
<p>Retirement insights from a Colorado PERA perspective</p>



<p></p>


A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.


<p><em>Editor&#8217;s note: Gov. Jared Polis signed this bill into law on June 7, 2022.</em></p>



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<p>With just hours left in the legislative session, Colorado lawmakers gave final approval to a bill that will make up the state’s missed 2020 payment of $225 million to PERA.</p>



<p>The bill, <a href="https://leg.colorado.gov/bills/hb22-1029" target="_blank" rel="noreferrer noopener">HB22-1029</a>, now heads to Gov. Jared Polis for his signature.</p>



<p>Lawmakers&nbsp;<a href="https://peraontheissues.com/pera-related-legislation-sent-to-governor/" target="_blank" rel="noreferrer noopener">enacted legislation</a>&nbsp;to forego the $225 million direct distribution payment to PERA in 2020 during the early stages of the COVID-19 pandemic, when the General Assembly cut billions of dollars from the state budget. The state automatically resumed payments in 2021 — additional legislation would be required for the state to forego any future payments — but did not make up 2020’s payment.</p>



<p>Pending the governor’s signature on the bill, PERA will receive $380 million from the state. That amounts to a restoration of the missed $225 million direct distribution plus a prepayment of a portion of future direct distributions to PERA.</p>



<p>PERA will also receive 2022’s direct distribution of $225 million on July 1.</p>



<p>The $380 million will come from a cash fund the legislature <a href="https://peraontheissues.com/2021-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">set up in 2021</a>&nbsp;solely for future payments to PERA.</p>



<p>The bill was one of four PERA-related bills that lawmakers passed this session. For details on the other bills, <a href="https://peraontheissues.com/2022-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">click here</a>.</p>


Colorado Lawmakers Pass Bill Making Up $225M Payment to PERA


<p><em>Update (May 11, 2022): This</em> <em>bill has passed. <a href="https://peraontheissues.com/colorado-lawmakers-pass-bill-making-up-225m-payment-to-pera/">Click here</a> for the latest</em></p>



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<p>A bill that would make up the state’s missed 2020 payment of $225 million to PERA has begun making its way through the state legislature.</p>



<p>The Pension Review Commission, a legislative interim committee that is charged to study and develop proposed legislation concerning pension plans in the state, <a href="https://peraontheissues.com/legislative-committee-seeks-to-make-up-missed-225m-payment-to-pera/" target="_blank" rel="noreferrer noopener">made a recommendation</a> for this bill to be introduced in the 2022 legislative session. It was introduced early in the session, but did not move forward until the state budget had been finalized.</p>



<p>The House Finance Committee on Monday voted 9-1 to move the bill, <a href="https://leg.colorado.gov/bills/hb22-1029" target="_blank" rel="noreferrer noopener">HB22-1029</a>, forward to the House Appropriations Committee for further consideration.</p>



<p>Lawmakers&nbsp;<a href="https://peraontheissues.com/pera-related-legislation-sent-to-governor/" target="_blank" rel="noreferrer noopener">enacted legislation</a> to forego the $225 million payment to PERA in 2020 during the early stages of the COVID-19 pandemic, when the General Assembly cut billions of dollars from the state budget. The state automatically resumed payments in 2021 — additional legislation would be required for the state to forego any future payments — but did not make up 2020’s payment.</p>



<p>HB22-1029 calls for the state to make a payment totaling $303.57 million — $225 million plus estimated investment gains, had the money been invested — on July 1, 2022.</p>



<p>The bill originally called for the payment to come from the state’s general fund until the actual funding source had been identified. The bill’s sponsors added an amendment to instead use money from a cash fund the state <a href="https://peraontheissues.com/2021-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">set up in 2021</a> solely for future payments to PERA. That fund currently has a balance of $380 million, which legislative staff has <a href="https://coloradosun.com/2022/02/09/pera-investment-cash-fund-pay-back/" target="_blank" rel="noreferrer noopener">recommended distributing to PERA</a> sooner rather than later.</p>



<p>The House Appropriations Committee is expected to consider HB22-1029 later this week and if approved, it will head to the House floor for discussion and vote before moving to the Senate. <em>PERA On The Issues</em> will continue to monitor legislative activity on this bill.</p>



