House approves retirement opt-out for rural care centers after Moab testimony

The Utah House on March 11 approved Senate Bill 204, a measure that lets nursing‑care facilities created under special service districts in rural areas elect an opt‑out from the Utah Retirement System and adopt alternative retirement plans, such as 401(k) contributions.

Representative Mike McKiff, the bill sponsor, said the change is driven by the financial struggles of small rural facilities. He cited Canyonlands Care Center in Moab, saying it “has participated in this system since 02/2012, but has gone in the hole badly” and described reimbursement of about 159 per bed with outgo of 210, contributing roughly $165,000 annually. McKiff said vested employees would be protected and the bill would not seek recovery of money already paid.

Supporters said the measure provides a local solution for facilities with predominantly low‑paid, transient staff for whom the state retirement system yields few vested participants. Representative Jerry Anderson described the workforce in Moab as “mostly all on low paying temporary positions,” adding that “very few of them are there more than a few months” and that many workers do not vest in URS. Other members said the statute simply extends an earlier hospital opt‑out to nursing homes created under special service districts.

McKiff noted the district subsidized the facility with tax and mineral lease money — $487,000 last year — to cover the shortfall. The House closed debate and passed SB204 by voice vote recorded as 68 yes, 0 no. The bill will be signed by the Speaker and returned to the Senate for the president’s signature.

The House record shows the change applies only to facilities created under special service districts in rural areas and does not void protections for vested employees. The bill’s effective implementation details and any administrative rules will be handled by staff and the affected districts as the measure moves back to the Senate.