Fiscal Note - State of Utah - 2013 General Session

HB0194 - State Employee Benefits Amendments

State Government (UCA 36-12-13(2)(b)):
Enactment of this bill will reduce expenditures under the Unused Sick Leave Retirement Program II by an estimated $1,084,000 from various sources beginning in FY 2015. Savings will increase each year until existing program liabilities are paid. The cost of a new state employee defined contribution benefit created in this bill will depend upon amounts appropriated by the Legislature. Costs from all sources are capped at an estimated $6 million in FY 2014 and $13 million annually beginning in FY 2015 assuming all eligible employees participate at $26 per pay period. Currently, 52% of eligible employees participate in a 401k plan without a match ($7�million/yr at $26/ppd). Data from the Utah Retirement Systems suggests that 73% of employees would participate under voluntary enrollment (up to $9 m/yr at $26/ppd) and 93% would participate under auto-enrollment (up to $12 m/yr at $26/ppd).

State Budget Detail TableFY 2013FY 2014FY 2015
Revenue$0$0$0
    
Expenditure:   
General Fund$0($537,900)($537,900)
General Fund, One-Time$0$537,900$0
General Fund Restricted$0$0($71,500)
Education Fund$0($29,100)($29,100)
Education Fund, One-Time$0$29,100$0
Transportation Fund$0$0($79,900)
Federal Funds$0$0($166,600)
Dedicated Credits$0$0($138,400)
Other$0$0($60,600)
   Total Expenditure$0$0($1,084,000)
    
Net Impact, All Funds (Rev.-Exp.)$0$0$1,084,000
   Net Impact, General/Education Funds (Rev.-Exp.)$0$0$567,000

Local Governments (UCA 36-12-13(2)(c)):
Enactment of this bill likely will not result in direct, measurable costs for local governments.

Direct Expenditures by Utah Residents and Businesses (UCA 36-12-13(2)(d)):
Enactment of this bill likely will not result in direct, measurable expenditures by Utah residents or businesses.

Performance Note Required? (Joint Rule 4-2-404): Yes

2/15/2013, 10:05:24 AM, Lead Analyst: Fay, B/Attny: SCHOffice of the Legislative Fiscal Analyst