Council approves up to 8% public‑safety retirement pickup; adjusts Tier‑2 hybrid contributions
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Summary
Facing a jump in URS rates, Hurricane approved Resolution 2026‑18 to allow a city pickup of public‑safety retirement contributions up to 8% and separately approved a budgeted contribution approach for Tier‑2 hybrid employees (roughly 0.95–1.0%) affecting about 74 employees.
The Hurricane City Council on April 2 amended its retirement contribution practice for public‑safety employees and approved a separate adjustment for Tier‑2 hybrid employees.
Staff told the council the Utah Retirement System rate for public safety rose from 4.73% to 5.98% this year. Because state rules permit municipalities to "pick up" (pay) certain public‑safety employee retirement contributions, staff recommended authorizing a maximum city pickup of up to 8% to provide flexibility and help with retention. "The rate went up this year from 4.73 to 5.98," a staff presenter said, and recommended the council authorize up to 8% so staff could address future small increases without returning immediately to council.
Council debated ceiling levels (members discussed 6%, 7%, 8% and 10% as reference points) and ultimately approved Resolution 2026‑18 establishing a maximum pickup of 8% by roll call vote. Staff said more precise budget numbers would appear in the city budget documents.
For Tier‑2 hybrid employees — a category state law prevents the city from formally "picking up" — staff recommended a budgeted contribution/bonus approach equal to about 0.95–1.0% to cover the increase in employer contribution rates; staff reported that adjustment would cost about $55,199.04 and would apply to roughly 74 employees on the Tier‑2 hybrid plan. Council approved the adjustment by motion; staff said the payment will be handled as a budgeted bonus and reflected in payroll processes rather than labeled a pickup, per state rules.
Staff will reflect both actions in the budget documents and return as required for any future changes beyond the approved maximum.
