Fiscal Note

HB0202 - Employee Benefit Amendments

State Impact:
Enactment of this bill will not require additional appropriations. The bill would allow certain current and future at-will employees and elected officials to transfer their retirement balances from a defined benefit system or plan to a defined contribution plan. If all eligible beneficiaries with higher benefits under the defined contribution plan were to switch to the defined contribution plan, there would be a one-time cost to the Utah Retirement System of at most $2.5 million. This one-time cost is not significant enough to result in an overall change to State retirement contribution rates, therefore no change in appropriation is required by the bill.

Individual, Business and/or Local Impact:
Enactment of this bill likely will not result in direct, measurable costs and/or benefits for businesses. Certain individuals may benefit from increased income. Investment rewards and risks may rest with current and future at-will employees and elected officials that opt for a balance transfer from the defined benefit system or plan to defined contribution plan. Local governments with existing unfunded liabilities may be impacted if they elect to offer this benefit.