Total Compensation Bulletin: FY27

Fiscal Year 2027 Salary Updates (July 2026-June 2027)

Labor Market Increase (HB 8)

The legislature provided funding equivalent to a 2.5% labor market increase for state employees as follows:

The 2.5% labor market increase will be administered to all non-judicial officer employees, regardless of whether the employee's actual salary rate meets or exceeds the maximum of their job's salary range.
Salary ranges for non-judicial officer jobs will increase by 2.5%.
The salary increase will go into effect on June 21, 2025, and will appear on employee paychecks beginning with the July 18, 2025, pay date.

For additional information about the pay cycle, please visit this link to review the pay period schedule.

Pay for Performance (HB 8)

The legislature approved funding for one-time Pay for Performance discretionary bonuses equal to 1% for state employees.

Judicial Officer Compensation (HB 8)

The legislature approved funding to provide increases for judicial officers. Details are as follows:

Each year, the legislature determines the compensation of district, juvenile, and appellate court judges and justices of the Supreme Court in an appropriations act as governed by UCA §67-8-2. The 2.5% labor market increase that was approved for state employees does not apply to judicial officers.
"The Legislature intends the salary for a District Court judge for the fiscal year beginning July 1, 2025, and ending June 30, 2026, shall be $219,250. The Legislature intends that other judicial salaries shall be calculated in accordance with the formula set forth in UCA Title 67 Chapter 8 Section 2 and rounded to the nearest $50."
- - - Therefore: District Court Judge FY26 salary: $219,250
    - Juvenile Court Judge FY26 salary: $219,250 (100% of District Court Judge salary)
    - Business & Chancery Court Judge FY26 salary: $219,250 (100% of District Court Judge salary)
    - Appellate Court Judge FY26 salary: $230,200 (105% of DCJ salary rounded to nearest $50)
    - Supreme Court Justice FY26 salary: $241,200 (110% of DCJ salary rounded to nearest $50)

Court Commissioner Compensation

Each year, the Judicial Council determines the salary of court commissioners as a part of the annual budget process no later than the month of June so that any changes can be processed for the new fiscal year beginning in July. The 2.5% labor market increase that was approved for state employees does not apply to court commissioners.
Once finalized, the Judicial Council's decision regarding Court Commissioner salary is memorialized in meeting minutes found on the Council's website.

**IMPORTANT** The Office of the Guardian ad Litem (GAL) budget is its own separate line item, and GAL employee compensation is administered independently by the GAL Director. Specific questions about GAL employee compensation should go to the GAL Director.

Retirement Legislative Updates

HB 8 State Agency and Higher Ed Compensation Appropriations (effective 7/1/25)

- Provides funding for an up-to $26 per pay period match for qualifying state employees enrolled in a defined contribution plan.
- Does not provide funding for the Tier-II Hybrid 0.11% employee contribution rate increase. Employees enrolled in the Tier II URS retirement plan will see that rate covered through a pay deduction of a few pennies (actual amount depending on the employee's actual rate of pay) on their paystub beginning July 18, 2025.
- Documents the Tier II amortization rate reduction of .5%

HB 251 Postretirement Reemployment Restrictions Amendments (effective 7/1/25)

This bill creates an alternative method for a retiree within the Utah Retirement Systems (URS) to be eligible to return to work with a URS-participating employer and still receive a retirement allowance. A retiree may seek reemployment after retirement:

- Public Employees: After a 90-day separation of service with a 20% reduction in their retirement allowance during reemployment.
- Reemployed retirees will not be eligible for the annual COLA during the reemployed period.
- User Fee: The employer must contribute the normal contribution rate plus the amortization rate for the reemployed retiree.

Legislative Updates to Leave Benefits

SB 259 State Holy Days (effective 5/7/25)

Designates certain days and time periods of special religious significance as state holy days
Provides that a state holy day is not a legal holiday, unless expressly provided otherwise
Designates Easter Sunday as a legal holiday, but one that is not recognized on the preceding Friday or the following Monday
Provides that a state employee may use the state employee's personal preference day to recognize a state holy day or for any other purpose

Medical, Dental, Vision Updates

Open enrollment begins on April 7th and runs through May 7th. To learn more about Open Enrollment, please visit our Open Enrollment page and/or PEHP's open enrollment page for a virtual presentation.

See Appendix B for medical, dental, and vision rates and bi-annual state HSA contribution amounts (updated as of 3/18/25)

HB 8 State Agency and Higher Education Compensation Appropriations

Provides funding for health and dental benefit cost changes. The employer portion of the medical (5%) and dental (6.9%) insurance increases.

H.C.R 2 Concurrent Resolution Directing PEHP Regarding Pharmaceutical Rebates (effective 7/1/25)

Directs the Public Employees' Benefits and Insurance Program to give the estimated value of pharmaceutical rebates to state plan members at the point of sale.

SB 22 State Employee Benefit Amendments

(5/7/25 LTD effective or upon Governor's Signature)

(7/1/25 Life enhancements)

Modifies the definition of gainful employment or purposes of the Public Employees' Long-Term Disability Act
Includes pay for time that exceeds an eligible employee's regular schedule in the calculation of the eligible employee's regular monthly salary
Establishes a deather benefit for employees receiving long-term disability benefits
Makes life assistance counseling that the Utah State Retirement Office offers available to employees receiving long-term disability benefits
Increases the state-paid basic life insurance benefit for state employees from $25,000 to $50,000
The state-paid life insurance benefit for exempt state employees (adds) a $300,000 tier for exempt state employees with salaries over $75,000 per year and a $400,000 tier for exempt state employees with salaries over $100,000

SB 242 Public Employees' Benefit and Insurance Program Modifications (effective 7/1/25)

Assisted Reproductive Technology (ART), including IVF and other similar services, will no longer have a $4,000 limit. These services will now be covered under regular benefits, subject to deductible and plan coinsurance. The benefits are still limited to single embryo implants, in addition to existing eligibility and prior authorization guidelines.

Health Savings Account (HSA) Contribution Limit Updates

Employer HSA Contribution Changes: The annual HSA contributions will increase as follows. All other HSA contribution amounts will remain the same.

- - - - STAR HSA Plan: Single $1,034.28
        Consumer Plus Plan - Both Networks

Single: $1,934.92

Double: $3,893.24

Family: $3,986.84

2025 HSA Limits Increased: These contributions follow a calendar year.

- $4,300 single
- $8,550 double/family

Flexible Spending Account (FSA/FLEX$) Updates

The FLEX$ rollover limit increased to $660. Therefore, you may roll over up to $660 into the new plan year. Anything beyond that will be forfeited.

New FLEX$ Limits

Up to $3,300 for healthcare expenses
Up to $5,000 for dependent day care expenses for individuals and married couples filing jointly, and up to $2,500 for a married person filing separately.

New PEHP System July 1st

Enrollment

To ensure a smooth transition, employee enrollment must be completed by Wednesday, May 7th. Meeting this deadline allows PEHP to process enrollments, transfer data to their new system, and issue new ID cards before July 1st.

Life & Accident Products

These products will not migrate to the new system yet. Certification for Life/AD&D enrollment is still required in the Classic PEHP Portal when employees use PEHP.org to enroll.

New Member Number & ID

Members will receive a new ID number and card effective July 1st

Employees must update their ID number with providers and pharmacies to prevent claim disruptions

Old ID numbers will no longer work after July 1st

Members will have a new PEHP Online Account to access claims

Members should keep their old ID number and login info to manage/change Life/Accident coverages.

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