|
|
 |
|
|
Senate Bill 43 Summary
Post-Retirement Employment Amendments
Effective: July 1, 2010
- Removes the requirement that participating employers, who hire a retiree, contribute into a defined contribution (DC) plan the same percentage of a retiree's salary that would have been contributed to the defined benefit (DB) plan if the retiree were an active member.
- Caps at the "normal cost," the amount an employer who hires a retiree before July 1, 2010, may contribute into a DC plan. The
"normal cost" is the portion of the contribution rate required to fund a current employee's retirement benefit and does not include the amortization cost for unfunded liabilities in the DB plan.
- Removes the cap on the maximum retirement benefit a retiree of the Public Safety, Firefighters', or Judges' Retirement Systems may receive.
Retiree - Rehired Prior to July 1, 2010
- Between now and July 1, 2010, the rehired retiree will earn a salary, collect his or her retirement benefit, and receive a defined contribution equal to the amount that would have been contributed to the DB plan if the retiree were an active member.
- On and after July 1, 2010, the rehired retiree will earn a salary, continue to collect his or her retirement benefit, and may, at the discretion of the employer, receive a defined contribution not to exceed the normal cost.
Retiree - Rehired On or After July 1, 2010
- Requires a separation from employment (including part-time and contract arrangements) with any participating employer for one year from the retirement date with the Utah Retirement Systems (URS).
- If employed by a participating employer within one year of retirement date with URS, retirement benefit is canceled, employee is returned to active status, and earns additional service credit if eligible for service credit accrual.
- If employed by a participating employer after one year from the date of retirement, the employee will elect to either:
- earn a salary and continue to receive the retirement benefit; or
- earn a salary and cancel the retirement benefit in order to earn additional service credit; if re-employed for at least 2 years, a separate benefit will be calculated based upon the new service and salary at the time of the second retirement, and the previous retirement benefit and the new retirement benefit will be combined.
Presentations
Education and Marketing:
Overview of Senate Bill 43 (watch video)
Overview of Senate Bill 43 (printable version)
Links to Other Resources about Legislative Information
Utah State Legislature – Senate Bill 43 text
Office of Legislative Research and General Counsel - Summary
|
URS | 
