UtahS.B. 2292026 General SessionSenateWALLET

State Employee Benefits Amendments

Sponsored By: Lincoln Fillmore (Republican)

Signed by Governor

Labor and EmploymentDivision of Human Resource ManagementPublic Retirement and InsuranceLegislative OperationsLegislative Employees and CompensationState Officers and EmployeesDivision of FinancePublic Employees Insurance and BenefitsPublic Employees RetirementUtah Retirement Systems (URS)Tier 1 RetirementTier 2 Retirement

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 3 benefits, 0 costs, 4 mixed.

Tier II state workers: early retirement deal

Eligible members can retire early with an allowance equal to 2% of final average salary times years of service, with no actuarial cut. You must give up any employer retirement stipend and follow the state’s postretirement reemployment limits. The state, schools, and participating political subdivisions fund their own shares; ongoing costs come from higher contribution rates set by the actuary.

Turn unused leave into retirement savings

When you retire or leave, you can convert unused annual leave or PTO into your Utah State Retirement Board 401(k) or 457 account at your final pay rate, up to IRS limits. If the Legislature funds it for a year, you may also convert up to 20 hours during that year (no more than $250), in whole hours, into those accounts. If you have converted sick leave under state rules, you can use it like leave or to buy continuing state medical and life insurance at your active coverage levels.

Leave trust fund secures payouts

The State Employees’ Leave Trust Fund holds money to pay accrued annual leave II and PTO. Agencies deposit set‑asides and other allowed funds, and the treasurer invests them for the fund. The fund reimburses employers as leave is used and pays out accrued leave at termination. Deposits are irrevocable and protected, and the Division targets a year‑end balance of at least 10% of total leave liability.

What pay counts for Tier II pension

For Tier II members, pensionable pay includes bonuses, cost‑of‑living increases, pay subject to Social Security deductions, allowed salary deferrals, and member contributions. It excludes in‑kind pay, employer‑paid benefits, some temporary pay, and termination payments like accumulated leave, severance, and comp time. Pensionable pay is capped at the federal 401(a)(17) limit.

State workers get new PTO choice

The law creates a paid time off (PTO) program for state agencies. By a change date set no later than July 1, 2027, agencies offer PTO and convert your accrued annual leave to PTO 1:1. You must make a one-time, final choice to stay in legacy leave or move to PTO; if you miss the deadline, you default to PTO. Each agency also sets up a leave bank where coworkers can donate PTO (not sick leave). The law takes effect May 6, 2026.

State workers’ 401(k) match and auto‑enroll

Employer matches depend on your tier. Legacy employees get a 100% match of their biweekly contribution, capped at $26. Tier II employees get a 100% match on the first $26 and a 50% match above that, with a cap equal to the greater of 2% of biweekly pay or $26. Hires on or after July 1, 2023 are auto‑enrolled to contribute the lesser of the employer amount or $26 per pay period; you can opt out or change it. Pre‑July 1, 2023 hires must contribute to get the employer match. All contributions vest right away; withdrawals still follow IRS rules.

Executives now get paid time off

Appointed executives and board or commission executives now have paid time off included in their benefits, aligned with Schedule B state employees.

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Sponsors & Cosponsors

Sponsor

  • Lincoln Fillmore

    Republican • Senate

Cosponsors

  • Norman K Thurston

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 166 • No: 84

House vote 3/5/2026

House/ motion to reconsider

Yes: 0 • No: 0

Senate vote 3/5/2026

Senate/ concurs with House amendment

Yes: 23 • No: 6

Senate vote 3/5/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote 3/5/2026

Senate/ circled

Yes: 0 • No: 0

House vote 3/5/2026

House/ passed 3rd reading

Yes: 57 • No: 17

House vote 3/5/2026

House/ substituted

Yes: 0 • No: 0

House vote 3/4/2026

House/ uncircled

Yes: 0 • No: 0

House vote 3/4/2026

House/ circled

Yes: 0 • No: 0

House vote 3/4/2026

House/ substituted

Yes: 0 • No: 0

House vote 3/4/2026

House/ failed

Yes: 34 • No: 40

House vote 3/2/2026

House Comm - Favorable Recommendation

Yes: 7 • No: 3

Senate vote 2/26/2026

Senate/ substituted

Yes: 0 • No: 0

Senate vote 2/26/2026

Senate/ passed 3rd reading

Yes: 18 • No: 9

Senate vote 2/26/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote 2/24/2026

Senate/ circled

Yes: 0 • No: 0

Senate vote 2/23/2026

Senate/ passed 2nd reading

Yes: 19 • No: 9

House vote 2/11/2026

Senate Comm - Favorable Recommendation

Yes: 4 • No: 0

House vote 2/11/2026

Senate Comm - Substitute Recommendation

Yes: 4 • No: 0

Actions Timeline

  1. Governor Signed

    3/24/2026
  2. Senate/ to Governor

    3/13/2026Senate
  3. Senate/ received enrolled bill from Printing

    3/13/2026Senate
  4. Senate/ enrolled bill to Printing

    3/12/2026Senate
  5. Enrolled Bill Returned to House or Senate

    3/12/2026
  6. Draft of Enrolled Bill Prepared

    3/6/2026
  7. Bill Received from Senate for Enrolling

    3/6/2026
  8. Senate/ signed by President/ sent for enrolling

    3/6/2026Senate
  9. Senate/ received from House

    3/6/2026Senate
  10. House/ to Senate

    3/5/2026House
  11. House/ signed by Speaker/ returned to Senate

    3/5/2026House
  12. House/ received from Senate

    3/5/2026House
  13. Senate/ to House

    3/5/2026Senate
  14. Senate/ concurs with House amendment

    3/5/2026Senate
  15. Senate/ uncircled

    3/5/2026Senate
  16. Senate/ circled

    3/5/2026Senate
  17. Senate/ placed on Concurrence Calendar

    3/5/2026Senate
  18. Senate/ received from House

    3/5/2026Senate
  19. House/ to Senate

    3/5/2026House
  20. House/ passed 3rd reading

    3/5/2026House
  21. House/ substituted

    3/5/2026House
  22. House/ motion to reconsider

    3/5/2026House
  23. House/ to Senate

    3/4/2026House
  24. House/ failed

    3/4/2026House
  25. House/ substituted

    3/4/2026House

Bill Text

  • Enrolled

    3/12/2026

  • Substitute #4

    3/5/2026

  • Substitute #3

    3/4/2026

  • Substitute #2

    2/24/2026

  • Substitute #1

    2/10/2026

  • Introduced

    1/30/2026

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