Bill > SB0020

This bill modifies the contribution provisions for Utah's New Public Employees' Tier II Contributory Retirement System, focusing on how participating employers and members contribute to the defined benefit and defined contribution portions of the retirement system. Specifically, the bill allows participating employers to optionally pay all or part of an employee's required member contribution as an "employer pick up" under federal tax law, in addition to the employer's standard 10% contribution. For the defined contribution plan, if an employer chooses to pay part of an employee's member contribution, they must also make an additional nonelective contribution to the employee's defined contribution plan at the same percentage rate. The bill clarifies that member contributions are vested and nonforfeitable, and outlines rules for contribution vesting, including that employer contributions fully vest after four years of employment. The bill also specifies that benefits in the defined benefit portion cannot be increased unless all system funded ratios reach 100%, and takes effect on July 1, 2025. These changes aim to provide more flexibility for employers in managing retirement contributions while maintaining the system's financial integrity.

Government Affairs

https://le.utah.gov/~2025/bills/static/SB0020.html