Update March 2010:
Below are links to two separate documents related to the recent retirement bills passed by the Utah Legislature. These documents are summaries of the new laws.
Bills Passed
Benefits Table
Update February 8, 2010:
Additional documents have been sent to the Employees Association regarding proposed changes. They are as follows:
1. Letter from Bob Newman, URS' Executive Director, dated January 26, 2010 - This document refutes the claims that the pension fund has recovered and validates the financial modeling by URS' actuaries
2. Letter from the Actuaries dated November 10, 2009 with Actuarial Modeling - This document was issued by URS' actuaries to the Retirement & Independent Entities Committee Meeting and details the contribution rate increases we are facing (see Exhibit 1 on page 10)
3. Addendum to the Actuarial Modeling issued on January 26, 2010 - This document supplements the November 10, 2009 letter and shows a 13% return in 2009 and 9% thereafter (there is still a $350 Million ongoing funding required on this very optimistic scenario)
4. Retirement Fact Sheet - This is a quick overview of the retirement reform effort that provides very broad points on all reform efforts.
Update February 5, 2010:
Legislation being proposed to change retirement benefits is under consideration by a Committee which includes one senator and two state representatives from Utah County. These people represent us and they need to hear from us. You are encouraged to write these representatives or you may use a pre-written letter through one of the links below. Telephone contact information is also listed below for the legislators.
Curt Bramble 801-361-5802 Sample Letter
Stephen Sandstrom Sample Letter
Bradley Daw 801-850-3608 Sample Letter
Proposed Changes to Utah Retirement System
The Employees Association contacted our H.R. Department and four members of the League of Cities and owns Committee that worked on their proposal for information regarding any proposed changes to the State retirement system. The sources we have contacted indicated that there are many interests being represented and a bill changing retirement benefits in some manner will be passed. It is projected that the State will have a shortfall of $78-80 million this year and the legislature will not fund the shortfall. The shortfall is projected to increase in the next few years depending on market conditions. There appears to be three approaches to address meeting this retirement shortfall:
Reduce benefits
Raise employer contribution
Raise employee contributions
The proposed changes to the retirement system may have short or long-term implications. Many groups have representatives lobbying for them including UEA, Police, Fire and State employee's groups. Municipal employee's interests are probably most closely linked to the State employee's interests. Each of these groups are presenting their proposals to a State Senate Committee which is being led by a Senator Liljenquist from Bountiful. A bill will likely be presented sometime in December or January. If it hits the target to meet the State's shortfall it will proceed. If not, it will go through a lengthy legislative process to get to the point where it meets that shortfall. A lengthy legislative process is not a good scenario because it will be difficult to follow and will be open to any number of influences. The best thing we as employees, all employees, can do is stay informed and contact our local State Representatives and express our concerns regarding changes to the retirement benefits. Whatever changes occur, if they are not favorable to a particular group of employees, it is highly likely that there will be a grace period provided for employees to make decisions regarding their retirement prior to the legislation going into effect.
When we are aware of a firm proposal we will make you aware of it immediately. Until then we will attempt to provide you information as it is made available to us.
The Utah League of Cities and Towns proposal is available at: http://www.ulct.org/ulct/legislative/2010_employee_retire.html
http://www.ulct.org/ulct/docs/LPC_retirement_handout.pdf
To check for legislative proposals go to:
http://www.le.state.ut.us/asp/billsintro/index.asp
You can check by subject and legislator (Liljenquist)
URS- Preliminary Retirement Contribution Rates for 2010-2011. Go to www.urs.org, choose the For Employers tab and click on PRELIMINARY 2010 - 2011 Contribution Rates or http://www.urs.org/urs4emp/pdf/contribution_rates1011_pr.pdf
This is very preliminary information and subject to legislative change. Lines 11, 15, 46 and 32 apply to Provo City employees.
Information comparing benefits within the State of Utah is available on the City's intranet site at: http://home.provo.org/img/File/2009BenComp(1).pdf
Contact your State legislator:
Utah
John L. Valentine (R)
jvalentine@utahsenate.org
857 East 970 North
Orem, Utah 84097
Home: (801) 224-1693
Office: (801) 373-6345
Fax: (801) 377-4991
15
Utah
Margaret Dayton (R)
mdayton@utahsenate.org
97 West Westview Drive
Orem, Utah 84058
Home: (801) 221-0623
Fax: (801) 221-2513
16
Utah
Curtis S. Bramble (R)
cbramble@utahsenate.org
3663 North 870 East
Provo, Utah 84604
Home: (801) 226-3663
Fax: (801) 812-8297
Cell: (801) 361-5802
Dougall, John
PO BOX 771
AMERICAN FORK, UT 84003
jdougall@utah.gov
Sumsion, Kenneth W.
PO Box 676
AMERICAN FORK, UT 84003
ksumsion@utah.gov
R
57
Frank, Craig A.
10808 LA COSTA
CEDAR HILLS, UT 84062
cfrank@utah.gov
R
58
Sandstrom, Stephen E.
1775 SKYLINE DR
OREM, UT 84097
ssandstrom@utah.gov
R
59
Fowlke, Lorie D.
596 W 1200 N
OREM, UT 84057
lfowlke@utah.gov
R
60
Daw, Bradley M.
842 E 280 S
OREM, UT 84097
bdaw@utah.gov
R
61
Grover, Keith
1374 W 1940 N
PROVO, UT 84604
keithgrover@utah.gov
R
62
Herrod, Christopher N.
4125 N CRESTVIEW AVE
PROVO, UT 84604
cherrod@utah.gov
R
63
Clark, Stephen D.
968 E FIR AVE
PROVO, UT 84604
sclark@utah.gov
R
64
Lockhart, Rebecca D.
1754 S NEVADA AVE
PROVO, UT 84606
blockhart@utah.gov
Assistant Majority Whip
R
65
Gibson, Francis D.
208 S 680 W
MAPLETON, UT 84664
fgibson@utah.gov
R
66
Morley, Michael T.
678 W 350 N
SPANISH FORK, UT 84660
mikemorley@utah.gov
66
