The Legislative Committee has organized their preliminary legislative package for 2006. The issues addressed in the package are as follows:

 

Merit Increase(s)

The lack of merit step increases during the past several years has resulted in compression. Employees would receive step increases based upon performance. A stipulation should also be considered for additional pay to employees in longevity.

 

Compensate employees for years of service

A one-time step increase should be awarded as follows: 1 step for 5 years of service; 2 steps for 10-20 years of service; 3 steps for 20-30+ years of service.

In addition to a one-time step increase, employees should receive a one or two step increase for every 5 years of service (i.e. 5, 10, 15, 20, etc.)

Employees in longevity should receive a 2% increase, which would be compounded into retirement. This increase would be in addition to increases the employee would have normally received such as a COLA, merit step increase, etc….

 

COLA equal to CPI index

Employees should receive cost-of-living adjustments based on inflation and the CPI.

 

HB 213 Rebuttal legislation

This piece of legislation would grandfather employees into the unused sick leave at retirement program I. New employees, hired after a specific date, would be placed in the unused sick leave at retirement program II.

 

Merit System preservation

Due to the passage of recent legislation, employees feel the merit system and the merit status of employees is threatened. UPEA will advocate maintaining the merit status of employees.

 

Retain Current Benefits

UPEA will lobby to retain the current benefit package that is offered to public employees.

 

Prescription Drug Benefits

Improve the prescription drug coverage by exploring options of combining the prescription drug coverage with other states, agencies, or institutions to provide more affordable coverage.

 

Benefits for Legislators

Offer benefits to legislators that are currently being offered to state employees. Legislators should have a medical savings account program, similar to the program given to public employees, rather than lifetime medical coverage upon retirement.

 

Annual Leave Conversion Restoration

During the 2002 special session, the legislature repealed the funding for the annual leave conversion benefit for state employees. This benefit allowed state employees with annual leave hours in excess of 320 hours to place 20 hours or up to $250 into a 401(k). UPEA would request the funding for this benefit be restored.

 

Support of Public Safety Retirement COLA

UPEA took a leading role in forming the Law Enforcement COLA Network (LECN). LECN is a grassroots initiative, which involves the public safety retirement system employees and retirees in organizing and uniting efforts to change the public safety retirement COLA from 2.5% to 4%. Currently, all other public employees have a 4% retirement COLA.

 

Defined Benefit v. Defined Contribution

The Legislative Committee discussed the legislature’s interest in changing public employees’ retirement benefit from a Defined Benefit to a Defined Contribution program. A change such as this would cost more money to the state and the public employees. A Defined Contribution plan requires the employee to contribute money into a retirement plan such as a 410(k) or a 457 account. Employees would need significant pay increases in order to contribute to a Defined Contribution plan. 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.

 

Higher Education Management Act

Each of Utah’s nine colleges and universities has their own unique employee discipline, grievance, and compensation process. Each college and university should be required to declare publicly how they discipline, handle grievances, and how benefits and compensation are determined. This legislation would adopt a standardized process, which all colleges and universities must adhere to.

 

Compound COLA for Retirees

Retirees are offered a simple COLA, UPEA supports a compounded retirement COLA.

 

Retirement Multiplier to 2.5%

Currently, the retirement multiplier is 2% (2% times each year of service to calculate retirement benefits). The legislative committee would like to change the retirement multiplier to 2.5%.

 

90/10 Split in Insurance

Employees on Exclusive or Summit Care have a 93/7 split with the state (93% is employer paid and 7% is employee paid). Employees who have Preferred Care have a 90/10 split.

 

Annual Leave Buyout

This buyout would enable employees, within certain parameters, to have a portion of their annual leave paid out in advance. An annual leave buyout plan allows employees who would not be able to use their annual leave during the year, to be paid some of this leave.

 

25 Year Retirement

This would allow employees who have 25 years of service, or more, to retire without having to purchase years of service.

 

If you have any comments on the issues presented or would like to propose your own, please email them to Victoria Fernley-Gonzalez at victoria@upea.net.