<p>The $225 million direct distribution to PERA is part of a package of reforms enacted under Senate Bill 200 in 2018 and is meant to put PERA on a path to full funding.&nbsp;Also included in Senate Bill 200 was the&nbsp;Automatic Adjustment Provision, which will trigger increases in employee and employer contributions to PERA and reductions to annual increases for benefit recipients in July 2022.</p>



<p>Bill sponsor Rep. Shannon Bird referenced Senate Bill 200 and the state’s commitment to PERA when urging her fellow committee members to vote in favor of the bill.</p>



<p>“Our economy has rebounded and economic activity in Colorado is now exceeding even pre-pandemic levels,” Bird said. “In light of our greatly improved financial position, we now have the opportunity to make things right and hold ourselves accountable for our responsibilities under Senate Bill 200. Because when we suspended our payment in 2020, PERA lost $225 million and it also lost all investment returns those dollars would have brought in.”</p>



<p>The legislature has until May 11 to finish its work on any pending legislation and adjourn the current session.</p>



<p>For the latest on this and other PERA-related bills, <a href="https://peraontheissues.com/2022-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">click here</a>.</p>


Bill to Make Up Missed $225M Payment to PERA Moving Through Legislature


<p><em>Editor&#8217;s note: This bill was reintroduced in January 2023. <a href="https://peraontheissues.com/bill-to-repeal-wep-gpo-reintroduced-in-congress/">Read more here</a>.</em></p>



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<p>In the decades since the <a href="https://sgp.fas.org/crs/misc/98-35.pdf" target="_blank" rel="noreferrer noopener">Windfall Elimination Provision</a> (WEP) and <a href="https://sgp.fas.org/crs/misc/RL32453.pdf" target="_blank" rel="noreferrer noopener">Government Pension Offset</a> (GPO) went into effect, lawmakers in Washington, DC have repeatedly introduced legislation to modify or repeal the two provisions.</p>



<p>The WEP and GPO, which are part of federal law, can reduce Social Security benefits for recipients of public pensions like Colorado PERA. It’s important to note that a person’s PERA benefit is never reduced due to Social Security or other benefits.</p>



<blockquote class="wp-block-quote">
<p><strong>Read more on copera.org:</strong> <a rel="noreferrer noopener" href="https://www.copera.org/pera-and-social-security" target="_blank">PERA and Social Security</a></p>
</blockquote>



<p>Despite bipartisan support and even President Joe Biden <a href="https://www.brookings.edu/blog/brown-center-chalkboard/2020/09/28/how-would-joe-bidens-plan-for-older-americans-affect-teachers/" target="_blank" rel="noreferrer noopener">expressing his support for WEP repeal</a>, lawmakers have not made any changes to either provision since their inception. Legislators often cite the cost of administering additional Social Security benefits as a barrier to changing the law.</p>



<p>Nonetheless, there are currently several bills before Congress that would either change how the WEP and/or GPO affect Social Security, or eliminate them entirely.</p>



<h4 class="wp-block-heading" id="h-r-82-and-s-1302-social-security-fairness-act"><strong>H.R. 82 and S. 1302: Social Security Fairness Act</strong></h4>



<p><a href="https://content.copera.org/whats-the-latest-on-federal-wep-gpo-legislation/" target="_blank" rel="noreferrer noopener">H.R. 82</a>, titled the “Social Security Fairness Act,” was introduced in the House of Representatives in January 2021. It aims to eliminate both the WEP and GPO. Since the bill was introduced last year, lawmakers have referred it to the Subcommittee on Social Security, but Congress hasn’t taken any further action.</p>



<p>In February, the bill’s lead sponsors, Reps. Abigail Spanberger (D-VA-7) and Rodney Davis (R-IL-13) <a rel="noreferrer noopener" href="https://d12t4t5x3vyizu.cloudfront.net/spanberger.house.gov/uploads/2022/02/220129-FINAL-Letter-on-Social-Security-Fairness-Act.pdf" target="_blank">wrote a letter to House leadership</a> urging a floor vote on the bill, arguing that it has more bipartisan support than most of the other 7,700+ bills introduced in the current session.</p>



