During the 2022 legislative session, four bills affecting Colorado PERA were introduced and signed into law. Two of the bills, HB 22-1057 and HB 22-1101, directly affect some PERA retirees returning to work in certain circumstances. Below are summaries of the legislation.

HB 22-1029: Compensatory Direct Distribution to Public Employees’ Retirement Association

Status: Signed into law by Gov. Polis on June 7, 2022

Bill Summary: Lawmakers enacted legislation in 2020 to forego the annual $225 million payment to PERA during the height of the COVID-19 pandemic, when the General Assembly cut billions of dollars from the state budget. The state resumed payments in July 2021 but did not make up 2020’s payment. HB 22-1029 calls for the state to make a payment of $380 million, which includes the $225 million plus prepayment of future direct distributions to PERA.

PERA’s Position: As fiduciaries, the PERA Board supports restoring the missed direct distribution.

HB 22-1057: Public Employees’ Retirement Association Employment After Teacher Retirement

Status: Signed into law by Gov. Polis on March 17, 2022

Bill Summary: Under current law, PERA retirees are limited in how many days they can work after retirement without reducing their benefit. This bill temporarily waives those limits for qualified service retirees working as substitute teachers in any school district while there are critical substitute teacher shortages.

PERA’s Position: As fiduciaries, the PERA Board opposes legislation that increases liabilities or reduces contributions until PERA is fully funded.

HB22-1087: Special District Director Retirement Benefits

Status: Signed into law by Gov. Polis on March 24, 2022

Bill Summary: Special district board members are considered employees of the special district, and under current law their compensation is subject to PERA contributions as PERA members (if the special district is an employer affiliated with PERA). This bill excludes special district board members who begin their service on or after July 1, 2022, from being eligible for membership in PERA for the service as directors.

PERA’s Position: The PERA Board did not take a position on this bill.

HB22-1101: Public Employees’ Retirement Association Service Retiree Employment in Rural Schools

Status: Signed into law by Gov. Polis on March 17, 2022

Bill Summary: This bill expands provisions, currently scheduled to repeal on July 1, 2023, that allow PERA service retirees to work full-time as a teacher, school bus driver, or school food services cook, without a reduction in benefits, for a rural school district that has determined there is a critical shortage of qualified individuals for these positions. The bill eliminates the scheduled repeal date and adds school nurses and paraprofessionals to the list of eligible employees.

PERA’s Position: As fiduciaries, the PERA Board opposes legislation that increases liabilities or reduces contributions until PERA is fully funded.

For the most up-to-date information on legislation involving PERA, visit peraontheissues.com.