49-17-102 - Definitions.
49-17-102. Definitions.
As used in this chapter:
(1) (a) "Compensation" means the total amount of payments which are currentlyincludable in gross income made by a participating employer to a member of this system forservices rendered to the participating employer.
(b) "Compensation" includes:
(i) performance-based bonuses;
(ii) cost-of-living adjustments;
(iii) payments subject to Social Security deductions;
(iv) any payments in excess of the maximum amount subject to deduction under SocialSecurity law;
(v) amounts which the member authorizes to be deducted or reduced for salary deferralor other benefits authorized by federal law; and
(vi) member contributions.
(c) "Compensation" for purposes of this chapter may not exceed the amount allowedunder Internal Revenue Code Section 401(a)(17).
(d) "Compensation," does not include:
(i) the monetary value of remuneration paid in kind, such as a residence or use ofequipment;
(ii) all contributions made by a participating employer under any system or plan for thebenefit of a member or participant;
(iii) salary paid to a temporary or exempt employee;
(iv) payments upon termination or any other special payments including early retirementinducements; or
(v) uniform, travel, or similar payments.
(2) "Final average salary" means the amount computed by averaging the highest twoyears of annual compensation preceding retirement, subject to Subsections (2)(a) and (b).
(a) Except as provided in Subsection (2)(b), the percentage increase in annualcompensation in any one of the years used may not exceed the previous year's compensation bymore than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power ofthe dollar during the previous year, as measured by a United States Bureau of Labor StatisticsConsumer Price Index average as determined by the board.
(b) In cases where the participating employer provides acceptable documentation to theboard, the limitation in Subsection (2)(a) may be exceeded if:
(i) the member has transferred from another participating employer; or
(ii) the member has been promoted to a new position.
(3) "Judge" means a judge or justice of the courts of record as enumerated in Section78A-1-101.
(4) "Participating employer" means the state.
(5) "System" means the Judges' Contributory Retirement System created under thischapter.
(6) "Years of service credit" means the number of periods, each to consist of 12 fullmonths as determined by the board, whether consecutive or not, during which a judge wasemployed by a participating employer.
Amended by Chapter 3, 2008 General Session