Third Substitute SB 63

The House voted to substitute Second Substitute SB 63 with a 3rd substitute. Third substitute SB 63 includes all of the amendments mentioned in the previous post.

Prior to the final vote several legislators commented on this bill.

Rep. Dee said 3rd Sub. SB 63 may not be a perfect vehicle for fixing the retirement system. However, Utah can't delay a year because it will result in waiting two or more years at a severe cost to the state. He added that the new bill would be studied very closely; however, the state needs to stop the bleeding, and then run the actuarial study this year.

Dee said, "If changes need to be made, let's man up. 18% of private industry have retirement. They are all moving to a 401(K) SYSTEM. Everyone of these plans is in trouble. Fewer than 1/2 are actually receiving the benefits that they were promised. Utah is in the cutting edge. We fix it now, because we know that we've made a promise to the employees in the system. Protect my retirement system. That is what I am doing. We are keeping the promises to those that we have hired. "

House Democrats continued to support employees' concerns that the state is moving too fast on this decision. Rep. Phil Riesen, D-Salt Lake City added that the crisis behind these bills may contain rhetoric.

Rep. Litvak said that, although the process has been open and fair, perhaps the body is not able to address the full compensation package before making changes to the retirement system. Litvak said he couldn't support the bill because the legislature needs to address the entire compensation package at one time.

Representative Brown admitted that the state is in serious economic times. He said that the bill is written for both good times and bad times. In bad times, the risk is shifted to the employee. However, in good times, the bill adds compensation. He said the bill will be a really good benefit for employees.

Representative John Dougall, R-Highland, said that retirement is sacred, but the world is changing. The commitments that are being made, he said, need to change going forward.

Ben Ferry, R-Corrine, called previous question, which ended debate.

Dee extended his appreciation to employee groups who have made the legislative body think about the changes they are making. Dee added that the state has much more work to do regarding employee compensation.

"Let's make this whole and start to work on the other issues," Dee said.