<p>That bill has more than 250 cosponsors, including representatives Jason Crow (D-CO-6), Diana DeGette (D-CO-1), Joe Neguse (D-CO-2) and Ed Perlmutter (D-CO-7) of Colorado.</p>



<p>A bill with the same title was introduced in the U.S. Senate, with senators Michael Bennet (D) and John Hickenlooper (D) as cosponsors. That bill, <a href="https://www.copera.org/whats-the-latest-on-federal-wep-gpo-legislation" target="_blank" rel="noreferrer noopener" class="broken_link">S. 1302</a>, was referred to the Committee on Finance in April 2021, and Congress hasn’t taken any further action on the bill.</p>



<h4 class="wp-block-heading" id="h-r-2337-public-servants-protection-and-fairness-act-of-2021"><strong>H.R. 2337: Public Servants Protection and Fairness Act of 2021</strong></h4>



<p>While the two bills above aim to eliminate the WEP and GPO, <a href="https://www.copera.org/whats-the-latest-on-federal-wep-gpo-legislation" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 2337</a>, the “Public Servants Protection and Fairness Act of 2021,” seeks to instead modify the WEP with an alternate formula for calculating a person’s Social Security benefit. Advocates have sometimes argued that changing the law to reduce its impact on retirees is a more politically realistic goal than full repeal.</p>



<p>Representatives Crow, DeGette, Neguse and Perlmutter are also cosponsors of this bill, which was introduced in the House in April 2021. Like the above bills, Congress has not taken any action to move the bill further along in the legislative process.</p>



<h4 class="wp-block-heading" id="having-your-voice-heard"><strong>Having your voice heard</strong></h4>



<p>Colorado PERA, along with other public pension plans across the country, retiree organizations and other groups continually meet with members of Congress to educate them on this issue of great importance to retired public employees.</p>



<p>In addition to those efforts, one of the most effective forms of advocacy is for PERA members and retirees to <a href="https://www.copera.org/whats-the-latest-on-federal-wep-gpo-legislation" target="_blank" rel="noreferrer noopener" class="broken_link">contact their senators and representatives</a> in Congress to let them know how the WEP and GPO affect them.</p>



<blockquote class="wp-block-quote">
<p>For updates on these bills and other important pieces of legislation affecting Colorado’s public employees, subscribe to the biweekly <a rel="noreferrer noopener" href="https://www.copera.org/what-to-expect-in-colorados-2022-legislative-session" target="_blank" class="broken_link"><em>PERA On The Issues</em> newsletter</a>.</p>
</blockquote>



<p><strong>More <em>PERA On The Issues</em> coverage of this issue:</strong></p>



<ul>
<li><a href="https://content.copera.org/wep-gpo-bill-introduced-in-d-c/" target="_blank" rel="noreferrer noopener">What’s the Deal with the WEP and GPO?</a></li>



<li><a href="https://www.copera.org/wep-gpo-bill-introduced-in-d-c" target="_blank" rel="noreferrer noopener" class="broken_link">WEP/GPO: The Case for Reform</a></li>
</ul>


What’s the Latest on Federal WEP/GPO Legislation?


<p>Colorado’s 2022 legislative session is well underway, with more than 400 bills introduced since lawmakers convened in Denver in January.</p>



<p>To find out the latest on what’s happening under the gold dome, <em>PERA On The Issues</em> sat down with PERA Public and Government Affairs Manager Michael Steppat, who represents PERA at the Capitol.</p>



<h5 class="wp-block-heading" id="what-are-some-of-the-major-issues-lawmakers-have-been-tackling-this-year"><strong>What are some of the major issues lawmakers have been tackling this year?</strong></h5>



<p>This legislative session marks the third year legislators have had to deal with the challenges of the pandemic, but it has been more of a return to normal operations despite some COVID safety protocols remaining in place at the Capitol. The pandemic still continues to be one of the major issues in terms of the type of legislation considered, especially as lawmakers decide how to spend nearly $3.6 billion in one-time federal COVID relief funds. It’s important to note that none of these funds may be used for state pensions. However, the state budget for the next fiscal year expects to be around $40 billion, which is a 4% increase from the current one and a state record, boosted by stronger than expected tax revenues.</p>



<p>Other major issues include the kinds lawmakers have frequently taken on in recent years, such as public safety, healthcare, and education.</p>



