49-22-205. Exemptions from participation in system.
(1)
Upon filing a written request for exemption with the office, the following employees are exempt from participation in the system as provided in this section:
Terms Used In Utah Code 49-22-205
Administrator: includes "executor" when the subject matter justifies the use. See Utah Code 68-3-12.5
Agency: means :
(i)
a department, division, agency, office, authority, commission, board, institution, or hospital of the state;
(ii)
a county, municipality, school district, special district, or special service district;
Amortization: Paying off a loan by regular installments.
Amortization rate: means the board certified percent of salary required to amortize the unfunded actuarial accrued liability in accordance with policies established by the board upon the advice of the actuary. See Utah Code 49-11-102
At-will employee: means a person who is employed by a participating employer and:
(i)
who is not entitled to merit or civil service protection and is generally considered exempt from a participating employer's merit or career service personnel systems;
(ii)
whose on-going employment status is entirely at the discretion of the person's employer; or
(iii)
who may be terminated without cause by a designated supervisor, manager, or director. 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
Nonelective contribution: means an amount contributed by a participating employer into a participant's defined contribution account. 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
Political subdivision: includes special districts, special service districts, or authorities created by the Legislature or by local governments, including the office. 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
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 New Public Employees' Tier II Contributory Retirement System created under this chapter. See Utah Code 49-22-102
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:
Voluntary deferrals: means an amount contributed by a participant into that participant's defined contribution account. See Utah Code 49-11-102
(a)
an executive department head of the state;
(b)
a member of the State Tax Commission;
(c)
a member of the Public Service Commission;
(d)
a member of a full-time or part-time board or commission;
(e)
an employee of the Governor’s Office of Planning and Budget;
(f)
an employee of the Governor’s Office of Economic Opportunity;
(g)
an employee of the Commission on Criminal and Juvenile Justice;
(h)
an employee of the Governor’s Office;
(i)
an employee of the State Auditor’s Office;
(j)
an employee of the State Treasurer’s Office;
(k)
any other member who is permitted to make an election under Section 49-11-406;
(l)
a person appointed as a city manager or appointed as a city administrator or another at-will employee of a municipality, county, or other political subdivision;
(m)
an employee of an interlocal cooperative agency created under Title 11, Chapter 13, Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided through membership in a labor organization that provides retirement benefits to its members; and
(n)
an employee serving as an exchange employee from outside the state for an employer who has elected to make all of the employer’s exchange employees eligible for service credit in this system.
(2)
(a)
A participating employer shall prepare and maintain a list designating those positions eligible for exemption under Subsection (1).
(b)
An employee may not be exempted unless the employee is employed in a position designated by the participating employer under Subsection (1).
(3)
(a)
In accordance with this section, Section 49-12-203, and Section 49-13-203, a municipality, county, or political subdivision may not exempt a total of more than 50 positions or a number equal to 10% of the eligible employees of the municipality, county, or political subdivision, whichever is less.
(b)
A municipality, county, or political subdivision may exempt at least one regular full-time employee.
(4)
Each participating employer shall:
(a)
maintain a list of employee exemptions; and
(b)
update an employee exemption in the event of any change.
(5)
Beginning on the effective date of the exemption for an employee who elects to be exempt in accordance with Subsection (1):
(a)
for a member of the Tier IIdefined contribution plan:
(i)
the participating employer shall contribute the nonelective contribution and the amortization rate described in Section 49-22-401, except that the nonelective contribution is exempt from the vesting requirements of Subsection 49-22-401(3)(a);
(ii)
the member may make voluntary deferrals as provided in Section 49-22-401; and
(iii)
the member is not eligible for additional service credit in the plan for the period of exempt employment; and
(b)
for a member of the Tier II hybrid retirement system:
(i)
the participating employer shall contribute the nonelective contribution and the amortization rate described in Section 49-22-401, except that the contribution is exempt from the vesting requirements of Subsection 49-22-401(3)(a);
(ii)
the member may make voluntary deferrals as provided in Section 49-22-401; and
(iii)
the member is not eligible for additional service credit in the system for the period of exempt employment.
(6)
If an employee who is a member of the Tier II hybrid retirement system subsequently revokes the election of exemption made under Subsection (1), the provisions described in Subsection (5)(b) shall no longer be applicable and the coverage for the employee shall be effective prospectively as provided in 3.
(7)
(a)
All employer contributions made on behalf of an employee shall be invested in accordance with Subsection 49-22-303(3)(a) or 49-22-401(4)(a) until the one-year election period under Subsection 49-22-201(2)(c) is expired if the employee:
(i)
elects to be exempt in accordance with Subsection (1); and
(ii)
continues employment with the participating employer through the one-year election period under Subsection 49-22-201(2)(c).
(b)
An employee is entitled to receive a distribution of the employer contributions made on behalf of the employee and all associated investment gains and losses if the employee:
(i)
elects to be exempt in accordance with Subsection (1); and
(ii)
terminates employment prior to the one-year election period under Subsection 49-22-201(2)(c).
(8)
(a)
The office shall make rules to implement this section.
(b)
The rules made under this Subsection (8) shall include provisions to allow the exemption provided under Subsection (1) to apply to all contributions made beginning on or after July 1, 2011, on behalf of an exempted employee who began the employment before May 8, 2012.
(9)
An employee’s exemption, 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.
