Utah Code 49-22-401. Contributions — Rates
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(1) Up to the amount allowed by federal law, the participating employer shall make a nonelective contribution of 10% of the participant‘s compensation to a defined contribution plan.
Terms Used In Utah Code 49-22-401
- Amortization: Paying off a loan by regular installments.
- Board: means the Utah State Retirement Board established under Section 49-11-202. See Utah Code 49-11-102
- 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 49-22-102
- 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
- defined contribution plan: means any defined contribution plan or deferred compensation plan authorized under the Internal Revenue Code and administered by the board. 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
- Nonelective contribution: means an amount contributed by a participating employer into a participant's defined contribution account. See Utah Code 49-11-102
- Office: means the Utah State Retirement Office. See Utah Code 49-11-102
- Participant: means an individual with voluntary deferrals or nonelective contributions on deposit with the defined contribution plans administered under this title. See Utah Code 49-11-102
- Participating employer: means an employer that meets the participation requirements of:
(5)(c) Section 49-19-201; or(5)(d) Section 49-22-201 or 49-22-202. See Utah Code 49-22-102- 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. See Utah Code 49-11-102
- Regular full-time employee: includes :
(6)(b)(i) a teacher whose term of employment for a participating employer contemplates continued employment during a school year and who teaches half time or more;(6)(b)(ii) a classified school employee:(6)(b)(ii)(A) who is hired before July 1, 2013; and(6)(b)(ii)(B) whose employment normally requires an average of 20 hours per week or more for a participating employer, regardless of benefits provided;(6)(b)(iii) an appointive officer whose appointed position is full time as certified by the participating employer;(6)(b)(iv) the governor, the lieutenant governor, the state auditor, the state treasurer, the attorney general, and a state legislator;(6)(b)(v) an elected official not included under Subsection (6)(b)(iv) whose elected position is full time as certified by the participating employer;(6)(b)(vi) a faculty member or employee of an institution of higher education who is considered full time by that institution of higher education; and(6)(b)(vii) an individual who otherwise meets the definition of this Subsection (6) who performs services for a participating employer through a professional employer organization or similar arrangement. See Utah Code 49-22-102- Service credit: means :
(50)(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(50)(b) periods of time otherwise purchasable under this title. See Utah Code 49-11-102- System: means the New Public Employees' Tier II Contributory Retirement System created under this chapter. See Utah Code 49-22-102
- Tier I: means a system or plan under this title for which:
(54)(a) an employee is eligible to participate if the employee initially enters regular full-time employment before July 1, 2011; or(54)(b) a governor or legislator who initially enters office before July 1, 2011. See Utah Code 49-11-102- Voluntary deferrals: means an amount contributed by a participant into that participant's defined contribution account. See Utah Code 49-11-102
- Years of service credit: means :
(8)(a) a period consisting of 12 full months as determined by the board;(8)(b) a period determined by the board, whether consecutive or not, during which a regular full-time employee performed services for a participating employer, including any time the regular full-time employee was absent on a paid leave of absence granted by a participating employer or was absent in the service of the United States government on military duty as provided by this chapter; or(8)(c) the regular school year consisting of not less than eight months of full-time service for a regular full-time employee of an educational institution. See Utah Code 49-22-102(2)(2)(a) The participating employer shall contribute the 10% nonelective contribution described in Subsection (1) to a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code that:(2)(a)(i) is sponsored by the board; and(2)(a)(ii) has been grandfathered under Section 1116 of the Federal Tax Reform Act of 1986.(2)(b) The member may make voluntary deferrals to:(2)(b)(i) the qualified 401(k) plan that receives the employer contribution described in this Subsection (2); or(2)(b)(ii) at the member’s option, another defined contribution plan established by the participating employer.(2)(c) In addition to the percent specified under Subsection (2)(a), the participating employer shall pay the corresponding Tier I system amortization rate of the employee’s compensation to the office to be applied to the employer’s corresponding Tier I system liability.(3)(3)(a) Except as provided under Subsection (3)(c), the total amount contributed by the participating employer under Subsection (2)(a) vests to the member upon accruing four years of employment as a regular full-time employee under this title.(3)(b) The total amount contributed by the member under Subsection (2)(b) vests to the member’s benefit immediately and is nonforfeitable.(3)(c)(3)(c)(i) Upon filing a written request for exemption with the office, an eligible employee is exempt from the vesting requirements of Subsection (3)(a) in accordance with Section 49-22-205.(3)(c)(ii) An employee who is exempt under this Subsection (3)(c) is not eligible for additional service credit in the plan for the period of exempt employment.(3)(d)(3)(d)(i) Years of employment under Subsection (3)(a) includes any fraction of a year to which the member may be entitled.(3)(d)(ii) At the time of vesting, if a member’s years of service credit is within one-tenth of one year of the total years required for vesting, the member shall be considered to have the total years of employment required for vesting.(4)(4)(a) Contributions made by a participating employer under Subsection (2)(a) shall be invested in a default option selected by the board until the member is vested in accordance with Subsection (3)(a).(4)(b) A member may direct the investment of contributions including associated investment gains and losses made by a participating employer under Subsection (2)(a) only after the contributions have vested in accordance with Subsection (3)(a).(4)(c) A member may direct the investment of contributions made by the member under Subsection (3)(b).(5) No loans shall be available from contributions made by a participating employer under Subsection (2)(a).(6) No hardship distributions shall be available from contributions made by a participating employer under Subsection (2)(a).(7)(7)(a) Except as provided in Subsection (7)(b), if a member terminates employment with a participating employer prior to the vesting period described in Subsection (3)(a), all contributions made by a participating employer on behalf of the member including associated investment gains and losses under Subsection (2)(a) are subject to forfeiture.(7)(b) If a member who terminates employment with a participating employer prior to the vesting period described in Subsection (3)(a) subsequently enters employment with the same or another participating employer within 10 years of the termination date of the previous employment:(7)(b)(i) all contributions made by the previous participating employer on behalf of the member including associated investment gains and losses shall be reinstated upon the member’s employment as a regular full-time employee; and(7)(b)(ii) the length of time that the member worked with the previous employer shall be included in determining whether the member has completed the vesting period under Subsection (3)(a).(7)(c) The office shall establish a forfeiture account and shall specify the uses of the forfeiture account, which may include an offset against administrative costs or employer contributions made under this section.(8) The office may request from any other plan under Subsection (2)(b)(ii) any relevant information pertaining to the maintenance of the plan’s tax qualification under the Internal Revenue Code.(9) The office may take any action that in the office’s judgment is necessary to maintain the tax-qualified status of the office’s 401(k) defined contribution plan under federal law.