49-23-309. Defined benefit adjustments — Conditions — Process — Future years accrual.
(1)
In accordance with this section, the Legislature may make adjustments to the benefits provided for the defined benefit portion of the Tier II Hybrid RetirementSystem created under this part if the member‘s contribution required under Subsection 49-23-301(2)(b) to the certified contribution rate for the defined benefit portion of this system exceeds 2% of the member’s salary and:
Terms Used In Utah Code 49-23-309
Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Certified contribution rate: means the board certified percent of salary paid on behalf of an active member to the office to maintain the system on a financially and actuarially sound basis. See Utah Code 49-11-102
Final average salary: means the amount calculated by averaging the highest five years of annual compensation preceding retirement subject to Subsections (4)(b), (c), (d), (e), and (f). See Utah Code 49-23-102
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
Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
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 allowance: means the pension plus the annuity, including any cost of living or other authorized adjustments to the pension and annuity. 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 Safety and Firefighter Tier II Contributory Retirement System created under this chapter. See Utah Code 49-23-102
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:
the membership council created under Section 49-11-205 recommends an adjustment to the board in accordance with Subsection (2); and
(ii)
the board recommends specific adjustments to the Legislature in accordance with Subsection (2); or
(b)
an actuarial study that conforms with generally accepted actuarial principles and practices and with the Actuarial Standards of Practice issued by the Actuarial Standards Board and requested or commissioned by the board or the Legislature concludes:
(i)
there is a significant likelihood that contribution rates will continue to rise; and
(ii)
that participating employers are liable for system costs above the contribution rate established under Subsection 49-23-301(2)(a).
(2)
If the conditions under Subsection (1)(a) or (b) are met, the Legislature may adjust benefits for the defined benefit portion of the Tier II Hybrid Retirement System accrued or applied for future years of service including:
(a)
the final average salary calculation provided under Section 49-23-102;
(b)
the years of service required to be eligible to receive a retirement allowance under Section 49-23-303;
(c)
the years of service credit multiplier established under Subsection 49-23-304(2)(a);
(d)
the annual cost-of-living adjustment under Section 49-23-307; or
(e)
other provisions of the defined benefit portion of the Tier II Hybrid Retirement System.
(3)
(a)
Notwithstanding the provisions of Subsections (1) and (2), the Legislature may make adjustments to the benefits provided for the defined benefit portion of the Tier II Hybrid Retirement System created under this part if an actuarial study described under Subsection (1)(b) concludes, due to current and projected economic conditions, member participation levels, and system structure, that the system:
(i)
cannot reasonably be sustained under its current provisions;
(ii)
is critically underfunded; and
(iii)
has become unstable and is in risk of collapse.
(b)
Subject to federal law, the adjustments under Subsection (3)(a) may include:
(i)
conversion to a different type of retirement plan;
(ii)
equitable distribution of system assets to retirees and members; and
