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Parowan absorbs modest URS Tier 2 pickup for two public safety employees
Summary
Following staff presentation, Parowan Council voted to absorb a URS Tier 2 employer cost change that would otherwise increase employee contributions, affecting two police officers; the fiscal impact to the city is modest because only two positions are Tier 2.
City Recorder Callie Bassett and City Manager Dan Jessen presented background on Utah Retirement Systems (URS) Tier 2 contribution changes and the statutory election local employers must make when employee contribution rates cross a threshold for public safety members. Bassett provided current contribution figures (total contribution rate this year 29.56% with an employee pickup of 4.73%; next year projected at 30.31% with employee pickup rising to 5.98%), and Jessen noted the change affects only two of Parowan's six officers covered by URS Tier 2, making the city's fiscal impact modest.
After discussion, the council voted unanimously to absorb the additional Tier 2 cost for public safety employees rather than pass it to affected workers. The motion carried without dissent and was presented as a budgeted decision consistent with the adopted FY2026-27 plan.
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