Retirement Modifications, the official text

Retirement Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: Cheryl K. Acton

LONG TITLE
General Description:
This bill modifies provisions relating to public employee retirement and benefits.
Highlighted Provisions:
This bill: amends the definition of "bona fide termination of employment" for purposes of the Utah State Retirement and Insurance Benefit Act;
changes the membership of the Membership Council;
clarifies that service credit in the judges' retirement systems is not transferable to a Tier II retirement system;
authorizes the attorney general and senior staff in the Office of the Attorney General to elect to transfer the value of certain accrued defined benefits or elect to be exempt from the retirement systems, allowing employer contributions to vest immediately;
modifies the Utah Retirement Systems staff who may make an appeal ruling, if delegated by the executive director;
amends provisions regarding permanently relinquishing a defined benefit or defined contribution benefit; and
makes technical and conforming changes.

Money Appropriated in this Bill: None Other Special Clauses: None Utah Code Sections Affected: AMENDS:
49-11-102 Effective 05/06/26, as last amended by Laws of Utah 2025, First Special Session, Chapter 9
49-11-205 Effective 05/06/26 Superseded 11/28/26, as last amended by Laws of Utah 2025, Chapter 298
49-11-401 Effective 05/06/26, as last amended by Laws of Utah 2021, Chapter 193
49-11-406 Effective 05/06/26, as last amended by Laws of Utah 2024, Chapter 425
49-11-613 Effective 05/06/26, as last amended by Laws of Utah 2024, Chapter 421
49-11-619 Effective 05/06/26, as last amended by Laws of Utah 2008, Chapter 252
49-11-802 Effective 05/06/26, as enacted by Laws of Utah 2002, Chapter 250
49-11-1202 Effective 05/06/26, as last amended by Laws of Utah 2024, Chapter 405
49-12-203 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapter 64
49-12-401 Effective 05/06/26, as last amended by Laws of Utah 2020, Chapter 449
49-13-203 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapter 64
49-13-401 Effective 05/06/26, as last amended by Laws of Utah 2020, Chapter 449
49-14-401 Effective 05/06/26, as last amended by Laws of Utah 2020, Chapter 449
49-15-401 Effective 05/06/26, as last amended by Laws of Utah 2020, Chapter 449
49-16-401 Effective 05/06/26, as last amended by Laws of Utah 2020, Chapter 449
49-17-401 Effective 05/06/26, as last amended by Laws of Utah 2014, Chapter 15
49-18-401 Effective 05/06/26, as last amended by Laws of Utah 2014, Chapter 15
49-22-205 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapter 64
49-22-304 Effective 05/06/26, as last amended by Laws of Utah 2020, Chapter 449
49-23-303 Effective 05/06/26, as last amended by Laws of Utah 2020, Chapter 449

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 49-11-102 is amended to read:
49-11-102 Effective 05/06/26. Definitions.
As used in this title: (1) (a) "Active member" means a member who: (i) is employed by a participating employer and accruing service credit; or
(ii) within the previous 120 days: (A) has been employed by a participating employer; and
(B) accrued service credit.

(b) "Active member" does not include a retiree.

(2) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of mortality tables as recommended by the actuary and adopted by the executive director, including regular interest.
(3) "Actuarial interest rate" means the interest rate as recommended by the actuary and adopted by the board upon which the funding of system costs and benefits are computed.
(4) (a) "Agency" means: (i) a department, division, agency, office, authority, commission, board, institution, or hospital of the state;
(ii) a county, municipality, school district, special district, or special service district;
(iii) a state college or university; or
(iv) any other participating employer.

(b) "Agency" does not include an entity listed under Subsection (4)(a)(i) that is a subdivision of another entity listed under Subsection (4)(a).

(5) "Allowance" or "retirement allowance" means the pension plus the annuity, including any cost of living or other authorized adjustments to the pension and annuity.
(6) "Alternate payee" means a member's former spouse or family member eligible to receive payments under a Domestic Relations Order in compliance with Section 49-11-612.
(7) "Amortization rate" means the board certified percent of salary required to amortize the unfunded actuarial accrued liability in accordance with policies established by the board upon the advice of the actuary.
(8) "Annuity" means monthly payments derived from member contributions.
(9) "Appointive officer" means an employee appointed to a position for a definite and fixed term of office by official and duly recorded action of a participating employer whose appointed position is designated in the participating employer's charter, creation document, or similar document, and: (a) who earns $500 or more per month, indexed as of January 1, 1990, as provided in Section 49-12-407 for a Tier I appointive officer; and
(b) whose appointive position is full-time as certified by the participating employer for a Tier II appointive officer.

(10) (a) "At-will employee" means a person who is employed by a participating employer and: (i) who is not entitled to merit or civil service protection and is generally considered exempt from a participating employer's merit or career service personnel systems;
(ii) whose on-going employment status is entirely at the discretion of the person's employer; or
(iii) who may be terminated without cause by a designated supervisor, manager, or director.

(b) "At-will employee" does not include a career employee who has obtained a reasonable expectation of continued employment based on inclusion in a participating employer's merit system, civil service protection system, or career service personnel systems, policies, or plans.

(11) "Beneficiary" means any person entitled to receive a payment under this title through a relationship with or designated by a member, participant, covered individual, or alternate payee of a defined contribution plan.
(12) "Board" means the Utah State Retirement Board established under Section 49-11-202.
(13) "Board member" means a person serving on the Utah State Retirement Board as established under Section 49-11-202.
(14) "Board of Higher Education" or "Utah Board of Higher Education" means the Utah Board of Higher Education described in Section 53H-1-203.
(15) "Bona fide termination of employment" means a circumstance in which a member: (a) terminates any employer-employee relationship with a participating employer and any direct or indirect fee-for-service relationship with a participating employer;
(b) ceases actual work for any participating employer; and
(c) completes each action described in Subsections (15)(a) and (b) without having any kind of prearrangement or understanding with a participating employer that anticipates, following the member's termination of employment and retirement, any kind of: (i) employment with a participating employer; or
(ii) fee-for-service relationship with a participating employer.

[(15)] (16) "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.
[(16)] (17) "Contributions" means the total amount paid by the participating employer and the member into a system or to the Utah Governors' and Legislators' Retirement Plan under Chapter 19, Utah Governors' and Legislators' Retirement Act.
[(17)] (18) "Council member" means a person serving on the Membership Council established under Section 49-11-205.
[(18)] (19) "Covered individual" means any individual covered under Chapter 20, Public Employees' Benefit and Insurance Program Act.
[(19)] (20) "Current service" means covered service under: (a) Chapter 12, Public Employees' Contributory Retirement Act;
(b) Chapter 13, Public Employees' Noncontributory Retirement Act;
(c) Chapter 14, Public Safety Contributory Retirement Act;
(d) Chapter 15, Public Safety Noncontributory Retirement Act;
(e) Chapter 16, Firefighters' Retirement Act;
(f) Chapter 17, Judges' Contributory Retirement Act;
(g) Chapter 18, Judges' Noncontributory Retirement Act;
(h) Chapter 19, Utah Governors' and Legislators' Retirement Act;
(i) Chapter 22, New Public Employees' Tier II Contributory Retirement Act; or
(j) Chapter 23, New Public Safety and Firefighter Tier II Contributory Retirement Act.

[(20)] (21) "Defined benefit" or "defined benefit plan" or "defined benefit system" means a system or plan offered under this title to provide a specified allowance to a retiree or a retiree's spouse after retirement that is based on a set formula involving one or more of the following factors: (a) years of service;
(b) final average monthly salary; or
(c) a retirement multiplier.

[(21)] (22) "Defined contribution" or "defined contribution plan" means any defined contribution plan or deferred compensation plan authorized under the Internal Revenue Code and administered by the board.
[(22)] (23) "Educational institution" means a political subdivision or instrumentality of the state or a combination thereof primarily engaged in educational activities or the administration or servicing of educational activities, including: (a) the State Board of Education and its instrumentalities;
(b) any institution of higher education and its branches;
(c) any school district and its instrumentalities;
(d) any vocational and technical school; and
(e) any entity arising out of a consolidation agreement between entities described under this Subsection [(22)] (23).

[(23)] (24) "Elected official": (a) means a person elected to a state office, county office, municipal office, school board or school district office, special district office, or special service district office;
(b) includes a person who is appointed to serve an unexpired term of office described under Subsection [(23)(a)] (24)(a); and
(c) does not include a judge or justice who is subject to a retention election under Section 20A-12-201.

