Enrolled Copy S.B. 25
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Postretirement Reemployment for Emergency Services Workers
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: Cheryl K. Acton
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LONG TITLE
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General Description:
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This bill modifies provisions of the Utah State Retirement and Insurance Benefits Act
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relating to postretirement reemployment.
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Highlighted Provisions:
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This bill:
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▸ modifies the earnings limit for postretirement reemployment as an affiliated emergency
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services worker; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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49-11-1205, as last amended by Laws of Utah 2024, Chapter 405
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 49-11-1205 is amended to read:
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49-11-1205 . Postretirement reemployment restriction exceptions.
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(1)(a) The office may not cancel the retirement allowance of a retiree who is reemployed
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with a participating employer within one year of the retiree's retirement date if:
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(i) the retiree is not reemployed by a participating employer for a period of at least 60
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days from the retiree's retirement date;
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(ii) the retiree has a bona fide termination of employment on the retiree's retirement
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date; S.B. 25 Enrolled Copy
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(iii) upon reemployment after the break in service under Subsection (1)(a)(i), the
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retiree does not receive any employer paid benefits, including:
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(A) retirement service credit or retirement-related contributions;
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(B) medical benefits;
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(C) dental benefits;
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(D) other insurance benefits except for workers' compensation as provided under
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Title 34A, Chapter 2, Workers' Compensation Act, Title 34A, Chapter 3, Utah
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Occupational Disease Act, and withholdings required by federal or state law
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for social security, Medicare, and unemployment insurance; or
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(E) paid time off, including sick, annual, or other type of leave; and
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(iv)(A) the retiree does not earn in any calendar year of reemployment an amount
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in excess of the lesser of $15,000 or one-half of the retiree's final average
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salary upon which the retiree's retirement allowance is based; or
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(B) the retiree is reemployed as a judge as defined under Section 78A-11-102.
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(b) The board shall adjust the amounts under Subsection (1)(a)(iv) by the annual change
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in the Consumer Price Index during the previous calendar year as measured by a
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United States Bureau of Labor Statistics Consumer Price Index average as
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determined by the board.
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(2) A retiree shall be considered as having completed the one-year separation from
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employment with a participating employer described in Section 49-11-1204, if the
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retiree:
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(a) before retiring:
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(i) was employed with a participating employer as a public safety service employee
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as defined in Section 49-14-102, 49-15-102, or 49-23-102;
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(ii) during the employment under Subsection (2)(a)(i), suffered a physical injury
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resulting from external force or violence while performing the duties of the
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employment, for which injury the retiree would have been approved for total
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disability in accordance with the provisions under Chapter 21, Public Employees'
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Long-Term Disability Act, if years of service are not considered;
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(iii) had less than 30 years of service credit but had sufficient service credit to retire,
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with an unreduced allowance making the public safety service employee ineligible
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for long-term disability payments under Chapter 21, Public Employees'
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Long-Term Disability Act, or a substantially similar long-term disability program;
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(iv) does not receive any long-term disability benefits from any participating
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employer; and
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(v) is at least 50 years old; and
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(b) is reemployed by a different participating employer.
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(3)(a) The office may not cancel the retirement allowance of a retiree who is employed
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as an affiliated emergency services worker within one year of the retiree's retirement
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date if the affiliated emergency services worker does not receive any compensation,
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except for:
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[(i) a nominal fee, stipend, discount, tax credit, voucher, or other fixed sum of money
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or cash equivalent payment not tied to productivity and paid periodically for
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services;]
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[(ii) a length-of-service award;]
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(i) compensation, including any payment, discount, tax credit, voucher, or cash
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equivalent, the total of which, excluding any amount described in Subsection
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(3)(a)(ii) or (iii), does not exceed in any calendar year the amount described in
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Subsection (1)(a)(iv)(A), as adjusted in accordance with Subsection (1)(b);
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[(iii)] (ii) insurance policy premiums paid by the participating employer in the event
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of death of an affiliated emergency services worker or a line-of-duty accidental
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death or disability; or
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[(iv)] (iii) reimbursement of expenses incurred in the performance of duties.
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[(b) For purposes of Subsections (3)(a)(i) and (ii), the total amount of any discounts, tax
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credits, vouchers, and payments to an affiliated emergency services worker may not
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exceed $500 per month.]
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[(c) The board shall adjust the amount under Subsection (3)(b) by the annual change in
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the Consumer Price Index during the previous calendar year as measured by a United
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States Bureau of Labor Statistics Consumer Price Index average as determined by the
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board.]
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[(d)] (b) A retiree is eligible for an exemption from the requirement to cease service
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without cancellation of a retirement allowance under this Subsection (3) only if the
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retiree, at the time of retirement, is at least:
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(i) 50 years old, if the retiree is retiring from a public safety system or a firefighter
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system; or
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(ii) 55 years old.
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(4)(a) The office may not cancel the retirement allowance of a retiree who is employed
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as a part-time appointed or elected board member within one year after the retiree's
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retirement date if the part-time appointed or elected board member does not receive
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any compensation exceeding the amount described in this Subsection (4).
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(b) A retiree who is a part-time appointed or elected board member for one or more
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boards, commissions, councils, committees, panels, or other bodies of participating
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employers:
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(i) may receive an aggregate amount of compensation, remuneration, a stipend, or
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other benefit for service on a single or multiple boards, commissions, councils,
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committees, panels, or other bodies of no more than $5,000 per year; and
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(ii) may not receive an employer paid retirement service credit or retirement-related
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contribution.
