In Utah Code 49-11-201(8) it reads,
“A public safety employee who is transferred or promoted to an administration position not covered by this system shall continue to earn public safety service credit in the system as long as the employee remains in the same department.”In the audit, the Legislative Auditor General’s Office identified 12 positions that include 37 employees on the PSR that should be reviewed and potentially moved to the Public Employees’ Retirement System (PERS), because the positions do not meet the criteria set in statute for the PSR system. Utah Code indicates that an employee must meet the following conditions for PSR membership:
• Holding a full-time position in a recognized public safety department.
• Completing a certified peace officer training program.
• Carrying out the primary duties of a peace officer, correctional officer, or special function officer.
• Retaining employment that involves risk to life or personal safety.
The Legislative Auditor General Office argued that in the 12 positions identified, there currently is no safety risk involved in their job functions. In fact, they stated that these positions were performed in normal business-like settings.
The report discusses the additional costs that may be attached to the PSR. The PSR system allows for the 20 year retirement versus the 30 year retirement eligibility involved with the PERS. It also states that “the employer contribution to PERS for a full-time employee making $22.25 per hour would be $253 per pay period (about $6581 per year). The employer contribution to PSR for the same employee would be $537 per pay period, or about $13,967 per year.”
The audit recommended that Utah follow the lead of other states by modifying the statute to automatically move individuals to the PERS system that should not be in the PSR system, and using a conversion formula to factor in service in more than one plan.
Utah Retirement System’s Executive Director, Robert Newman, sustains the audit findings and stated that he agreed the PSR system should be for Public Safety positions as identified in statute. In addition, he supports the recommendations given to the Legislative Audit Subcommittee.
The Legislative Audit Subcommittee sent the audit to the Legislative Retirement and Independent Entities Committee for further review. UPEA will closely monitor any action that may be taken due to this audit.
For copy of the audit you can click here.
To listen to the Legislative Audit Subcommittee discussion click here.