On Monday afternoon, Governor Hickenlooper signed into law Senate Bill 18-200, Modifications To PERA Public Employees’ Retirement Association To Eliminate Unfunded Liability (SB 200). The ceremony took place in the Capitol Building foyer outside the Governor’s office and was attended by the bill’s co-sponsors, General Assembly leadership and staff, PERA representatives, and media.

The Colorado legislature passed the bipartisan legislation just before midnight on May 9, in the waning hours of the 2018 session. The bill was co-sponsored by four lawmakers: state senators Jack Tate (R-District 27) and Kevin Priola (R-District 25) and state representatives KC Becker (D-District 13) and Dan Pabon (D-District 4). It is designed to restore Colorado PERA’s retirement plan for public employees to full funding within 30 years.

In praising the legislature for passing the complex bill, Governor Hickenlooper acknowledged that it contains components that each group of stakeholders might like or dislike, and by doing so, “[SB 200] is an example of a genuine Colorado compromise.”

Echoing the governor, state Senator Tate added, “I’m very happy with this outcome, primarily because we had an outcome. [This bill] was always about one thing, which was maintaining retirement security for Colorado’s public servants.”

SB 200 adopted many of the recommendations that the PERA Board proposed in late-2017. The Board finalized its proposals after a yearlong fact-finding process by PERA staff that solicited extensive input—from financial experts and various stakeholder groups, including PERA members, retirees, and employers—which PERA then passed on to lawmakers.  “These behind-the-scenes conversations were where the action really happened, and we credit the PERA Board for setting the tone early on,” said state Senator Priola.

The Board’s proposal and SB 200 both advocate for sharing responsibility in such a way that will pay down PERA’s unfunded liability within the actuarially sound 30-year timeframe, which will also help sustain, and possibly improve, Colorado’s credit rating.

“When the 2018 session started, more than a few people told me this bill had about a five percent chance of passing,” said House Majority Leader Becker. “But the shared responsibility aspects of SB 200 are a win for retirees and their families, as well as for the entire state.”

For more information about SB 200, view this rundown of how the new law will affect PERA employees, employers, and retirees.