Retirement insights from a Colorado PERA perspective

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

The 2025 legislative session commenced January 8 and will continue for up to 120 days.



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



Last updated: February 19, 2025



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<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb25-028" target="_blank" rel="noreferrer noopener">SB25-028</a></h2>



<h3 class="wp-block-heading">Public Employees&#8217; Retirement Association Risk-Reduction Measures</h3>



Summary: Codifies into state law certain reporting practices the PERA Board already performs on a regular basis and modifies the cadence of those reports, including actuarial experience studies and independent reviews of actuarial audits.



<a href="Sponsors: Rep. Eliza Hamrick, Rep. Rick Taggart, Sen. Chris Kolker">Sponsors: Rep. Eliza Hamrick, Rep. Rick Taggart, Sen. Chris Kolker</a>



Status: Passed third reading in Senate; introduced in House Feb. 18.



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb25-1052" target="_blank" rel="noreferrer noopener">HB25-1052</a></h2>



<h3 class="wp-block-heading">Income Tax Credit for Public Employees&#8217; Retirement Association Retirees</h3>



Summary: Creates a temporary refundable tax credit of $700 for qualifying PERA retirees. To qualify, a retiree would have to be 65 or older at the end of tax year 2025 or 2026, and have annual gross income of no more than $38,000 for single tax filers or $76,000 for joint filers.



Sponsors: <a href="https://leg.colorado.gov/legislators/eliza-hamrick" target="_blank" rel="noreferrer noopener">Rep. Eliza Hamrick</a>, <a href="https://leg.colorado.gov/legislators/rick-taggart" target="_blank" rel="noreferrer noopener">Rep. Rick Taggart</a>, <a href="https://leg.colorado.gov/legislators/chris-kolker" target="_blank" rel="noreferrer noopener">Sen. Chris Kolker</a>



Status: House Finance Committee voted to postpone indefinitely Jan. 27.



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb25-1105" target="_blank" rel="noreferrer noopener">HB25-1105</a></h2>



<h3 class="wp-block-heading">PERA True-Up of Denver Public Schools Division Employer Contribution</h3>



Summary: Would reduce the total employer contribution rate for the Denver Public Schools Division from 10.4% to 7.4% of salary beginning July 1, 2025.



Sponsors: <a href="https://leg.colorado.gov/legislators/sean-camacho" target="_blank" rel="noreferrer noopener">Rep. Sean Camacho</a>



Status: Introduced Jan. 27; scheduled for hearing in House Finance Committee March 6.



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb25-1150" target="_blank" rel="noreferrer noopener">HB25-1150</a></h2>



<h3 class="wp-block-heading">Forfeiture of PERA Benefits by Sex Offenders</h3>



Summary: Requires a PERA member to forfeit part of their retirement benefits should that individual be convicted of a sex crime. It would also establish a new fund into which forfeited benefits would be transferred and these monies would be used to provide grants to survivors of a sex crime for necessary medical and mental health resources.



Sponsors: <a href="https://leg.colorado.gov/legislators/ron-weinberg" target="_blank" rel="noreferrer noopener">Rep. Ron Weinberg</a>



Status: Introduced Jan. 29; scheduled for hearing in House Finance Committee Feb. 24.



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">SB25-147</a></h2>



<h3 class="wp-block-heading">Modify Board Management PERA</h3>



Summary: Would modify a number of provisions under current law related to the PERA Board of Trustees, including changes to how PERA is designated for purposes of open meetings laws, establishing term limits for Trustees, and requiring that certain financial information, including various administrative costs and other expenses, be posted on PERA&#8217;s website and updated on an annual basis.



Sponsors: <a href="https://leg.colorado.gov/legislators/byron-pelton" target="_blank" rel="noreferrer noopener">Sen. Byron Pelton</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/lori-garcia-sander" target="_blank" rel="noreferrer noopener">Rep. Lori Garcia Sander</a>, <a href="https://leg.colorado.gov/legislators/meghan-lukens" target="_blank" rel="noreferrer noopener">Rep. Meghan Lukens</a>



Status: Introduced Feb. 5; scheduled for hearing in Senate Finance Committee Feb. 25.



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb25-136" target="_blank" rel="noreferrer noopener">SB25-136</a></h2>



<h3 class="wp-block-heading">Expand Deduction for Retirement Benefits</h3>



Summary: For tax years commencing on or after Jan. 1, 2026, would remove all caps on the deduction for amounts received as pensions and annuities from the individual&#8217;s federal taxable income when determining the individual&#8217;s state taxable income.



Sponsors: <a href="https://leg.colorado.gov/legislators/byron-pelton" target="_blank" rel="noreferrer noopener">Sen. Byron Pelton</a>, <a href="https://leg.colorado.gov/legislators/ryan-gonzalez" target="_blank" rel="noreferrer noopener">Rep. Ryan Gonzalez</a>



Status: Introduced Feb. 5; scheduled for hearing in Senate State, Veterans, &amp; Military Affairs Committee Feb. 27.

2025 Proposed PERA-Related Legislation Status

That’s a wrap—Colorado’s 2024 legislative session has come to an end.



Each session, legislators introduce hundreds of new bills, and it’s not unusual for some of them to pertain to PERA and its members. This year, lawmakers proposed nine PERA-related bills.



By the end of the session on May 8, six of those nine bills had passed and were either signed into law or will be sent to Gov. Jared Polis for action.



Below is a summary of the bills that passed. For information on the other proposed bills,&nbsp;<a href="https://peraontheissues.com/2024-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">click here</a>.



<h4 class="wp-block-heading">Working after retirement</h4>



Lawmakers approved two bills that expand the number of PERA retirees who can return to work without a reduction in their benefits, both of which Gov. Polis signed into law.



