All Roll Calls
Yes: 107 • No: 1
UtahS.B. 252026 General SessionSenateWALLET
Retirement Modifications
Sponsored By: Wayne A. Harper (Republican)
Signed by Governor
Public Retirement and InsuranceConstitutional Officer and Legislator RetirementJudges' RetirementPublic Employees RetirementUtah Retirement Systems (URS)Tier 2 Retirement
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 4 benefits, 3 costs, 1 mixed.
Public workers face new retirement checks
Beginning May 6, 2026, covered public workers must prove a bona fide termination before retirement, unless a statutory exception applies. This replaces the prior test of stopping actual work for every participating employer. Workers must end employment and direct or indirect paid-service relationships with participating employers, stop working, and have no prearranged return. They must apply with a proposed retirement date and meet their system's age and service requirements. State-system options are 4 years at age 65, 10 at 62, 20 at 60, or 30 years of service. For the two Tier II pension systems, options include 4 years at 65, 10 at 62, 20 at 60, or 35 years; Chapter 49-23 also allows 25 years. The retirement date must be the first or 16th of a month, on or after termination, and within 90 days before or after the office receives the application. Except for statutory exceptions, members cannot work for a participating employer in the same system on that date.
Attorney general staff gain pension choice
Beginning May 6, 2026, the attorney general and qualifying at-will staff can choose to leave pension coverage. Eligible staff report directly to the attorney general or to an employee who reports directly to the attorney general. They must have retirement-system service credit, and the election is final and subject to federal law and board rules. Their pension balance moves to a retirement savings account in their own name. The balance includes employer and employee contributions made on their behalf, plus refund interest.
Some public workers retire while serving
Beginning May 6, 2026, some members can receive a pension while continuing specified elected, part-time board, or affiliated emergency-services roles. They must meet their system's retirement requirements and be at least 55, or 50 for public safety or firefighter retirees. An elected official must leave the elected job they are retiring from. Covered emergency-services work must be for a different agency and meet statutory training, employer, and ongoing-service requirements. The law also covers specified part-time appointed or elected board service for a different agency.
Judges face pension service transfer limits
Beginning May 6, 2026, judges cannot move service credit from either judges' retirement system into either named Tier II system. The barred destinations are the public employees' Tier II system and the public safety and firefighter Tier II system.
Retirees' contract work counts as reemployment
Beginning May 6, 2026, paid contract work for a participating employer counts as reemployment after retirement. This applies when the retiree is the named contractor or an owner, partner, or principal of the contractor. That work falls under the retirement system's reemployment rules. This provision does not specify a payment reduction or dollar amount.
Attorney general staff gain retirement exemptions
Beginning May 6, 2026, qualifying at-will attorney general staff can request exemption from public retirement coverage, including Tier II. They must report directly to the attorney general or to an employee who reports directly to the attorney general. Employees must request exemption in writing, and employers must designate their positions as eligible. For exempt Tier II employees, employers still owe required retirement contributions and the amortization payment; employer contributions have no vesting requirement, and voluntary employee savings must be allowed. Exempt work earns no additional service credit, and coverage after a revoked exemption starts prospectively. Local-government exemptions remain capped at 50 positions or 10% of eligible employees, whichever is less, with authority to exempt at least one regular full-time employee.
Public workers cannot surrender retirement benefits
Beginning May 6, 2026, retirement-system members and retirees cannot permanently give up their benefits. The same protection applies to participants in defined-contribution retirement savings plans.
Retirement beneficiaries can decline inherited benefits
Beginning May 6, 2026, named beneficiaries can permanently surrender a retirement benefit through a signed, irrevocable written document. They can also disclaim beneficiary status. A disclaimed benefit goes first to an alternate named beneficiary, then as applicable under Utah wills and inheritance law. Value remaining after those payments stays in the fund for future contribution-rate calculations. The retirement office need not accept a surrender that threatens tax-qualified status or violates federal law.
Sponsors & Cosponsors
Sponsor
Wayne A. Harper
Republican • Senate
Cosponsors
Cheryl K. Acton
Republican • House
Roll Call Votes
House vote • 2/4/2026
House/ uncircled
Yes: 0 • No: 0
House vote • 2/4/2026
House/ passed 3rd reading
Yes: 70 • No: 1
House vote • 1/30/2026
House/ circled
Yes: 0 • No: 0
House vote • 1/27/2026
House Comm - Favorable Recommendation
Yes: 9 • No: 0
Senate vote • 1/20/2026
Senate/ passed 2nd & 3rd readings/ suspension
Yes: 28 • No: 0
Actions Timeline
Governor Signed
3/18/2026Senate/ to Governor
3/11/2026SenateSenate/ received enrolled bill from Printing
3/11/2026SenateSenate/ enrolled bill to Printing
3/6/2026SenateEnrolled Bill Returned to House or Senate
3/6/2026Draft of Enrolled Bill Prepared
2/6/2026Bill Received from Senate for Enrolling
2/6/2026Senate/ signed by President/ sent for enrolling
2/4/2026SenateSenate/ received from House
2/4/2026SenateHouse/ to Senate
2/4/2026HouseHouse/ signed by Speaker/ returned to Senate
2/4/2026HouseHouse/ passed 3rd reading
2/4/2026HouseHouse/ uncircled
2/4/2026HouseHouse/ circled
1/30/2026HouseHouse/ 3rd reading
1/30/2026HouseHouse/ 2nd reading
1/28/2026HouseHouse/ committee report favorable
1/28/2026HouseHouse Comm - Favorable Recommendation
1/27/2026House/ to standing committee
1/26/2026HouseHouse/ 1st reading (Introduced)
1/21/2026HouseHouse/ received from Senate
1/21/2026HouseSenate/ to House
1/20/2026SenateSenate/ passed 2nd & 3rd readings/ suspension
1/20/2026SenateSenate/ 2nd & 3rd readings/ suspension
1/20/2026SenateSenate/ placed on 2nd Reading Calendar
1/20/2026Senate
Bill Text
Enrolled
3/6/2026
Introduced
12/5/2025