<h5 class="wp-block-heading" id="we-ve-seen-several-pieces-of-legislation-related-to-pera-so-far-this-session-what-s-the-latest-on-those-bills"><strong>We’ve seen several pieces of legislation related to PERA so far this session. What’s the latest on those bills?</strong></h5>



<p>Two bills that would expand the ability for PERA retirees working after retirement without a reduction in benefits, <a href="https://leg.colorado.gov/bills/hb22-1057" target="_blank" rel="noreferrer noopener">HB22-1057</a> and <a href="https://leg.colorado.gov/bills/hb22-1101" target="_blank" rel="noreferrer noopener">HB22-1101</a>, have passed the House and are now under consideration in the Senate. <a href="https://leg.colorado.gov/bills/hb22-1087" target="_blank" rel="noreferrer noopener">HB22-1087</a>, which would exclude special district directors from membership in PERA, has also passed the House.</p>



<p><a href="https://leg.colorado.gov/bills/hb22-1029" target="_blank" rel="noreferrer noopener">HB22-1029</a>, a bill to make up the state’s annual $225 million payment to PERA that was foregone in 2020 due to pandemic-related budget cuts, has been introduced in the House but it’s not yet scheduled for a hearing. We expect that to happen in the coming weeks.</p>



<p>We’re tracking the status of each PERA-related bill <a href="https://peraontheissues.com/2022-proposed-legislation-status/">here</a>.</p>



<h5 class="wp-block-heading" id="lawmakers-are-working-right-now-to-craft-the-state-budget-for-the-next-fiscal-year-what-can-we-expect-to-see-in-the-budget-that-might-affect-pera"><strong>Lawmakers are working right now to craft the state budget for the next fiscal year. What can we expect to see in the budget that might affect PERA?</strong></h5>



<p>PERA funding is certainly part of the budget conversation, as lawmakers are considering not only HB22-1029, the PERA direct distribution bill, but also how best to use money in a cash fund the legislature <a href="https://peraontheissues.com/2021-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">set up last year</a> for future payments to PERA. The Joint Budget Committee will be wrapping up its budget recommendations for the General Assembly to consider later this month.</p>



<h5 class="wp-block-heading" id="is-there-anything-going-on-in-washington-dc-that-pera-members-might-want-to-know-about"><strong>Is there anything going on in Washington, DC that PERA members might want to know about?</strong></h5>



<p>Lawmakers <a href="https://content.copera.org/checking-in-with-peras-public-and-government-affairs-manager/" target="_blank" rel="noreferrer noopener">have introduced several bills</a> to modify or repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which can reduce Social Security benefits for pension recipients, though those bills have once again stalled in Congress. There’s also a bill under consideration, <a rel="noreferrer noopener" href="https://www.barrons.com/articles/securing-strong-retirement-act-means-for-you-51640890247" target="_blank">dubbed Secure Act 2.0</a>, that would make some changes to retirement plans nationwide, such as raising the age for required minimum distributions (RMDs) and expand automatic enrollment in employer-sponsored plans like 401(k)s.</p>


Checking In With PERA’s Public and Government Affairs Manager


<h4 class="wp-block-heading" id="bipartisan-bill-to-modernize-59-year-old-older-coloradans-act-emerges-in-legislature-state-of-reform"><a href="https://stateofreform.com/featured/2022/02/bipartisan-bill-to-modernize-59-year-old-older-coloradans-act-emerges-in-legislature/" target="_blank" rel="noreferrer noopener"><strong>Bipartisan Bill to Modernize 59-Year-Old Older Coloradans Act Emerges in Legislature</strong></a><strong> | State of Reform</strong></h4>



<p>Lawmakers have introduced a bill that aims to update and modernize the Older Coloradans Act. The bill would expand and reorganize the Colorado Commission on Aging and appoint someone from the Colorado Department of Human Services to represent the Commission to the state. The bill would also create a “Lifelong Colorado” initiative to coordinate planning and implementation.</p>



<h4 class="wp-block-heading" id="over-the-counter-covid-tests-will-soon-be-free-for-medicare-recipients-npr"><a href="https://www.npr.org/2022/02/03/1078088301/over-the-counter-covid-tests-will-soon-be-free-for-medicare-recipients" target="_blank" rel="noreferrer noopener"><strong>Over-the-Counter COVID Tests Will Soon Be Free for Medicare Recipients</strong></a><strong> | NPR</strong></h4>



