HB26-1026 to Expand Plan Options for PERA Members

Among legislative changes to PERA during the 2026 Colorado legislative session, House Bill 26-1026 represents one of the largest expansions of PERA plan options in several years. HB 1026, which passed and is pending Governor Polis’ signature, changes the ability for PERA members to use the PERAPlus 401(k) and 457 Plans, as well as additional methods to purchase PERA service credit.

Currently, all PERA members can enroll in the PERAPlus 401(k) Plan through a tax-deferred (pre-tax) account, but enrollment in the Roth option is limited to those whose employer has added that option. Additionally, the PERAPlus 457 Plan in both tax-deferred and Roth options has only been available when employers have opted in to the plans. Under HB 1026, all four options will be available to all active PERA members.

HB 1026 also expands the opportunity to purchase PERA service credit. Under current law, PERA members can purchase service credit to cover years of non-PERA employment, but HB 1026 would expand the qualification for purchasing service credit to include periods of unemployment.

These expanded options will be available to all active PERA members when the legislation takes effect on January 1, 2027. PERA will provide additional information about implementation and enrollment in these new options ahead of that date.

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PERAPlus 401(k) and 457 Plans

Enrollment in the PERAPlus 401(k) and 457 voluntary retirement savings plans is available at any time.

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Purchasing Service Credit

When planning for your retirement, you have the option to purchase service credit.