A summary of proposed legislation affecting Colorado PERA. Check back often for new bills and updated status reports. Last updated: July 14, 2020.

HB 20-1379

Suspend Direct Distribution To PERA Public Employees Retirement Association For 2020-21 Fiscal Year

Concerning suspending the direct distribution to the public employees’ retirement association for the 2020-21 state fiscal year, and, in connection therewith, reducing an appropriation.

Bill summary: Current law provides for an annual direct distribution, currently set at $225 million, to PERA until fully funded status is attained.

The bill would suspend that direct distribution for the 2020-21 fiscal year.

Sponsors: Rep. Kim Ransom (R-Douglas County) | Sen. Bob Rankin (R-Carbondale)

Bill Status: Passed by the House and Senate. Sent to the Governor for signature on 6/6. Signed by Governor on 6/29.

Bill History: Bill introduced 5/26, assigned to House Appropriations committee. House Appropriations referred the bill, unamended, to House Committee of the Whole on 5/27. Bill passed Second Reading unamended on 6/1. Bill passed House on Third Reading on 6/3: Aye-48, No-14, Other-3.

Bill introduced in Senate on 6/3. Senate Appropriations referred unamended to Senate on 6/4. Bill passed Second Reading unamended on 6/5. Bill passed Senate on Third Reading on 6/6: Aye-28, No-5, Other-2.

Board position: The PERA Board, as fiduciaries and pursuant to their funding policy, opposes reductions in contributions to PERA while PERA has unfunded liabilities.

HB 20-1394

Public Employees’ Retirement Association Judicial Division Contribution Rate Modification

Concerning a modification to the contribution rates to the public employees’ retirement association for the judicial division of the association for certain fiscal years, and, in connection therewith, reducing an appropriation.

Bill summary: The bill addresses contribution rates for employers and employees in the judicial division, which is made up of judges.

The bill would decrease the employer contribution rate by five percent for the 2020-21 and 2021-22 state fiscal years. For those same fiscal years, the employee contribution rate would rise by five percent.

The changes do not apply for employer or member contributions for judges employed by the Denver county court. The bill does not change contribution rates for any other division of PERA

Sponsors: Rep. Julie McCluskie (D-Dillon) | Rep. Kim Ransom (R-Douglas County) | Sen. Dominick Moreno (D-Commerce City) | Sen. Bob Rankin (R-Carbondale)

Bill Status: Passed by the House and Senate. Sent to the Governor for signature on 6/5. Signed by Governor on 6/29.

Bill History: Bill introduced 5/26, assigned to House Appropriations . House Appropriations referred the bill, with amendments, to House on 5/27. House Second Reading passed with amendments (committee) on 6/1. Bill passed House on Third Reading on 6/3: Aye-64, No-0, Other-1.

Bill introduced in Senate on 6/3. Senate Appropriations referred unamended to Senate on 6/4. Bill passed Second Reading unamended on 6/4 Bill passed Senate on Third Reading on 6/5: Aye-33, No-0, Other-2.

Board position: The PERA Board, as fiduciaries and pursuant to their funding policy, opposes reductions in contributions to PERA while PERA has unfunded liabilities.

SB 20-057

Fire Prevention & Control Employee Benefits

Concerning the inclusion of firefighters employed by the Department of Public Safety in the Division of Fire Prevention and Control in certain employee benefits.

Bill summary: Currently, wildfire firefighters employed by the state contribute to PERA and receive benefits as determined by standard PERA Tables. This bill would reclassify these firefighters as “safety officers,” which would adjust their contribution rates and benefits to those found on PERA’s Safety Officer Tables, formerly known as Trooper Tables.

This move would result in a higher contribution rate for both employees and employers and would allow firefighters to qualify for full-service retirement at a younger age than other PERA members. These changes would apply only to service credit earned after the bill goes into effect.

The bill also addresses other benefits available to firefighters.

Sponsors: Sen. Pete Lee (D-Colorado Springs) | Rep. Marc Snyder (D-Manitou Springs) and Rep. Lisa Cutter (D-Littleton)

Bill Status: Passed House and Senate. Sent to Governor for signature on 6/9. Signed by Governor on 6/29.

Bill History: Bill introduced 1/8. Senate Finance approved the bill on 1/28. Senate Appropriations passed with amendments on 3/6. Passed third reading on 3/11: Aye-32, No-3, Other-0.

Introduced in House on 3/11. House Finance referred unamended to Appropriations on 5/28. House Appropriations referred unamended to House on 6/3. Passed House second reading on 6/8. Passed third reading on 6/9: Aye-53, No-9, Other-3.

PERA Board position: The PERA Board of Trustees considered this bill on their January 17 meeting and decided to not take a position.

HB 20-1127

Extend Public Employees’ Retirement Association Retiree Work After Retirement Limit

Concerning an extension of the employment-after-retirement limitations for retirees of the public employees’ retirement association employed by a board of cooperative services after retirement.

Bill summary: Boards of cooperative services (BOCES) provide special education services to the school districts they serve. Almost all of these school districts are in rural parts of the state, and it is difficult for BOCES to find qualified people to serve as special service providers in these areas.

BOCES could address this issue by hiring PERA retirees to fill these roles, but PERA’s working-after-retirement provisions, including the limitation on the number of days in a calendar year that a service retiree may work for a PERA employer without a reduction in benefits, could be a barrier for some retirees.

The bill modifies the current PERA working-after-retirement provisions for certain retirees hired by a BOCES if:

The BOCES hires a retiree to provide services in two or more rural school districts;
The BOCES hires the service retiree to provide special services to students; and
The BOCES determines that there is a critical shortage of special service providers and that the retiree has specific experience, skills, or qualifications that would benefit the districts that the BOCES serves.

Under the bill, a PERA retiree who is a special service provider and who is hired by a BOCES may receive salary without a reduction in benefits for any length of employment in a calendar year.

The bill requires a BOCES that hires a PERA retiree to provide full payment of all PERA employer contributions, disbursements, and working retiree contributions. In addition, the BOCES is required to pay an additional amount equal to two percent of the retiree’s salary to PERA.

A PERA retiree may not work under these modified rules for more than five consecutive years. All BOCES combined may hire no more than 40 people over five years.

PERA is required to submit a report to the general assembly regarding specified aspects of the extension of PERA’s working-after-retirement limitations.

Sponsors: Rep. Julie McCluskie (D-Dillon) | Rep. Barbara McLachlan (D-Durango) | Sen. Nancy Todd (D-Aurora) | Sen. Jerry Sonnenberg (R-Sterling)

Bill Status: Passed House and Senate. Sent to Governor for signature on 6/1. Signed by Governor on 7/13.

Bill History: Bill introduced in House on 1/15. House Finance approved the bill on 2/10. House Appropriations approved the bill on 2/21. Bill passed Third Reading on 2/28: Aye-50, No-13, Other-2.

Introduced in Senate on 3/2. Senate Finance referred unamended on 3/12. Bill passed Third Reading on 6/1: Aye-28, No-7, Other-0.

PERA Board position: The PERA Board of Trustees considered this bill on their January 17 meeting and decided to not take a position.

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