New PERA-Related Legislation – 2025

Colorado’s 2025 legislative session concluded on May 7, with the Colorado Legislature passing four PERA-related bills.

Public Employees’ Retirement Association Risk Reduction Measures

Senate Bill 25-028, signed into law on March 26, establishes certain reporting practices the PERA Board of Trustees already performs on a regular basis. The reporting practices include conducting an actuarial experience study every four years and an actuarial audit every four years, and independent reviews through actuarial audits.

PERA True-Up of Denver Public Schools Division Employer Contribution

Every five years, PERA is required to perform a “true-up” calculation to determine if the Denver Public Schools (DPS) Division’s employer contribution rate should be adjusted. As a result, House Bill 25-1105, which was signed into law on May 23, reduces the DPS Division employer contribution rate by 3.0% and the allocation to the DPS Division Health Care Trust Fund by 0.82% beginning July 1, 2025. In addition to the reductions, through June 30, 2030, DPS will not receive an allocation of the annual Direct Distribution payment from the State and will not be included in the Automatic Adjustment Provision calculation but remains subject to adjustments, if triggered.

Modify Board Management PERA

Senate Bill 25-147, which was signed into law on June 3, modifies a number of provisions under current law related to the PERA Board of Trustees. The bill establishes term limits for Trustees, includes changes to how PERA is designated for purposes of open meetings laws, and requires certain financial information to be posted on PERA’s website and updated on an annual basis.

Proposition 130 Implementation

Senate Bill 25-310, which was signed into law on June 2, involved Proposition 130, the voter-approved measure that directs the State to spend $350 million to recruit, train, and retain local law enforcement officers. The PERA-related bill provisions involve giving PERA a lump-sum payment of $500 million before October 1, 2025, and reducing future years’ distributions to PERA based on investment earnings on the $500 million; these funds will be treated by PERA as a “deferred inflow of resources.” This bill provides flexibility regarding the method used to allocate the annual Direct Distribution if an alternative allocation method would prevent triggering an automatic adjustment.

For more information on these bills and bills that didn’t pass, visit the legislation tracking page. Subscribe to the PERA On The Issues newsletter to stay updated on the latest PERA-related news.