67-19-14.4 - Unused Sick Leave Retirement Program II -- Creation -- Remuneration upon eligibility for allowance -- Medical expense account after retirement.
67-19-14.4. Unused Sick Leave Retirement Program II -- Creation -- Remunerationupon eligibility for allowance -- Medical expense account after retirement.
(1) (a) There is created the "Unused Sick Leave Retirement Program II."
(b) An agency shall offer the Unused Sick Leave Retirement Option Program II to anemployee who is eligible to receive a retirement allowance in accordance with Title 49, UtahState Retirement and Insurance Benefit Act.
(c) Beginning January 1, 2011, an employee who is participating in the Unused SickLeave Retirement Program I under Section 67-19-14.2 may make a one-time and irrevocableelection to transfer all unused sick leave hours which shall include all converted sick leave hoursunder Section 67-19-14.1 for use under the Unused Sick Leave Retirement Program II under thissection.
(2) (a) The Unused Sick Leave Retirement Program II provides that upon becomingeligible to receive a retirement allowance an employee who is employed by the state on or afterJanuary 1, 2006, shall receive remuneration for the employee's unused accumulated sick leaveand converted sick leave accrued beginning January 1, 2006 in accordance with this section asfollows:
(i) subject to federal requirements and limitations, a contribution at the employee's rate ofpay at the time of retirement for 25% of the employee's unused accumulated sick leave andconverted sick leave shall be transferred directly to the employee's defined contribution planqualified under Section 401(k) of the Internal Revenue Code which is sponsored by the UtahState Retirement Board; and
(ii) participation in a benefit plan that provides for reimbursement for medical expensesusing money deposited at the employee's rate of pay at the time of retirement from remainingunused accumulated sick leave and converted sick leave balances.
(b) If the amount calculated under Subsection (2)(a)(i) exceeds the federal contributionlimitations, the amount representing the excess shall be deposited under Subsection (2)(a)(ii).
(c) An employee's rate of pay at the time of retirement for purposes of Subsection(2)(a)(ii) may not be less than the average rate of pay of state employees who retired in the sameretirement system under Title 49, Utah State Retirement and Insurance Benefit Act, during theprevious calendar year.
(3) The Utah State Retirement Office shall develop and maintain a program to provide abenefit plan that provides for reimbursement for medical expenses under Subsection (2)(a)(ii)with:
(a) money deposited under Subsection (2)(a)(ii); and
(b) accrued earnings.
Amended by Chapter 130, 2007 General Session