Utah Code 49-12-301. Contributions — Two levels — Election by a participating employer to pay employee contributions — Accounting for and vesting of member contributions — Deductions
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(1) Participating employers and members shall jointly pay the certified contribution rates to the office to maintain this system on a financially and actuarially sound basis.
Terms Used In Utah Code 49-12-301
- Compensation: means the total amount of payments made by a participating employer to a member of this system for services rendered to the participating employer, including:(2)(a)(i) bonuses;(2)(a)(ii) cost-of-living adjustments;(2)(a)(iii) other payments currently includable in gross income and that are subject to social security deductions, including any payments in excess of the maximum amount subject to deduction under social security law;(2)(a)(iv) amounts that the member authorizes to be deducted or reduced for salary deferral or other benefits authorized by federal law; and(2)(a)(v) member contributions. See Utah Code 49-12-102
- 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
- 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
- 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:
(32)(a) the member; and(32)(b) the participating employer on the member's behalf under Section 414(h) of the Internal Revenue Code. See Utah Code 49-11-102- Office: means the Utah State Retirement Office. See Utah Code 49-11-102
- Participating employer: means an employer that meets the participation requirements of Sections 49-12-201 and 49-12-202. See Utah Code 49-12-102
- Refund interest: means the amount accrued on member contributions at a rate adopted by the board. 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 Public Employees' Contributory Retirement System created under this chapter. See Utah Code 49-12-102
(2) For purposes of determining contribution rates, this system is divided into two levels according to participating employers as follows:(2)(a) Level A includes the state, its independent agencies, independent entities, public corporations, and other instrumentalities, all participating educational institutions, and all other participating employers whose activities are associated with participating educational institutions.(2)(b) Level B includes all other participating employers in this system.(3)(3)(a) A participating employer may elect to pay all or part of the required member contributions, in addition to the required participating employer contributions.(3)(b) Any amount contributed by a participating employer under this section shall vest to the member’s benefit as though the member had made the contribution.(3)(c) The required member contributions shall be reduced by the amount that is paid by the participating employer.(4)(4)(a) All member contributions are credited by the office to the account of the individual member.(4)(b) This amount, together with refund interest, is held in trust for the payment of benefits to the member or the member’s beneficiaries.(4)(c) All member contributions are vested and nonforfeitable.(5)(5)(a) Each member is considered to consent to payroll deductions of member contributions.(5)(b) The payment of compensation less these payroll deductions is considered full payment for services rendered by the member.