[(24)] (25) (a) "Employer" means any department, educational institution, or political subdivision of the state eligible to participate in a government-sponsored retirement system under federal law.
(b) "Employer" may also include an agency financed in whole or in part by public funds.

[(25)] (26) "Exempt employee" means an employee working for a participating employer: (a) who is not eligible for service credit under Section 49-12-203, 49-13-203, 49-14-203, 49-15-203, or 49-16-203; and
(b) for whom a participating employer is not required to pay contributions or nonelective contributions.

[(26)] (27) "Final average monthly salary" means the amount computed by dividing the compensation received during the final average salary period under each system by the number of months in the final average salary period.
[(27)] (28) "Fund" means any fund created under this title for the purpose of paying benefits or costs of administering a system, plan, or program.
[(28)] (29) (a) "Inactive member" means a member who has not been employed by a participating employer for a period of at least 120 days.
(b) "Inactive member" does not include retirees.

[(29)] (30) (a) "Initially entering" means hired, appointed, or elected for the first time, in current service as a member with any participating employer.
(b) "Initially entering" does not include a person who has any prior service credit on file with the office.
(c) "Initially entering" includes an employee of a participating employer, except for an employee that is not eligible under a system or plan under this title, who: (i) does not have any prior service credit on file with the office;
(ii) is covered by a retirement plan other than a retirement plan created under this title; and
(iii) moves to a position with a participating employer that is covered by this title.

[(30)] (31) "Institution of higher education" means an institution described in Section 53H-1-102.
[(31)] (32) (a) "Member" means a person, except a retiree, with contributions on deposit with a system, the Utah Governors' and Legislators' Retirement Plan under Chapter 19, Utah Governors' and Legislators' Retirement Act, or with a terminated system.
(b) "Member" also includes leased employees within the meaning of Section 414(n)(2) of the Internal Revenue Code, if the employees have contributions on deposit with the office. If leased employees constitute less than 20% of the participating employer's work force that is not highly compensated within the meaning of Section 414(n)(5)(c)(ii), Internal Revenue Code, "member" does not include leased employees covered by a plan described in Section 414(n)(5) of the federal Internal Revenue Code.

[(32)] (33) "Member contributions" means the sum of the contributions paid to a system or the Utah Governors' and Legislators' Retirement Plan, including refund interest if allowed by a system, and which are made by: (a) the member; and
(b) the participating employer on the member's behalf under Section 414(h) of the Internal Revenue Code.

[(33)] (34) "Nonelective contribution" means an amount contributed by a participating employer into a participant's defined contribution account.
[(34)] (35) "Normal cost rate": (a) means the percent of salary that is necessary for a retirement system that is fully funded to maintain its fully funded status; and
(b) is determined by the actuary based on the assumed rate of return established by the board.

[(35)] (36) "Office" means the Utah State Retirement Office.
[(36)] (37) "Participant" means an individual with voluntary deferrals or nonelective contributions on deposit with the defined contribution plans administered under this title.
[(37)] (38) "Participating employer" means a participating employer, as defined by Chapter 12, Public Employees' Contributory Retirement Act, Chapter 13, Public Employees' Noncontributory Retirement Act, Chapter 14, Public Safety Contributory Retirement Act, Chapter 15, Public Safety Noncontributory Retirement Act, Chapter 16, Firefighters' Retirement Act, Chapter 17, Judges' Contributory Retirement Act, and Chapter 18, Judges' Noncontributory Retirement Act, or an agency financed in whole or in part by public funds which is participating in a system or plan as of January 1, 2002.
[(38)] (39) "Part-time appointed board member" means a person: (a) who is appointed to serve as a member of a board, commission, council, committee, or panel of a participating employer; and
(b) whose service as a part-time appointed board member does not qualify as a regular full-time employee as defined under Section 49-12-102, 49-13-102, or 49-22-102.

[(39)] (40) "Pension" means monthly payments derived from participating employer contributions.
[(40)] (41) "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 Chapter 22, Part 4, Tier II Defined Contribution Plan, the New Public Safety and Firefighter Tier II Defined Contribution Plan created by Chapter 23, Part 4, Tier II Defined Contribution Plan, or the defined contribution plans created under Section 49-11-801.
[(41)] (42) (a) "Political subdivision" means any local government entity, including cities, towns, counties, and school districts, but only if the subdivision is a juristic entity that is legally separate and distinct from the state and only if its employees are not by virtue of their relationship to the entity employees of the state.
(b) "Political subdivision" includes special districts, special service districts, or authorities created by the Legislature or by local governments, including the office.
(c) "Political subdivision" does not include a project entity created under Title 11, Chapter 13, Interlocal Cooperation Act, that was formed prior to July 1, 1987.

[(42)] (43) "Program" means the Public Employees' Insurance Program created under Chapter 20, Public Employees' Benefit and Insurance Program Act, or the Public Employees' Long-Term Disability program created under Chapter 21, Public Employees' Long-Term Disability Act.
[(43)] (44) "Public funds" means those funds derived, either directly or indirectly, from public taxes or public revenue, dues or contributions paid or donated by the membership of the organization, used to finance an activity whose objective is to improve, on a nonprofit basis, the governmental, educational, and social programs and systems of the state or its political subdivisions.
[(44)] (45) "Qualified defined contribution plan" means a defined contribution plan that meets the requirements of Section 401(k) or Section 403(b) of the Internal Revenue Code.
[(45)] (46) "Refund interest" means the amount accrued on member contributions at a rate adopted by the board.
[(46)] (47) "Retiree" means an individual who has qualified for an allowance under this title.
[(47)] (48) "Retirement" means the status of an individual who has become eligible, applies for, and is entitled to receive an allowance under this title.
[(48)] (49) "Retirement date" means the date selected by the member on which the member's retirement becomes effective with the office.
[(49)] (50) "Retirement related contribution": (a) means any employer payment to any type of retirement plan or program made on behalf of an employee; and
(b) does not include Social Security payments or Social Security substitute payments made on behalf of an employee.

[(50)] (51) "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.

[(51)] (52) "Surviving spouse" means: (a) the lawful spouse who has been married to a member for at least six months immediately before the death date of the member; or
(b) a former lawful spouse of a member with a valid domestic relations order benefits on file with the office before the member's death date in accordance with Section 49-11-612.

[(52)] (53) "System" means the individual retirement systems created by Chapter 12, Public Employees' Contributory Retirement Act, Chapter 13, Public Employees' Noncontributory Retirement Act, Chapter 14, Public Safety Contributory Retirement Act, Chapter 15, Public Safety Noncontributory Retirement Act, Chapter 16, Firefighters' Retirement Act, Chapter 17, Judges' Contributory Retirement Act, Chapter 18, Judges' Noncontributory Retirement Act, and Chapter 19, Utah Governors' and Legislators' Retirement Act, the defined benefit portion of the Tier II Hybrid Retirement System under Chapter 22, Part 3, Tier II Hybrid Retirement System, and the defined benefit portion of the Tier II Hybrid Retirement System under Chapter 23, Part 3, Tier II Hybrid Retirement System.
[(53)] (54) "Technical college" means the same as that term is defined in Section 53H-1-101.
[(54)] (55) "Tier I" means a system or plan under this title for which: (a) an employee is eligible to participate if the employee initially enters regular full-time employment before July 1, 2011; or
(b) a governor or legislator who initially enters office before July 1, 2011.

[(55)] (56) (a) "Tier II" means a system or plan under this title provided in lieu of a Tier I system or plan for an employee, governor, legislator, or full-time elected official who does not have Tier I service credit in a system or plan under this title: (i) if the employee initially enters regular full-time employment on or after July 1, 2011; or
(ii) if the governor, legislator, or full-time elected official initially enters office on or after July 1, 2011.

(b) "Tier II" includes: (i) the Tier II hybrid system established under: (A) Chapter 22, Part 3, Tier II Hybrid Retirement System; or
(B) Chapter 23, Part 3, Tier II Hybrid Retirement System; and

(ii) the Tier II Defined Contribution Plan (Tier II DC Plan) established under: (A) Chapter 22, Part 4, Tier II Defined Contribution Plan; or
(B) Chapter 23, Part 4, Tier II Defined Contribution Plan.

