Utah Code 49-12-204. Higher education employees’ eligibility requirements — Election between different retirement plans — Classification requirements — Transfer between systems — One-time election window

49-12-204. Higher education employees’ eligibility requirements — Election between different retirement plans — Classification requirements — Transfer between systems — One-time election window — Rulemaking.

(1)

Terms Used In Utah Code 49-12-204

Board: means the Utah State Retirement Board established under Section 49-11-202. See Utah Code 49-11-102
Contract: A legal written agreement that becomes binding when signed.
Institution of higher education: means an institution described in Section 53B-1-102. See Utah Code 49-11-102
Office: means the Utah State Retirement Office. See Utah Code 49-11-102
Person: means :Utah Code 68-3-12.5
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
Program: means the Public Employees' Insurance Program created under Chapter 20, Public Employees' Benefit and Insurance Program Act, or the Public Employees' Long-Term Disability program created under Chapter 21, Public Employees' Long-Term Disability Act. See Utah Code 49-11-102
Regular full-time employee: includes :

(i)	a teacher whose term of employment for a participating employer contemplates continued employment during a school year and who teaches half-time or more;

(ii)

a classified school employee:

(A)	who is hired before July 1, 2013; and

(B)	whose employment normally requires an average of 20 hours per week or more for a participating employer, regardless of benefits provided;

(iii)

an officer, elective or appointive, who earns $500 or more per month, indexed as of January 1, 1990, as provided in Section 49-12-407;

(iv)	a faculty member or employee of an institution of higher education who is considered full-time by that institution of higher education; and

(v)

an individual who otherwise meets the definition of this Subsection (5) who performs services for a participating employer through a professional employer organization or similar arrangement. See Utah Code 49-12-102

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

System: means the Public Employees' Contributory Retirement System created under this chapter. See Utah Code 49-12-102

Technical college: means the same as that term is defined in Section 53B-1-101. See Utah Code 49-11-102

Utah Board of Higher Education: means the Utah Board of Higher Education described in Section 53B-1-402. See Utah Code 49-11-102

(a)

A regular full-time employee of an institution of higher education who is eligible to participate in either this system or a public or private retirement system, organization, or company, designated as described in Subsection (1)(c) or (d), shall, not later than January 1, 1979, elect to participate exclusively in this system or in an annuity contract allowed under this Subsection (1).

(b)	The election is final, and no right exists to make any further election.

(c)	Except as provided in Subsection (1)(d), the Utah Board of Higher Education shall designate the public or private retirement systems, organizations, or companies that a regular full-time employee of an institution of higher education is eligible to participate in under Subsection (1)(a).

(d)	The technical college board of trustees of each technical college shall designate the public or private retirement systems, organizations, or companies that a regular full-time employee of each technical college is eligible to participate in under Subsection (1)(a).

(2)

(a)	Except as provided under Subsection (2)(c), a regular full-time employee hired by an institution of higher education after January 1, 1979, may participate only in the retirement plan which attaches to the person‘s employment classification.

(b)

Each institution of higher education shall prepare or amend existing employment classifications, under the direction of the Utah Board of Higher Education, or the technical college board of trustees of each technical college for each technical college, so that each classification is assigned with either:

(i)	this system; or

(ii)

a public or private system, organization, or company designated by:

(A)	except as provided in Subsection (2)(b)(ii)(B), the Utah Board of Higher Education; or

(B)	the technical college board of trustees of each technical college for regular full-time employees of each technical college.

(c)

Notwithstanding a person’s employment classification assignment under Subsection (2)(b), a regular full-time employee who begins employment with an institution of higher education on or after May 11, 2010, has a one-time irrevocable election to continue participation in this system, if the employee has service credit in this system before the date of employment.

(3)

Notwithstanding an employment classification assignment change made under Subsection (2)(b), a regular full-time employee hired by an institution of higher education after January 1, 1979, whose employment classification requires participation in this system may elect to continue participation in this system.

(4)	A regular full-time employee hired by an institution of higher education after January 1, 1979, whose employment classification requires participation in this system shall participate in this system.

(5)

(a)

Notwithstanding any other provision of this section, a regular full-time employee of an institution of higher education shall have a one-time irrevocable election to participate in this system if the employee:

(i)	was hired after January 1, 1979;

(ii)	whose employment classification assignment under Subsection (2)(b) required participation in a retirement program other than this system; and

(iii)

has service credit in a system under this title.

(b)	The election under Subsection (5)(a) shall be made before June 30, 2010.

(c)	All forms required by the office must be completed and received by the office no later than June 30, 2010, for the election to participate in this system to be effective.

(d)	Beginning July 1, 2010, a regular full-time employee of an institution of higher education who elects to be covered by this system under Subsection (5)(a) may begin to accrue service credit in this system.

(6)

A regular full-time employee of an institution of higher education who elects to be covered by this system under Subsection (2)(c) or (5)(a), may purchase periods of employment while covered under another retirement program sponsored by the institution of higher education by complying with the requirements of Section 49-11-403.

(7)	The board shall make rules to implement this section.

(8)

An employee’s 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.

Amended by Chapter 24, 2020 General Session
Amended by Chapter 365, 2020 General Session

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Utah Code 49-12-204. Higher education employees’ eligibility requirements — Election between different retirement plans — Classification requirements — Transfer between systems — One-time election window — Rulemaking

Terms Used In Utah Code 49-12-204