49-11-622 - Subsidiaries or other companies owned by independent corporations -- Participation -- Withdrawal. - Utah Statutes

49-11-622. Subsidiaries or other companies owned by independent corporations --Participation -- Withdrawal.
(1) Notwithstanding any other provision of this title, an independent corporation, asdefined in Section 63E-1-102, which participates in a system or plan prior to July 1, 2006, andwhich owns a subsidiary, or other company may provide for the participation of employees withthat system or plan as follows:
(a) the independent corporation shall determine a date that is no later than January 1,2007, on which the independent corporation shall make an election under Subsection (2);
(b) an employee hired by the independent corporation and transferred to a subsidiary, orother company on or after the date set under Subsection (1)(a) may not participate in a system orplan; and
(c) the independent corporation shall pay to the office any actuarial or administrativecost, determined by the office, to have arisen out of the transfer of the employees from theindependent corporation.
(2) The independent corporation described under Subsection (1) shall elect to:
(a) continue its participation for all current employees covered by a system or plan andtransferred to a subsidiary, or other company, as of the date set under Subsection (1)(a); or
(b) withdraw from participation in all systems or plans for all employees covered by asystem or plan and transferred to the subsidiary, or other company, as of the date set underSubsection (1)(a).
(3) If an independent corporation elects to continue participation under Subsection (2)(a),the independent corporation and the transferred employees shall continue to be subject to thelaws and the rules governing the system or plan in which the employee participates, including theaccrual of service credit and payment of contributions.

Enacted by Chapter 309, 2006 General Session