Under current law, all PERA retirees may work up to 110 days or 720 hours per calendar year for one or more PERA employer(s) without a reduction in their retirement benefits. In addition to the 110 days for all retirees, employers in the School and Denver Public Schools (DPS) divisions, as well as each state college or university, can designate up to 10 retirees who are permitted to work up to 140 days or 916 hours per calendar year without reductions to their PERA benefits.&nbsp;<a href="https://leg.colorado.gov/bills/hb24-1044" target="_blank" rel="noreferrer noopener">House Bill 1044</a>&nbsp;will allow districts with more than 10,000 students to designate an additional retiree for each thousand students over 10,000.



Also, rural school districts can declare a critical shortage of qualified teachers, school bus drivers, food service workers, school nurses, or paraprofessionals and hire PERA retirees to fill those positions without having their retirement benefits reduced.&nbsp;<a href="https://leg.colorado.gov/bills/sb24-099" target="_blank" rel="noreferrer noopener">Senate Bill 99</a>&nbsp;adds principals and superintendents to the list of qualified positions.



RELATED:&nbsp;<a href="https://content.copera.org/state-lawmakers-pass-six-pera-related-bills-in-2024-legislative-session/" target="_blank" rel="noreferrer noopener">Understanding the Financial Impact of Working After Retirement</a>



<h4 class="wp-block-heading">Actuarial study</h4>



<a href="https://leg.colorado.gov/bills/hb24-1427" target="_blank" rel="noreferrer noopener">House Bill 1427</a>&nbsp;calls for the State Auditor, in cooperation with PERA, to enlist an independent actuarial firm experienced with public pensions to conduct a comprehensive study comparing the cost and effectiveness of the PERA&nbsp;Defined Benefit&nbsp;Plan to alternative plan designs, as well as providing an analysis of certain aspects of PERA current&nbsp;defined benefit&nbsp;and&nbsp;defined contribution&nbsp;plans.



As Colorado’s public workforce evolves, it’s important that Colorado PERA remain flexible enough to meet the membership’s changing needs. This study will help policymakers assess PERA’s continued value in recruiting and retaining a highly qualified public workforce in the years ahead.



READ MORE:&nbsp;<a href="https://www.copera.org/state-lawmakers-pass-six-pera-related-bills-in-2024-legislative-session" target="_blank" rel="noreferrer noopener" class="broken_link">Lawmakers Pass Bill to Refresh Study on Value of PERA’s&nbsp;Defined Benefit&nbsp;Plan</a>



<h4 class="wp-block-heading">Other PERA provisions</h4>



Other bills that passed the Legislature made minor adjustments to PERA membership provisions by expanding the definition of “State Trooper” for the purpose of PERA benefits.



<a href="https://leg.colorado.gov/bills/sb24-169" target="_blank" rel="noreferrer noopener">Senate Bill 169</a>&nbsp;expands the definition of State Trooper for the purpose of PERA benefits to include duly sworn employees of the Division of Fire Prevention and Control in the Department of Public Safety whose duties include structural or wildfire management, wildfire response, live-fire training, or wildfire leadership, as determined by the executive director of the department.



<a href="https://leg.colorado.gov/bills/sb24-186" target="_blank" rel="noreferrer noopener">Senate Bill 186</a>&nbsp;expands the definition of State Trooper for the purpose of PERA benefits to include county coroners and deputy coroners.



Another bill,&nbsp;<a href="https://leg.colorado.gov/bills/sb24-013" target="_blank" rel="noreferrer noopener">Senate Bill 13</a>, seeks to establish salary parity among publicly funded lawyers in the criminal justice system. The introduced version of the bill also included a provision related to PERA, but this was removed from the final bill passed by the Legislature.

State Lawmakers Pass Six PERA-Related Bills in 2024 Legislative Session

The 2024 legislative session commenced January 10 and ended on May 8.



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



Last updated: June 10, 2024



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<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb24-1044" target="_blank" rel="noreferrer noopener">HB24-1044</a></h2>



<h3 class="wp-block-heading">Additional PERA Service Retirees for Schools</h3>



Summary: Under current law, employers in the School and Denver Public Schools (DPS) divisions can designate up to 10 retirees who are permitted to work up to 140 days or 916 hours per calendar year without reductions to their PERA benefits. This bill would allow districts with more than 10,000 students to designate an additional retiree for each thousand students over 10,000.



Sponsors: <a href="https://leg.colorado.gov/legislators/eliza-hamrick" target="_blank" rel="noreferrer noopener">Rep. Eliza Hamrick</a>, <a href="https://leg.colorado.gov/legislators/rick-taggart" target="_blank" rel="noreferrer noopener">Rep. Rick Taggart</a>, <a href="https://leg.colorado.gov/legislators/chris-hansen" target="_blank" rel="noreferrer noopener">Sen. Chris Hansen</a>



Status: Passed; signed into law April 19



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb24-013" target="_blank" rel="noreferrer noopener">SB24-013</a></h2>



<h3 class="wp-block-heading">District Attorneys&#8217; Salaries</h3>



Summary: Would increase the minimum compensation for district attorneys and assistant district attorneys, as well as allow the board(s) of county commissioners of counties that make up a judicial district, in consultation with the district attorney, to make a one-time irrevocable election to require an assistant district attorney to become a member of the PERA Defined Benefit Plan.



Sponsors: <a href="https://leg.colorado.gov/legislators/bob-gardner" target="_blank" rel="noreferrer noopener">Sen. Bob Gardner</a>, <a href="https://leg.colorado.gov/legislators/nick-hinrichsen" target="_blank" rel="noreferrer noopener">Sen. Nick Hinrichsen</a>, <a href="https://leg.colorado.gov/legislators/barbara-mclachlan" target="_blank" rel="noreferrer noopener">Rep. Barbara McLachlan</a>



Status: Passed; the bill was amended to remove the portion pertaining to participation in the PERA&nbsp;Defined Benefit&nbsp;Plan.



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb24-044" target="_blank" rel="noreferrer noopener">SB24-044</a></h2>



<h3 class="wp-block-heading">Public Employees&#8217; Retirement Association Retiree Refundable Income Tax Credit</h3>



Summary: Would create a temporary tax credit of $700 for qualified PERA retirees in tax years 2024 and 2025. To qualify, a retiree would have to be 65 or older at the end of the tax year during which the credit is claimed, and have annual gross income of no more than $38,000 for single tax filers or $76,000 for joint filers.



