2006 Utah Code - 49-11-403 — Purchase of public service credit not otherwise qualifying for benefit.

     49-11-403.   Purchase of public service credit not otherwise qualifying for benefit.
     (1) A member, a participating employer, or a member and a participating employer jointly may purchase service credit equal to the period of the member's employment in the following:
     (a) United States federal employment;
     (b) employment in a private school based in the United States, if the member received an employer paid retirement benefit for the employment;
     (c) public employment in another state or territory of the United States which qualifies the member for membership in the public plan or system covering the employment, but only if the member does not qualify for any retirement benefits based on the employment;
     (d) forfeited service credit in this state if the member does not qualify for an allowance based on the service credit;
     (e) full-time public service while on an approved leave of absence;
     (f) the period of time for which disability benefits were paid if:
     (i) the member was receiving:
     (A) long-term disability benefits;
     (B) short-term disability benefits; or
     (C) worker's compensation disability benefits; and
     (ii) the member's employer had not entered into a benefit protection contract under Section 49-11-404 during the period the member was disabled due to sickness or accident; or
     (g) employment covered by a Teachers Insurance and Annuity Association of America retirement plan if the member forfeits any retirement benefit from that retirement plan for the period of employment to be purchased under this Subsection (1)(g).
     (2) A member shall have:
     (a) at least four years of service credit before a purchase can be made under this section; and
     (b) forfeited service credit under any other retirement system or plan based on the employment for which service credit is being purchased.
     (3) (a) To purchase credit under this section, the member, a participating employer, or a member and a participating employer jointly shall make payment to the system under which the member is currently covered.
     (b) The amount of the payment shall be determined by the office based on a formula that is:
     (i) recommended by the actuary; and
     (ii) adopted by the board.
     (4) The purchase may be made through payroll deductions or through a lump sum deposit based upon the present value of future payments.
     (5) Total payment must be completed prior to the member's effective date of retirement or service credit will be prorated in accordance with the amount paid.
     (6) (a) If any of the factors used to determine the cost of a service credit purchase change at or before the member's retirement date, the cost of the purchase shall be recalculated at the time of retirement.
     (b) If the recalculated cost exceeds the amount paid for the purchase, the member, a participating employer, or a member and a participating employer jointly may:
     (i) pay the increased cost, plus interest, to receive the full amount of service credit; or

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     (ii) not pay the increased cost and have the purchased service credit prorated.
     (7) If the recalculated cost under Subsection (6) is less than the amount paid for the purchase, the office shall refund the excess payment to the member or participating employer who paid for the purchase.
     (8) (a) The board may adopt rules under which a member may make the necessary payments to the office for purchases under this title as permitted by federal law.
     (b) The office may reject any payments if the office determines the tax status of the system, plans, or programs would be jeopardized by allowing the payment.

Amended by Chapter 260, 2006 General Session