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Utah state workers receive lower pay than private sector, but far more generous benefits

Related Topics: Private sector

Wages for Utah’s state employees typically are lower than for their private-sector counterparts — but their benefits are far more generous, a new state-sponsored study says.

The combined effect is that overall compensation is 6 to 9 percent higher than for similar private-sector jobs, depending on whether state employees are enrolled in the newer, less-generous Tier 2 retirement system or the older grandfathered Tier 1 system, according to a study by Gallagher Benefit Services.

State Auditor John Dougall, whose office contracted for the study, is calling for the Legislature to better align the compensation mix with private-sector competition.