Sponsors: <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/chris-hansen" target="_blank" rel="noreferrer noopener">Sen. Chris Hansen</a>, <a href="https://leg.colorado.gov/legislators/eliza-hamrick" target="_blank" rel="noreferrer noopener">Rep. Eliza Hamrick</a>, <a href="https://leg.colorado.gov/legislators/cathy-kipp" target="_blank" rel="noreferrer noopener">Rep. Cathy Kipp</a>



Status: Did not pass House Appropriations Committee



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb24-099" target="_blank" rel="noreferrer noopener">SB24-099</a></h2>



<h3 class="wp-block-heading">Public Employees&#8217; Retirement Association Employment after Retirement for Rural Schools</h3>



Summary: Under current law, rural school districts can declare a critical shortage of qualified teachers, school bus drivers, food service workers, school nurses, or paraprofessionals and hire PERA retirees to fill those positions without having their retirement benefits reduced. This bill adds principals and superintendents to the list of qualified positions.



Sponsors: <a href="https://leg.colorado.gov/legislators/rod-pelton" target="_blank" rel="noreferrer noopener">Sen. Rod Pelton</a>, <a href="https://leg.colorado.gov/legislators/janice-marchman" target="_blank" rel="noreferrer noopener">Sen. Janice Marchman</a>, <a href="https://leg.colorado.gov/legislators/ty-winter" target="_blank" rel="noreferrer noopener">Rep. Ty Winter</a>, <a href="https://leg.colorado.gov/legislators/barbara-mclachlan" target="_blank" rel="noreferrer noopener">Rep. Barbara McLachlan</a>



Status: Passed; signed into law April 11



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb24-1159" target="_blank" rel="noreferrer noopener">HB24-1159</a></h2>



<h3 class="wp-block-heading">Contracted Private Employee Exclusion from Public Employees&#8217; Retirement Association</h3>



Summary: Imposes a moratorium until June 30, 2025, during which PERA is prohibited from including in its membership an employee of a third-party private entity that contracts with a public entity to perform services.



Sponsors: <a href="https://leg.colorado.gov/legislators/don-wilson" target="_blank" rel="noreferrer noopener">Rep. Don Wilson</a>



Status: Postponed indefinitely



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb24-1169" target="_blank" rel="noreferrer noopener">HB24-1169</a></h2>



<h3 class="wp-block-heading">Repeal Divest from Companies with Israel Prohibitions Law</h3>



Summary: In 2016, the general assembly enacted HB16-1284, which requires PERA to periodically identify all companies that have economic prohibitions against Israel and to divest all direct holdings of those companies from its assets and prohibits PERA from acquiring new direct holdings in any of those companies. This bill would repeal the statutory provisions enacted in HB16-1284.



Sponsors: <a href="https://leg.colorado.gov/legislators/elisabeth-epps" target="_blank" rel="noreferrer noopener">Rep. Elisabeth Epps</a>



Status: Postponed indefinitely



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb24-169" target="_blank" rel="noreferrer noopener">SB24-169</a></h2>



<h3 class="wp-block-heading">State Firefighter Public Employees’ Retirement Association Job Classification</h3>



Summary:&nbsp;Would expand the definition of State Trooper for the purpose of PERA benefits to include duly sworn employees of the Division of Fire Prevention and Control in the Department of Public Safety whose duties include structural or wildfire management, wildfire response, live-fire training, or wildfire leadership, as determined by the executive director of the department.



Sponsor:&nbsp;<a href="https://leg.colorado.gov/legislators/tony-exum">Sen. Tony Exum</a>



Status:&nbsp;Passed; signed into law May 24



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb24-186">SB24-18</a><a href="https://leg.colorado.gov/bills/sb24-186" target="_blank" rel="noreferrer noopener">6</a></h2>



<h3 class="wp-block-heading">County Coroner &amp; Deputy Coroner Public Employees’ Retirement Association Eligibility</h3>



Summary:&nbsp;Would expand the definition of State Trooper for the purpose of PERA benefits to include county coroners and deputy coroners.



Sponsor:&nbsp;<a href="https://leg.colorado.gov/legislators/janice-marchman">Sen. Janice Marchman</a>



Status:&nbsp;Passed; signed into law June 5



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb24-1427" target="_blank" rel="noreferrer noopener">HB24-1427</a></h2>



<h3 class="wp-block-heading">Public Employees’ Retirement Association Study Conducted by an Actuarial Firm</h3>



Summary:&nbsp;Requires the state auditor, in cooperation with PERA, to contract an independent actuarial firm experienced with public pension plans to conduct a comprehensive study comparing the cost and effectiveness of the current&nbsp;hybrid&nbsp;Defined Benefit&nbsp;plan design to alternative plan designs, as well as providing an analysis of certain aspects of PERA’s current&nbsp;Defined Benefit&nbsp;and&nbsp;defined contribution&nbsp;plans.



Sponsors:&nbsp;<a href="https://leg.colorado.gov/legislators/shannon-bird" target="_blank" rel="noreferrer noopener">Rep. Shannon Bird</a>,&nbsp;<a href="https://leg.colorado.gov/legislators/rick-taggart" target="_blank" rel="noreferrer noopener">Rep. Rick Taggart</a>,&nbsp;<a href="https://leg.colorado.gov/legislators/jeff-bridges" target="_blank" rel="noreferrer noopener">Sen. Jeff Bridges</a>,&nbsp;<a href="https://leg.colorado.gov/legislators/rachel-zenzinger" target="_blank" rel="noreferrer noopener">Sen. Rachel Zenzinger</a>



Status:&nbsp;Passed; signed into law April 18

2024 Proposed Legislation Status

<a href="https://peraontheissues.com/2024-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">Click here</a> for the latest information on proposed PERA-related legislation.