[(56)] (57) "Unfunded actuarial accrued liability" or "UAAL": (a) is determined by the system's actuary; and
(b) means the excess, if any, of the accrued liability of a retirement system over the actuarial value of its assets.

[(57)] (58) "Voluntary deferrals" means an amount contributed by a participant into that participant's defined contribution account.

Section 2. Section 49-11-205 is amended to read:
49-11-205 Effective 05/06/26 Superseded 11/28/26. Membership Council established -- Members -- Chair -- Duties -- Expenses and per diem.
(1) A Membership Council is established to perform the duties under Subsection (5).
(2) The Membership Council shall be composed of [15] 18 council members[selected] as follows: (a) the director of the Division of Human Resource Management or the director's designee;
(b) one local school board member selected by the governing board of an association representative of a majority of local school board members who are members of a system administered by the board;
(c) one district superintendent selected by the governing board of an association representative of a majority of district superintendents who are members of a system administered by the board, or the district superintendent's designee;
(d) three [council members shall be]school employees selected by the governing board of an association representative of a majority of school employees who are members of a system administered by the board;
[(b)] (e) one [council member shall be an]education support professional selected by the governing board of the association representative of a majority of education support professionals who are members of a system administered by the board;
[(c)] (f) two [council members shall be]public employees selected by the governing board of the association representative of a majority of the public employees who are members of a system administered by the board;
[(d)] (g) one [council member shall be a]municipal officer or employee selected by the governing board of the association representative of a majority of the municipalities who participate in a system administered by the board;
[(e)] (h) one [council member shall be a]county officer or employee selected by the governing board of the association representative of a majority of counties who participate in a system administered by the board;
[(f)] (i) one [council member shall be a]representative of members of the Judges' Noncontributory Retirement System selected by the Judicial Council;
[(g)] (j) one [council member shall be a]representative of members of the Public Safety Retirement Systems selected by the governing board of the association representative of the majority of peace officers who are members of the Public Safety Retirement Systems;
[(h)] (k) one [council member shall be a]representative of members of the Firefighters' Retirement System selected by the governing board of the association representative of the majority of paid professional firefighters who are members of the Firefighters' Retirement System;
[(i)] (l) one [council member shall be a]retiree selected by the governing board of the association representing the largest number of retirees, who are not public education retirees, from the Public Employees' Contributory, Public Employees' Noncontributory, and New Public Employees' Tier II Contributory Retirement Systems;
[(j)] (m) one [council member shall be a]retiree selected by the governing board of the association representing the largest number of public education retirees;
[(k)] (n) one [council member shall be a]school business official selected by the governing board of the association representative of a majority of the school business officials from public education employers who participate in a system administered by the board; and
[(l)] (o) one [council member shall be a]special district officer or employee selected by the governing board of the association representing the largest number of special service districts and special districts who participate in a system administered by the board.

(3) (a) Each entity granted authority to select council members under Subsection (2) may also revoke the selection at any time.
(b) Each term on the council shall be for a period of four years, subject to Subsection (3)(a).
(c) Each term begins on July 1 and expires on June 30.
(d) When a vacancy occurs on the council for any reason, the replacement shall be selected for the remainder of the unexpired term.

(4) The council shall annually designate one council member as chair.
(5) The council shall: (a) recommend to the board and to the Legislature benefits and policies for members of any system or plan administered by the board;
(b) recommend procedures and practices to improve the administration of the systems and plans and the public employee relations responsibilities of the board and office;
(c) examine the record of all decisions affecting retirement benefits made by a hearing officer under Section 49-11-613;
(d) submit nominations to the board for the position of executive director if that position is vacant;
(e) advise and counsel with the board and the director on policies affecting members of the various systems administered by the office; and
(f) perform other duties assigned to it by the board.

(6) A member of the council may not receive compensation or benefits for the member's service, but may receive per diem and travel expenses in accordance with: (a) Section 63A-3-106;
(b) Section 63A-3-107; and
(c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.

Section 3. Section 49-11-401 is amended to read:
49-11-401 Effective 05/06/26. Transfer of service credit -- Eligibility for service credit -- Computation of service credit -- Retirement from most recent system.
(1) (a) The office shall make the transfer of service credit, together with related member and participating employer contributions, from one system to another upon terms and conditions established by the board.
(b) The terms and conditions may not result in a loss of accrued benefits.

(2) An employee does not lose active member status by transferring employment from a position covered by one system to a position covered by another system.
(3) In the accrual of service credit, the following provisions apply: (a) (i) a person employed and compensated by a participating employer who meets the eligibility requirements for membership in a system or the Utah Governors' and Legislators' Retirement Plan shall receive service credit for the term of the employment provided that all required contributions are paid to the office; and
(ii) the person may not receive service credit for a term of employment until all required contributions related to that service credit have been paid to the office;

(b) an allowance or other benefit may not accrue under this title which is based upon the same period of employment as has been the basis for any retirement benefits under some other public retirement system;
(c) (i) the board shall fix the minimum time per day, per month, and per year upon the basis of which one year of service and proportionate parts of a year shall be credited toward qualification for retirement;
(ii) service may be computed on a fiscal or calendar year basis and portions of years served shall be accumulated and counted as service; and
(iii) in any event, all of the service rendered in any one fiscal or calendar year may not count for more than one year;

(d) service credit shall be accrued on a fiscal or calendar year basis as determined by the participating employer;
(e) a member may not accrue more than one year of service credit per fiscal or calendar year as determined by the office; and
(f) fractions of years of service credit shall be accumulated and counted in proportion to the work performed.

(4) The office may estimate the amount of service credit, compensation, or age of any member, participant, or alternate payee, if information is not contained in the records.
(5) A member shall retire from the system that most recently covered the member.
(6) (a) Under no circumstances may service credit earned by a member under Chapter 22, New Public Employees' Tier II Contributory Retirement Act, or Chapter 23, New Public Safety and Firefighter Tier II Contributory Retirement Act, be transferable to any other system or plan under this title.
(b) Under no circumstances may service credit earned by a member under one of the following systems be transferable to the system created under Chapter 22, New Public Employees' Tier II Contributory Retirement Act, or under Chapter 23, New Public Safety and Firefighter Tier II Contributory Retirement Act: (i) Chapter 12, Public Employees' Contributory Retirement Act;
(ii) Chapter 13, Public Employees' Noncontributory Retirement Act;
(iii) Chapter 14, Public Safety Contributory Retirement Act;
(iv) Chapter 15, Public Safety Noncontributory Retirement Act;
(v) Chapter 16, Firefighters' Retirement Act;[or]
(vi) Chapter 17, Judges' Contributory Retirement Act;
(vii) Chapter 18, Judges' Noncontributory Retirement Act; or
[(vi)] (viii) Chapter 19, Utah Governors' and Legislators' Retirement Act.

Section 4. Section 49-11-406 is amended to read:
49-11-406 Effective 05/06/26. Governor's appointed executives and senior staff -- Appointed legislative employees -- Transfer of value of accrued defined benefit -- Procedures.
(1) As used in this section: (a) "Defined benefit balance" means the total amount of the contributions made on behalf of a member to a defined benefit system plus refund interest.
(b) "Senior staff" means an at-will employee who reports directly to an elected official, executive director, or director and includes a deputy director and other similar, at-will employee positions designated by the governor, the speaker of the House, or the president of the Senate and filed with the Division of Human Resource Management and the Utah State Retirement Office.

(2) In accordance with this section and subject to requirements under federal law and rules made by the board, a member who has service credit from a system may elect to be exempt from coverage under a defined benefit system and to have the member's defined benefit balance transferred from the defined benefit system or plan to a defined contribution plan in the member's own name if the member is: (a) the state auditor;
(b) the state treasurer;
(c) an appointed executive under Subsection 67-22-2 (1)(a);
(d) an employee in the [Governor's Office] Office of the Governor;
(e) senior staff in the Governor's Office of Planning and Budget;
(f) senior staff in the Governor's Office of Economic Opportunity;
(g) senior staff in the State Commission on Criminal and Juvenile Justice;
(h) senior staff in the Public Lands Policy Coordinating Office, created in Section 63L-11-201;
(i) a legislative employee appointed under Subsection 36-12-7 (3);[or]
(j) a legislative employee appointed by the speaker of the House of Representatives, the House of Representatives minority leader, the president of the Senate, or the Senate minority leader[.];
(k) the attorney general; or
(l) an at-will employee who reports directly to: (i) the attorney general; or
(ii) an employee who reports directly to the attorney general.

