Legislation Introduced

April 12, 2017

Colorado's State Capitol building in Denver.As this newsletter went to print, the following legislation affecting Colorado PERA had been introduced: 

House Bill 17-1114: State Treasurer’s Authority To Access PERA Public Employees’ Retirement Association Information

Sponsors: Rep. Justin Everett (R–Littleton) and Sen. Jake Tate (R–Centennial)

The bill authorizes the State Treasurer, as a member of the PERA Board of Trustees, to review all PERA records or information. The State Treasurer would be prohibited from using the provided records or information for personal use. 

Status: Postponed indefinitely.

PERA’s Position: The Board voted to oppose this bill.

House Bill 17-1176: Public Employees’ Retirement Association Retirees Employed By Rural School Districts

Sponsors: Rep. Jon Becker (R–Fort Morgan), Rep. Barbara McLachlan (D–Durango), and Sen. Jerry Sonnenberg (R–Sterling)

The bill modifies the current PERA working after retirement provisions for certain retirees hired by an employer in the School Division if the following conditions are met:

  • The employer that hires the PERA retiree is a rural school district (as determined by the Department of Education) and the school district has 6,500 students or fewer enrollees in kindergarten through 12th grade.
  • The school district hires the PERA retiree to provide classroom instruction, school bus transportation, or as a school food services cook.
  • The school district determines that there is a critical shortage of qualified teachers, school bus drivers, or school food services cooks, and that the PERA retiree has specific experience, skills, or qualifications that would benefit the district.

A PERA retiree hired under these criteria would not be subject to a reduction in his or her benefit if the retiree works beyond the current working after retirement limits as long as the retiree does not work for a PERA employer during the effective month of retirement. The retiree could not work after retirement without limitation for more than six consecutive years.

The bill also requires the employer to make full payment of all PERA employer contributions, disbursements, and working retiree contributions. The bill would repeal and sunset these provisions in 2028.

Status: In the House Appropriations Committee.

PERA’s Position: The Board voted to oppose this bill as it could add approximately $85 million to PERA’s unfunded liability.

House Bill 17-1265: PERA Public Employees’ Retirement Association Judicial Division Total Employer Contribution

Sponsors: Rep. KC Becker (D–Boulder), Rep. Daniel Nordberg (R–Colorado Springs), Sen. Andy Kerr (D–Lakewood), and Sen. Kevin Priola (R–Henderson)

The bill would increase Amortization Equalization Disbursement (AED) and Supplemental Amortization Equalization Disbursement (SAED) for the Judicial Division only. While the State, School, and Denver Public Schools (DPS) Divisions saw AED and SAED increases after the passage of 2010’s Senate Bill 1, the Judicial Division was exempt. For the calendar year beginning in 2019, the bill increases both the Judicial Division’s AED and SAED to 3.40 percent of total payroll and requires both the AED and SAED payment to increase by 0.4 percent of total payroll at the start of each of the following four calendar years through 2023. 

Status: In the House Appropriations Committee.

PERA’s Position: The Board voted to support this bill.

Senate Bill 17-113: Cap Employer Contribution Rates For PERA Public Employees’ Retirement Association Employers

Sponsors: Sen. Tim Neville (R–Littleton) and Rep. Justin Everett (R–Littleton)

The bill requires that for the calendar year beginning January 1, 2018, and for each calendar year thereafter, the total of the employer contribution, including AED and SAED, for any employer will not exceed the total contribution rates for the 2018 calendar year.

Status: Postponed indefinitely.

PERA’s Position: The Board voted to oppose this bill.

Senate Bill 17-158: Modify Composition of PERA Public Employees’ Retirement Association Board Of Trustees

Sponsors: Sen. Jack Tate (R–Centennial) and Rep. Daniel Nordberg (R–Colorado Springs)

The bill would change the composition of PERA’s Board by:

  • Eliminating one elected Trustee position from the State Division.
  • Eliminating two elected Trustee positions from the School Division.
  • Requiring at least one elected Trustee each from both the State and School Divisions to be at least 20 years from retirement eligibility.
  • Replacing the eliminated Trustee positions with three more Trustees appointed by the Governor and confirmed by the Senate. (There are currently three Governor-appointed Trustees on the Board.)

Status: Postponed indefinitely.

PERA’s Position: The Board voted to oppose this bill.

Senate Bill 17-185: District Attorney Salary Compensation And PERA

Sponsors: Sen. Bob Gardner (R–Colorado Springs) and Rep. Matt Gray (D–Broomfield)

Among other provisions not related to PERA, this bill would allow the boards of county commissioners of the counties within a judicial district to make a one-time irrevocable election to require an Assistant District Attorney to become a PERA member.

Status: Postponed indefinitely.

PERA’s Position: The Board has not taken a position on this bill.

  For the most up-to-date information on potential legislation, visit www.peraontheissues.com.