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Senate advances temporary cut to Social Security offset for unemployment benefits
Summary
The Utah Senate agreed to place House Bill 8 on the third‑reading calendar after debate over using Reed Act funds to reduce the Social Security offset on weekly unemployment benefits to 50% for three years; senators agreed to hold final action until a related employer‑rate bill can be considered alongside it.
House Bill 8, which would reduce the Social Security offset against weekly unemployment benefits to 50% for a three‑year trial period, was moved onto the Senate's third‑reading calendar after a floor presentation and roll‑call vote. The sponsor told the Senate the change is funded with Reed Act money and is intended as temporary relief for retired workers who return to the labor market and then lose work through no fault of their own.
The sponsor said the current offset can leave retired workers with only a small remainder of their unemployment benefit after Social Security deductions, and that 50% is a compromise: "All we're trying to do is move to that middle ground, to the 50%" (sponsor, SEG 152–156). The sponsor also said the reduction would operate for three years and would be paid from Reed Act distributions to the unemployment insurance fund, not charged to employer accounts for the portion subsidized by the Reed Act funds (sponsor, SEG 181–189).
Senator Evans asked whether the fiscal note (approximately $1,114,000) represents a recurring annual draw from the Reed Act distribution or a one‑time allocation; the sponsor replied the Reed Act funds are expected to be available across the three‑year period and the bill contains a three‑year sunset (SEG 201–214). Another senator urged keeping HB 8 "circled" until a separate unemployment insurance bill that addresses recent employer rate increases can be considered side‑by‑side, to allow members to see the combined fiscal impacts; the sponsor agreed to hold the bill on third reading to allow the related bill to catch up (SEG 226–263).
The Senate voted to read House Bill 8 for a third time and place it on the third‑reading calendar; the roll call recorded 23 yeas, 1 nay and 5 absences (SEG 379–381). Senators signaled the intent to consider the companion employer‑rate measure before taking final action on HB 8 so the chamber can evaluate both bills together.
Next steps: HB 8 is placed on the third‑reading calendar; floor leaders indicated they will coordinate timing so the companion bill addressing employer rates can be heard alongside HB 8.