(3) An election made under Subsection (2): (a) is final, and no right exists to make any further election;
(b) is considered a request to be exempt from coverage under a defined benefits system; and
(c) shall be made on forms provided by the office.

(4) The board shall adopt rules to implement and administer this section.

Section 5. Section 49-11-613 is amended to read:
49-11-613 Effective 05/06/26. Appeals procedure -- Right of appeal to hearing officer -- Board reconsideration -- Judicial review -- Docketing abstract of final administrative order.
(1) (a) A member, retiree, participant, alternative payee, covered individual, employer, participating employer, and covered employer shall inform themselves of their benefits, rights, obligations, and employment rights under this title.
(b) Subject to Subsection (8), any dispute regarding a benefit, right, obligation, or employment right under this title is subject to the procedures provided under this section.
(c) (i) A person who disputes a benefit, right, obligation, or employment right under this title shall request a ruling by the executive director who may delegate the decision to [the deputy director] a senior member of office management as determined by the executive director.
(ii) A request for a ruling to the executive director under this section shall constitute the initiation of an action for purposes of the limitations periods described in Section 49-11-613.5.

(d) A person who is dissatisfied by a ruling under Subsection (1)(c) with respect to any benefit, right, obligation, or employment right under this title may request a review of that claim by a hearing officer within the time period described in Section 49-11-613.5.
(e) (i) The executive director, on behalf of the board, may request that the hearing officer review a dispute regarding any benefit, right, obligation, or employment right under this title by filing a notice of board action and providing notice to all affected parties in accordance with rules adopted by the board.
(ii) The filing of a notice of board action shall constitute the initiation of an action for purposes of the limitations periods described in Section 49-11-613.5.

(2) The hearing officer shall: (a) be hired by the executive director after consultation with the board;
(b) follow and enforce the procedures and requirements of: (i) this title;
(ii) the rules adopted by the board in accordance with Subsection (10); and
(iii) Title 63G, Chapter 4, Administrative Procedures Act, except as specifically modified under this title or the rules adopted by the board in accordance with Subsection (10);

(c) hear and determine all facts relevant to a decision, including facts pertaining to applications for benefits under any system, plan, or program under this title and all matters pertaining to the administration of the office; and
(d) make conclusions of law in determining the person's rights under any system, plan, or program under this title and matters pertaining to the administration of the office.

(3) The board shall review and approve or deny all final orders and judgments of the hearing officer in accordance with rules adopted by the board in accordance with Subsection (10).
(4) The moving party in any proceeding brought under this section shall bear the burden of proof.
(5) A party may file an application for reconsideration by the board upon any of the following grounds: (a) that the board acted in excess of the board's powers;
(b) that the order or the award was procured by fraud;
(c) that the evidence does not justify the determination of the hearing officer; or
(d) that the party has discovered new material evidence that could not, with reasonable diligence, have been discovered or procured prior to the hearing.

(6) The board shall affirm, reverse, or modify the final order or judgment of the hearing officer, or remand the application to the hearing officer for further consideration.
(7) A party aggrieved by the board's final decision under Subsection (6) may obtain judicial review by complying with the procedures and requirements of: (a) this title;
(b) rules adopted by the board in accordance with Subsection (10); and
(c) Title 63G, Chapter 4, Administrative Procedures Act, except as specifically modified under this title or the rules adopted by the board in accordance with Subsection (10).

(8) The program shall provide an appeals process for medical claims that complies with federal law.
(9) (a) (i) Any interested party may file, in a district court of any county in the state, an abstract of a final administrative order approved by the board in accordance with this section.
(ii) Upon receiving the filing of an abstract, the clerk of the district court shall: (A) docket the abstract; and
(B) note the date of the abstract's receipt on the abstract and in the docket.

(b) (i) From the day on which an interested party files the abstract with a district court, the final administrative order approved by the board is a lien upon the real property of the obligor situated in that county.
(ii) Unless satisfied, the lien is for a period of eight years after the day on which the board approves the final administrative order.

(c) The final administrative order approved by the board fixing the liability of the obligor has the same effect as any other money judgment entered by a district court.
(d) (i) Except as provided in Subsection (9)(d)(ii), an attachment, a garnishment, or an execution on a judgment included in or accruing under a final administrative order approved by the board and filed and docketed in accordance with Subsection (9)(a) has the same manner and same effect as an attachment, a garnishment, or an execution on a judgment of a district court.
(ii) A writ of garnishment on earnings continues to operate, and to require the garnishee to withhold the nonexempt portion of earnings at each succeeding earnings disbursement interval, until the office or a court releases the writ of garnishment in writing.

(e) The lien and enforcement remedies provided by this section are in addition to any other lien or remedy provided by law.
(f) A party may bring an action upon a final administrative order approved by the board within eight years after the day on which the board approves the final administrative order.
(g) A final administrative order may be renewed administratively by complying with the procedures and requirements provided in rule adopted by the board in accordance with Subsection (10).

(10) (a) The board shall make rules to implement this section and to establish procedures and requirements for adjudicative proceedings.
(b) The rules shall be substantially similar to or incorporate provisions of the Utah Rules of Civil Procedure, the Utah Rules of Evidence, and Title 63G, Chapter 4, Administrative Procedures Act.

Section 6. Section 49-11-619 is amended to read:
49-11-619 Effective 05/06/26. Permanent relinquishment of benefit -- Procedure.
(1) (a) A member or retiree may not permanently relinquish a benefit under this title.
(b) Except for a defined contribution [plans] plan authorized by this title, a [member, retiree, or] designated beneficiary may permanently relinquish a benefit under this title by signing an irrevocable written relinquishment.
[(b) If the retiree has designated a beneficiary which is still living, the written relinquishment must be signed by both the retiree and the beneficiary.]

[(2) The value of the benefit permanently relinquished under Subsection (1) shall remain in the fund from which the benefit was relinquished and shall be used in the calculation of future contribution rates.]
[(3)] (2) (a) A designated beneficiary may disclaim beneficiary status and the benefit shall then be payable first to any alternate designated beneficiary, then dispersed under Title 75, Chapter 2, Intestate Succession and Wills, as applicable.
(b) The remaining value of the benefit permanently relinquished after payments are made under Subsection (2)(a) shall remain in the fund from which the benefit was relinquished and shall be used in the calculation of future contribution rates.

[(4)] (3) The office is not required to recognize or accept any written relinquishment that jeopardizes the tax qualified status of the systems, plans, or programs or otherwise violates federal law.

Section 7. Section 49-11-802 is amended to read:
49-11-802 Effective 05/06/26. Permanent relinquishment of defined contribution benefit -- Procedure.
(1) A participant under a defined contribution plan may not permanently relinquish the benefit.
(2) A [participant or]designated beneficiary under a defined contribution plan may permanently relinquish the benefit by signing an irrevocable written relinquishment.

Section 8. Section 49-11-1202 is amended to read:
49-11-1202 Effective 05/06/26. Definitions.
As used in this part: (1) (a) "Affiliated emergency services worker" means an individual who: (i) is employed by a participating employer;
(ii) performs emergency services for another participating employer that is a different agency;
(iii) is trained in techniques and skills required for the emergency service;
(iv) continues to receive regular training required for the service;
(v) is on the rolls as a trained affiliated emergency services worker of the participating employer; and
(vi) provides ongoing service for a participating employer, which service may include service as a volunteer firefighter, reserve law enforcement officer, search and rescue worker, emergency medical technician, ambulance worker, park ranger, or public utilities worker.

(b) "Affiliated emergency services worker" does not include an individual who performs work or service but does not meet the requirements of Subsection (1)(a).

(2) "Amortization rate" means the amortization rate, as defined in Section 49-11-102, to be applied to the system that would have covered the retiree if the retiree's reemployed position were deemed to be an eligible, full-time position within that system.
[(3) "Bona fide termination of employment" means:] [(a) permanent separation from employment or a fee-for-service relationship with any participating employer; and]
[(b) separation from employment without a prearrangement that anticipates postretirement reemployment or a postretirement fee-for-service relationship with a participating employer.]

