UtahH.B. 252025 General SessionHouse

Retirement Amendments

Sponsored By: Cheryl K. Acton (Republican)

Signed by Governor

Public Retirement and InsurancePublic Employees' Health ProgramPublic Employees Insurance and BenefitsPublic Employees RetirementUtah Retirement Systems (URS)

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 2 costs, 1 mixed.

More employers qualify for retirement withdrawal

Beginning July 1, 2025, Utah broadens nonprofit tax-status rules for employers seeking to leave its retirement system. Qualifying status now includes Section 501(c), rather than only Section 501(c)(3). One pathway covers county mental health and substance abuse providers that joined before July 1, 2014. They must have changed to nonprofit status after joining and cannot be state higher education institutions. That pathway retains its January 1, 2017, withdrawal-date limit. The newer pathway covers employers that joined before January 1, 2023. They must be public employees' associations, insurers subject to state disclosure rules, or nonprofits that changed tax status after joining. For this newer pathway, the deadline to choose and complete withdrawal moves from July 1, 2025, to July 1, 2028.

Leaving employers must cover retirement costs

Beginning July 1, 2025, employers using these withdrawal pathways must pay reasonable retirement-system costs tied to leaving. These include administrative and actuarial costs, a payment for calculated funding shortfalls, and a payment to protect remaining employers. The employer and retirement office must agree on costs and payment arrangements before withdrawal; no fixed dollar amount is set. Withdrawal does not erase employees' eligibility for service credit earned before the withdrawal date. Under the newer pathway, employers can offer other retirement arrangements after leaving and can later rejoin the system.

Retirement employers must keep records longer

Beginning July 1, 2025, participating Utah retirement employers must keep required employee records longer. Records must remain until the earliest of three dates: four years after retirement, four years after death, or 65 years after employment began. The four-year periods replace three-year periods. Required records support benefit calculations and plan administration, including records identifying benefits outside normal benefit packages. Employers that fail to keep records owe resulting costs and a penalty equal to 1% of their last month's contributions. The retirement office can estimate missing service, pay, or age information, and its director can waive charges for extenuating circumstances. Employers must enroll employees and report and contribute electronically; electronically supplied information is confidential.

Public health plan opioid authority repealed

Beginning July 1, 2025, the law repeals PEHP Health and Benefits' specific statutory authority for certain opioid prescribing policies. This removes an authority for both prescribing restrictions and safeguards. The repeal sets no replacement policy and guarantees no change in an individual's drug coverage or prescription access.

Sponsors & Cosponsors

Sponsor

  • Cheryl K. Acton

    Republican • House

Cosponsors

  • Wayne A. Harper

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 198 • No: 0

House vote • 2/19/2025

House/ concurs with Senate amendment

Yes: 71 • No: 0

Senate vote • 2/14/2025

Senate/ passed 3rd reading

Yes: 23 • No: 0

Senate vote • 2/13/2025

Senate/ uncircled

Yes: 0 • No: 0

Senate vote • 2/13/2025

Senate/ passed 2nd reading

Yes: 25 • No: 0

Senate vote • 2/13/2025

Senate/ substituted

Yes: 0 • No: 0

Senate vote • 2/5/2025

Senate/ circled

Yes: 0 • No: 0

Senate vote • 1/29/2025

Senate Comm - Favorable Recommendation

Yes: 6 • No: 0

House vote • 1/22/2025

House/ passed 3rd reading

Yes: 73 • No: 0

Senate vote • Unknown

Senate/ circled

Yes: 0 • No: 0

Senate vote • Unknown

Senate/ substituted

Yes: 0 • No: 0

Senate vote • Unknown

Senate/ uncircled

Yes: 0 • No: 0

Actions Timeline

  1. Governor Signed

    3/19/2025
  2. House/ to Governor

    3/12/2025House
  3. House/ received enrolled bill from Printing

    3/12/2025House
  4. House/ enrolled bill to Printing

    3/6/2025House
  5. Enrolled Bill Returned to House or Senate

    3/6/2025
  6. Draft of Enrolled Bill Prepared

    2/21/2025
  7. Bill Received from House for Enrolling

    2/21/2025
  8. House/ signed by Speaker/ sent for enrolling

    2/20/2025House
  9. House/ received from Senate

    2/20/2025House
  10. Senate/ to House

    2/19/2025Senate
  11. Senate/ signed by President/ returned to House

    2/19/2025Senate
  12. Senate/ received from House

    2/19/2025Senate
  13. House/ to Senate

    2/19/2025House
  14. House/ concurs with Senate amendment

    2/19/2025House
  15. House/ placed on Concurrence Calendar

    2/18/2025House
  16. House/ received from Senate

    2/18/2025House
  17. Senate/ to House with amendments

    2/14/2025Senate
  18. Senate/ passed 3rd reading

    2/14/2025Senate
  19. Senate/ 3rd reading

    2/14/2025Senate
  20. Senate/ passed 2nd reading

    2/13/2025Senate
  21. Senate/ substituted

    2/13/2025Senate
  22. Senate/ uncircled

    2/13/2025Senate
  23. Senate/ circled

    2/5/2025Senate
  24. Senate/ 2nd reading

    2/5/2025Senate
  25. Senate/ placed on 2nd Reading Calendar

    1/30/2025Senate

Bill Text

  • Enrolled

    3/6/2025

  • Substitute #1

    1/31/2025

  • Introduced

    12/18/2024

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