1. (1) The following employees are not eligible for service credit in this system:

   1. (a) subject to the requirements of Subsection (2), an employee whose employment status is temporary in nature due to the nature or the type of work to be performed;
   2. (b) except as provided under Subsection (3)(a), an employee of an institution of higher education who participates in a retirement system with a public or private retirement system, organization, or company designated by the Utah Board of Higher Education, or the technical college board of trustees for an employee of each technical college, during any period in which required contributions based on compensation have been paid on behalf of the employee by the employer;
   3. (c) an employee serving as an exchange employee from outside the state for an employer who has not elected to make all of the employer's exchange employees eligible for service credit in this system;
   4. (d) an executive department head of the state or a legislative director, senior executive employed by the governor's office, a member of the State Tax Commission, a member of the Public Service Commission, and a member of a full-time or part-time board or commission who files a formal request for exemption;
   5. (e) an employee of the Department of Workforce Services who is covered under another retirement system allowed under Title 35A, Chapter 4, Employment Security Act;
   6. (f) an employee who is employed with an employer that has elected to be excluded from participation in this system under Subsection 49-13-202(5), effective on or after the date of the employer's election under Subsection 49-13-202(5);

   7. (g) an employee who is employed with a withdrawing entity that has elected under Section 49-11-623, before January 1, 2017, to exclude:

      1. (i) new employees from participation in this system under Subsection 49-11-623(3)(a); or
      2. (ii) all employees from participation in this system under Subsection 49-11-623(3)(b);

   8. (h) an employee described in Subsection (1)(h)(i) or (ii) who is employed with a withdrawing entity that has elected under Section 49-11-624, before January 1, 2018, to exclude:

      1. (i) new employees from participation in this system under Subsection 49-11-624(3)(a); or
      2. (ii) all employees from participation in this system under Subsection 49-11-624(3)(b);
   9. (i) an employee who is employed with a withdrawing entity that has elected under Section 49-11-625, before July 1, 2022, to exclude all employees from participation in this system; or

   10. (j) an employee who is employed with a withdrawing entity that elects under Section 49-11-626 to exclude:

       1. (i) new employees from participation in this system under Subsection 49-11-626(3)(a); or
       2. (ii) all employees from participation in this system under Subsection 49-11-626(3)(b).

2. (2) If an employee whose status is temporary in nature due to the nature of type of work to be performed:

   1. (a) is employed for a term that exceeds six months and the employee otherwise qualifies for service credit in this system, the participating employer shall report and certify to the office that the employee is a regular full-time employee effective the beginning of the seventh month of employment; or
   2. (b) was previously terminated before being eligible for service credit in this system and is reemployed within three months of termination by the same participating employer, the participating employer shall report and certify that the member is a regular full-time employee when the total of the periods of employment equals six months and the employee otherwise qualifies for service credits in this system.

3. (3)

   1. (a) Upon cessation of the participating employer contributions, an employee under Subsection (1)(b) is eligible for service credit in this system.
   2. (b) Notwithstanding the provisions of Subsection (1)(f), any eligibility for service credit earned by an employee under this chapter before the date of the election under Subsection 49-13-202(5) is not affected under Subsection (1)(f).

4. (4) Upon filing a written request for exemption with the office, the following employees shall be exempt from coverage under this system:

   1. (a) a full-time student or the spouse of a full-time student and individuals employed in a trainee relationship;
   2. (b) an elected official;
   3. (c) an executive department head of the state, a member of the State Tax Commission, a member of the Public Service Commission, and a member of a full-time or part-time board or commission;
   4. (d) an employee of the Governor's Office of Planning and Budget;
   5. (e) an employee of the Governor's Office of Economic Development;
   6. (f) an employee of the Department of Criminal Justice;
   7. (g) an employee of the Office of the Governor;
   8. (h) an employee of the Office of the State Auditor;
   9. (i) an employee of the Office of the State Treasurer;
   10. (j) any other member who is permitted to make an election under Section 49-11-406;
   11. (k) a person appointed as a city manager or chief city administrator or another person employed by a municipality, county, or other political subdivision, who is an at-will employee;
   12. (l) an employee of an interlocal cooperative agency created under Title 11, Chapter 13, Interlocal Cooperation Act, who is engaged in a specialized trade customarily provided through membership in a labor organization that provides retirement benefits to the labor organization's members;
   13. (m) an employee serving as an exchange employee from outside the state for an employer who has elected to make all of the employer's exchange employees eligible for service credit in this system;
   14. (n) the adjutant general of the Utah National Guard appointed under Section 39A-1-201 and each individual listed in Subsection 39A-1-203(1); and

   15. (o) an at-will employee who reports directly to:

       1. (i) the attorney general; or
       2. (ii) an employee who reports directly to the attorney general.

5. (5)

   1. (a) Each participating employer shall prepare and maintain a list designating those positions eligible for exemption under Subsection (4).
   2. (b) An employee may not be exempted unless the employee is employed in a position designated by the participating employer.

6. (6)

   1. (a) In accordance with this section, Section 49-12-203, and Section 49-22-205, a municipality, county, or political subdivision may not exempt a total of more than 50 positions or a number equal to 10% of the eligible employees of the municipality, county, or political subdivision, whichever is less.
   2. (b) A municipality, county, or political subdivision may exempt at least one regular full-time employee.

7. (7) Each participating employer shall:

   1. (a) maintain a list of employee exemptions; and
   2. (b) update the employee exemptions in the event of any change.
8. (8) The office may make rules to implement this section.

9. (9) An employee's exclusion, exemption, participation, or election described in this section:

   1. (a) shall be made in accordance with this section; and
   2. (b) is subject to requirements under federal law and rules made by the board.

Amended by Chapter 291, 2026 General Session