<p>When the Biden administration announced insurance companies would be required to cover the cost of at-home rapid COVID tests, Medicare was excluded from the requirement. The government has since announced retirees on original Medicare or a Medicare Advantage plan will be able to get over-the-counter tests at no cost starting in the spring.</p>



<h4 class="wp-block-heading" id="explainer-the-u-s-yield-curve-has-been-flattening-why-you-should-care-reuters"><a href="https://www.reuters.com/business/finance/us-yield-curve-has-been-flattening-why-you-should-care-2022-02-03/" target="_blank" rel="noreferrer noopener"><strong>Explainer: The U.S. Yield Curve Has Been Flattening — Why You Should Care</strong></a><strong> | Reuters</strong></h4>



<p>You may have heard talk of the “yield curve” lately and how it’s been flattening in recent months. But why is that and what does it mean? Here’s an explanation of what the yield curve represents, how it’s predicted recessions in the past and what it might signal for 2022.</p>



<h4 class="wp-block-heading" id="67-of-retirees-have-credit-card-debt-here-are-3-ways-to-pay-it-off-on-a-fixed-income-usa-today"><a href="https://www.usatoday.com/story/money/personalfinance/retirement/2022/02/05/67-of-retirees-have-credit-card-debt-3-steps-to-pay-it-off-on-a-fixed-income/49758385/" target="_blank" rel="noreferrer noopener"><strong>67% of Retirees Have Credit Card Debt. Here are 3 Ways to Pay It Off on a Fixed Income</strong></a><strong> | USA Today</strong></h4>



<p>A recent survey found about two-thirds of retired Americans have credit card debt. Paying off that debt can be especially challenging for people living on fixed and limited income. Here are a few tactics to consider when deciding to tackle that debt.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: Bill Aims to Better Support Aging Coloradans


<h4 class="wp-block-heading" id="medicare-to-consider-lowering-part-b-premiums-kiplinger"><strong><a href="https://www.kiplinger.com/retirement/medicare/604056/medicare-to-consider-lowering-part-b-premiums" target="_blank" rel="noreferrer noopener">Medicare to Consider Lowering Part B Premiums</a> | Kiplinger</strong></h4>



<p>Late last year, Medicare announced monthly premiums for Part B (medical coverage) would increase due to FDA approval of a controversial and expensive Alzheimer’s drug. The drug’s manufacturer has since cut the price in half, leading Medicare to reconsider its premium hike.</p>



<h4 class="wp-block-heading" id="colorado-lawmakers-know-where-they-want-to-direct-federal-covid-funding-they-just-have-to-figure-out-how-the-colorado-sun"><strong><a href="https://coloradosun.com/2022/01/31/colorado-arpa-committee-reports/" target="_blank" rel="noreferrer noopener">Colorado Lawmakers Know Where They Want to Direct Federal COVID Funding. They Just Have to Figure Out How.</a> | The Colorado Sun</strong></h4>



<p>For months, three task forces of Colorado lawmakers have been discussing how best to spend $2.6 billion in COVID funds from the federal government. The legislature has until the end of 2024 to allocate the money, and the task forces recommend focusing on priorities like affordable housing, behavioral health and economic relief.</p>



<h4 class="wp-block-heading" id="interest-rates-are-expected-to-rise-in-2022-here-are-4-ways-to-prepare-cnbc"><strong><a href="https://www.cnbc.com/2022/01/24/interest-rates-are-expected-to-rise-in-2022here-are-4-ways-to-prepare.html" target="_blank" rel="noreferrer noopener">Interest Rates Are Expected to Rise in 2022 — Here are 4 Ways to Prepare</a> | CNBC</strong></h4>



<p>The Federal Reserve is expected to raise a key interest rate — the federal funds rate — this year. Changes in that rate can lead to changes in other interest rates, like those you pay on credit cards, mortgages and other loans. Here are some smart money moves to consider while the federal rate is still low.</p>