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The second regular session of the 74th Colorado General Assembly got underway on January 10, and lawmakers will spend the following 120 days introducing and debating hundreds of bills that could alter state law.



Colorado PERA’s representative at the State Capitol, Public and Government Affairs Manager Michael Steppat, helps make sure legislators understand how PERA works and how legislation affects PERA and its members. We caught up with Steppat to discuss the upcoming session.



<h5 class="wp-block-heading">How and why does PERA engage in the legislative process?</h5>



While the PERA Board of Trustees is responsible for administering benefits and overseeing PERA’s investments, the General Assembly is responsible for many other aspects of PERA, such as contribution rates, benefit levels, and the amount of the annual benefit increases that retirees receive.



During and between sessions, PERA staff provide regular updates to the Legislature so lawmakers can make informed decisions on issues that affect our members.



<h5 class="wp-block-heading">What are some of the issues we expect to come up this session?</h5>



Last year’s session was an interesting one that included several legislators stepping down. As a result, legislative leaders from both parties have expressed a desire for more decorum heading in to the 2024 legislative session.



The Democratic majority remains in place at the Capitol, and there aren’t any statewide offices up for election this year. It’s likely the new session will see bills continuing to address the rise in property taxes across the state, which was addressed temporarily during the special session a couple months ago, but work continues on finding a long-term solution. Additionally, included in the Governor’s budget proposal is a request to buy down the state’s budget stabilization factor, which was created during the Great Recession and diverted money from Colorado’s public schools. This would be a huge investment in K-12 funding and should receive bipartisan support. Some of the other priority issues relate to others that lawmakers have tackled in recent years, such as affordable housing and the increasing cost of health care.



PERA doesn’t typically garner the same level of attention as other public policy issues during legislative sessions, but we already know about <a href="https://peraontheissues.com/pension-review-commission-eyes-two-bills-for-2024-legislative-session/" target="_blank" rel="noreferrer noopener">two bills that lawmakers intend to introduce</a> this year. These two bills are among 54 total which lawmakers have already approved for introduction after being recommended by legislative interim committees that have met since the 2023 legislative session concluded. One of those bills would expand the number of PERA retirees who can work for school districts without reductions in their benefits, and the other would provide a temporary tax credit to PERA retirees. The latter is an attempt from lawmakers to address concerns from folks regarding a larger annual benefit increase, but doing so in a way that does not negatively affect PERA’s funding status.



<blockquote class="wp-block-quote">
READ MORE: <a href="https://peraontheissues.com/pension-review-commission-eyes-two-bills-for-2024-legislative-session/" target="_blank" rel="noreferrer noopener">Pension Review Commission Eyes Two Bills for 2024 Legislative Session</a>
</blockquote>



<h5 class="wp-block-heading">Speaking of funding, do you have a sense of what the state’s next budget looks like?</h5>



Gov. Jared Polis released his budget proposal in November, and while the Legislature ultimately decides the state budget, it’s an important first step in the process. His proposal calls for increases in education funding and pay raises for teachers, among other things. Lawmakers will release their own draft of the budget, known as the Long Bill, in March. It’s important to note the state budget does not directly affect PERA’s funding, but it does affect funding for many of PERA’s employers.



<h5 class="wp-block-heading">Is there anything happening at the federal level that could affect politics here in Colorado?</h5>



2024 is a presidential election year, and this time around, Colorado will be one of 14 states holding primaries on Super Tuesday in March. That means Colorado voters will have their voices heard earlier in the campaign process than in years past, and it’s likely candidates will make stops in our state.



In addition, the 2023-2024 Congress continues, and lawmakers <a href="https://peraontheissues.com/an-update-on-2023-wep-gpo-legislation/" target="_blank" rel="noreferrer noopener">have introduced several bills</a> that would modify or repeal Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). We often hear from PERA members about these provisions and their effects on Social Security benefits, and we will continue to monitor and update our stakeholders if Congress decides to take action on those bills.



<blockquote class="wp-block-quote">
READ MORE: <a href="https://peraontheissues.com/an-update-on-2023-wep-gpo-legislation/" target="_blank" rel="noreferrer noopener">An Update on 2023 WEP/GPO Legislation</a>
</blockquote>



<h5 class="wp-block-heading">What’s the best way for people to get involved in the legislative process?</h5>



I always tell people the most important thing they can do is 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. 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.



And of course&nbsp;the PERA On The Issues&nbsp;biweekly&nbsp;<a href="https://www.copera.org/ambassador-program" target="_blank" rel="noreferrer noopener">newsletter</a>&nbsp;will have up-to-date information on any legislation that affects PERA. We also encourage people to sign up for the PERA Ambassadors newsletter <a href="https://www.copera.org/ambassador-program">here</a>.

What to Expect in the 2024 Legislative Session

It was a sprint to the finish line as lawmakers finished their work on hundreds of bills in the final days of the 2023 legislative session.



Colorado’s first regular session of the 74th General Assembly ended on May 8, 2023. Over the course of 120 days, legislators took up seven bills affecting Colorado PERA. Here’s a brief summary of the three that passed and are awaiting the signature of Gov. Polis to become law.



<a href="https://leg.colorado.gov/bills/sb23-016" target="_blank" rel="noreferrer noopener">Senate Bill 23-016</a> includes multiple provisions that are meant to reduce greenhouse gas emissions in the state. The PERA-related provision in the bill requires a description of climate-related investment risks, impacts, and strategies to be included as part of PERA’s annual <a href="https://www.copera.org/investment-stewardship" target="_blank" rel="noreferrer noopener">Investment Stewardship Report</a>.