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(c) For purposes of Subsection (4)(b)(i):
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(i) a part-time appointed or elected board member's compensation includes:
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(A) an amount paid for the part-time appointed or elected board member's
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coverage in a group insurance plan provided by the participating employer; and
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(B) the part-time appointed or elected board member's receipt of any other benefit
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provided by the participating employer; and
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(ii) the part-time appointed or elected board member's compensation does not include:
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(A) an amount the participating employer pays for employer-matching
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employment taxes, if the participating employer treats the part-time appointed
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or elected board member as an employee for federal tax purposes; or
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(B) an amount that the part-time appointed or elected board member receives for
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per diem and travel expenses for up to 12 approved meetings or activities of
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the government board per year, if the per diem and travel expenses do not
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exceed the amounts established by the Division of Finance under Sections
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63A-3-106 and 63A-3-107 or by rules made by the Division of Finance
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according to Sections 63A-3-106 and 63A-3-107.
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(d) The board shall adjust the amount under Subsection (4)(b)(i) by the annual change in
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the Consumer Price Index during the previous calendar year as measured by a United
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States Bureau of Labor Statistics Consumer Price Index average, as determined by
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the board.
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(5)(a) The office may not cancel the retirement allowance of a retiree who is reemployed
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with a participating employer within one year of the retiree's retirement date if:
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(i) the retiree has a bona fide termination of employment on the retiree's retirement
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date;
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(ii) the retiree is not employed, including by a fee-for-service relationship, with any
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participating employer for a period of:
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(A) at least 90 days if the retiree is a public employee retiree; or
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(B) at least 90 days if the retiree is a public safety or firefighter retiree;
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(iii) the retiree agrees to a modified retirement allowance as described in Subsections
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(5)(b), (c), and (d); and
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(iv) the participating employer that reemploys the retiree agrees to pay to the office
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the normal cost rate in addition to the amortization rate.
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(b) During a period of reemployment, the retiree:
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(i) receives a retirement allowance that is 20% less than the retirement allowance the
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retiree is entitled to receive in accordance with:
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(A) for a retiree who retired under Chapter 12, Public Employees' Contributory
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Retirement Act, Section 49-12-402;
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(B) for a retiree who retired under Chapter 13, Public Employees' Noncontributory
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Retirement Act, Section 49-13-402; or
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(C) for a retiree who retired under Chapter 22, Part 3, Tier II Hybrid Retirement
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System, Section 49-22-305; or
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(ii) a retirement allowance that is 15% less than the retirement allowance the retiree is
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entitled to receive in accordance with:
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(A) for a retiree who retired under Chapter 14, Public Safety Contributory
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Retirement Act, Section 49-14-402;
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(B) for a retiree who retired under Chapter 15, Public Safety Noncontributory
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Retirement Act, Section 49-15-402;
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(C) for a retiree who retired under Chapter 16, Firefighters' Retirement Act,
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Section 49-16-402; or
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(D) for a retiree who retired under Chapter 23, Part 3, Tier II Hybrid Retirement
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System, Section 49-23-304.
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(c) During the period of reemployment, the retiree does not receive the annual
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cost-of-living adjustment described in:
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(i) for a retiree who retired under Chapter 12, Public Employees' Contributory
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Retirement Act, Section 49-12-407;
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(ii) for a retiree who retired under Chapter 13, Public Employees' Noncontributory
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Retirement Act, Section 49-13-407;
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(iii) for a retiree who retired under Chapter 14, Public Safety Contributory
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Retirement Act, Section 49-14-403;
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(iv) for a retiree who retired under Chapter 15, Public Safety Noncontributory
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Retirement Act, Section 49-15-403;
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(v) for a retiree who retired under Chapter 16, Firefighters' Retirement Act, Section
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49-16-403;
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(vi) for a retiree who retired under Chapter 22, Part 3, Tier II Hybrid Retirement
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System, Section 49-22-308; or
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(vii) for a retiree who retired under Chapter 23, Part 3, Tier II Hybrid Retirement
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System, Section 49-23-307.
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(d)(i) The office shall begin paying the retiree's full retirement allowance on the first
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day of the month following the month in which the office receives written
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notification that the reemployed retiree has a subsequent retirement date based on
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a termination of the reemployment.
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(ii)(A) For purposes of Subsection (5)(d)(i), the full retirement allowance includes
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the elimination of the allowance reduction described in Subsection (5)(b)(i) or
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(5)(b)(ii) and the annual cost-of-living adjustment that was prohibited under
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Subsection (5)(c) during the period of reemployment.
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(B) A retiree may not receive the difference between the full retirement allowance
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and the reduced retirement allowance described in Subsection (5)(b)(i) or
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(5)(b)(ii) or the annual cost-of-living adjustment that the retiree would have
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received if the retiree had not been reemployed.
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(6)(a) If a retiree is reemployed under the provisions of Subsection (1) or (4), the
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termination date of the reemployment, as confirmed in writing by the participating
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employer, is considered the retiree's retirement date for the purpose of calculating the
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separation requirement described in Section 49-11-1204.
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(b) The office shall cancel the retirement allowance of a retiree for the remainder of the
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calendar year if the reemployment with a participating employer exceeds the
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limitation under Subsection (1)(a)(iv), [(3)(b)] (3)(a), or (4)(b).
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(7) A retiree who is reemployed under the provisions of Subsection (5) may not
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subsequently be reemployed under Section 49-11-1204 unless the office cancels the
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retirement allowance during the subsequent reemployment.
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Section 2. Effective Date.
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This bill takes effect on July 1, 2025.
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