<h4 class="wp-block-heading" id="don-t-let-the-volatile-stock-market-rattle-your-retirement-savings-plan-yahoo-finance"><strong><a href="https://finance.yahoo.com/m/c54a1e38-ba4b-4af9-b7d2-e252ffd6b8a1/don%27t-let-the-volatile-stock.html" target="_blank" rel="noreferrer noopener">Don’t Let the Volatile Stock Market Rattle Your Retirement Savings Plan</a> | Yahoo! Finance</strong></h4>



<p>The stock market has seen some wild ups and downs lately, which may cause some anxiety for people who have money invested in stocks. Nobody likes to see their account balance drop when the market dips, but good investment strategy and an eye on the long-term can help provide peace of mind during times of volatility.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: Medicare May Lower Part B Premiums


<p><em>Below you’ll find summaries of proposed legislation affecting Colorado PERA. The status of each bill will be updated regularly.</em></p>



<p></p>



<p class="has-text-align-right">Last updated: June 8, 2022</p>



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<h2 class="wp-block-heading" id="hb22-1029"><a href="https://leg.colorado.gov/bills/hb22-1029" target="_blank" rel="noreferrer noopener">HB22-1029</a></h2>



<h3 class="wp-block-heading" id="compensatory-direct-distribution-to-public-employees-retirement-association">Compensatory Direct Distribution to Public Employees&#8217; Retirement Association</h3>



<p><strong>Bill summary:</strong> Lawmakers&nbsp;<a rel="noreferrer noopener" href="https://peraontheissues.com/pera-related-legislation-sent-to-governor/" target="_blank">enacted legislation</a>&nbsp;in 2020 to forego the annual $225 million payment to PERA during the height of the COVID-19 pandemic, when the General Assembly cut billions of dollars from the state budget. The state resumed payments in July 2021 but did not make up 2020’s payment. HB22-1029 calls for the state to make a payment of $380 million, which includes the $225 million plus prepayment of future direct distributions to PERA.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/shannon-bird" target="_blank" rel="noreferrer noopener">Rep. Shannon Bird</a>, <a href="https://leg.colorado.gov/legislators/shane-sandridge" target="_blank" rel="noreferrer noopener">Rep. Shane Sandridge</a>, <a href="https://leg.colorado.gov/legislators/chris-kolker" target="_blank" rel="noreferrer noopener">Sen. Chris Kolker</a>, <a href="https://leg.colorado.gov/legislators/kevin-priola" target="_blank" rel="noreferrer noopener">Sen. Kevin Priola</a></p>



<p><strong>Bill status:</strong> Signed into law.</p>



<p><strong>Position:</strong> As fiduciaries, the PERA Board supports restoring the missed direct distribution.</p>



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<h2 class="wp-block-heading" id="hb22-1057"><a href="https://leg.colorado.gov/bills/hb22-1057" target="_blank" rel="noreferrer noopener">HB22-1057</a></h2>



<h3 class="wp-block-heading" id="public-employees-retirement-association-employment-after-teacher-retirement">Public Employees&#8217; Retirement Association Employment After Teacher Retirement</h3>



<p><strong>Bill summary:</strong> Under current law, PERA retirees are limited in how many days they can work after retirement without reducing their benefit. This bill would temporarily waive those limits for qualified service retirees working as substitute teachers in any school district while there are critical substitute teacher shortages.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/mary-bradfield" target="_blank" rel="noreferrer noopener">Rep. Mary Bradfield</a>, <a href="https://leg.colorado.gov/legislators/barbara-mclachlan">Rep. Barbara McLachlan</a>, <a href="https://leg.colorado.gov/legislators/rob-woodward">Sen. Rob Woodward</a></p>



<p><strong>Bill status:</strong> Signed into law.</p>



<p><strong>Position:</strong> Expanding working after retirement provisions to allow retirees to work without a reduction will increase PERA’s liabilities. As fiduciaries, pursuant to its funding policy, the PERA Board opposes legislation that increases liabilities or reduces contributions until PERA is fully funded.</p>



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<h2 class="wp-block-heading" id="hb22-1087"><a href="https://leg.colorado.gov/bills/hb22-1087" target="_blank" rel="noreferrer noopener">HB22-1087</a></h2>



<h3 class="wp-block-heading" id="special-district-director-retirement-benefits">Special District Director Retirement Benefits</h3>



