Utah Legislature: State workers speak out on retirement change

SALT LAKE CITY — So many people wanted to testify Wednesday about a package of controversial bills aimed at solving a $6.5 billion shortfall in the state retirement system that another hearing will be held.

"No, no, no," some of the 150 or so police officers, public employees, teachers and others gathered for the Senate Retirement Committee hearing cried out when told there might not be enough time to hear from everyone who wanted to speak.

So the committee decided to postpone a vote on the bills and hold another hearing at noon on Friday. "We don't want to cut off any public input," said Sen. Curt Bramble, R-Provo, who was serving as temporary chairman of the committee.

That came as a relief to Salt Lake Police Chief Chris Burbank, who was on the list to testify that lawmakers needed to slow down and stop looking at retirement benefits as only an expense.

"When you compare that to the cost of crime and disorder, that expense is insignificant," Burbank told a reporter after the hearing. He said he expected many of the dozens of uniformed police officers there Wednesday — on their own time — would return Friday.

Sen. Dan Liljenquist, R-Bountiful, said he's sponsoring the bills because the retirement system will go broke without action. The longer lawmakers wait, he said, the more expensive the system will be to fix.

The state lost $6.5 billion in 2008 as a result of the economic crisis. And even though the system earned 13 percent on its investments last year, he said the shortfall could still cost the state $400 million annually over 25 years.

To fix the system, Liljenquist is sponsoring SB43, which would stop retired employees rehired after July 1, 2010, from collecting both a paycheck and a pension, known as "double dipping"; SB63, which slices pension benefits for employees hired after July 1, 2011; and SB94, which eliminates a 1.5 percent contribution to 401k retirement accounts.

See the bills at le.utah.gov/~2010/htmdoc/sbillhtm/SB0043S01.htm and le.utah.gov/~2010/htmdoc/sbillhtm/SB0063.htm.

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