<a href="https://leg.colorado.gov/bills/sb23-056" target="_blank" rel="noreferrer noopener">Senate Bill 23-056</a> requires the state to make an additional payment to PERA in the amount of the remaining balance of the <a href="https://leg.colorado.gov/bills/sb21-228" target="_blank" rel="noreferrer noopener">PERA Payment Cash Fund</a>, plus $10 million in General Fund, which results in a total payment of approximately $14.5 million. This payment is intended to recompense PERA for the cancellation of a previously scheduled July 1, 2020, direct distribution of $225 million, in addition to the compensatory payment provided in <a href="https://leg.colorado.gov/bills/hb22-1029" target="_blank" rel="noreferrer noopener">previous legislation</a>.



<a href="https://leg.colorado.gov/bills/sb23-163" target="_blank" rel="noreferrer noopener">Senate Bill 23-163</a> modifies the definition of “State Trooper” to include wildlife officers and parks and recreation officers hired on or after January 1, 2011, by Colorado Parks and Wildlife in the Department of Natural Resources. It applies the State Trooper contribution rate and benefits to eligible employees and their employers effective July 1, 2023. Those individuals who qualify under this definition in state statute are commonly referred to as “safety officers” for the purposes of PERA benefits in our materials.



Four other bills affecting PERA were introduced but did not pass. Read more about them <a href="https://peraontheissues.com/2023-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">here</a>.



PERA will continue to engage with lawmakers during the interim period between legislative sessions. That oversight process includes meeting with legislative panels on the Legislative Audit Committee, Pension Review Commission and Subcommittee, and the Joint Budget Committee. These are opportunities for PERA to provide updates on its policies, financial condition, administration of the association, and answer questions from lawmakers.

Colorado Legislators Pass Three PERA-Related Bills During 2023 Legislative Session

In our recent <a href="https://peraontheissues.com/test-your-knowledge-of-pera-benefits/" target="_blank" rel="noreferrer noopener">quiz about PERA benefits</a>, there was one question that seemed to trip a lot of people up, and it had to do with the PERA Board of Trustees:



Which of the following is the PERA Board of Trustees responsible for setting?



<ul>
<li>A: Employee and employer contribution rates</li>



<li>B: Annual benefit increase amounts</li>



<li>C: Benefit eligibility requirements</li>



<li>D: All of the above</li>



<li>E: None of the above</li>
</ul>



The correct answer is E: None of the above. While the Board is tasked with overseeing PERA operations, it isn’t directly responsible for setting many of the benefits that members receive.



PERA governance and operations are split between three main entities: The state legislature, the PERA Board, and PERA staff.



<h4 class="wp-block-heading">The legislature and state law</h4>



The state legislature established PERA as an instrumentality of the state in 1931. PERA and its benefits continue to be governed under Title 24, Article 51 of the Colorado Revised Statutes, also known as <a href="https://content.copera.org/what-roles-do-the-general-assembly-and-board-play-at-pera/" target="_blank" rel="noreferrer noopener">PERA Law</a>.



State statute lays out in detail the various provisions that determine who receives PERA benefits, when, and how much they receive, including:



<ul>
<li>Contribution amounts</li>



<li>How service credit can be accrued and purchased</li>



<li>Benefit options and eligibility</li>



<li>Annual benefit increases</li>
</ul>



Because the legislature is responsible for setting benefits, any changes to PERA benefits must also happen at the State Capitol. Change happens when lawmakers bring forth a bill, which then makes its way through the <a href="https://www.youtube.com/watch?v=WLOeY1h1TFo" target="_blank" rel="noreferrer noopener">legislative process</a> with a majority vote in the House and Senate, along with the governor’s signature. Neither the Board nor PERA staff have the power to change any of the provisions set in statute.



So far this year, lawmakers have introduced more than a half-dozen bills pertaining to PERA and its members. <a href="https://peraontheissues.com/2023-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">Click here</a> for the latest on where those bills stand.



The legislature also conducts routine oversight of PERA. Various legislative panels meet regularly with PERA leadership and staff, including the Legislative Audit Committee, the House and Senate Finance Committees, the Joint Budget Committee, the Pension Review Commission and the Pension Review Subcommittee.



<h4 class="wp-block-heading">The PERA Board of Trustees</h4>



The <a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">PERA Board</a> is made up of 16 members: three Trustees appointed by the Governor and confirmed by the Senate; four members from the School Division; three members from the State Division; one member from the Local Government Division; one Judicial Division member; two PERA retirees; a non-voting representative from the DPS Division; and the State Treasurer as an ex officio, voting member. As fiduciaries, the Board has a responsibility to act in the best interests of PERA members.



While the legislature sets benefits and other important plan provisions, the PERA Board is responsible for administering those benefits and overseeing PERA operations and management. The Board’s <a href="https://www.copera.org/about/board-of-trustees" target="_blank" rel="noreferrer noopener" class="broken_link">Governance Manual</a>, which adheres to best practices in public pension governance, defines these responsibilities. They include:



<ul>
<li>Setting rules and policy for PERA administration</li>



<li>Establishing organizational priorities and strategies</li>



<li>Overseeing PERA’s investment program</li>
</ul>



The Board also reviews and releases various important reports each year. That includes the Annual Comprehensive Financial Report (ACFR), which provides details about PERA’s financial status, funded status and membership statistics. The ACFR will be available following the Board’s June meeting.



<h4 class="wp-block-heading">PERA staff</h4>



While the legislature and Board establish policy and rules, PERA staff are responsible for administering plan benefits and managing day-to-day operations. PERA currently employs approximately 300 people who work every day to meet the goals set out in the Board’s <a href="https://www.copera.org/what-roles-do-the-general-assembly-and-board-play-at-pera" target="_blank" rel="noreferrer noopener" class="broken_link">strategic plan</a>. Some of those duties include:



<ul>
<li>Processing employee and employer contributions</li>



<li>Managing PERA’s investments</li>



<li>Distributing retirement payments and other benefits</li>



<li>Member communications and education</li>
</ul>



Providing retirement and other benefits to nearly 650,000 members is a big job, and it’s one we take seriously. The state legislature, PERA Board, and PERA staff all play important roles in making sure Colorado’s public employees will be able to receive reliable retirement income today and for generations to come.

What Roles Do the General Assembly and Board Play at PERA?