<p><strong>Bill summary:</strong> Special district board members are considered employees of the special district, and under current law their compensation is subject to PERA contributions as PERA members (if the special district is an employer affiliated with PERA). This bill would exclude special district board members who begin their service on or after July 1, 2022 from being eligible for membership in PERA for the service as directors.</p>



<p><strong>Sponsor:</strong> <a href="https://leg.colorado.gov/legislators/edie-hooton" target="_blank" rel="noreferrer noopener">Rep. Edie Hooton</a>, <a href="https://leg.colorado.gov/legislators/andres-pico" target="_blank" rel="noreferrer noopener">Rep. Andres Pico</a></p>



<p><strong>Bill status:</strong> Signed into law.</p>



<p><strong>Position: </strong>The PERA Board does not have a position on this bill as it has no actuarial impact on the fund.</p>



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<h2 class="wp-block-heading" id="hb22-1101"><a href="https://leg.colorado.gov/bills/hb22-1101" target="_blank" rel="noreferrer noopener">HB22-1101</a></h2>



<h3 class="wp-block-heading" id="public-employees-retirement-association-service-retiree-employment-in-rural-schools">Public Employees’ Retirement Association Service Retiree Employment in Rural Schools</h3>



<p><strong>Bill summary:</strong> This bill would expand provisions, currently scheduled to repeal on July 1, 2023, that allow PERA service retirees to work full-time as a teacher, school bus driver, or school food services cook, without a reduction in benefits, for a rural school district that has determined there is a critical shortage of qualified individuals for these positions. The bill eliminates the scheduled repeal date and adds school nurses and paraprofessionals to the list of eligible employees.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/barbara-mclachlan" target="_blank" rel="noreferrer noopener">Rep. Barbara MacLachlan</a>, <a href="https://leg.colorado.gov/legislators/marc-catlin" target="_blank" rel="noreferrer noopener">Rep. Marc Catlin</a>, <a href="https://leg.colorado.gov/legislators/jerry-sonnenberg" target="_blank" rel="noreferrer noopener">Sen. Jerry Sonnenberg</a>, <a href="https://leg.colorado.gov/legislators/rachel-zenzinger" target="_blank" rel="noreferrer noopener">Sen. Rachel Zenzinger</a></p>



<p><strong>Bill status:</strong> Signed into law.</p>



<p><strong>Position:</strong> Expanding working after retirement provisions to allow retirees to work without a reduction will increase PERA’s liabilities. As fiduciaries, pursuant to its funding policy, the PERA Board opposes legislation that increases liabilities or reduces contributions until PERA is fully funded.</p>


2022 Proposed Legislation Status


<p>When Colorado’s lawmakers convene at the State Capitol on Jan. 12, they’ll begin the 120-day process of proposing, debating, and deciding on bills that could change state law. With only about four months to decide on hundreds of bills, it’s a busy, fast-paced time at the Capitol.</p>



<p>It’s also a busy time for Michael Steppat, Colorado PERA’s Public &amp; Government Affairs Manager. He tracks legislation affecting PERA, maintains relationships with legislators, oversees lobbying, and more.</p>



<p>PERA On The Issues sat down with Steppat to get his perspective on the upcoming legislative session and the issues lawmakers might decide to tackle this year.</p>



<h5 class="wp-block-heading"><strong>Can you explain your role and the work you do on behalf of PERA and its stakeholders?</strong></h5>



<div class="wp-block-image"><figure class="alignright size-full is-resized"><img decoding="async" loading="lazy" src="https://content.copera.org/what-to-expect-in-colorados-2022-legislative-session/"PERA Public &amp; Government Affairs Manager Michael Steppat" class="wp-image-2734" width="225" height="281"/><figcaption>PERA Public &amp; Government Affairs Manager Michael Steppat</figcaption></figure></div>



<p>The Colorado General Assembly is responsible for many aspects of PERA, including contribution rates and benefit levels, while the Board is responsible for overseeing PERA’s investments and the administration of benefits. PERA staff provide regular updates to the legislature so lawmakers can make informed decisions on issues that affect our members.</p>



<p>I represent PERA at the Capitol. I monitor and report on legislative activity, build and maintain relationships with legislators and other stakeholders, and oversee lobbying efforts. I also serve as the liaison for legislative committee staff.</p>



