49-11-301. Creation — Board to act as trustees of the fund — Commingling and pooling of funds — Interest earnings — Funded ratio.
(1)
Terms Used In Utah Code 49-11-301
Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Certified contribution rate: means the board certified percent of salary paid on behalf of an active member to the office to maintain the system on a financially and actuarially sound basis. 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
Fund: means any fund created under this title for the purpose of paying benefits or costs of administering a system, plan, or program. 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
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
Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
(a)
There is created a common trust fund known as the “Utah StateRetirement Investment Fund” for the purpose of enlarging the investment base and simplifying investment procedures and functions.
(b)
The Utah State Retirement Investment Fund may sue and be sued in its own name.
(2)
(a)
The board shall act as trustees of the Utah State Retirement Investment Fund and, through the executive director, may commingle and pool the funds and investments of any system, plan, or program into the Utah State Retirement Investment Fund, if the principal amounts of the participating funds do not lose their individual identity and are maintained as separate trust funds on the books of the office.
(b)
(i)
In combining the investments of any fund, each of the participating funds shall be credited initially with its share of the total assets transferred to the Utah State Retirement Investment Fund.
(ii)
The value of the transferred assets shall be calculated in accordance with generally accepted accounting principles.
(c)
Subsequent transfers of additional capital from participating funds shall be credited similarly to its respective trust account.
(d)
The income or principal or equity credit belonging to one participating fund may not be transferred to another, except for the purpose of:
(i)
actuarially recommended transfers in order to adjust employer contribution rates for an employer that participates in both contributory and noncontributory systems; or
(ii)
transfers which reflect the value of service credit accrued in different systems during a member‘s career.
(3)
The assets of the funds are for the exclusive benefit of the members, participants, and covered individuals and may not be diverted or appropriated for any purpose other than that permitted by this title.
(4)
(a)
Interest and other earnings shall be credited to each participating fund on a pro rata equity position basis.
(b)
(i)
A portion of the interest and other earnings of the common trust fund may be credited to a reserve account within the Utah State Retirement Investment Fund to meet adverse experiences arising from investments or other contingencies.
(ii)
Each participating fund shall retain its proportionate equity in the reserve account.
(5)
(a)
The actuarial funded ratio of the systems may reach and be maintained at 110%, as determined by the board’s actuary using assumptions adopted by the board, before the board is required to certify a decrease in contribution rates.
(b)
Except as provided in Subsection (6), the board may not increase contribution rates to attain an actuarial funded ratio greater than 100%.
(6)
(a)
The cost of any amendment to this title shall be included in the final contribution rates adopted and certified by the board in accordance with Subsections 49-11-102(14) and 49-11-203(1)(l).
(b)
If a preliminary certified contribution rate approved by the board prior to an annual general session or special session of the Legislature was maintained at a previous year’s level that is higher than the contribution rate calculated by the board’s actuary for that year in accordance with Subsection (5)(a), the board’s final certified contribution rate shall be the sum of the actuarially determined costs from any amendment to this title during the general session or special session and the preliminary certified contribution rate.
