Utah Code 63A-17-508. Unused Sick Leave Retirement Program II — Creation — Remuneration upon eligibility for allowance — Medical expense account after retirement
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(1)
Terms Used In Utah Code 63A-17-508
- Agency: means any department or unit of Utah state government with authority to employ personnel. See Utah Code 63A-17-102
- Converted sick leave: means leave that has been converted from unused sick leave in accordance with Section 63A-17-506 which may be used by an employee in the same manner as:(2)(a) annual leave;(2)(b) sick leave; or(2)(c) unused accumulated sick leave after the employee's retirement for the purchase of continuing medical and life insurance benefits under Sections 63A-17-507, 63A-17-508, and 63A-17-804. See Utah Code 63A-17-501
- Employee: means any individual in a paid status covered by the career service or classified service provisions of this chapter. See Utah Code 63A-17-102
- 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
(1)(a) There is created the “Unused Sick Leave Retirement Program II.”(1)(b) An agency shall offer the Unused Sick Leave Retirement Option Program II to an employee who is eligible to receive a retirement allowance in accordance with Title 49, Utah State Retirement and Insurance Benefit Act.(1)(c) An employee who is participating in the Unused Sick Leave Retirement Program I under Section 63A-17-507 may make a one-time and irrevocable election to transfer all unused sick leave hours which shall include all converted sick leave hours under Section 63A-17-506 for use under the Unused Sick Leave Retirement Program II under this section.
(2)
(2)(a) The Unused Sick Leave Retirement Program II provides that upon becoming eligible to receive a retirement allowance an employee employed by the state between January 1, 2006, and January 3, 2014, shall receive remuneration for the employee’s unused accumulated sick leave and converted sick leave accrued between January 1, 2006, and January 3, 2014, in accordance with this section as follows:
(2)(a)(i) subject to federal requirements and limitations, a contribution at the employee’s rate of pay at the time of retirement for 25% of the employee’s unused accumulated sick leave and converted sick leave shall be transferred directly to the employee’s defined contribution plan qualified under Section 401(k) of the Internal Revenue Code which is sponsored by the Utah State Retirement Board; and
(2)(a)(ii) participation in a benefit plan that provides for reimbursement for medical expenses using money deposited at the employee’s rate of pay at the time of retirement from remaining unused accumulated sick leave and converted sick leave balances.
(2)(b) If the amount calculated under Subsection (2)(a)(i) exceeds the federal contribution limitations, the amount representing the excess shall be deposited under Subsection (2)(a)(ii).
(2)(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 same retirement system under Title 49, Utah State Retirement and Insurance Benefit Act, during the previous calendar year.
(3) The Utah State Retirement Office shall develop and maintain a program to provide a benefit plan that provides for reimbursement for medical expenses under Subsection (2)(a)(ii) with money deposited under Subsection (2)(a)(ii).