Our current Utah Retirement System is a Defined Benefit system in that you are assured of a monthly benefit upon retirement. It is based on an average of your three highest salaries, you receive 2% for each full year of service and it is a lifetime benefit. You have several options at retirement such as a Lump-Sum payout that, of course, would reduce your monthly benefit. You can also choose to lower your monthly benefit to allow for a death benefit for a spouse.
A defined contribution is usually thought of as a 401-K contribution that hopefully earns for you through the investments the URS makes. It is portable, in that, you can roll it over into an IRA or other tax-deferred area. The benefit is not guaranteed as it is in the Defined Benefit system.
We want to preserve our current system without changes.
Stay tuned for more information as we approach the opening of the Leg session Monday, Jan. 25.
Go to the UEA website at www.utea.org for more retirement information.