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Show Utah Pensions Costs Will Top 514 Billion in Ten Years Ten years from now, state and local governments in Utah will be spending more than one-quarter billion dollars doll-ars a year for employee pensions and Federal Social Security if present trends continue. This projection was made by Utah Foundation, the private research organization organiza-tion in an analysis of pension costs in Utah and the nation. According to the Foundation Founda-tion study, state and local governments in Utah contributed con-tributed as estimated $88.4 million for employee retire ment and Social Security during dur-ing 1976 ($55.3 million for the state retirement plan plus $33.1 million for Federal Social Soc-ial Security). If the number of public employees (including teachers) should continue to rise at the same rate as it has during the past ten years, and if salary levels should increase at an annual 5 rate, state and local retirement and Social So-cial Security obligations will reach $152 million a year by 1980 and $269 million a year by 1986. The report points out that Utah, unlike many governmental govern-mental units in other parts of the nation, has attempted to finance its retirement program pro-gram on an actuarially sound basis. Regular contributions are made to reserve funds that are set aside to pay accrued benefits to future retirees. Retirement costs for state and local governments in Utah have multiplied almost ton fnlH Hnrino tno nnct decade. Foundation analysts attribute this sharp rise to the following: 1. Program changes have been made that have greatly liberalized benefits and raised retirement costs. 2. In 1972, the state and most other employing units in Utah began assuming the employees share of retirements retire-ments costs. 3. Higher contribution rates are being phased in by the state and other employing units. 4. Inflation has raised salary sal-ary and benefit levels and has required greater contributions contribu-tions by the state and other employing units. The Foundation study observes ob-serves that state retirement and Social Security contributions contribu-tions in behalf of public employees em-ployees and teachers in Utah presently amount to nearly 18 of salary costs. Scheduled Sche-duled rate increases call for this percentage to rise above the 20 level in 1978. |