December Retirement Update

A main topic of discussion in most faculty rooms is the retirement system and potential changes. It is important to keep in mind that there are three elements of retirement that are currently generating discussion in the legislature and in the press. We are well aware of the concerns among employees and will continue to monitor the developments.

State Issues – Legislative Control

The Utah Retirement System

Money is deposited each month in this system as an investment for your retirement. The amount posted fluctuates but currently an amount equal to just over 14% of your salary is being deposited to that account on your behalf each payday. In addition, 1.5% of your salary is deposited each month into a 401k with the URS. These two amounts are paid by the district as a part of your salary and benefit package. Some legislators are concerned that the system will not able to sustain itself over time and needs some adjusting. UEA is encouraging caution with any changes and is working to find legislative support for additional study over the next year. The system is solvent, and there is no need for immediate action other than those already planned by the URS board.

We have not spoken to any legislators who are planning changes to this school year. Discussion usually focuses on new teachers although we oppose setting up two separate systems feeling that could cause strain between new employees and existing employees.

Retire and Rehire

This option is often referred to offensively as double-dipping and is being discussed by the press and the legislature. Although there is some cost involved with these teachers to the retirement system, in the past it has been discussed as a cost saving measure for school districts rather than as a drain on the system as it is currently being portrayed. We believe this too should be looked at carefully before any change is made. In most cases, those concerned about this at the legislature have indicated it would impact future reemployment rather than applying any change retroactively.

Davis District Issue

Early Retirement Incentives

This program is outlined in our agreement on pages 23-25. The incentives remain in place for this year. Changes to this program are subject to negotiations between the association and the district. A committee will be formed soon to determine if changes are necessary to assure the financial viability of the incentives in the future. No immediate changes are contemplated.