As the legislative session begins, The Utah Public Employees’ Association is busy protecting state jobs and benefits. This upcoming year looks to be challenging for public employees as economic woes have beset the state of Utah. The following issues are going to be of significant interest to UPEA due to the large impact that each could have on employee jobs, benefits, compensation, and rights. It is anticipated that the listed items will be discussed at some point during the legislative session.
The State Budget
There is discussion of laying off state employees and cutting employee benefits and salaries to help balance the budget this year. UPEA is currently supportive of the Governor’s budget proposal, which would cover the health insurance increase this year, limit the amount of cuts to state agencies, and protect benefits, compensation, and jobs. In a letter to Governor Huntsman signed by UPEA’s officers acknowledged the state’s current economic condition and the need to enact substantial budgetary reductions. The letter further stated that:
“Recent legislative announcements will require additional state personnel cuts. A reduction-in-force would further deepen the state’s economic crisis by adding to the unemployment rate and further reducing state revenues. The association believes it is in the best interest of taxpayers to consider alternatives. The UPEA State Board offered suggestions such as: eliminate positions through attrition; capture and redirect savings from reduced fuel costs; extend the life of fleet vehicles; review and reduce consulting contracts; enact a hard hiring freeze; suspend capital projects; draw from the “Rainy Day Fund”; and offer and early retirement incentive.”
Health System Reform
This year many legislators are trying to make changes to the health system, specifically regarding health insurance. The impetus for this is to create more accessibility and make health care more affordable for the citizens of Utah. There are currently over 300,000 individuals in the state of Utah without health insurance. Several legislators are looking at different possibilities to improve the current health care system; including changing the way health insurance is purchased and managed. This is something that UPEA will be watching very closely, due to the possible impact such changes could have on public employees’ health care and PEHP.
Changes to the Personnel Management Act
Due to the necessary recodification of the Personnel Management Act, UPEA will be watching for potential changes to the Utah Code affecting state employees. UPEA is anticipating potential changes to the pay scale system, market comparability studies, random drug testing, and the grievance process. UPEA will be closely monitoring any potential changes and making sure that employees are treated fairly.
Retirement
Until recently, law enforcement in Utah has received up to a 2.5% retirement COLA. Last year, the COLA was changed to 4% for state public safety employees. Local governments would need to opt into the 4% retirement COLA by the end of 2009. UPEA is supportive of HB 212 sponsored by Representative Carl Wimmer that would allow local governments the opportunity to opt into the 4% retirement COLA until December 1, 2012.
Another law enforcement issue is to change the spousal death benefit from 65% to 75%. Senator Jon Greiner will be running Senate Bill 89 to change the retirement benefit upon the death of an officer. UPEA is supportive of such a plan.
UPEA believes a bill may surface that would change the state employee defined benefit pension plan to a defined contribution 401(k) plan. A defined benefit plan requires the employee to contribute money into a retirement plan such as a 401(k) or a 457 account. A defined benefit plan is a pension program that is paid for and maintained by the state, and offered to employees who retire from the state. UPEA is supportive of studying the issue further, before any policy is created to change the retirement system.
Study these issues on our web page. State employees should make an effort to contact their legislators regarding these issues. UPEA will continue to provide updates regarding the issues, bills, and budget as we receive them.
If you have any questions, please visit our web site at www.upea.net or contact your UPEA representative at (801) 264-8732.
