1. (1)

   1. (a) Unless excluded under Subsection (2), an employer is a participating employer and may not withdraw from participation in this system.
   2. (b) In addition to participation in this system, a participating employer may provide or participate in public or private retirement, supplemental or defined contribution plan, either directly or indirectly, for the participating employer's employees.

2. (2) The following employers may be excluded from participation in this system:

   1. (a) an employer not initially admitted or included as a participating employer in this system prior to January 1, 1982, if:

      1. (i) the employer elects not to provide or participate in any type of private or public retirement, supplemental or defined contribution plan, either directly or indirectly, for the employer's employees, except for Social Security; or
      2. (ii) the employer offers another collectively bargained retirement benefit and has continued to do so on an uninterrupted basis since that date;
   2. (b) an employer that is a charter school authorized under Title 53G, Chapter 5, Part 3, Charter School Authorization, and does not elect to participate in accordance with Section 53G-5-407;
   3. (c) an employer that is a hospital created as a special service district under Title 17D, Chapter 1, Special Service District Act, that makes an election of nonparticipation in accordance with Subsection (4); or
   4. (d) an employer that is licensed as a nursing care facility under Title 26B, Chapter 2, Part 2, Health Care Facility Licensing and Inspection, and created as a special service district under Title 17D, Chapter 1, Special Service District Act, in a rural area of the state that makes an election of nonparticipation in accordance with Subsection (4).
3. (3) An employer who did not become a participating employer in this system prior to July 1, 1986, may not participate in this system.

4. (4)

   1. (a)

      1. (i) Until June 30, 2009, a employer that is a hospital created as a special service district under Title 17D, Chapter 1, Special Service District Act, may make an election of nonparticipation as an employer for retirement programs under this chapter.
      2. (ii) Until June 30, 2014, an employer that is licensed as a nursing care facility under Title 26B, Chapter 2, Part 2, Health Care Facility Licensing and Inspection, and created as a special service district under Title 17D, Chapter 1, Special Service District Act, in a rural area of the state may make an election of nonparticipation as an employer for retirement programs under this chapter.

   2. (b) An election provided under Subsection (4)(a):

      1. (i) is a one-time election made no later than the time specified under Subsection (4)(a);
      2. (ii) shall be documented by a resolution adopted by the governing body of the special service district;
      3. (iii) is irrevocable; and
      4. (iv) applies to the special service district as the employer and to all employees of the special service district.

   3. (c) The governing body of the special service district may offer employee benefit plans for special service district's employees:

      1. (i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act; or
      2. (ii) under any other program.

5. (5)

   1. (a) If a participating employer purchases service credit on behalf of a regular full-time employee for service rendered prior to the participating employer's admission to this system, the participating employer shall:

      1. (i) purchase service credit in a nondiscriminatory manner on behalf of all current and former regular full-time employees who were eligible for service credit at the time service was rendered; and
      2. (ii) comply with the provisions of Section 49-11-403, except for the requirement described in Subsection 49-11-403(2)(a).

   2. (b) For a purchase made under this Subsection (5), an employee is not required to:

      1. (i) have at least four years of service credit before the purchase can be made; or
      2. (ii) forfeit service credit or any defined contribution balance based on the employer contributions under any other retirement system or plan based on the period of employment for which service credit is being purchased.

Amended by Chapter 328, 2023 General Session