New legislative oversight body added
under SB 200 provides additional avenue for PERA transparency



The Pension Review Subcommittee, established by Senate Bill
18-200, met for the first time on Friday, July 12. The Subcommittee was formed
to expand the Police Officers’ and Firefighters’ Pension Review Commission and
create a subcommittee within the commission to oversee PERA.



<a href="https://www.copera.org/contributions-to-colorado-pensions-lower-than-average" class="broken_link">SB 18-200</a> directed the <a href="https://leg.colorado.gov/committees/pension-review-commission/2019-regular-session">commission</a> to study, review, and propose legislation related to the funding of police offers’ and firefighters’ pensions in the state and benefit designs of such pension plans and must also study and may develop proposed legislation relating to PERA. The commission is comprised of 10 members: five Senators and five Representatives.



<figure class="wp-block-image"><img decoding="async" src="https://content.copera.org/legislative-subcommittee-meets-to-review-pera/"Pension Review Commission" class="wp-image-2532"/></figure>



As covered previously in <a href="https://content.copera.org/legislative-subcommittee-meets-to-review-pera/">PERAon the Issues</a>, four different legislative committees have oversight
responsibility of PERA. These reporting committees include the Legislative
Audit Committee, Joint Finance Committee, Joint Budget Committee, and Pension
Review Commission.



The <a href="https://leg.colorado.gov/committees/pension-review-subcommittee/2019-regular-session">Pension
Review Subcommittee</a> was tasked specifically with making recommendations to
the Commission regarding PERA. The July 12 meeting began with an overview of
the <a href="https://leg.colorado.gov/sites/default/files/images/committees/2017/r19-739_charge_memo_for_pension_review_commission_and_subcommittee_1.pdf">Subcommittee’s
responsibilities and charge from legislative staff</a>. PERA staff then <a href="https://leg.colorado.gov/sites/default/files/images/pension_review_subcommittee_7.12.19.pdf">presented
to the subcommittee members on a number of topics, with particular focus on the
2018 financials</a>. Questions from the Subcommittee covered a range of topics
including the rate of return assumption, asset allocation, and the progress of
the Board’s current Asset Liability Study. Board Chairman Timothy M. O’Brien
and Treasurer Dave Young joined the panel as well to respond to questions from
Subcommittee members. 



This newly-formed oversight subcommittee is comprised of four legislators and 10 appointed members of the public. Requirements for serving as an appointed member include experience or knowledge of investment management, corporate or public finance, compensation and benefit systems, economics, accounting, pension administration, or actuarial analysis. 



<figure class="wp-block-image"><img decoding="async" src="https://content.copera.org/legislative-subcommittee-meets-to-review-pera/"pension review commission" class="wp-image-2539"/></figure>



In addition, each subcommittee member is required to attend
certain meetings each year, as follows:



<ul>
<li>At least one <a href="https://www.copera.org/legislative-subcommittee-meets-to-review-pera" class="broken_link">PERA Board meeting</a>;</li>



<li>The Legislative Audit Committee meeting review
of PERA’s <a href="https://www.copera.org/legislative-subcommittee-meets-to-review-pera" class="broken_link">annualactuarial valuation</a>; and</li>



<li>The State Measurement for Accountable,
Responsive, and Transparent (SMART) Government Act hearing of the Joint Finance
Committee when it reviews PERA. </li>
</ul>



The Pension Review Subcommittee’s next scheduled meeting is
Monday, August 12 and the Pension Review Commission will meet for the first
time during the 2019 interim session on Monday, September 9. 



PERA staff will continue to work with legislative staff and
members of all reporting committees to provide education regarding the
importance of ensuring retirement security for PERA’s membership.

Legislative Subcommittee Meets to Review PERA

A summary of proposed legislation affecting Colorado PERA. Check back often for new bills and updated status reports. Last updated: May 20, 2019.



<hr class="wp-block-separator"/>



<h3 class="wp-block-heading"><a href="http://leg.colorado.gov/bills/hb19-1217">House Bill 19-1217</a></h3>



<h4 class="wp-block-heading">PERA Local Government Division Member Contribution Rate</h4>



Concerning the elimination of the 2 percent increase in the
member contribution rate for members in the Local Government Division.



Summary: During the 2018 Legislative session, the General
Assembly enacted <a href="https://content.copera.org/2019-proposed-legislation-status/">Senate
Bill 18-200</a>, which made modifications to PERA’s hybrid defined benefit
plan to eliminate the unfunded liability of the plan within the next 30 years.
Senate Bill 18-200 included a 2 percent increase in the member contribution
rate to PERA for employees in all divisions of PERA. The increase is phased-in
over three years with the first increase occurring on July 1, 2019. This bill
eliminates the 2 percent increase in the member contribution rate for members
in the Local Government Division.



Sponsors: <a href="http://leg.colorado.gov/legislators/kc-becker">Rep. KC Becker</a> (D-Boulder) | <a href="http://leg.colorado.gov/legislators/lois-court">Sen. Lois Court</a> (D-Denver) and <a href="http://leg.colorado.gov/legislators/jack-tate">Sen. Jack Tate</a> (R-Centennial)



Status: Passed House Third Reading on March 19; passed Senate Third Reading on April 10; signed by Governor on May 20.



PERA Board position: The Board’s original recommendation to the General Assembly presented in late 2017 included increases in employee contributions across all divisions. 



<hr class="wp-block-separator"/>



<h3 class="wp-block-heading"><a href="http://leg.colorado.gov/bills/hb19-1270">House Bill 19-1270</a></h3>



<h4 class="wp-block-heading">PERA Board Assess Climate-related Financial Risks </h4>



Concerning a requirement that the PERA Board of Trustees take certain actions in connection with climate-related financial risks to the trust funds.



