More than 200 people, many of whom work for the state of Utah, turned out Monday to oppose a bill that would phase out unused sick leave for state employees.

Current policy allows retired state employees to exchange eight hours of sick leave for one month's insurance premium, worth nearly $800 for a $20-per-hour worker. If the benefit remains in place, said bill sponsor Rep. David Clark, R-Santa Clara, the state will incur a potential liability of $1 billion in 15 years.

Clark said HB213 was crafted to reiterate state policy and address the financial impact of the benefit, not to serve as a punitive measure against Utah's workers.

"(The current) program was really a tool to help promote early retirement, and is that still a policy of the state of Utah?" Clark said.

He said the bill has the right to fail if legislators believe the state's policy is still to encourage and promote early retirement.

Those who came to testify against the bill were unable to speak in Friday's meeting, due to time constraints, and were given only limited time to speak Monday.

"Utah is not unique to this situation, and we will be defined by how we handle this issue," state employee Wayne Burkeley told the committee.

Burkeley said the proposed legislation would mean a "four-to-one reduction in benefits on the average salary."

Clark's bill would honor the current policy for unused sick leave accrued up to Jan. 1, 2006. Hours earned after that date would be under a new program, which would include a five-year phaseout of the current program. New provisions would include depositing 25 percent of unused sick leave into a 401(k) and the remainder into a medical reimbursement benefit plan.

"I believe this program was established to bridge the gap from retirement to the age eligible for Medicare, to say 'thank you' for a job well done for all those years," said Denise Clegg, a state employee.

Another state employee, Michael Lafontaine, said, "I don't know if it's legal to take (benefits) away. I'm not a lawyer, but I know its not the right thing to do."

Despite stern opposition from the audience and a motion to send the bill to interim study, the committee voted 6-3 to pass the bill to the full House.

Rep. Brent Goodfellow, D-West Valley, voted against the bill and said the initial policy was in place as an incentive for employees not to take sick leave.

"They come to work every day, it's proven to work," he said.

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E-mail: wleonard@desnews.com