49-22-204.  Higher education employees’ eligibility requirements — Election between different retirement plans — Classification requirements — Transfer between systems.

(1) 

Terms Used In Utah Code 49-22-204

  • Annuity: means monthly payments derived from member contributions. See Utah Code 49-11-102
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • 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
  • 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
  • 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 appointive officer whose appointed position is full time as certified by the participating employer;
(iv) the governor, the lieutenant governor, the state auditor, the state treasurer, the attorney general, and a state legislator;
(v) an elected official not included under Subsection (6)(b)(iv) whose elected position is full time as certified by the participating employer;
(vi) a faculty member or employee of an institution of higher education who is considered full time by that institution of higher education; and
(vii) an individual who otherwise meets the definition of this Subsection (6) who performs services for a participating employer through a professional employer organization or similar arrangement. See Utah Code 49-22-102
  • 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 New Public Employees' Tier II Contributory Retirement System created under this chapter. See Utah Code 49-22-102
  • 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 in a retirement annuity contract with a public or private 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)  A regular full-time employee hired by an institution of higher education after January 1, 1979, may participate only in the retirement plan designated for 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 under 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 has a one-time irrevocable election to continue participation in this system if the employee:

    (i)  has service credit in this system before the date of employment with the institution of higher education; and

    (ii)  makes the election before participating in the system described in Subsection (2)(b)(ii).

    (3)  A regular full-time employee hired by an institution of higher education on or after July 1, 2011, whose employment classification requires participation in this system may elect to continue participation in this system upon change to an employment classification that requires participation in a public or private system, organization, or company designated by:

    (a)  except as provided in Subsection (3)(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.

    (4)  A regular full-time employee hired by an institution of higher education on or after July 1, 2011, whose employment classification requires participation in this system shall participate in this system.

    (5)  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 171, 2022 General Session

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