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House approves Post Retirement Benefits Trust Fund bill, cites $46.8 million actuarial figure
Summary
House Bill 381, sponsored on the floor by Representative David Clark, would open a trust fund for other post-employment benefits, set up a three-member governing board, and direct the state treasurer to invest funds; the sponsor cited an actuary recommendation of about $46,800,000 per year for 25 years. The House passed the bill and will send it to the Senate.
The Utah House approved House Bill 381 on third reading, a bill to establish a Post Retirement Benefits Trust Fund and governance structure to invest funds for other post-employment benefits.
Representative David Clark explained the bill to the chamber, citing a completed actuarial study under Governmental Accounting Standards Board (GASB) rules. "The actuary for other post employment benefits here in the state of Utah has assigned a figure of 46,000,000 46,800,000.0 each year for the next 25 years to fund those other post employment benefits," Clark said on the floor. He said part of the current obligation is being met with roughly $23 million to $24 million in cash, and the bill would open the trust and create a three-member governing board to allow the state treasurer to invest remaining amounts.
Clark described the core mechanics: convert sick leave balances into post-employment benefits, place required funding into an investment account, and charge a small governing board and the state treasurer with investing those funds "to put it to work and earn as much as [we] can for when we need it down the road." Questions on staffing and implementation were raised briefly on the floor; Clark indicated staffing had been funded.
The clerk closed the vote: "House bill 381 ... Those pass this body and will refer to the senate for further consideration." The transcript records no recorded opposition on the floor; the vote was closed and the bill was transmitted to the Senate for further consideration.