[(4)] (3) "Normal cost rate" means the normal cost rate, as defined in Section 49-11-102, to be applied to the system that would have covered the retiree if the retiree's reemployed position were deemed to be an eligible, full-time position within that system.
[(5)] (4) "Part-time appointed or elected board member" means an individual who: (a) serves in a position: (i) as a member of a board, commission, council, committee, panel, or other body of a participating employer; and
(ii) that is designated in the participating employer's governing statute, charter, creation document, or similar document;

(b) is appointed or elected to the position for a definite and fixed term of office by official and duly recorded action of the participating employer;
(c) except for the service in the position, does not perform other work or service for compensation for the participating employer, whether as an employee or under a contract; and
(d) retires from a participating employer that is different than the participating employer with the position in which the person serves.

[(6)] (5) "Public employee retiree" means a retiree who retires under: (a) Chapter 12, Public Employees' Contributory Retirement Act;
(b) Chapter 13, Public Employees' Noncontributory Retirement Act; or
(c) Chapter 22, Part 3, Tier II Hybrid Retirement System.

[(7)] (6) "Public safety or firefighter retiree" means a retiree who retires under: (a) Chapter 14, Public Safety Contributory Retirement Act;
(b) Chapter 15, Public Safety Noncontributory Retirement Act;
(c) Chapter 16, Firefighters' Retirement Act; or
(d) Chapter 23, Part 3, Tier II Hybrid Retirement System.

[(8)] (7) (a) "Reemployed," "reemploy," or "reemployment" means work or service performed for a participating employer after retirement, in exchange for compensation.
(b) "Reemployed," "reemploy," or "reemployment" includes work or service performed on a contract for a participating employer if the retiree is: (i) listed as the contractor; or
(ii) an owner, partner, or principal of the contractor.

[(9)] (8) (a) "Retiree"means an individual who: (i) retired from a participating employer; and
(ii) begins reemployment on or after July 1, 2010, with a participating employer.

(b) "Retiree" does not include an individual: (i) (A) who was reemployed by a participating employer before July 1, 2010; and
(B) whose participating employer that reemployed the individual under Subsection [(9)(b)(i)(A)] (8)(b)(i)(A) was dissolved, consolidated, merged, or structurally changed in accordance with Section 49-11-621 on or after July 1, 2010; or

(ii) who is working under a phased retirement agreement in accordance with Chapter 11, Part 13, Phased Retirement.

Section 9. Section 49-12-203 is amended to read:
49-12-203 Effective 05/06/26. Exclusions from membership in system.
(1) The following employees are not eligible for service credit in this system: (a) subject to the requirements of Subsection (2), an employee whose employment status is temporary in nature due to the nature or the type of work to be performed;
(b) except as provided under Subsection (3)(a), an employee of an institution of higher education who participates in a retirement system with a public or private retirement system, organization, or company designated by the Utah Board of Higher Education, or the technical college board of trustees for an employee of each technical college, during any period in which required contributions based on compensation have been paid on behalf of the employee by the employer;
(c) an employee serving as an exchange employee from outside the state for an employer who has not elected to make all of the employer's exchange employees eligible for service credit in this system;
(d) an executive department head of the state, a member of the State Tax Commission, the Public Service Commission, and a member of a full-time or part-time board or commission who files a formal request for exemption;
(e) an employee of the Department of Workforce Services who is covered under another retirement system allowed under Title 35A, Chapter 4, Employment Security Act;
(f) an employee who is employed on or after July 1, 2009, with an employer that has elected, prior to July 1, 2009, to be excluded from participation in this system under Subsection 49-12-202(2)(c);
(g) an employee who is employed on or after July 1, 2014, with an employer that has elected, prior to July 1, 2014, to be excluded from participation in this system under Subsection 49-12-202(2)(d);
(h) an employee who is employed with a withdrawing entity that has elected under Section 49-11-623, prior to January 1, 2017, to exclude: (i) new employees from participation in this system under Subsection 49-11-623(3)(a); or
(ii) all employees from participation in this system under Subsection 49-11-623(3)(b);

(i) an employee described in Subsection (1)(i)(i) or (ii) who is employed with a withdrawing entity that has elected under Section 49-11-624, before January 1, 2018, to exclude: (i) new employees from participation in this system under Subsection 49-11-624(3)(a); or
(ii) all employees from participation in this system under Subsection 49-11-624(3)(b);

(j) an employee who is employed with a withdrawing entity that has elected under Section 49-11-625, before July 1, 2022, to exclude all employees from participation in this system; or
(k) an employee who is employed with a withdrawing entity that elects under Section 49-11-626 to exclude: (i) new employees from participation in this system under Subsection 49-11-626(3)(a); or
(ii) all employees from participation in this system under Subsection 49-11-626(3)(b).

(2) If an employee whose status is temporary in nature due to the nature of type of work to be performed: (a) is employed for a term that exceeds six months and the employee otherwise qualifies for service credit in this system, the participating employer shall report and certify to the office that the employee is a regular full-time employee effective the beginning of the seventh month of employment; or
(b) was previously terminated prior to being eligible for service credit in this system and is reemployed within three months of termination by the same participating employer, the participating employer shall report and certify that the member is a regular full-time employee when the total of the periods of employment equals six months and the employee otherwise qualifies for service credits in this system.

(3) (a) Upon cessation of the participating employer contributions, an employee under Subsection (1)(b) is eligible for service credit in this system.
(b) Notwithstanding the provisions of Subsection (1)(f), any eligibility for service credit earned by an employee under this chapter before July 1, 2009 is not affected under Subsection (1)(f).
(c) Notwithstanding the provisions of Subsection (1)(g), any eligibility for service credit earned by an employee under this chapter before July 1, 2014, is not affected under Subsection (1)(g).

(4) Upon filing a written request for exemption with the office, the following employees shall be exempt from coverage under this system: (a) a full-time student or the spouse of a full-time student and individuals employed in a trainee relationship;
(b) an elected official;
(c) an executive department head of the state, a member of the State Tax Commission, a member of the Public Service Commission, and a member of a full-time or part-time board or commission;
(d) an employee of the Governor's Office of Planning and Budget;
(e) an employee of the Governor's Office of Economic Opportunity;
(f) an employee of the Commission on Criminal and Juvenile Justice;
(g) an employee of the [Governor's Office] Office of the Governor;
(h) an employee of the Public Lands Policy Coordinating Office, created in Section 63L-11-201;
(i) an employee of the State Auditor's Office;
(j) an employee of the State Treasurer's Office;
(k) any other member who is permitted to make an election under Section 49-11-406;
(l) a person appointed as a city manager or chief city administrator or another person employed by a municipality, county, or other political subdivision, who is an at-will employee;
(m) an employee of an interlocal cooperative agency created under Title 11, Chapter 13, Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided through membership in a labor organization that provides retirement benefits to the organization's members;
(n) an employee serving as an exchange employee from outside the state for an employer who has elected to make all of the employer's exchange employees eligible for service credit in this system;[and]
(o) the adjutant general of the Utah National Guard appointed under Section 39A-1-201 and each individual listed in Subsection [39A-1-203(1).] 39A-1-203(1); and
(p) an at-will employee who reports directly to: (i) the attorney general; or
(ii) an employee who reports directly to the attorney general.

(5) (a) Each participating employer shall prepare and maintain a list designating those positions eligible for exemption under Subsection (4).
(b) An employee may not be exempted unless the employee is employed in an exempted position designated by the participating employer.

(6) (a) In accordance with this section, Section 49-13-203, and Section 49-22-205, a municipality, county, or political subdivision may not exempt a total of more than 50 positions or a number equal to 10% of the eligible employees of the municipality, county, or political subdivision, whichever is less.
(b) A municipality, county, or political subdivision may exempt at least one regular full-time employee.

(7) Each participating employer shall: (a) maintain a list of employee exemptions; and
(b) update the employee exemptions in the event of any change.

(8) The office may make rules to implement this section.
(9) An employee's exclusion, exemption, participation, or election described in this section: (a) shall be made in accordance with this section; and
(b) is subject to requirements under federal law and rules made by the board.

Section 10. Section 49-12-401 is amended to read:
49-12-401 Effective 05/06/26. Eligibility for an allowance -- Date of retirement -- Qualifications.
(1) A member is qualified to receive an allowance from this system when: (a) except as provided under Subsection (3), the member [ceases actual work for every participating employer that employs the member] has a bona fide termination of employment before the member's retirement date and provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date: (i) the member has accrued at least four years of service credit and has attained an age of 65 years;
(ii) the member has accrued at least 10 years of service credit and has attained an age of 62 years;
(iii) the member has accrued at least 20 years of service credit and has attained an age of 60 years; or
(iv) the member has accrued at least 30 years of service credit.

