2006 Utah Code - 49-11-504 — Reemployment of a retiree -- Restrictions.

     49-11-504.   Reemployment of a retiree -- Restrictions.
     (1) A person who retires from a nonparticipating employer is not subject to any postretirement restrictions under this title.
     (2) A retiree of an agency who returns to work at a different agency is not subject to any postretirement restrictions under this section and may not earn additional service credit.
     (3) For the purposes of Subsections (4) and (5), "full-time" employment means employment requiring 20 hours of work per week or more or at least a half-time teaching contract.
     (4) A retiree of an agency who is reemployed on a full-time basis by the same agency within six months of the date of retirement is subject to the following:
     (a) the agency shall immediately notify the office;
     (b) the office shall cancel the retiree's allowance and reinstate the retiree to active member status;
     (c) the allowance cancellation and reinstatement to active member status is effective on the first day of the month following the date of reemployment;
     (d) the reinstated retiree may not retire again with a recalculated benefit for a two-year period from the date of cancellation of the original allowance, and if the retiree retires again within the two-year period, the original allowance shall be resumed; and
     (e) a reinstated retiree retiring after the two-year period shall be credited with the service credit in the retiree's account at the time of the first retirement and from that time shall be treated as a member of a system, including the accrual of additional service credit, but subject to recalculation of the allowance under Subsection (9).
     (5) A retiree of an agency who is reemployed by the same agency within six months of retirement on a less than full-time basis by the same agency is subject to the following:
     (a) the retiree may earn, without penalty, compensation from that position which is not in excess of the exempt earnings permitted by Social Security;
     (b) if a retiree receives compensation in a calendar year in excess of the Social Security limitation, 25% of the allowance shall be suspended for the remainder of the six-month period;
     (c) the effective date of a suspension and reinstatement of an allowance shall be set by the office; and
     (d) any suspension of a retiree's allowance under this Subsection (5) shall be applied on a calendar year basis.
     (6) For six months immediately following retirement, the retiree and participating employer shall:
     (a) maintain an accurate record of gross earnings in employment;
     (b) report the gross earnings at least monthly to the office;
     (c) immediately notify the office in writing of any postretirement earnings under Subsection (4); and
     (d) immediately notify the office in writing whether postretirement earnings equal or exceed the exempt earnings under Subsection (5).
     (7) A retiree of an agency who is reemployed by the same agency after six months from the retirement date is not subject to any postretirement restrictions under this title and may not earn additional service credit.
     (8) If a participating employer hires a nonexempt retiree who may not earn additional service credit under this section, the participating employer shall contribute the same percentage

of a retiree's salary that the participating employer would have been required to contribute if the retiree were an active member, up to the amount allowed by federal law, to a retiree designated:
     (a) defined contribution plan administered by the board, if the participating employer participates in the defined contribution plan administered by the board; or
     (b) defined contribution plan offered by the participating employer if the participating employer does not participate in a defined contribution plan administered by the board.
     (9) Notwithstanding any other provision of this section, a retiree who has returned to work, accrued additional service credit, and again retires shall have the retiree's allowance recalculated using:
     (a) the formula in effect at the date of the retiree's original retirement for all service credit accrued prior to that date; and
     (b) the formula in effect at the date of the subsequent retirement for all service credit accrued between the first and subsequent retirement dates.
     (10) This section does not apply to elected positions.
     (11) The board may make rules to implement this section.

Amended by Chapter 116, 2005 General Session