Utah Code 49-11-903. State appropriation funding offset — Proportionate share determination and reporting
Current as of: 2024 | Check for updates
|
Other versions
(1) As used in this section:
Terms Used In Utah Code 49-11-903
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Baseline: Projection of the receipts, outlays, and other budget amounts that would ensue in the future without any change in existing policy. Baseline projections are used to gauge the extent to which proposed legislation, if enacted into law, would alter current spending and revenue levels.
- Board: means the Utah State Retirement Board established under Section 49-11-202. See Utah Code 49-11-102
- 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. See Utah Code 49-11-102
- Employer: means any department, educational institution, or political subdivision of the state eligible to participate in a government-sponsored retirement system under federal law. See Utah Code 49-11-102
- Fund: means any fund created under this title for the purpose of paying benefits or costs of administering a system, plan, or program. See Utah Code 49-11-102
- 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. See Utah Code 49-11-102
- Office: means the Utah State Retirement Office. See Utah Code 49-11-102
- Retirement: means the status of an individual who has become eligible, applies for, and is entitled to receive an allowance under this title. See Utah Code 49-11-102
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
- 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. See Utah Code 49-11-102
(1)(a) “Baseline period” means calendar years 2013, 2014, and 2015.
(1)(b) “Premium tax receipts” means the money received by the office under Subsection 49-11-901.5(1) and paid in accordance with Subsections 49-11-901.5(2)(a) and (b).
(1)(c) “State appropriation” means the ongoing state appropriation from the General Fund to the Firefighters Retirement Fund that offsets the gross expense of the Firefighters’ Retirement System.
(2) The office shall make a determination for the Firefighters’ Retirement System, as recommended by the actuary and adopted by the executive director, as follows:
(2)(a) determine for the baseline period:
(2)(a)(i) the average annual dollar amount of premium tax receipts;
(2)(a)(ii) the average annual dollar amount of total employer contributions; and
(2)(a)(iii) the proportionate share of total dollar employer contributions funded by premium tax receipts for the baseline period, which is calculated as the average annual dollar amount of premium tax receipts divided by the average annual dollar amount of total employer contributions;
(2)(b) determine for each calendar year, beginning after calendar year 2020, the proportionate share of total dollar employer contributions funded by the state appropriation, which is calculated as the dollar amount of the state appropriation divided by the total dollar employer contributions; and
(2)(c) if the proportionate share for the year exceeds the proportionate share for the baseline period under Subsection (2)(a)(iii), recommend the actuarially determined dollar amount, if any, that the state appropriation may be reduced by in the future to maintain an equivalent proportionate share that is not expected to exceed the proportionate share for the baseline period.
(3)
(3)(a) If the determination under Subsection (2)(c) results in recommending a reduction to the state appropriation, the office shall report the dollar amount of the recommended reduction to the governor and Legislature, which may be included in the annual report on contribution rates required under Subsection 49-11-203(1)(h).
(3)(b) If the Legislature reduces the state appropriation, the board‘s subsequent certified contribution rates for the Firefighters’ Retirement System shall include any additional member or employer contributions required to maintain the system on a financially and actuarially sound basis due to the reduced funding offset dollars.
(4) As required to implement this section, the office may make the determinations using actuarial assumptions and methods adopted by the board.