49-21-403.  Termination of disability benefits — Calculation of retirement benefit.

(1)  An eligible employee covered by this chapter and eligible for service credit under a system or plan, including an eligible employee who relinquishes rights to retirement benefits under Section 49-11-619, who applies and is qualified for a monthly disability benefit shall receive a monthly disability benefit until the earlier of:

Terms Used In Utah Code 49-21-403

  • Date of disability: means the date on which a period of total disability begins, and may not begin on or before the last day of performing full-duty work in the eligible employee's regular occupation. See Utah Code 49-21-102
  • 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
  • Eligible employee: means the following employee whose employer provides coverage under this chapter:
(i) 
(A) any regular full-time employee as defined under Section 49-12-102, 49-13-102, or 49-22-102;
(B) any public safety service employee as defined under Section 49-14-102, 49-15-102, or 49-23-102;
(C) any firefighter service employee or volunteer firefighter as defined under Section 49-23-102 who began firefighter service on or after July 1, 2011;
(D) any judge as defined under Section 49-17-102 or 49-18-102; or
(E) the governor of the state;
(ii) an employee who is exempt from participating in a retirement system under Subsection 49-12-203(4), 49-13-203(4), 49-14-203(1), or 49-15-203(1); and
(iii) an employee who is covered by a retirement program offered by a public or private system, organization, or company designated by the Utah Board of Higher Education. See Utah Code 49-21-102
  • Monthly disability benefit: means the monthly payments and accrual of service credit under Section 49-21-401. See Utah Code 49-21-102
  • Participant: means an individual with voluntary deferrals or nonelective contributions on deposit with the defined contribution plans administered under this title. 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
  • Retirement date: means the date selected by the member on which the member's retirement becomes effective with the office. 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 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
  • 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:
    (A) 4; or
    (B) 4. See Utah Code 49-11-102
    (a)  the date of the eligible employee’s death;

    (b)  the date the eligible employee no longer has a disability;

    (c)  the date the eligible employee has accumulated or would have accumulated, if the employee had not chosen the 4, 4, been a volunteer firefighter, or exempted from a retirement system or plan:

    (i)  20 years of service credit if the eligible employee is covered by Chapter 14, Public Safety Contributory Retirement Act, or Chapter 15, Public Safety Noncontributory Retirement Act;

    (ii)  25 years of service credit if the eligible employee is covered by Chapter 17, Judges’ Contributory Retirement Act, or Chapter 18, Judges’ Noncontributory Retirement Act;

    (iii)  30 years of service credit if the eligible employee is covered by Chapter 12, Public Employees’ Contributory Retirement Act, or Chapter 13, Public Employees’ Noncontributory Retirement Act;

    (iv)  35 years of service credit if the eligible employee is covered by the defined benefit portion under 3, or is covered by the defined contribution plan under 4; or

    (v)  25 years of service credit if the eligible employee is covered by the defined benefit portion under 3, or is covered by the defined contribution plan under 4;

    (d)  the date the eligible employee has received a monthly disability benefit for the following applicable time periods:

    (i)  if the eligible employee is under age 60, the monthly disability benefit is payable until age 65;

    (ii)  if the eligible employee is 60 or 61 years of age on the date of disability, the monthly disability benefit is payable for five years;

    (iii)  if the eligible employee is 62 or 63 years of age on the date of disability, the monthly disability benefit is payable for four years;

    (iv)  if the eligible employee is 64 or 65 years of age on the date of disability, the monthly disability benefit is payable for three years;

    (v)  if the eligible employee is 66, 67, or 68 years of age on the date of disability, the monthly disability benefit is payable for two years; and

    (vi)  if the eligible employee is 69 years of age or older on the date of disability, the monthly disability benefit is payable for one year; or

    (e)  the eligible employee’s retirement date, set when the eligible employee retires from a system or from the Utah Governors’ and Legislators’ Retirement Plan.

    (2) 

    (a)  Upon termination of a monthly disability benefit, an eligible employee eligible for service credit under a system may retire under the requirements of the system which covered the eligible employee on the date of disability.

    (b)  The final average salary used in the calculation of the allowance shall be based on the annual rate of pay on the date of disability, improved by the annual cost-of-living increase factor applied to retirees of the system which covered the eligible employee on the date of disability.

    (3)  An eligible employee who is eligible for service credit in a system, but has relinquished rights to an allowance under Section 49-11-619, may receive the benefits the eligible employee would have received by being eligible for service credit in the system covering the eligible employee on the date of disability, except for the accrual of service credit, in accordance with this title.

    (4)  An eligible employee receiving a monthly disability benefit who has service credit from two or more systems may not combine service credits under Section 49-11-405 in qualifying for retirement, unless the eligible employee would receive a greater allowance by combining the service credits.

    (5)  An eligible employee covered by this chapter who is a participant in the Tier II Defined Contribution Plan, created in 4, or 4, who applies and is qualified for a monthly disability benefit, shall receive a monthly disability benefit until the earlier of:

    (a)  the date of the eligible employee’s death;

    (b)  the date the eligible employee no longer has a disability;

    (c) 

    (i)  35 years from the date the eligible employee began participation in the Tier II Defined Contribution Plan, created in 4; or

    (ii)  25 years from the date the eligible employee began participation in the Tier II Defined Contribution Plan created in 4; or

    (d)  the date the eligible employee has received a monthly disability benefit for the following applicable time periods:

    (i)  if the eligible employee is under age 60, the monthly disability benefit is payable until age 65;

    (ii)  if the eligible employee is 60 or 61 years of age on the date of disability, the monthly disability benefit is payable for five years;

    (iii)  if the eligible employee is 62 or 63 years of age on the date of disability, the monthly disability benefit is payable for four years;

    (iv)  if the eligible employee is 64 or 65 years of age on the date of disability, the monthly disability benefit is payable for three years;

    (v)  if the eligible employee is 66, 67, or 68 years of age on the date of disability, the monthly disability benefit is payable for two years; and

    (vi)  if the eligible employee is 69 years of age or older on the date of disability, the monthly disability benefit is payable for one year.

    Amended by Chapter 227, 2016 General Session