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Adopted: 10-8-03
Revised : 5-12-04, 8-11-10, and 6-15-11

Philosophy

The South Sanpete Board of Education, in conjunction with recent changes to the (URS) Utah Retirement System, has established the following guidelines concerning the reemployment of retired employees. Reference: Senate Bill 43 S3 “Post-Retirement Employee Amendments” (2010 General Session)

Retired Employees Rehired after July 1, 2010

An employee who is reemployed full-time after July 1, 2010, by the District within one year of the date of the employee’s retirement will have his or her retiree’s allowance cancelled by the Utah State Retirement Office and be reinstated as an active member of the State retirement plan, effective the first day of the month following the date of reemployment. If the employee retires again within a two-year period from the date of cancellation of the original allowance, the original allowance will resume. Otherwise, if the employee retires after the two-year period, then his or her original allowance will resume, and the retiree will receive an additional allowance based on the formula in effect at the date of the subsequent retirement for the service credit accrued between the first and subsequent retirement dates.                 Utah Code 49-11-505(8) (2010)

An employee who is reemployed after July 1, 2010, by the District more than one year from the date of the employee’s retirement may elect to:

  1. Earn additional service credit and cancel the retiree’s retirement allowance; or
  2. Receive the retiree’s retirement allowance and forfeit any retirement related contribution from the District. Utah Code 49-11-505(4) (2010)

If any employee retires and is later reemployed in the District after July 1, 2010, the District’s Business Administrator shall immediately notify the Utah State Retirement Office. In addition, the District shall provide information indicating:

  1. Whether the reemployed employee was rehired within one year of the employee’s date of retirement from the District; and
  2. If the employee is reemployed more than one year from the date of retirement, whether the employee elects to:
    1. Earn additional service credit and cancel the retiree’s retirement allowance; or
    2. Receive the retiree’s retirement allowance and forfeit any retirement related contribution from the District. Utah Code 49-11-505(6)(a) (2010)

The URS may not cancel the retirement allowance of a retiree who is reemployed on a part-time basis with a participating employer within one year of the retiree’s retirement date if the conditions outlined in “Rehiring of Part-time Employees” of this Policy are met. Reference: Utah Code 49-11-505 (3) 2011.

Rehiring of Part-time EmployeesA school employee who retires may return to work on a part-time basis within one year under the following conditions:

1. The retiree is not reemployed for a period of at least 60 days from the retiree's retirement date.

2. Upon reemployment after the break in service, the retiree does not receive any employer provided benefits, including:

A. Medical benefits;

B. Dental benefits;
C. Other insurance benefits except for worker's compensation as provided under Title 34A, Chapter 2, Worker's Compensation Act and withholdings required by federal or state law for Social Security, Medicare, and unemployment insurance, etc.
D. Paid time off, including sick, annual, or other type of leave; and
E. The retiree does not earn in any calendar year of reemployment an amount in excess of the lesser of:

(1) $15,000; or

(2) One-half of the retiree's final average salary upon which the retiree's retirement allowance is based.

3. It is the responsibility of the retiree to notify the Utah Retirement Systems (URS) upon returning to work. Failure to do so will result in a significant monetary penalty for the retiree.

References: (1) SB 127 "Post-Retirement Employment Amendments" 2011 General Session

                  (2) Utah Code 49-11-505

Retired Employees Rehired before July 1, 2010

An employee who has been reinstated to active service under the State Retirement System after a prior retirement and then again retires shall have retirement allowance calculated as follows:

  1. The formula in effect at the date of the member’s original retirement shall be applied to all State service credit accrued prior to that date; and
  2. 2. The formula in effect at the date of the subsequent retirement shall be applied to all State service credit accrued between the first and the subsequent retirement dates. Utah Code 49-11-504(9) (2010)

If a retired employee is reemployed by the District prior to July 1, 2010, on a less than full-time basis, the District’s Business Administrator shall:

  1. Maintain an accurate record of gross earnings in employment for the six months immediately following retirement of any employees who are rehired within six months of retirement,
  2. Report gross earnings on a monthly basis to the retirement office,
  3. Immediately notify the Utah State Retirement Office in writing
    1. of any post-retirement earnings, and
    2. whether post-retirement earnings equal or exceed the exempt earnings permitted by Social Security. Utah Code 49-11-504(7) (2010)
  4. For purposes of this section, “full-time” employment means employment requiring 20 hours of work per week or more, or at least a half-time teaching contract. Utah Code 49-11-504(1) (2005)

Retired Employees from Other State Agencies

An employee who has retired from a State position other than the District and who comes to work at the District may not accrue any additional State service credit.
Utah Code 49-11-504(4) (2010)

Retirees Employed by District Who May Not Earn Additional State Service Credits

A retiree of the District who is reemployed, on a full-time basis, by the District after six months from the retirement date may not earn additional State service credit.
Utah Code 49-11-504(4) (2010)

When the District hires, on a full-time basis, a retiree who (a) is not an exempt employee under 49-12-203 or 49-13-203, and (b) may not earn additional State service credit, the District may not contribute an amount that exceeds the normal cost rate to a plan for the retiree; however, the District may, but is not required to, contribute to a retiree-designated:

  1. Qualified defined contribution plan administered by the Utah State Retirement Board, if the District participates in the contribution plan administered by the Utah State Retirement Board;
  2. Qualified defined contribution plan authorized under the Internal Revenue Code and offered by the District, if the District does not participate in a State defined contribution plan administered by the Utah State Retirement Board; or
  3. Nonqualified deferred compensation plan administered by the Utah State Retirement Board if the District does not participate in a State defined contribution plan administered by the Utah State Retirement Board.
    1. For purposes of this section, “normal cost rate” means the percent of salary that is necessary for a retirement system that is fully funded to maintain its fully funded status; and is determined by the actuary based on the assumed rate of return established by the Utah State Retirement Board.

Utah Code 49-11-504(8) (2010)

Salary Schedule and Years of Service

It is the Policy of South Sanpete Board of Education to grant five years of prior service to a retiree or an employee transferring to the District who has been teaching more than five years. Therefore, such employees would begin on Step Six (6) of the current salary schedule and also be placed on the appropriate lane consistent with their college degree(s) and/or credits.

The South Sanpete Board of Education reserves the right to authorize a higher step placement due to extenuating circumstances.

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