Office workers ready to tackle some pay raises

Legislative Update: Employee Raises, Benefits

davidwicaiBlog, Legislature

Employees will see pay raises and stable benefits in next year’s budget passed by the Legislature in the closing hours of its session.

HB008, the main state and higher ed employee compensation bill, includes a 2.5 percent compensation increase for state employees. This is in line with the Governor’s original proposed budget. The state will continue to match up to $26.00 of 401(k) contributions per pay period — a benefit employees have received for several years

SCR003 addresses benefits through PEHP. The state will also cover a 4.35 percent increase in health insurance premiums. Existing plans and costs will remain the same as last year, although if you currently are on the “Utah Basic Plus” plan you will find the name has changed to “Consumer Plus.

In addition, employees who have money in an HSA will have the option of taking up to half the amount as cash. The employees will be required to pay state and federal taxes on any funds they take out of the health savings account for non-medical expenses

Other employee compensation proposals in the Governor’s budget were on the table, including targeted and discretionary pay increases or one-time bonuses for high-performing employees. These became caught up in the budget standoff between the House and Senate over tax reform, but may be considered again if tax reform is addressed in a special session.

All changes will take effect on July 1, 2019.  Watch for information from DHRM and PEHP over the next few weeks with much more detail.

Photo courtesy Division of State History digital collections.