Summary: The bill requires that the PERA Board of Trustees administer a selection process to retain a third-party organization with certain credentials by October 31, 2019, to perform a study to include:



<ul><li>A comprehensive analysis of any climate-related
financial risk of the association’s portfolio, and exposure of the fund to
long-term risks;</li><li>A summary of climate-related financial
risk-related engagement activities undertaken;</li><li>A description of additional action that should
be taken, or planned to be taken, by the Board to address climate-related
financial risk, including a list of proxy votes and shareholder proposals
initiated by the Board. </li></ul>



Sponsors: <a href="http://leg.colorado.gov/legislators/emily-sirota">Rep. Emily Sirota</a> (D-Denver) and <a href="http://leg.colorado.gov/legislators/chris-hansen">Rep. Chris Hansen</a> (D-Denver)



Status: Postponed indefinitely by the <a href="http://leg.colorado.gov/committees/finance/2019-regular-session-0">House Finance&nbsp;Committee</a> on April 8.



PERA Board position: The PERA Board directed staff to continue to work with the bill sponsors and members of the General Assembly to provide further education on PERA’s investment process related to risk. 



<hr class="wp-block-separator"/>

2019 Proposed Legislation Status

The First Regular Session of Colorado’s 72nd General Assembly convened on Friday, January 4, 2019. Unlike 2018, when PERA’s sustainability was a major issue at the State Capitol, the PERA Board of Trustees has not identified any legislative agenda items for consideration this year. However, bills will undoubtedly be introduced that could impact PERA.



As is typical, the first day of session was mostly ceremonial; more substantive policy discussions will begin in the coming weeks. Legislators elected in November were sworn in, and <a href="https://www.copera.org/2019-legislative-session-kicks-off" target="_blank" rel="noreferrer noopener" class="broken_link">each chamber officially approved their new leaders</a>, who were chosen shortly after the election. The leaders of each caucus then addressed the entire body regarding their priority issues for the next 120 days. Finally, the first group of bills were officially introduced. The election’s results should drive the agenda this session, and there are many issues likely to dominate the headlines through May 3.



Education



Governor Jared Polis, sworn-in January 8, made education a key part of his campaign, particularly full-day kindergarten funding and expanded access to preschool. This pledge, coupled with <a href="https://ballotpedia.org/Colorado_Amendment_73,_Establish_Income_Tax_Brackets_and_Raise_Taxes_for_Education_Initiative_(2018)" target="_blank" rel="noreferrer noopener">Amendment 73’s</a> failure at the ballot box and the Democratic sweep of the legislative branch, will lead to a much broader debate on education funding. Improving teacher salaries, increasing per-pupil funding, paying down <a href="https://www.coloradoan.com/story/news/2017/04/07/negative-factor-why-colorado-schools-crying-poverty/99823948/" target="_blank" rel="noreferrer noopener">the negative factor</a>, and addressing teacher recruitment and retention are all issues that lawmakers will seek to address.



Transportation



Two measures (<a href="https://ballotpedia.org/Colorado_Proposition_109,_%22Fix_Our_Damn_Roads%22_Transportation_Bond_Initiative_(2018)" target="_blank" rel="noreferrer noopener">Proposition 109</a> and <a href="https://www.copera.org/2019-legislative-session-kicks-off" target="_blank" rel="noreferrer noopener" class="broken_link">Proposition 110</a>) intended to increase funds dedicated to transportation projects failed on the ballot in November. This result automatically triggers a provision contained in 2018 legislation that places <a href="http://leg.colorado.gov/sites/default/files/2018a_001_signed.pdf" target="_blank" rel="noreferrer noopener">another measure on the ballot</a> in November of 2019, unless this General Assembly acts on the issue first.



Health Care



The 2019 session will surely see bills introduced dealing with health care. Many candidates campaigned on expanding access, improving quality, and driving down costs.



General Business



As a result of the State Senate flipping from Republican to Democratic control, bills from the past two years that had passed the Democratic-controlled House but were postponed indefinitely (killed) in the Republican-controlled Senate are likely to reappear. Examples include a nationwide effort to strike the criminal history box on employment applications, known as ‘ban the box;’ and the creation of a Family Medical Leave Insurance Program, or ‘FAMLI,’ that is intended to offer a state solution for paid family leave. Other proposals have included creating a state-sponsored retirement program for private sector workers and giving local governments the ability to set their own minimum wage.



Energy and the Environment



Though in November voters rejected <a href="https://ballotpedia.org/Colorado_Proposition_112,_Minimum_Distance_Requirements_for_New_Oil,_Gas,_and_Fracking_Projects_Initiative_(2018)" target="_blank" rel="noreferrer noopener">Proposition 112</a>, a statutory measure intended to increase setbacks for new oil and gas development to 2,500 feet from occupied structures or vulnerable areas, this will still be an issue at the Capitol. Other proposals mentioned by lawmakers and interest groups include a moratorium on new drilling permits and giving local communities more control over oil and gas projects, as regulation of them is currently a matter of statewide concern.



TABOR and Gallagher Amendments



Finally, many key policy issues are dependent on increased funding in an environment that is fiscally limited under current law. An interim committee met throughout the summer of 2018 to try and come up with solutions to address funding challenges by recommending changes to the <a href="https://en.wikipedia.org/wiki/Gallagher_Amendment" target="_blank" rel="noreferrer noopener">Gallagher Amendment</a>. It will be key to watch whether there is political appetite in the General Assembly to pass such a bill, and ultimately assess whether voters would approve any changes in November.



PERA staff will be actively tracking 2019 legislation closely, so stay tuned for updates throughout the session.

2019 legislative session kicks off

Looking back on the year, it’s clear that PERA was top of mind—and with good reason. PERA and its future stability dominated the content of PERA on the Issues before, during, and after the 2018 legislative session, as Senate Bill 18-200 (SB 200) became the first PERA-recommended reform legislation to be introduced since 2010. But there were topics aside from legislation that proved to be of interest to readers, including Social Security, health care, taxes, and the recent mid-term elections. Without further ado, here is a closer look at some of the 2018 highlights.



