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8 LONG TITLE
9 General Description:
10 This resolution encourages counties, cities, towns, and metro townships to increase
11 benefited employee salaries with certain savings.
12 Highlighted Provisions:
13 This resolution:
14 ▸ encourages setting aside any savings from each reduction in the amortization rate
15 and, when the total set aside money reaches a specified threshold, include the
16 amount in the base budget as an increase to benefited employee salaries.
17 Special Clauses:
18 None
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20 Be it resolved by the Legislature of the state of Utah:
21 WHEREAS, when the Legislature created the Tier II retirement system, the Legislature
22 contemplated future cost savings from the retirement benefit system to be provided for
23 employee salary enhancements;
24 WHEREAS, during, the 2023 General Session, the Legislature passed S.J.R. 5, Joint
25 Rules Resolution - Budgeting Changes to State Retirement Contributions;
26 WHEREAS, the resolution provided that if the retirement plan amortization rate as
27 defined in Utah Code Section 49-11-102 for the new fiscal year is less than the amortization
28 rate for the preceding fiscal year, the Legislature would presumptively set aside an amount
29 equal to the value of the reduction in the amortization rate;
30 WHEREAS, the resolution provided that when the total amount set aside, including any
31 amount set aside in the new fiscal year, equals or exceeds the cost of a 0.50% increase in
32 benefited state employee salaries for the new fiscal year, the set aside amount would be
33 included in the base budget as an increase in benefited state employee salaries equal to the total
34 set aside amount; and
35 WHEREAS, identifying cost savings benefiting employees can contribute to long-term
36 responsible monetary policy:
37 NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah
38 encourages counties, cities, towns, and metro townships in the state to consider setting aside
39 any savings from each reduction in the amortization rate and, when the total set aside money
40 reaches a specified threshold, include the amount in the base budget as an increase to benefited
41 local government employee salaries.