The Utah Legislature approved legislation to close to new employees the $19.2 billion Salt Lake City-based Utah State Retirement System’s defined benefit pension plan.
Employees would get a choice to join a new hybrid retirement plan with reduced benefits or an existing 401(k) plan.
The changes, in two bills sponsored by state Sen. Dan Liljenquist, await Gov. Gary R. Herbert’s signature.
The bills maintain the DB plan for current employees without any changes.
The bills also would keep state government employers from having to make plan contributions to workers who retired and later returned to work for the state, a practice known as double-dipping.
The Legislature did not advance a proposal that would have given employers the discretion to determine whether to contribute the equivalent of 1.5% of employees’ salaries to their 401(k) plans.
Mr. Liljenquist did not return calls requesting an interview.