| (1) |
This section applies to members of any system administered by the board under this title, whose retirement allowance remained exempt from the tax imposed under Title 59, Chapter 10, Individual Income Tax Act, pursuant to Laws of Utah 1988, Chapter 195, Section 2, but whose allowance has subsequently become subject to that tax. |
Terms Used In Utah Code 49-11-701
- Administrator: includes "executor" when the subject matter justifies the use. See Utah Code 68-3-12.5
- Board: means the Utah State Retirement Board established under Section 49-11-202. 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
- Member: means a person, except a retiree, with contributions on deposit with a system, the Utah Governors' and Legislators' Retirement Plan under Chapter 19, Utah Governors' and Legislators' Retirement Act, or with a terminated system. 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
- retirement allowance: means the pension plus the annuity, including any cost of living or other authorized adjustments to the pension and annuity. See Utah Code 49-11-102
- System: means the individual retirement systems created by Chapter 12, Public Employees' Contributory Retirement Act, Chapter 13, Public Employees' Noncontributory Retirement Act, Chapter 14, Public Safety Contributory Retirement Act, Chapter 15, Public Safety Noncontributory Retirement Act, Chapter 16, Firefighters' Retirement Act, Chapter 17, Judges' Contributory Retirement Act, Chapter 18, Judges' Noncontributory Retirement Act, and Chapter 19, Utah Governors' and Legislators' Retirement Act, the defined benefit portion of the Tier II Hybrid Retirement System under 3, and the defined benefit portion of the Tier II Hybrid Retirement System under 3. See Utah Code 49-11-102
| (2) |
Any member who meets the conditions established under Subsection (1) shall receive the following:
| (a) |
the administrator shall calculate the member’s retirement allowance pursuant to the formula governing the system from which the member retired; |
| (b) |
the administrator shall then increase the allowance calculated under Subsection (2)(a) by 3%; and |
| (c) |
the adjusted retirement allowance under Subsection (2)(b) is the new basis upon which any future adjustments to benefits are made. |
|
| (3) |
| (a) |
For all members who retire or are receiving retirement allowances in calendar year 1989, the administrator shall apply the 3% adjustment under Subsection (2) to all retirement allowances received in 1989, so that the period for which the allowance becomes subject to the tax under Title 59, Chapter 10, Individual Income Tax Act, and the period for which the 3% adjustment is given are the same. |
| (b) |
For all members who retire after December 31, 1989, and who meet the requirements of Subsection (1), the administrator shall apply the 3% adjustment under Subsection (2) beginning on the effective date of retirement. |
|
| (5) |
The administrator shall comply with 4, with respect to withholding of taxes. |
| (6) |
| (a) |
The retirement board shall annually certify the contribution rate necessary for each system to comply with this section and may adopt rules to administer this section. |
| (b) |
This contribution rate shall be reported separately from the total contribution rate necessary to fund the systems on an actuarially sound basis and may not be used in comparative studies of public employee benefits. |
|
Amended by Chapter 250, 2008 General Session
