropriated as provided by law.
(ii) In the case of Subsection (4)(c)(i), the Division of Finance shall establish an accountinto which all savings derived from this early retirement incentive shall be deposited as thesavings are realized.
(iii) In the case of Subsection (4)(c)(ii), the State Office of Education shall certify theamount of savings derived from this early retirement incentive.
(iv) The State Office of Education and the participating employer may not spend thesavings until appropriated by the Legislature as provided by law.
(5) A member who retires under this section is subject to Sections 49-11-504 and49-11-505.
(6) The board may adopt rules to administer this section.
(7) The Legislative Auditor General shall perform an audit to ensure compliance withthis section.
Amended by Chapter 264, 2010 General Session