URS Health Benefits
Tier 2 Public Safety and Firefighter Hybrid System
Utah’s public sector has experienced significant wage growth in the past few years. This wage growth resulted in larger than previously anticipated future benefits for members. Accordingly, contributions are required to fund the increased cost of the retirement system.
Your agency can choose to pick-up required member contributions on your behalf.. They can pick-up a partial or full amount of the member cost.
If your agency does not elect to pick-up the member contributions, state law requires that the member is responsible for paying the contributions. For 2024-25, the maximum that may be required by a member is 4.73% of salary.
» See History of Tier 2 Hybrid System Contribution Rates
Each member in the Tier 2 Public Safety and Firefighter Hybrid plan will be responsible for paying up to 4.73% of their salary to fund their benefit. However, your agency may pick-up the member contributions in full or part. If your employer picks-up part of the contribution, you will be responsible for the difference of 4.73% and the amount your employer picks-up (e.g. 4.73%-2% (employer pick-up) =2.73% member contribution). If your employer picks-up the full amount, you will not need to contribute.
For example, for a member who makes $60,344 (the average Tier 2 Public Safety and Firefighter Hybrid salary) per year, if they are required to pay the full amount, it will be approximately $109.78 per paycheck (bi-weekly).
Unless the contribution responsibilities are changed, beginning on July 1, 2024, the required amount of up to 4.73% will be automatically deducted from your paycheck and sent to URS.
Yes. Nearly all public employee pension plans throughout the country require a contribution by members. Utah has not had that requirement since the 1980s, so many members are unfamiliar with such a plan. On average, public employee pension plans require members to contribute 6.3% of their pay to their retirement system if they participate in Social Security. If members do not participate in Social Security, the average member contribution to their public retirement system equals 9.0%. (source)
If a member is within their first year of initial employment, they may change their Tier 2 election until the anniversary of their initial employment. However, if a member is outside of their first year of employment, the election is irrevocable due to state and federal law.
URS and our consulting actuaries review several factors which may affect the funding of the retirement plans and systems which in turn will impact whether there is adequate funding for the payment of retirement benefits. These factors may require changes in contribution rates which could potentially increase or decrease contributions in the future. However, we cannot project whether future contribution rates will rise or fall.
The member contributions are received by URS with after tax amounts. What this means for you is at the time you begin receiving retirement benefits, a portion of the retirement benefit payments will not be taxed.
The term “hybrid” generally refers to plans combining elements of defined benefit and defined contribution plans to generate a member’s benefit upon retirement. Although you will no longer receive the defined contribution (401(k)) portion of the plan pursuant to the applicable statutes, the elements still exist, and you could receive contributions again in the future. However, we cannot project whether contribution rates will rise or fall in the future.
The member contributions are invested along with the URS pension funds. The contributions have the potential to accumulate interest, which will go toward paying the member’s benefit upon retirement.
If you still have questions, call the URS Retirement Benefits Department at 801-366-7770 or 800-695-4877.