We have an assignment for you. Will you make a phone call or send an email to a legislator before next Thursday? It couldn’t be more important. Your retirement is at stake. Here’s the background:
The Utah State Legislative Retirement Committee is meeting next Thursday, November 12, to consider possible changes to the state retirement system for teachers and other state employees.
Dramatic changes are on the table, including switching all current, or all future state employees from a guaranteed retirement (Defined Benefit) to a variable retirement (Defined Contribution), in which the state would place a lower percentage of the employees salary in a 401k, and the employee’s retirement would be solely dependent on their skill and luck in where they invested that money, when they moved the money, and swings in the stock market, and the U.S. and world economy.
Other possible changes to the Utah Retirement System that are being discussed:
- Suspend or lower the 1.5 percent contribution to 401(k) or 403(b);
- Suspend or lower post-retiree employees’ (“double dippers”) contribution to 401(k) or 403(b);
- Extend the final average salary period (from the current three years to perhaps five years or more), thereby slightly reducing the retirement benefit;
- Increase the vesting period (i.e.: from four years to six years);
- Put a minimum age condition on the 30-year benefit (there is currently no minimum retirement age if you have 30 years in URS);
- Partial benefit payments until certain age (phase retirement);
- Reduce the multiplier from 2 percent of the final salary to 1.9 percent for each year worked;
- Require all new employees to participate in a defined-contribution system 401(k) or 403 (b);
- Reduce post-retirement benefits.
DEA Members should have received an email with instructions for contacting legislators. If you did not receive an email, please contact the DEA Office and we will send another.