(2) (a) The member's retirement date: (i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by the office.

(b) Except as provided under Subsection (3), a member may not be employed by a participating employer in the system established by this chapter on the retirement date selected under Subsection (2)(a)(i).

(3) (a) A member who is employed by a participating employer and who is also an elected official is not required to [cease service] terminate employment as an elected official to be qualified to receive an allowance under Subsection (1), unless the member is retiring from [service] employment as an elected official.
(b) A member who is employed by a participating employer and who is also a part-time appointed board member, as described in Subsection 49-11-1203(2), is not required to [cease service] terminate employment as a part-time appointed board member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated emergency services worker as defined in Section 49-11-1202 for a different agency, is not required to [cease service] terminate employment as an affiliated emergency services worker to be qualified to receive an allowance under Subsection (1).
(d) A member who is employed by a participating employer and who is also a part-time appointed or elected board member, as defined in Section 49-11-1202, for a different agency is not required to [cease service] terminate employment as a part-time appointed or elected board member to be qualified to receive an allowance under Subsection (1).

(4) An exemption from the requirement to [cease service] terminate employment and remain qualified to receive an allowance as provided in Subsection (3) is available only for a member who, at the time of retirement, is at least: (a) 50 years old, if the member is retiring from a public safety system or firefighter system; or
(b) 55 years old.

Section 11. Section 49-13-203 is amended to read:
49-13-203 Effective 05/06/26. Exclusions from membership in system.
(1) The following employees are not eligible for service credit in this system: (a) subject to the requirements of Subsection (2), an employee whose employment status is temporary in nature due to the nature or the type of work to be performed;
(b) except as provided under Subsection (3)(a), an employee of an institution of higher education who participates in a retirement system with a public or private retirement system, organization, or company designated by the Utah Board of Higher Education, or the technical college board of trustees for an employee of each technical college, during any period in which required contributions based on compensation have been paid on behalf of the employee by the employer;
(c) an employee serving as an exchange employee from outside the state for an employer who has not elected to make all of the employer's exchange employees eligible for service credit in this system;
(d) an executive department head of the state or a legislative director, senior executive employed by the governor's office, a member of the State Tax Commission, a member of the Public Service Commission, and a member of a full-time or part-time board or commission who files a formal request for exemption;
(e) an employee of the Department of Workforce Services who is covered under another retirement system allowed under Title 35A, Chapter 4, Employment Security Act;
(f) an employee who is employed with an employer that has elected to be excluded from participation in this system under Subsection 49-13-202(5), effective on or after the date of the employer's election under Subsection 49-13-202(5);
(g) an employee who is employed with a withdrawing entity that has elected under Section 49-11-623, prior to January 1, 2017, to exclude: (i) new employees from participation in this system under Subsection 49-11-623(3)(a); or
(ii) all employees from participation in this system under Subsection 49-11-623(3)(b);

(h) an employee described in Subsection (1)(h)(i) or (ii) who is employed with a withdrawing entity that has elected under Section 49-11-624, before January 1, 2018, to exclude: (i) new employees from participation in this system under Subsection 49-11-624(3)(a); or
(ii) all employees from participation in this system under Subsection 49-11-624(3)(b);

(i) an employee who is employed with a withdrawing entity that has elected under Section 49-11-625, before July 1, 2022, to exclude all employees from participation in this system; or
(j) an employee who is employed with a withdrawing entity that elects under Section 49-11-626 to exclude: (i) new employees from participation in this system under Subsection 49-11-626(3)(a); or
(ii) all employees from participation in this system under Subsection 49-11-626(3)(b).

(2) If an employee whose status is temporary in nature due to the nature of type of work to be performed: (a) is employed for a term that exceeds six months and the employee otherwise qualifies for service credit in this system, the participating employer shall report and certify to the office that the employee is a regular full-time employee effective the beginning of the seventh month of employment; or
(b) was previously terminated prior to being eligible for service credit in this system and is reemployed within three months of termination by the same participating employer, the participating employer shall report and certify that the member is a regular full-time employee when the total of the periods of employment equals six months and the employee otherwise qualifies for service credits in this system.

(3) (a) Upon cessation of the participating employer contributions, an employee under Subsection (1)(b) is eligible for service credit in this system.
(b) Notwithstanding the provisions of Subsection (1)(f), any eligibility for service credit earned by an employee under this chapter before the date of the election under Subsection 49-13-202(5) is not affected under Subsection (1)(f).

(4) Upon filing a written request for exemption with the office, the following employees shall be exempt from coverage under this system: (a) a full-time student or the spouse of a full-time student and individuals employed in a trainee relationship;
(b) an elected official;
(c) an executive department head of the state, a member of the State Tax Commission, a member of the Public Service Commission, and a member of a full-time or part-time board or commission;
(d) an employee of the Governor's Office of Planning and Budget;
(e) an employee of the Governor's Office of Economic Opportunity;
(f) an employee of the Commission on Criminal and Juvenile Justice;
(g) an employee of the [Governor's Office] Office of the Governor;
(h) an employee of the State Auditor's Office;
(i) an employee of the State Treasurer's Office;
(j) any other member who is permitted to make an election under Section 49-11-406;
(k) a person appointed as a city manager or chief city administrator or another person employed by a municipality, county, or other political subdivision, who is an at-will employee;
(l) an employee of an interlocal cooperative agency created under Title 11, Chapter 13, Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided through membership in a labor organization that provides retirement benefits to its members;
(m) an employee serving as an exchange employee from outside the state for an employer who has elected to make all of the employer's exchange employees eligible for service credit in this system;[and]
(n) the adjutant general of the Utah National Guard appointed under Section 39A-1-201 and each individual listed in Subsection [39A-1-203(1).] 39A-1-203(1); and
(o) an at-will employee who reports directly to: (i) the attorney general; or
(ii) an employee who reports directly to the attorney general.

(5) (a) Each participating employer shall prepare and maintain a list designating those positions eligible for exemption under Subsection (4).
(b) An employee may not be exempted unless the employee is employed in a position designated by the participating employer.

(6) (a) In accordance with this section, Section 49-12-203, and Section 49-22-205, a municipality, county, or political subdivision may not exempt a total of more than 50 positions or a number equal to 10% of the eligible employees of the municipality, county, or political subdivision, whichever is less.
(b) A municipality, county, or political subdivision may exempt at least one regular full-time employee.

(7) Each participating employer shall: (a) maintain a list of employee exemptions; and
(b) update the employee exemptions in the event of any change.

(8) The office may make rules to implement this section.
(9) An employee's exclusion, exemption, participation, or election described in this section: (a) shall be made in accordance with this section; and
(b) is subject to requirements under federal law and rules made by the board.

Section 12. Section 49-13-401 is amended to read:
49-13-401 Effective 05/06/26. Eligibility for an allowance -- Date of retirement -- Qualifications.
(1) A member is qualified to receive an allowance from this system when: (a) except as provided under Subsection (3), the member [ceases actual work for every participating employer that employs the member] has a bona fide termination of employment before the member's retirement date and provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date: (i) the member has accrued at least four years of service credit and has attained an age of 65 years;
(ii) the member has accrued at least 10 years of service credit and has attained an age of 62 years;
(iii) the member has accrued at least 20 years of service credit and has attained an age of 60 years;
(iv) the member has accrued at least 30 years of service credit; or
(v) the member has accrued at least 25 years of service credit, in which case the member shall be subject to the reduction under Subsection 49-13-402(2)(b).

(2) (a) The member's retirement date: (i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by the office.

(b) Except as provided under Subsection (3), a member may not be employed by a participating employer in the system established by this chapter on the retirement date selected under Subsection (2)(a)(i).

(3) (a) A member who is employed by a participating employer and who is also an elected official is not required to [cease service] terminate employment as an elected official to be qualified to receive an allowance under Subsection (1), unless the member is retiring from [service] employment as an elected official.
(b) A member who is employed by a participating employer and who is also a part-time appointed board member, as described in Subsection 49-11-1203(2), is not required to [cease service] terminate employment as a part-time appointed board member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated emergency services worker as defined in Section 49-11-1202 for a different agency, is not required to [cease service] terminate employment as an affiliated emergency services worker to be qualified to receive an allowance under Subsection (1).
(d) A member who is employed by a participating employer and who is also a part-time appointed or elected board member, as defined in Section 49-11-1202, for a different agency is not required to [cease service] terminate employment as a part-time appointed or elected board member to be qualified to receive an allowance under Subsection (1).

