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Committee advances overhaul of state employee benefits after lengthy public testimony; bill passes 7–3

Utah State Legislature — Government Operations Committee · March 2, 2026
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Summary

SB229, a second substitute to restructure state employee benefits — consolidating sick and annual leave into PTO, increasing Tier‑2 401(k) match, instituting employer‑paid short‑term disability and raising the compensable leave cap — passed out of committee 7–3 after extensive testimony both for and against the package.

After extended testimony from agency HR staff, union representatives and dozens of state employees, the Government Operations Committee voted 7–3 on March 3 to advance Senate Bill 229, a second substitute that restructures several elements of state employee compensation and leave.

Senator Fillmore (presenting) described the package as a "total rewards" enhancement intended to make state employment more competitive. The proposal would consolidate sick and annual leave into a unified PTO bank with a higher compensable‑leave cap, increase the Tier‑2 401(k) match to a percent‑for‑percent structure up to 2% employer participation (on a 50% basis), accelerate accrual schedules for some employees, and provide state‑paid short‑term disability and accidental…

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