<p>It’s important that PERA is represented and can provide education to legislators — especially given legislator turnover at the State Capitol because of term limits — on the impact of proposed legislation to PERA’s active members and retirees.</p>



<h5 class="wp-block-heading"><strong>Last year’s legislative session was an unusual one due to the COVID-19 pandemic. Will lawmakers be returning to a more “normal” session this year?</strong></h5>



<p>Last year, the General Assembly gaveled in to begin the session in January and then immediately hit “pause” on the session for several months due to COVID-19. We don’t expect the same thing to happen this year — all indications are that lawmakers will convene and begin the session as usual.</p>



<h5 class="wp-block-heading"><strong>We know lawmakers plan to introduce a bill to make up the state’s </strong><a href="https://peraontheissues.com/legislative-committee-seeks-to-make-up-missed-225m-payment-to-pera/" target="_blank" rel="noreferrer noopener"><strong>missed $225M payment to PERA</strong></a><strong> from 2020. What other issues do you anticipate seeing?</strong></h5>



<p>It’s possible we’ll see legislation pertaining to <a href="https://www.copera.org/retirees/working-after-retirement" target="_blank" rel="noreferrer noopener">working after retirement</a> laws, especially given the pandemic-related shortages of qualified teachers and other staff in rural school districts. There will likely be a fossil fuel <a href="https://www.copera.org/investments/divestment" target="_blank" rel="noreferrer noopener">divestment</a>-related bill, which was introduced last session as well. &nbsp;</p>



<p>There are more than five hundred bills introduced every session on a variety of issues, but the bills we can expect to be at the top of most legislators’ to-do lists next year include many of the usual hot topics like the state budget, health care and education.</p>



<h5 class="wp-block-heading"><strong>Our members and retirees often ask if anything is being done about the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). Is there anything the state legislature can do about those provisions?</strong></h5>



<p>The WEP and GPO are two separate provisions in federal law that are specific to Social Security. It would require Congress to pass legislation for there to be any changes to those provisions. Last year, two bills were introduced that would repeal or change the WEP and GPO, but there has been no further action on either from lawmakers in DC. The efforts to drive this change over the past few years have, unfortunately, proved fruitless and the cost of such proposals is often mentioned as the reason. It is important for members and retirees to contact their representative or senator to have their voice heard on federal issues like this one.</p>



<h5 class="wp-block-heading"><strong>Does PERA take a position on proposed legislation?</strong></h5>



<p>Yes, the Board of Trustees determines PERA’s legislative agenda and positions on bills in accordance with Board policies.</p>



<h5 class="wp-block-heading"><strong>How can PERA members and retirees stay up-to-date and get involved in the process?</strong></h5>



<p><em>PERA On The Issues</em>&nbsp;is a good place to start — our biweekly <a href="https://www.copera.org/what-to-expect-in-colorados-2022-legislative-session" target="_blank" rel="noreferrer noopener" class="broken_link">newsletter</a> will be up-to-date on any legislation that affects PERA. We also encourage people to follow the <a href="https://facebook.com/coloradoretirementactioncenter" target="_blank" rel="noreferrer noopener" class="broken_link">Colorado Retirement Action Center on Facebook</a> and sign up for the PERA Ambassadors newsletter <a href="https://www.copera.org/what-to-expect-in-colorados-2022-legislative-session" target="_blank" rel="noreferrer noopener" class="broken_link">here</a>.</p>



<p>In addition, the General Assembly&nbsp;<a href="https://leg.colorado.gov/" target="_blank" rel="noreferrer noopener">website</a>&nbsp;has lots of great information. You can listen to&nbsp;<a href="https://leg.colorado.gov/content/committees" target="_blank" rel="noreferrer noopener">committee meetings</a>, view&nbsp;calendars, review the&nbsp;<a href="https://leg.colorado.gov/bills" target="_blank" rel="noreferrer noopener">status of a bill</a>, and sign up to testify at committee meetings.</p>



<p>Most importantly, we encourage PERA members and retirees to contact their&nbsp;<a href="https://leg.colorado.gov/legislators" target="_blank" rel="noreferrer noopener">legislators</a>&nbsp;about issues that are important to them.</p>


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