(4) An exemption from the requirement to [cease service] terminate employment and remain qualified to receive an allowance as provided in Subsection (3) is available only for a member who, at the time of retirement, is at least: (a) 50 years old, if the member is retiring from a public safety system or firefighter system; or
(b) 55 years old.

Section 13. Section 49-14-401 is amended to read:
49-14-401 Effective 05/06/26. Eligibility for service retirement -- Date of retirement -- Qualifications.
(1) A member is qualified to receive an allowance from this system when: (a) except as provided under Subsection (3), the member [ceases actual work for every participating employer that employs the member] has a bona fide termination of employment before the member's retirement date and provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date: (i) the member has accrued at least 20 years of service credit;
(ii) the member has accrued at least 10 years of service credit and has attained an age of 60 years; or
(iii) the member has accrued at least four years of service credit and has attained an age of 65 years.

(2) (a) The member's retirement date: (i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by the office.

(b) Except as provided under Subsection (3), a member may not be employed by a participating employer in the system established by this chapter on the retirement date selected under Subsection (2)(a)(i).

(3) (a) A member who is employed by a participating employer and who is also an elected official is not required to [cease service] terminate employment as an elected official to be qualified to receive an allowance under Subsection (1), unless the member is retiring from [service] employment as an elected official.
(b) A member who is employed by a participating employer and who is also a part-time appointed board member, as described in Subsection 49-11-1203(2), is not required to [cease service] terminate employment as a part-time appointed board member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated emergency services worker as defined in Section 49-11-1202 for a different agency, is not required to [cease service] terminate employment as an affiliated emergency services worker to be qualified to receive an allowance under Subsection (1).
(d) A member who is employed by a participating employer and who is also a part-time appointed or elected board member, as defined in Section 49-11-1202, for a different agency is not required to [cease service] terminate employment as a part-time appointed or elected board member to be qualified to receive an allowance under Subsection (1).

(4) An exemption from the requirement to [cease service] terminate employment and remain qualified to receive an allowance as provided in Subsection (3) is available only for a member who, at the time of retirement, is at least: (a) 50 years old, if the member is retiring from a public safety system or firefighter system; or
(b) 55 years old.

Section 14. Section 49-15-401 is amended to read:
49-15-401 Effective 05/06/26. Eligibility for service retirement -- Date of retirement -- Qualifications.
(1) A member is qualified to receive an allowance from this system when: (a) except as provided under Subsection (3), the member [ceases actual work for every participating employer that employs the member] has a bona fide termination of employment before the member's retirement date and provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date: (i) the member has accrued at least 20 years of service credit;
(ii) the member has accrued at least 10 years of service credit and has attained an age of 60 years; or
(iii) the member has accrued at least four years of service and has attained an age of 65 years.

(2) (a) The member's retirement date: (i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by the office.

(b) Except as provided under Subsection (3), a member may not be employed by a participating employer in the system established by this chapter on the retirement date selected under Subsection (2)(a)(i).

(3) (a) A member who is employed by a participating employer and who is also an elected official is not required to [cease service] terminate employment as an elected official to be qualified to receive an allowance under Subsection (1), unless the member is retiring from [service] employment as an elected official.
(b) A member who is employed by a participating employer and who is also a part-time appointed board member, as described in Subsection 49-11-1203(2), is not required to [cease service] terminate employment as a part-time appointed board member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated emergency services worker as defined in Section 49-11-1202 for a different agency, is not required to [cease service] terminate employment as an affiliated emergency services worker to be qualified to receive an allowance under Subsection (1).
(d) A member who is employed by a participating employer and who is also a part-time appointed or elected board member, as defined in Section 49-11-1202, for a different agency is not required to [cease service] terminate employment as a part-time appointed or elected board member to be qualified to receive an allowance under Subsection (1).

(4) An exemption from the requirement to [cease service] terminate employment and remain qualified to receive an allowance as provided in Subsection (3) is available only for a member who, at the time of retirement, is at least: (a) 50 years old, if the member is retiring from a public safety system or firefighter system; or
(b) 55 years old.

Section 15. Section 49-16-401 is amended to read:
49-16-401 Effective 05/06/26. Eligibility for service retirement -- Date of retirement -- Qualifications.
(1) A member is qualified to receive an allowance from this system when: (a) except as provided under Subsection (3), the member [ceases actual work for every participating employer that employs the member] has a bona fide termination of employment before the member's retirement date and provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date: (i) the member has accrued at least 20 years of service credit;
(ii) the member has accrued at least 10 years of service credit and has attained an age of 60 years; or
(iii) the member has accrued at least four years of service credit and has attained an age of 65 years.

(2) (a) The member's retirement date: (i) shall be the 1st or the 16th day of the month, as selected by the firefighter service employee;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by the office.

(b) Except as provided under Subsection (3), a member may not be employed by a participating employer in the system established by this chapter on the retirement date selected under Subsection (2)(a)(i).

(3) (a) A member who is employed by a participating employer and who is also an elected official is not required to [cease service] terminate employment as an elected official to be qualified to receive an allowance under Subsection (1), unless the member is retiring from [service] employment as an elected official.
(b) A member who is employed by a participating employer and who is also a part-time appointed board member, as described in Subsection 49-11-1203(2), is not required to [cease service] terminate employment as a part-time appointed board member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated emergency services worker as defined in Section 49-11-1202 for a different agency, is not required to [cease service] terminate employment as an affiliated emergency services worker to be qualified to receive an allowance under Subsection (1).
(d) A member who is employed by a participating employer and who is also a part-time appointed or elected board member, as defined in Section 49-11-1202, for a different agency is not required to [cease service] terminate employment as a part-time appointed or elected board member to be qualified to receive an allowance under Subsection (1).

(4) An exemption from the requirement to [cease service] terminate employment and remain qualified to receive an allowance as provided in Subsection (3) is available only for a member who, at the time of retirement, is at least: (a) 50 years old, if the member is retiring from a public safety system or firefighter system; or
(b) 55 years old.

Section 16. Section 49-17-401 is amended to read:
49-17-401 Effective 05/06/26. Eligibility for an allowance -- Date of retirement -- Qualifications.
(1) A member is qualified to receive an allowance when: (a) the member [ceases actual work for every participating employer that employs the member] has a bona fide termination of employment before the member's retirement date and provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date: (i) the member has accrued at least six years of service credit and has attained an age of 70 years;
(ii) the member has accrued at least 10 years of service credit and has attained an age of 62 years;
(iii) the member has accrued at least 20 years of service credit and has attained an age of 55 years; or
(iv) the member has accrued at least 25 years of service credit.

(2) (a) The member's retirement date: (i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by the office.

(b) A member may not be employed by a participating employer in the system established by this chapter on the retirement date selected under Subsection (2)(a)(i).

Section 17. Section 49-18-401 is amended to read:
49-18-401 Effective 05/06/26. Eligibility for an allowance -- Date of retirement -- Qualifications.
(1) A member is qualified to receive an allowance when: (a) the member [ceases actual work for every participating employer that employs the member] has a bona fide termination of employment before the member's retirement date and provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date: (i) the member has accrued at least six years of service credit and has attained an age of 70 years;
(ii) the member has accrued at least 10 years of service credit and has attained an age of 62 years;
(iii) the member has accrued at least 20 years of service credit and has attained an age of 55 years; or
(iv) the member has accrued at least 25 years of service credit.

(2) (a) The member's retirement date: (i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by the office.

(b) A member may not be employed by a participating employer in the system established by this chapter on the retirement date selected under Subsection (2)(a)(i).

