2011 Utah Code
Title 49 Utah State Retirement and Insurance Benefit Act
Chapter 11 Utah State Retirement Systems Administration
Section 505 Reemployment of a retiree -- Restrictions.

49-11-505. Reemployment of a retiree -- Restrictions.
(1) (a) For purposes of this section, "retiree":
(i) means a person who:
(A) retired from a participating employer; and
(B) begins reemployment on or after July 1, 2010 with a participating employer; and
(ii) does not include a retiree who is reemployed as an active senior judge appointed to hear cases by the Utah Supreme Court in accordance with Article VIII, Section 4, Utah Constitution.
(b) (i) This section does not apply to employment as an elected official if the elected official's position is not full-time as certified by the participating employer.
(ii) The provisions of this section apply to an elected official whose elected position is full-time as certified by the participating employer.
(2) A retiree may not for the same period of reemployment:
(a) (i) earn additional service credit; or
(ii) receive any retirement related contribution from a participating employer; and
(b) receive a retirement allowance.
(3) (a) Except as provided under Subsection (3)(b), the office shall cancel the retirement allowance of a retiree if the reemployment with a participating employer begins within one year of the retiree's retirement date.
(b) The office may not cancel the retirement allowance of a retiree who is reemployed with a participating employer within one year of the retiree's retirement date if:
(i) the retiree is not reemployed by a participating employer for a period of at least 60 days from the retiree's retirement date;
(ii) upon reemployment after the break in service under Subsection (3)(b)(i), the retiree does not receive any employer provided benefits, including:
(A) medical benefits;
(B) dental benefits;
(C) other insurance benefits except for workers' compensation as provided under Title 34A, Chapter 2, Workers' Compensation Act and withholdings required by federal or state law for Social Security, Medicare, and unemployment insurance; or
(D) paid time off, including sick, annual, or other type of leave; and
(iii) the retiree does not earn in any calendar year of reemployment an amount in excess of the lesser of:
(A) $15,000; or
(B) one-half of the retiree's final average salary upon which the retiree's retirement allowance is based.
(c) Beginning January 1, 2013, the board shall adjust the amount under Subsection (3)(b)(iii)(A) by the annual change in the Consumer Price Index during the previous calendar year as measured by a United States Bureau of Labor Statistics Consumer Price Index average as determined by the board.
(d) The office shall cancel the retirement allowance of a retiree for the remainder of the calendar year if the reemployment with a participating employer exceeds the limitations under Subsection (3)(b)(iii).
(e) If a retiree is reemployed under the provisions of (3)(b), the termination date of the reemployment, as confirmed in writing by the participating employer, is considered the retiree's

retirement date for the purpose of calculating the separation requirement under Subsection (3)(a).
(4) If a reemployed retiree is not subject to Subsection (3), the retiree may elect to:
(a) earn additional service credit in accordance with this title and cancel the retiree's retirement allowance; or
(b) continue to receive the retiree's retirement allowance and forfeit any retirement related contribution from the participating employer who reemployed the retiree.
(5) If a retiree makes an election under Subsection (4)(b) to continue to receive a retirement allowance while reemployed, the participating employer shall contribute to the office the amortization rate, as defined in Section 49-11-102, to be applied to the system that would have covered the retiree.
(6) (a) A participating employer shall immediately notify the office:
(i) if the participating employer reemploys a retiree;
(ii) whether the reemployment is subject to Subsection (3) or (4) of this section; and
(iii) of any election by the retiree under Subsection (4).
(b) A participating employer shall certify to the office whether the position of an elected official is or is not full-time.
(c) A participating employer is liable to the office for a payment or failure to make a payment in violation of this section.
(d) If a participating employer fails to notify the office in accordance with this section, the participating employer is immediately subject to a compliance audit by the office.
(7) (a) The office shall immediately cancel the retirement allowance of a retiree in accordance with Subsection (7)(b) if the office receives notice or learns of:
(i) the reemployment of a retiree in violation of Subsection (3); or
(ii) the election of a reemployed retiree under Subsection (4)(a).
(b) The office shall cancel the allowance of a retiree subject to Subsection (7)(a), and reinstate the retiree to active member status on the first day of the month following the date of:
(i) reemployment if the retiree is subject to Subsection (3); or
(ii) an election by an employee under Subsection (4)(a).
(8) (a) A retiree subject to Subsection (7)(b) who retires within two years from the date of reemployment:
(i) is not entitled to a recalculated retirement benefit; and
(ii) will resume the allowance that was being paid at the time of cancellation.
(b) Subject to Subsection (2), a retiree who is re-instated to active membership under Subsection (7) and who retires two or more years after the date of re-instatement to active membership shall:
(i) resume receiving the allowance that was being paid at the time of cancellation; and
(ii) receive an additional allowance based on the formula in effect at the date of the subsequent retirement for all service credit accrued between the first and subsequent retirement dates.
(9) (a) A retiree subject to this section shall report to the office the status of the reemployment under Subsection (3) or (4).
(b) If the retiree fails to inform the office of an election under Subsection (9)(a), the office shall withhold one month's benefit for each month the retiree fails to inform the office under Subsection (9)(a).
(10) The board may make rules to implement this section.