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Vernal adopts Roth 401(k) and 457(b) options and 2% automatic enrollment for new hires
Summary
The council approved adding Roth 401(k) and Roth 457(b) options through Utah Retirement Systems and instituted 2% automatic enrollment at hire to boost employee participation; staff said the change will not add employer cost.
Kevin Hurd, retirement planning advisor with Utah Retirement Systems, told the Council that adopting Roth 401(k) and Roth 457(b) options "would not create any additional cost for Vernal City but would provide employees with more flexibility when planning for retirement." Hurd also recommended automatic enrollment and noted research showing participation rises when enrollment is automatic.
City Manager Quinn Bennion clarified the Council was considering both adopting the Roth options and implementing automatic enrollment; Councilmember Ed Long moved to approve adding the Roth 401(k) and 457(b) options and a 2% automatic enrollment at hire, Councilmember Randel Mills seconded, and the motion passed unanimously.
