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House approves 2% retirement increase for early state retirees after floor debate
Summary
The Utah House passed House Bill 12 on Feb. 15, 2007, to grant a 2% multiplier for years of service to certain state retirees who retired before 1986. Lawmakers debated fiscal cost (fiscal note $3.6 million) and equity among retirement tiers before passage (56–9–10).
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The Utah House on Feb. 15 approved House Bill 12, a bill that would grant a 2% multiplier to certain state retirees who left service before 1986, aiming to address a disparity between older defined‑contribution and later non‑contributory retirement systems.
Sponsor Luana Shurtleff said the change would restore equity for retirees left on a lower formula and described the group as "less than 5,000" people statewide who are increasingly vulnerable to rising costs. The fiscal note attached to the bill shows an estimated $3,600,000 annual cost, which the sponsor said would be considered by appropriators if funds become available.
Opponents urged caution about long‑term fiscal impacts. Representative Glass noted the $3.6 million is not a one‑time payment but an ongoing cost that would continue in perpetuity. Representative Dougal characterized the bill as retirees asking for "more money" after retirement. Several members emphasized the bill as a fairness matter and urged support for elderly public employees.
Representative Hansen said the bill would correct a 20 percentage‑point disparity between the two retirement systems and described it as a matter of equity for older retirees who had limited incomes. Representative Mathis declared a conflict of interest and noted his father is among those affected.
The House passed the bill and referred it to the Senate (vote recorded as 56 yes, 9 no, 10 absent). Next steps will be Senate consideration and any appropriations decisions by the Executive Appropriations Committee.
