49-22-102 - Definitions.
49-22-102. Definitions.
As used in this chapter:
(1) (a) Except as provided in Subsection (1)(c), "compensation" means the total amountof payments made by a participating employer to a member of this system for services renderedto the participating employer, including:
(i) bonuses;
(ii) cost-of-living adjustments;
(iii) other payments currently includable in gross income and that are subject to SocialSecurity deductions, including any payments in excess of the maximum amount subject todeduction under Social Security law;
(iv) amounts that the member authorizes to be deducted or reduced for salary deferral orother benefits authorized by federal law; and
(v) member contributions.
(b) "Compensation" for purposes of this chapter may not exceed the amount allowedunder Internal Revenue Code, Section 401(a)(17).
(c) "Compensation" does not include:
(i) the monetary value of remuneration paid in kind, including a residence or use ofequipment;
(ii) the cost of any employment benefits paid for by the participating employer;
(iii) compensation paid to a temporary employee or an employee otherwise ineligible forservice credit;
(iv) any payments upon termination, including accumulated vacation, sick leavepayments, severance payments, compensatory time payments, or any other special payments; or
(v) any allowances or payments to a member for costs or expenses paid by theparticipating employer, including automobile costs, uniform costs, travel costs, tuition costs,housing costs, insurance costs, equipment costs, and dependent care costs.
(d) The executive director may determine if a payment not listed under this Subsection(1) falls within the definition of compensation.
(2) "Corresponding Tier I system" means the system or plan that would have covered themember if the member had initially entered employment before July 1, 2011.
(3) "Final average salary" means the amount computed by averaging the highest fiveyears of annual compensation preceding retirement subject to Subsections (3)(a), (b), (c), and (d).
(a) Except as provided in Subsection (3)(b), the percentage increase in annualcompensation in any one of the years used may not exceed the previous year's compensation bymore than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power ofthe dollar during the previous year, as measured by a United States Bureau of Labor StatisticsConsumer Price Index average as determined by the board.
(b) In cases where the participating employer provides acceptable documentation to theoffice, the limitation in Subsection (3)(a) may be exceeded if:
(i) the member has transferred from another agency; or
(ii) the member has been promoted to a new position.
(c) If the member retires more than six months from the date of termination ofemployment, the member is considered to have been in service at the member's last rate of payfrom the date of the termination of employment to the effective date of retirement for purposes ofcomputing the member's final average salary only.
(d) If the member has less than five years of service credit in this system, final averagesalary means the average annual compensation paid to the member during the full period ofservice credit.
(4) "Participating employer" means an employer which meets the participationrequirements of:
(a) Sections 49-12-201 and 49-12-202;
(b) Sections 49-13-201 and 49-13-202;
(c) Section 49-19-201; or
(d) Section 49-22-201 or 49-22-202.
(5) (a) "Regular full-time employee" means an employee whose term of employment fora participating employer contemplates continued employment during a fiscal or calendar year andwhose employment normally requires an average of 20 hours or more per week, except asmodified by the board, and who receives benefits normally provided by the participatingemployer.
(b) "Regular full-time employee" includes:
(i) a teacher whose term of employment for a participating employer contemplatescontinued employment during a school year and who teaches half-time or more;
(ii) a classified school employee whose employment normally requires an average of 20hours per week or more for a participating employer, regardless of benefits provided;
(iii) an officer, elective or appointive, who earns during the first full month of the term ofoffice $500 or more, indexed as of January 1, 1990, as provided in Section 49-22-309;
(iv) a faculty member or employee of an institution of higher education who isconsidered full-time by that institution of higher education; and
(v) an individual who otherwise meets the definition of this Subsection (5) who performsservices for a participating employer through a professional employer organization or similararrangement.
(c) "Regular full-time employee" does not include:
(i) a firefighter service employee as defined in Section 49-23-102; or
(ii) a public safety service employee as defined in Section 49-23-102.
(6) "System" means the New Public Employees' Tier II Contributory Retirement Systemcreated under this chapter.
(7) "Years of service credit" means:
(a) a period, consisting of 12 full months as determined by the board;
(b) a period determined by the board, whether consecutive or not, during which a regularfull-time employee performed services for a participating employer, including any time theregular full-time employee was absent on a paid leave of absence granted by a participatingemployer or was absent in the service of the United States government on military duty asprovided by this chapter; or
(c) the regular school year consisting of not less than eight months of full-time servicefor a regular full-time employee of an educational institution.
Enacted by Chapter 266, 2010 General Session