Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 89 (2023GS)

Sponsor

Sen. Harper, W.

Final action

Governor Signed 3/20/2023

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• requires an employer to automatically enroll a newly hired benefit-eligible state employee to make a biweekly contribution to a Utah Retirement Systems 401(k) retirement savings account in an amount equal to the amount that is eligible for an employer match; and
• allows an employee to modify the automatic enrollment, including:
• opting out of automatic enrollment;
• changing the amount of a contribution; or
• changing the Utah Retirement Systems retirement savings account into which the contribution is made.

Every vote on this bill

Bill text

UTAH RETIREMENT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: 
Keven J. Stratton
LONG TITLE
General Description:
This bill modifies the provisions relating to an employer match of employee
contributions to a retirement savings account.
Highlighted Provisions:
This bill:
▸ requires an employer to automatically enroll a newly hired benefit-eligible state
employee to make a biweekly contribution to a Utah Retirement Systems 401(k)
retirement savings account in an amount equal to the amount that is eligible for an
employer match; and
▸ allows an employee to modify the automatic enrollment, including:
• opting out of automatic enrollment;
• changing the amount of a contribution; or
• changing the Utah Retirement Systems retirement savings account into which
the contribution is made.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63A-17-805
, as last amended by Laws of Utah 2021, Chapter 382 and renumbered and
amended by Laws of Utah 2021, Chapter 344
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63A-17-805
 is amended to read:
63A-17-805.
State employee matching supplemental defined contribution benefit.
(1) As used in this section:
(a) "Qualifying account" means:
(i) a defined contribution plan qualified under Section 401(k) of the Internal Revenue
Code, which is sponsored by the Utah State Retirement Board;
(ii) a deemed Individual Retirement Account authorized under the Internal Revenue
Code, which is sponsored by the Utah State Retirement Board; or
(iii) a similar savings plan or account authorized under the Internal Revenue Code,
which is sponsored by the Utah State Retirement Board.
(b) "Qualifying employee" means an employee who is:
(i) in a position that is:
(A) receiving retirement benefits under Title 49, Utah State Retirement and Insurance
Benefit Act; and
(B) accruing paid leave benefits that can be used in the current and future calendar
years; and
(ii) not an employee who is reemployed as that term is:
(A) defined in Section 
49-11-1202
; or
(B) used in Section 
49-11-504
.
(2) Subject to the requirements of Subsection (3), an employer shall make a biweekly
matching contribution to every qualifying employee's defined contribution plan qualified under
Section 401(k) of the Internal Revenue Code, subject to federal requirements and limitations,
which is sponsored by the Utah State Retirement Board.
(3) (a) In accordance with the requirements of this Subsection (3), each qualifying
employee shall be eligible to receive the same dollar amount for the contribution under
Subsection (2).
(b) A qualifying employee 
who is hired before July 1, 2023
:
(i) shall receive the contribution amount determined under Subsection [
(3)(c)
] 
(3)(f)
 if
the qualifying employee makes a voluntary personal contribution to one or more qualifying
accounts in an amount equal to or greater than the employer's contribution amount determined
[
in
] 
under
 Subsection [
(3)(c)
] 
(3)(f)
;
(ii) shall receive a partial contribution amount that is equal to the qualifying employee's
personal contribution amount if the employee makes a voluntary personal contribution to one
or more qualifying accounts in an amount less than the employer's contribution amount
determined [
in
] 
under
 Subsection [
(3)(c)
] 
(3)(f)
; or
(iii) may not receive a contribution under Subsection (2) if the qualifying employee
does not make a voluntary personal contribution to a qualifying account.
(c) (i) An employer shall automatically enroll a qualifying employee who is hired on or
after July 1, 2023, to make a personal contribution to a defined contribution plan qualified
under Section 401(k) of the Internal Revenue Code, which is sponsored by the Utah State
Retirement Board, in an amount equal to the employer's contribution amount determined under
Subsection (3)(f).
(ii) A qualifying employee who makes a personal contribution in accordance with
Subsection (3)(c)(i) shall receive the contribution amount determined under Subsection (3)(f).
(d) (i) A qualifying employee who is hired on or after July 1, 2023, may opt out of the
automatic enrollment by choosing not to make any future personal contributions.
(ii) A qualifying employee who opts out of automatic enrollment in accordance with
this Subsection (3)(d) may not receive a contribution under Subsection (2).
(e) (i) A qualifying employee who is hired on or after July 1, 2023, may modify the
automatic enrollment by opting to make future personal contributions:
(A) in an amount other than the amount determined under Subsection (3)(f); or
(B) to a qualifying account other than the defined contribution plan qualified under
Section 401(k) of the Internal Revenue Code, which is sponsored by the Utah State Retirement
Board.
(ii) A qualifying employee who opts to make a personal contribution for less than the
amount determined under Subsection (3)(f) shall receive a partial contribution that is equal to
the qualifying employee's personal contribution amount.
[
(c)
] 
(f)
 (i) Subject to the maximum limit under Subsection [
(3)(c)(iii)
] 
(3)(f)(iii)
, the
Legislature shall annually determine the contribution amount that an employer shall provide to
each qualifying employee under Subsection (2).
(ii) The division shall make recommendations annually to the Legislature on the
contribution amount required under Subsection (2), in consultation with the Governor's Office
of Planning and Budget and the Division of Finance.
(iii) The biweekly matching contribution amount required under Subsection (2) may
not exceed $26 for each qualifying employee.
(4) A qualifying employee is eligible to receive the biweekly contribution under this
section for any pay period in which the employee is in a paid status or other status protected by
federal or state law.
(5) The employer and employee contributions made and related earnings under this
section vest immediately upon deposit and can be withdrawn by the employee at any time,
subject to Internal Revenue Code regulations on the withdrawals.
(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
director shall make rules establishing procedures to implement the provisions of this section.