Utah State Retirement System raises Tier 1 salary requirement by 16 percent

During the recent Bountiful City Council meeting, discussions centered on the Utah State Retirement System (URS) and its implications for city officials. A key point raised was the criteria for Tier 1 enrollment, which requires individuals to have been part of the URS before June or July 2011. This stipulation means that those without continuous service but who were enrolled prior to that date can still qualify.

The council member noted that the salary requirement for Tier 1 has increased from $15,492 to $18,000, marking a significant 16% rise. This increase raised concerns among council members, who questioned whether it was excessively high. The Tier 1 plan offers a defined benefit, calculated at 2% of the average salary over the highest three years of service.

For officials who do not meet the Tier 1 criteria, the only retirement option available is a 401(k) plan. The council member highlighted that the number of individuals enrolled in Tier 1 has dwindled over the years, reflecting broader trends in public retirement systems. The discussion also referenced state senator Bridal Lilienquist, who played a pivotal role in revising the state retirement system in the past.

This conversation underscores the ongoing challenges faced by local governments in managing retirement benefits for their officials, particularly as the landscape of public service employment evolves. As the council continues to navigate these changes, the implications for future recruitment and retention of city officials remain a critical concern.