Top Topic of 2018: Senate Bill 200 As was the case in 2017, <a href="https://www.copera.org/colorados-mid-term-elections-provide-some-answers-leave-some-questions" target="_blank" rel="noreferrer noopener" class="broken_link">Legislation</a> was once again the most visited section on the site. PERA on the Issues continued to be the best place for readers to receive timely information on the <a href="https://content.copera.org/best-of-pera-on-the-issues-2018/" target="_blank" rel="noreferrer noopener">2018 legislative session</a>, and SB 200 was the dominant topic of discussion. While the continuously updated <a href="https://content.copera.org/best-of-pera-on-the-issues-2018/" target="_blank" rel="noreferrer noopener">2018 Proposed Legislation Status</a> article received the most traffic from our readers, SB 200-specific articles were not far behind. We followed the PERA-reform bill’s progression through the legislative process, including <a href="https://www.copera.org/best-of-pera-on-the-issues-2018" target="_blank" rel="noreferrer noopener" class="broken_link">the bill’s initial introduction in the Senate in March</a>; its <a href="https://www.copera.org/best-of-pera-on-the-issues-2018" target="_blank" rel="noreferrer noopener" class="broken_link">approval in the Senate</a> following two committee hearings, a spirited preliminary debate, and remarks from legislators prior to the final vote; its <a href="https://www.copera.org/best-of-pera-on-the-issues-2018" target="_blank" rel="noreferrer noopener" class="broken_link">approval in the House</a> after about 90 minutes of vigorous and amicable bipartisan debate; its eventual passing by both chambers late on the last day of the session, and <a href="https://content.copera.org/pera-staff-keep-legislators-prepared-for-2019-legislative-session/" target="_blank" rel="noreferrer noopener">its delivery in final form to Governor Hickenlooper to be signed into law</a>. Following the signing of SB 200, readers were keen on understanding the legislation’s impact on their individual circumstances, as seen through notable traffic numbers to articles that detailed the <a href="https://content.copera.org/the-year-so-far-in-public-pension-reform/" target="_blank" rel="noreferrer noopener">final law as written</a>, the <a href="https://www.copera.org/best-of-pera-on-the-issues-2018" target="_blank" rel="noreferrer noopener" class="broken_link">FAQs heard on June’s telephone town hall meeting</a>, and particular provisions in the new law such as the <a href="https://www.copera.org/pera-staff-keep-legislators-prepared-for-2019-legislative-session" target="_blank" rel="noreferrer noopener" class="broken_link">automatic adjustment</a>.



Other Top Topics: Social Security, Health Care, and Taxes A number of non-SB 200 matters also interested our readers. There were, of course, the usual articles related to Social Security, which are always popular with PERA on the Issues readers. <a href="https://content.copera.org/best-of-pera-on-the-issues-2019/" target="_blank" rel="noreferrer noopener">One article</a> addressed proposed federal legislation that would replace the Windfall Elimination Provision (WEP) with a more fair formula that would ensure Social Security benefits be based on actual work history. <a href="https://www.copera.org/best-of-pera-on-the-issues-2018" target="_blank" rel="noreferrer noopener" class="broken_link">Another</a> looking at the Social Security Fairness Act of 2017 experienced a resurgence in traffic and comments over the course of the year. Other top-of-mind topics for PERA on the Issues readers in 2018 were <a href="https://www.copera.org/best-of-pera-on-the-issues-2018" target="_blank" rel="noreferrer noopener" class="broken_link">the rising cost of health insurance premiums</a>, <a href="https://content.copera.org/trend-states-make-adjustments-to-retiree-cost-of-living-payments/" target="_blank" rel="noreferrer noopener">retirement age requirements</a> (and how PERA compares to similar public employee retirement plans across the country), <a href="https://www.copera.org/best-of-pera-on-the-issues-2018" target="_blank" rel="noreferrer noopener" class="broken_link">tax-related information</a>, and <a href="https://www.copera.org/best-of-pera-on-the-issues-2018" target="_blank" rel="noreferrer noopener" class="broken_link">Colorado’s recent mid-term elections</a>.



Thank You for Being Part of the Conversation Posting your comments and questions to PERA on the Issues articles is a great way to engage with PERA and others. This year’s post with the most comments didn’t have quite enough participation to pass the all-time most-discussed post—that honor is (still) held by <a href="https://www.copera.org/best-of-pera-on-the-issues-2018" target="_blank" rel="noreferrer noopener" class="broken_link">a 2015 post</a> on WEP—but the <a href="https://content.copera.org/best-of-pera-on-the-issues-2018/" target="_blank" rel="noreferrer noopener">2018 Proposed Legislation Status</a> article did generate a whopping 112 comments, just a dozen shy of the WEP record holder. This is similar to last year, when the most commented post was <a href="https://www.copera.org/best-of-pera-on-the-issues-2018" target="_blank" rel="noreferrer noopener" class="broken_link">2017 Proposed Legislation Status</a>.



Looking Ahead to 2019 <a href="https://www.copera.org/best-of-pera-on-the-issues-2018" target="_blank" rel="noreferrer noopener" class="broken_link">The First Regular Session of the 72nd General Assembly</a> will convene on January 4, 2019. Democrats have a “trifecta,” in which one party controls the governorship and both chambers of the Legislature. This will be a major shift from the divided state government Colorado has known the past two years where Republicans held a one-vote majority in the Senate.



Many issues introduced by Democrats but defeated in the Senate with the previous split-chamber will undoubtedly be brought up again in the new political environment of 2019. The agenda will also be heavily influenced by a total of 30 new Representatives and Senators, as well as a Governor who is expected to be more heavily involved in policymaking than his predecessor. While we expect next year’s legislative session to be less active for PERA-related issues than it was this year, we will, as always, keep you apprised of any noteworthy legislation. We hope that you will continue to turn to PERA on the Issues for credible, timely information on policy, retirement, health care, finance, and other topical areas – and share your thoughts, comments, and questions with the PERA on the Issues community.



On behalf of everyone here at PERA, we wish you a safe and healthy holiday season. See you in 2019!

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