Utah Code 49-13-303. Supplemental benefit established — Defined contribution plan options — Contribution by employer and employee — Immediate vesting of contributions — Plans to be separate — Tax-qualified status of plans

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Terms Used In Utah Code 49-13-303

Board: means the Utah State Retirement Board established under Section 49-11-202. See Utah Code 49-11-102
Compensation: means the total amount of payments made by a participating employer to a member of this system for services rendered to the participating employer, including:
          (2)(a)(i) bonuses;
          (2)(a)(ii) cost-of-living adjustments;
          (2)(a)(iii) other payments currently includable in gross income and that are subject to social security deductions, including any payments in excess of the maximum amount subject to deduction under social security law; and
          (2)(a)(iv) amounts that the member authorizes to be deducted or reduced for salary deferral or other benefits authorized by federal law. See Utah Code 49-13-102
Contributions: means the total amount paid by the participating employer and the member into a system or to the Utah Governors' and Legislators' Retirement Plan under Chapter 19, Utah Governors' and Legislators' Retirement Act. 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
Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
Fiduciary: A trustee, executor, or administrator.
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
Nonelective contribution: means an amount contributed by a participating employer into a participant's defined contribution account. See Utah Code 49-11-102
Participating employer: means an employer that meets the participation requirements of Sections 49-13-201 and 49-13-202. See Utah Code 49-13-102
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 Chapter 22, Part 4, Tier II Defined Contribution Plan, the New Public Safety and Firefighter Tier II Defined Contribution Plan created by Chapter 23, Part 4, Tier II Defined Contribution Plan, or the defined contribution plans created under Section 49-11-801. See Utah Code 49-11-102
Regular full-time employee: includes :
          (5)(b)(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;
          (5)(b)(ii) a classified school employee:
               (5)(b)(ii)(A) who is hired before July 1, 2013; and
               (5)(b)(ii)(B) whose employment normally requires an average of 20 hours per week or more for a participating employer, regardless of benefits provided;
          (5)(b)(iii) an officer, elective or appointive, who earns $500 or more per month, indexed as of January 1, 1990, as provided in Section 49-13-407;
          (5)(b)(iv) a faculty member or employee of an institution of higher education who is considered full time by that institution of higher education; and
          (5)(b)(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 49-13-102
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 Public Employees' Noncontributory Retirement System. See Utah Code 49-13-102
Voluntary deferrals: means an amount contributed by a participant into that participant's defined contribution account. See Utah Code 49-11-102

(1)(a) Participating employers in Level A under Section 49-13-301, which are participating educational institutions or participating employers whose activities are associated with participating educational institutions, shall make a nonelective contribution on behalf of each of its regular full-time employees who are members of this system an amount equal to at least 1.5% of the member‘s compensation to a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code which is selected by the regular full-time employee and which is sponsored by the board, by that Level A employer, or by a group of similar Level A employers, and which has been grandfathered under Section 1116 of the Federal Tax Reform Act of 1986.

(1)(b) All other Level A participating employers under Section 49-13-301 shall make a nonelective contribution on behalf of each of its regular full-time employees who are members of this system an amount equal to at least 1.5% of the member’s compensation to the defined contribution plan qualified under Section 401(k) of the Internal Revenue Code which is sponsored by the board.

(1)(c) The member or participating employer may make additional payments to either the qualified 401(k) plan which receives the 1.5% employer contribution described in this Subsection (1), or to any other defined contribution plan qualified under Section 401(k) of the Internal Revenue Code which is selected by the member and sponsored by the board, that Level A employer, or a group of similar Level A employers, and which has been grandfathered under Section 1116 of the Federal Tax Reform Act of 1986.

(2)

(2)(a) Participating employers in Level B under Section 49-13-301 may make nonelective contributions on behalf of each of its regular full-time employees who are members of this system to the 401(k) defined contribution plan sponsored by the board or to a qualified plan sponsored by the participating employer which has been grandfathered under Section 1116 of the Federal Tax Reform Act of 1986.

(2)(b) The member may also make voluntary deferrals to the same 401(k) plan which the member selected to receive the employer contribution described in Subsection (2)(a).

(3) Each qualified defined contribution 401(k) plan is separate and distinct from any other qualified defined contribution 401(k) plan for all purposes, including purposes of fiduciary liability and plan administration.

(4) A member may not make voluntary deferrals to any other qualified 401(k) plan sponsored by a state or local government.

(5) The total amount contributed by the participating employer and the member under Subsection (1) or (2) vests to the member’s benefit immediately and is nonforfeitable.

(6) The board may request from any other qualified 401(k) plan under Subsection (1) or (2) any relevant information pertaining to the maintenance of its tax qualification under the Internal Revenue Code.

(7) The board may take any action which in its judgment is necessary to maintain the tax-qualified status of its 401(k) defined contribution plan under federal law.

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