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SB 229: State Employee Benefits Amendments

  • February 25, 2026 4:38 PM
    Reply # 13602346 on 13593219
    David Kitchen (Administrator)

    SB 229 1st sub clarifies that the 401k match is a floor of $26/check for Tier 2 employees. 

    Senator Fillmore made a claim that the high level of sick leave balances indicates a misalignment of benefits offered/desired. My take is that Sick Leave was not meant to be paid out, so by design, it will have high sick leave balances. It's an insurance available upon demand, not a guaranteed benefit. 

    This bill sounds like a compromise and won't please all state employees. It unlocks some Sick Leave and converts it to PTO, but also a decrease in PTO overall. Tradeoffs. 


  • February 04, 2026 7:49 AM
    Reply # 13593983 on 13593219
    Anonymous

    Wow - consolidated leave for state employees would be a major change indeed.

    The way I read the employer match changes is for Tier 2 (Tier 1 isn't affected) the match goes from 100% to 50%, and from a max of $26 per biweekly pay period to "up to 2% of salary". This is a regressive change, skewed towards higher earners probably being sold as a benefit "enhancement". Sigh.

    Last modified: February 04, 2026 7:58 AM | Anonymous
  • February 03, 2026 11:16 AM
    Reply # 13593618 on 13593219
    David Kitchen (Administrator)

    I'm not sure I understand the details. It will be better to understand from the Bill presenters at the Committee Hearing when assigned. 

  • February 03, 2026 8:53 AM
    Reply # 13593525 on 13593219
    Tami Olsen (Administrator)

    I would be interested to learn that as well, David. And my added thanks for these very valuable posts!

  • February 03, 2026 7:04 AM
    Reply # 13593476 on 13593219
    Anonymous

    Dave, thank you so much for this very useful information. Could you please let me know what the proposed 401K match is for Tier I and II? Thank you!

  • February 02, 2026 1:11 PM
    Message # 13593219
    David Kitchen (Administrator)

    Bill text: https://le.utah.gov/~2026/bills/static/SB0229.html

    Summary: SB0229 converts Utah state employees from separate annual and sick leave to a unified paid time off (PTO) system, expands postpartum recovery leave, extends parental/postpartum leave eligibility to State Board of Education employees, and adjusts the state’s 401(k) match structure and limits for Tier I and Tier II employees. It also aligns trust fund and administrative provisions to support the new PTO structure without new direct appropriations.

    David's Take: Although this bill is only for State Employees, it would be a major change to consolidate separate Annual and Sick Leave into one PTO bank. The State of Utah has traditionally been a bellwether organization for some cities and counties. An interesting bill to watch for benefits. It also increases postpartum recovery leave to 9 weeks, and modies the 401k match rate. I'll be curious to hear what instigated the change: employee surveys, industry research, etc. 



PSHRA Utah (Email) 

Current President: Jill Tew



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