49-23-203. Exemptions from participation in system.
(1)
Upon filing a written request for exemption with the office, the following employees are exempt from participation in the system as provided in this section if the employee is a public safety service employee or firefighter service employee and is:
Terms Used In Utah Code 49-23-203
Amortization: Paying off a loan by regular installments.
Amortization rate: means the board certified percent of salary required to amortize the unfunded actuarial accrued liability in accordance with policies established by the board upon the advice of the actuary. See Utah Code 49-11-102
defined contribution plan: means any defined contribution plan or deferred compensation plan authorized under the Internal Revenue Code and administered by the board. See Utah Code 49-11-102
Employer: means any department, educational institution, or political subdivision of the state eligible to participate in a government-sponsored retirement system under federal law. See Utah Code 49-11-102
Firefighter service: means employment normally requiring an average of 2,080 hours of regularly scheduled employment per year rendered by a member who is:
(i)
a firefighter service employee trained in firefighter techniques and assigned to a position of hazardous duty with a regularly constituted fire department;
(ii)
the state fire marshal appointed under Section 53-7-103 or a deputy state fire marshal; or
Nonelective contribution: means an amount contributed by a participating employer into a participant's defined contribution account. See Utah Code 49-11-102
Plan: means the Utah Governors' and Legislators' Retirement Plan created by Chapter 19, Utah Governors' and Legislators' Retirement Act, the New Public Employees' Tier II Defined Contribution Plan created by 4, the New Public Safety and Firefighter Tier II Defined Contribution Plan created by 4, or the defined contribution plans created under Section 49-11-801. See Utah Code 49-11-102
Public safety service: means employment normally requiring an average of 2,080 hours of regularly scheduled employment per year rendered by a member who is:
(i)
a law enforcement officer in accordance with Section 53-13-103;
(ii)
a correctional officer in accordance with Section 53-13-104;
(iii)
a special function officer approved in accordance with Sections 49-15-201 and 53-13-105;
(iv)
a dispatcher who is certified in accordance with Section 53-6-303;
(v)
a full-time member of the Board of Pardons and Parole created under Section 77-27-2;
(vi)
the commissioner of the Department of Public Safety; or
(vii)
the executive director of the Department of Corrections. See Utah Code 49-23-102
Retirement: means the status of an individual who has become eligible, applies for, and is entitled to receive an allowance under this title. See Utah Code 49-11-102
Service credit: means :
(a)
the period during which an employee is employed and compensated by a participating employer and meets the eligibility requirements for membership in a system or the Utah Governors' and Legislators' Retirement Plan, provided that any required contributions are paid to the office; and
(b)
periods of time otherwise purchasable under this title. See Utah Code 49-11-102
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
System: means the New Public Safety and Firefighter Tier II Contributory Retirement System created under this chapter. See Utah Code 49-23-102
Tier II: includes :
(i)
the Tier II hybrid system established under:
(A)
3; or
(B)
3; and
(ii)
the Tier II Defined Contribution Plan (Tier II DC Plan) established under:
Voluntary deferrals: means an amount contributed by a participant into that participant's defined contribution account. See Utah Code 49-11-102
(a)
an executive department head of the state;
(b)
an elected or appointed sheriff of a county;
(c)
an elected or appointed chief of police of a municipality; or
(d)
the chief of any fire department or district.
(2)
(a)
A participating employer shall prepare a list designating those positions eligible for exemption under Subsection (1).
(b)
An employee may not be exempted unless the employee is employed in a position designated by the participating employer under Subsection (1).
(3)
Each participating employer shall:
(a)
file each employee exemption annually with the office; and
(b)
update an employee exemption in the event of any change.
(4)
Beginning on the effective date of the exemption for an employee who elects to be exempt in accordance with Subsection (1):
(a)
for a member of the Tier IIdefined contribution plan:
(i)
the participating employer shall contribute the nonelective contribution and the amortization rate described in Section 49-23-401, except that the contribution is exempt from the vesting requirements of Subsection 49-23-401(3)(a);
(ii)
the member may make voluntary deferrals as provided in Section 49-23-401; and
(iii)
the member is not eligible for additional service credit in the plan for the period of exempt employment; and
(b)
for a member of the Tier II hybrid retirement system:
(i)
the participating employer shall contribute the nonelective contribution and the amortization rate described in Section 49-23-401, except that the contribution is exempt from the vesting requirements of Subsection 49-23-401(3)(a);
(ii)
the member may make voluntary deferrals as provided in Section 49-23-401; and
(iii)
the member is not eligible for additional service credit in the system for the period of exempt employment.
(5)
If an employee who is a member of the Tier II hybrid retirement system subsequently revokes the election of exemption made under Subsection (1), the provisions described in Subsection (4)(b) shall no longer be applicable and the coverage for the employee shall be effective prospectively as provided in 3.
(6)
(a)
All employer contributions made on behalf of an employee shall be invested in accordance with Subsection 49-23-302(3)(a) or 49-23-401(4)(a) until the one-year election period under Subsection 49-23-201(2)(c) is expired if the employee:
(i)
elects to be exempt in accordance with Subsection (1); and
(ii)
continues employment with the participating employer through the one-year election period under Subsection 49-23-201(2)(c).
(b)
An employee is entitled to receive a distribution of the employer contributions made on behalf of the employee and all associated investment gains and losses if the employee:
(i)
elects to be exempt in accordance with Subsection (1); and
(ii)
terminates employment prior to the one-year election period under Subsection 49-23-201(2)(c).
(7)
(a)
The office shall make rules to implement this section.
(b)
The rules made under this Subsection (7) shall include provisions to allow the exemption provided under Subsection (1) to apply to all contributions made beginning on or after July 1, 2011, on behalf of an exempted employee who began the employment before May 8, 2012.
(8)
An employee’s exemption, participation, or election described in this section:
(a)
shall be made in accordance with this section; and
(b)
is subject to requirements under federal law and rules made by the board.