Section 18. Section 49-22-205 is amended to read:
49-22-205 Effective 05/06/26. Exemptions from participation in system.
(1) Upon filing a written request for exemption with the office, the following employees are exempt from participation in the system as provided in this section: (a) an executive department head of the state;
(b) a member of the State Tax Commission;
(c) a member of the Public Service Commission;
(d) a member of a full-time or part-time board or commission;
(e) an employee of the Governor's Office of Planning and Budget;
(f) an employee of the Governor's Office of Economic Opportunity;
(g) an employee of the Commission on Criminal and Juvenile Justice;
(h) an employee of the [Governor's Office] Office of the Governor;
(i) an employee of the State Auditor's Office;
(j) an employee of the State Treasurer's Office;
(k) any other member who is permitted to make an election under Section 49-11-406;
(l) a person appointed as a city manager or appointed as a city administrator or another at-will employee of a municipality, county, or other political subdivision;
(m) an employee of an interlocal cooperative agency created under Title 11, Chapter 13, Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided through membership in a labor organization that provides retirement benefits to its members;
(n) an employee serving as an exchange employee from outside the state for an employer who has elected to make all of the employer's exchange employees eligible for service credit in this system;[and]
(o) the adjutant general of the Utah National Guard appointed under Section 39A-1-201 and each individual listed in Subsection [39A-1-203(1).] 39A-1-203(1); and
(p) an at-will employee who reports directly to: (i) the attorney general; or
(ii) an employee who reports directly to the attorney general.

(2) (a) A participating employer shall prepare and maintain a list designating those positions eligible for exemption under Subsection (1).
(b) An employee may not be exempted unless the employee is employed in a position designated by the participating employer under Subsection (1).

(3) (a) In accordance with this section, Section 49-12-203, and Section 49-13-203, a municipality, county, or political subdivision may not exempt a total of more than 50 positions or a number equal to 10% of the eligible employees of the municipality, county, or political subdivision, whichever is less.
(b) A municipality, county, or political subdivision may exempt at least one regular full-time employee.

(4) Each participating employer shall: (a) maintain a list of employee exemptions; and
(b) update an employee exemption in the event of any change.

(5) Beginning on the effective date of the exemption for an employee who elects to be exempt in accordance with Subsection (1): (a) for a member of the Tier II defined contribution plan: (i) the participating employer shall contribute the nonelective contribution and the amortization rate described in Section 49-22-401, except that the nonelective contribution is exempt from the vesting requirements of Subsection 49-22-401(3)(a);
(ii) the member may make voluntary deferrals as provided in Section 49-22-401; and
(iii) the member is not eligible for additional service credit in the plan for the period of exempt employment; and

(b) for a member of the Tier II hybrid retirement system: (i) the participating employer shall contribute the nonelective contribution and the amortization rate described in Section 49-22-401, except that the contribution is exempt from the vesting requirements of Subsection 49-22-401(3)(a);
(ii) the member may make voluntary deferrals as provided in Section 49-22-401; and
(iii) the member is not eligible for additional service credit in the system for the period of exempt employment.

(6) If an employee who is a member of the Tier II hybrid retirement system subsequently revokes the election of exemption made under Subsection (1), the provisions described in Subsection (5)(b) shall no longer be applicable and the coverage for the employee shall be effective prospectively as provided in Part 3, Tier II Hybrid Retirement System.
(7) (a) All employer contributions made on behalf of an employee shall be invested in accordance with Subsection 49-22-303(3)(a) or 49-22-401(4)(a) until the one-year election period under Subsection 49-22-201(2)(c) is expired if the employee: (i) elects to be exempt in accordance with Subsection (1); and
(ii) continues employment with the participating employer through the one-year election period under Subsection 49-22-201(2)(c).

(b) An employee is entitled to receive a distribution of the employer contributions made on behalf of the employee and all associated investment gains and losses if the employee: (i) elects to be exempt in accordance with Subsection (1); and
(ii) terminates employment prior to the one-year election period under Subsection 49-22-201(2)(c).

(8) (a) The office shall make rules to implement this section.
(b) The rules made under this Subsection (8) shall include provisions to allow the exemption provided under Subsection (1) to apply to all contributions made beginning on or after July 1, 2011, on behalf of an exempted employee who began the employment before May 8, 2012.

(9) An employee's exemption, participation, or election described in this section: (a) shall be made in accordance with this section; and
(b) is subject to requirements under federal law and rules made by the board.

Section 19. Section 49-22-304 is amended to read:
49-22-304 Effective 05/06/26. Defined benefit eligibility for an allowance -- Date of retirement -- Qualifications.
(1) A member is qualified to receive an allowance from this system when: (a) except as provided under Subsection (3), the member [ceases actual work for every participating employer that employs the member] has a bona fide termination of employment before the member's retirement date and provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date: (i) the member has accrued at least four years of service credit and has attained an age of 65 years;
(ii) the member has accrued at least 10 years of service credit and has attained an age of 62 years;
(iii) the member has accrued at least 20 years of service credit and has attained an age of 60 years; or
(iv) the member has accrued at least 35 years of service credit.

(2) (a) The member's retirement date: (i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by the office.

(b) Except as provided under Subsection (3), a member may not be employed by a participating employer in the system established by this chapter on the retirement date selected under Subsection (2)(a)(i).

(3) (a) A member who is employed by a participating employer and who is also an elected official is not required to [cease service] terminate employment as an elected official to be qualified to receive an allowance under Subsection (1), unless the member is retiring from [service] employment as an elected official.
(b) A member who is employed by a participating employer and who is also a part-time appointed board member, as described in Subsection 49-11-1203(2), is not required to [cease service] terminate employment as a part-time appointed board member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated emergency services worker as defined in Section 49-11-1202 for a different agency, is not required to [cease service] terminate employment as an affiliated emergency services worker to be qualified to receive an allowance under Subsection (1).
(d) A member who is employed by a participating employer and who is also a part-time appointed or elected board member, as defined in Section 49-11-1202, for a different agency is not required to [cease service] terminate employment as a part-time appointed or elected board member to be qualified to receive an allowance under Subsection (1).

(4) An exemption from the requirement to [cease service] terminate employment and remain qualified to receive an allowance as provided in Subsection (3) is available only for a member who, at the time of retirement, is at least: (a) 50 years old, if the member is retiring from a public safety system or firefighter system; or
(b) 55 years old.

Section 20. Section 49-23-303 is amended to read:
49-23-303 Effective 05/06/26. Defined benefit eligibility for an allowance -- Date of retirement -- Qualifications.
(1) A member is qualified to receive an allowance from this system when: (a) except as provided under Subsection (3), the member [ceases actual work for every participating employer that employs the member] has a bona fide termination of employment before the member's retirement date and provides evidence of the termination;
(b) the member has submitted to the office a retirement application form that states the member's proposed retirement date; and
(c) one of the following conditions is met as of the member's retirement date: (i) the member has accrued at least four years of service credit and has attained an age of 65 years;
(ii) the member has accrued at least 10 years of service credit and has attained an age of 62 years;
(iii) the member has accrued at least 20 years of service credit and has attained an age of 60 years; or
(iv) the member has accrued at least 25 years of service credit.

(2) (a) The member's retirement date: (i) shall be the 1st or the 16th day of the month, as selected by the member;
(ii) shall be on or after the date of termination; and
(iii) may not be more than 90 days before or after the date the application is received by the office.

(b) Except as provided under Subsection (3), a member may not be employed by a participating employer in the system established by this chapter on the retirement date selected under Subsection (2)(a)(i).

(3) (a) A member who is employed by a participating employer and who is also an elected official is not required to [cease service] terminate employment as an elected official to be qualified to receive an allowance under Subsection (1), unless the member is retiring from [service] employment as an elected official.
(b) A member who is employed by a participating employer and who is also a part-time appointed board member, as described in Subsection 49-11-1203(2), is not required to [cease service] terminate employment as a part-time appointed board member to be qualified to receive an allowance under Subsection (1).
(c) A member who is employed by a participating employer, who is also an affiliated emergency services worker as defined in Section 49-11-1202 for a different agency, is not required to [cease service] terminate employment as an affiliated emergency services worker to be qualified to receive an allowance under Subsection (1).
(d) A member who is employed by a participating employer and who is also a part-time appointed or elected board member, as defined in Section 49-11-1202, for a different agency is not required to [cease service] terminate employment as a part-time appointed or elected board member to be qualified to receive an allowance under Subsection (1).

(4) An exemption from the requirement to [cease service] terminate employment and remain qualified to receive an allowance as provided in Subsection (3) is available only for a member who, at the time of retirement, is at least: (a) 50 years old, if the member is retiring from a public safety system or firefighter system; or
(b) 55 years old.

Section 21. Effective Date.
This bill takes effect on May 6, 2026.

3-6-26 8:10 AM