State Codes and Statutes

Statutes > Utah > Title-67 > Chapter-19 > 67-19-14-2

67-19-14.2. Unused Sick Leave Retirement Option Program -- Creation -- Payoutupon eligibility for allowance -- Continuing medical and life insurance benefits afterretirement.
(1) (a) There is created the "Unused Sick Leave Retirement Option Program I."
(b) An agency may offer the Unused Sick Leave Retirement Option Program I to anemployee who is eligible to receive a retirement allowance in accordance with Title 49, UtahState Retirement and Insurance Benefit Act.
(2) The Unused Sick Leave Retirement Option Program I provides that upon becomingeligible to receive a retirement allowance an employee who was employed by the state prior toJanuary 1, 2006:
(a) receives a contribution under Subsection (3) for 25% of the employee's unusedaccumulated sick leave accrued prior to January 1, 2006, at the employee's rate of pay at the timeof retirement;
(b) receives continuing medical and life insurance benefits until the earlier of:
(i) the date the employee reaches the age eligible for Medicare; or
(ii) up to the following number of years:
(A) five years if the employee retires during calendar year 2006;
(B) four years if the employee retires during calendar year 2007;
(C) three years if the employee retires during calendar year 2008;
(D) two years if the employee retires during calendar year 2009;
(E) one year if the employee retires during calendar year 2010; or
(F) zero years if the employee retires after calendar year 2010; and
(c) may purchase additional continuing medical and life insurance benefits in accordancewith Subsection (4).
(3) (a) Subject to federal requirements and limitations, the contribution under Subsection(2)(a) shall be transferred directly to the employee's defined contribution plan qualified underSection 401(k) of the Internal Revenue Code which is sponsored by the Utah State RetirementBoard.
(b) If the amount calculated under Subsection (2)(a) exceeds the federal contributionlimitations, the employee's unused accumulated sick leave hours representing the excess shall beused for the purchase of continuing medical and life insurance benefits under Subsection (4).
(4) (a) An employee may purchase continuing medical and life insurance benefits, at therate of one month's coverage per policy for eight hours of unused sick leave remaining after:
(i) the contribution of unused sick leave under Subsection (2)(a); and
(ii) an additional reduction, at the time of retirement, of unused sick leave hours asfollows:
(A) 480 hours if the employee retires during calendar year 2006;
(B) 384 hours if the employee retires during calendar year 2007;
(C) 288 hours if the employee retires during calendar year 2008;
(D) 192 hours if the employee retires during calendar year 2009;
(E) 96 hours if the employee retires during calendar year 2010; or
(F) 0 hours if the employee retires after calendar year 2010.
(b) The medical coverage level for member, two person, or family coverage that isprovided to the member at the time of retirement is the maximum coverage level available to themember under this program.

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(c) The purchase of continuing medical and life insurance benefits at the rate providedunder Subsection (4)(a) may be used by the employee to extend coverage:
(i) beyond the number of years provided under Subsection (2) until the employee reachesthe age of eligibility for Medicare; or
(ii) if the employee has reached the age of eligibility for Medicare, continuing medicalbenefits for the employee's spouse may be purchased until the employee's spouse reaches the ageof eligibility for Medicare.
(d) An employee and the employee's spouse who are or who later become eligible forMedicare may purchase Medicare supplemental insurance at the rate of one month's coverage foreight hours of the employee's unused sick leave per person.
(5) (a) The continuing medical and life insurance benefits received under Subsection(2)(b) or purchased by an employee under Subsection (4):
(i) may not be suspended or deferred for future use; and
(ii) continues in effect until exhausted.
(b) An employer participating in the Program I benefits under this section may notprovide medical or life insurance benefits to a person who is:
(i) reemployeed after retirement; and
(ii) receiving benefits under this section.

Amended by Chapter 249, 2010 General Session