The automatic adjustment provision is a feature included in Senate Bill 18-200 that aims to keep Colorado PERA on track to full funding in 30 years without the need for additional legislation. If PERA is behind the 30-year schedule to reach full funding, the contribution rates adjust automatically as follows:
- Employer contribution rates increase by up to 0.5% in one year (not to exceed an additional 2% above the 2018 rate)
- Member contribution rates increase by up to 0.5% in one year (not to exceed an additional 2% above the 2018 rate)
PERA will announce the progress toward the funding goal each year in June with its release of the Annual Comprehensive Financial Report (ACFR). If it’s determined that adjustments are needed to stay on track, changes to these variables will be effective July 1 of the following year.
As indicated in its 2021 Annual Comprehensive Financial Report (ACFR), PERA is on schedule to meet its funding goal. This means the automatic adjustment provision will not trigger any additional contribution rate changes in 2023.
For additional information, please refer to the Automatic Adjustment Provision fact sheet.