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 Colorado General Assembly wrapped up its legislative work in May, but there’s still plenty of activity happening at the State Capitol.



Every year in between legislative sessions, PERA appears before various legislative committees that oversee PERA and its financial health. It’s an important part of the ongoing review and oversight of PERA and an opportunity to engage with the legislators who can have a direct impact on PERA and its members.



While lawmakers won’t be introducing bills between now and January, they may begin work on new PERA-related legislation they intend to introduce in the next session.



Here’s a look at what to expect this summer and into the fall.



<blockquote class="wp-block-quote">
RELATED: <a href="https://peraontheissues.com/what-roles-do-the-general-assembly-and-board-play-at-pera/" target="_blank" rel="noreferrer noopener">What Roles Do the General Assembly and Board Play at PERA?</a>
</blockquote>



<h4 class="wp-block-heading">Pension Review Subcommittee</h4>



The state legislature created the Pension Review Subcommittee in 2018. It’s a subcommittee of the Pension Review Commission, which oversees PERA and the state’s police and firefighter pensions. The Pension Review Subcommittee is charged with reviewing PERA’s financial health and making recommendations to the larger Commission. The Subcommittee comprises four state lawmakers as well as 10 appointed members of the general public with financial experience or knowledge.



The Subcommittee held its first meeting of the year on July 17. Interim Executive Director and Chief Investment Officer Amy C. McGarrity and Public and Government Affairs Manager Michael Steppat gave the Subcommittee an update on PERA’s 2022 financial results and answered questions from Subcommittee members.



The Subcommittee may continue to hold meetings throughout the interim period, with PERA to provide information and answer questions as needed.



<h4 class="wp-block-heading">Legislative Audit Committee</h4>



The Legislative Audit Committee is next up, with a meeting scheduled for Aug. 7.



Every year, the state hires an independent auditor to audit PERA’s financial data and internal controls of the most recent <a href="https://peraontheissues.com/pera-board-releases-2022-annual-report/" target="_blank" rel="noreferrer noopener">Annual Comprehensive Financial Report</a>.&nbsp;The outside auditor will present its findings at the Legislative Audit Committee’s meeting. PERA staff will join PERA’s actuarial consultants at the meeting to discuss the plan’s finances and answer any questions.



<h4 class="wp-block-heading">Pension Review Commission</h4>



PERA also appears before the Pension Review Commission in between legislative sessions. The Commission has the responsibility of overseeing PERA and proposing legislation that could affect the plan and benefits. For example, the Pension Review Commission drafted bills in recent years to <a href="https://peraontheissues.com/2023-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">make up the state’s missed 2020 payment</a> of $225 million to PERA.



In addition to the various interim oversight committees, the legislature’s Joint Budget Committee and House and Senate Finance Committees hold annual meetings to discuss PERA’s finances. Those meetings are expected to take place prior to and immediately following the start of the next General Assembly, respectively. 



PERA On The Issues will be following the various interim activities and reporting on any noteworthy developments. Be sure to <a href="https://peraontheissues.com/subscribe" target="_blank" rel="noreferrer noopener">subscribe to our biweekly newsletter</a> to stay updated

PERA Oversight Underway at State Capitol Between Legislative Sessions

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/board-of-trustees" target="_blank" rel="noreferrer noopener" class="broken_link">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">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?

On Jan. 9, state lawmakers will convene at the Capitol in Denver for the 74th Colorado General Assembly. Over the course of the 120-day legislative session, lawmakers will introduce hundreds of bills that could ultimately change state law.



This year’s General Assembly will include dozens of new legislators. PERA’s Public &amp; Government Affairs Manager Michael Steppat will be helping those legislators get up to speed on all things PERA as the new session begins. We sat down with Steppat to discuss the upcoming session.



<h5 class="wp-block-heading">For those who aren’t familiar, can you explain your role at PERA and at the State Capitol?</h5>


<div class="wp-block-image">
<figure class="alignright size-medium"><img decoding="async" src="https://www.copera.org/preparing-for-the-2023-colorado-legislative-session"Two men shaking hands inside the Colorado State Capitol building" class="wp-image-4901"/><figcaption class="wp-element-caption">PERA Public and Government Affairs Manager Michael Steppat (right) at the State Capitol.</figcaption></figure></div>


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.



<h5 class="wp-block-heading">Tell us about some of the changes at the Capitol this year and the outreach you’ve been doing.</h5>



There are more than 30 new legislators at the statehouse this year, which is a large number even in a state like Colorado that has term limits. There have also been changes of leadership on some of the committees that provide PERA oversight. It will be important to make sure lawmakers understand how PERA works and the importance of recent legislation related to PERA.



In the days leading up to the start of the new session, I’ve been reaching out to all the newly elected legislators to introduce myself and let them know I’ll be a point of contact to help them with any questions and provide information as the session unfolds.



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



While the PERA Board of Trustees is responsible for administering benefits and overseeing PERA’s investments, the Colorado 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.



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">The legislative session is a busy time, but you’re active at the Capitol year-round. What kind of activities have taken place since the last legislative session?</h5>



There’s a lot of important work that happens after a session ends and before the next one begins. PERA leaders and staff routinely meet with and report to various legislative bodies that oversee PERA’s operations and financial health. Those groups include the legislature’s Joint Budget Committee and Joint Finance Committee, as well as the Pension Review Commission and the Pension Review Subcommittee.



In between sessions, there are also meetings held with various lawmakers and PERA stakeholders with an interest in PERA and the issues that can affect our members and retirees. PERA, its benefits, and legislative changes over the years can be a lot to learn, but it’s our goal to help educate stakeholders without overwhelming them.



<h5 class="wp-block-heading">What’s your advice for people who want to advocate for a particular bill or outcome at the legislature?</h5>



The most important thing people 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 the PERA On The Issues biweekly&nbsp;<a href="https://www.peraontheissues.com/subscribe" target="_blank" rel="noreferrer noopener" class="broken_link">newsletter</a>&nbsp;will be up-to-date on any legislation that affects PERA. We also encourage people to sign up for the PERA Ambassadors newsletter&nbsp;<a href="https://content.copera.org/preparing-for-the-2023-colorado-legislative-session/" target="_blank" rel="noreferrer noopener">here</a>.

Preparing for the 2023 Colorado Legislative Session

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



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



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.



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.



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.



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.



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



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.



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>.

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

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



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



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.



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.



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.



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.



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.



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.



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. PERA On The Issues will continue to monitor legislative activity on this bill.



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.



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.



“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.”



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



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>.

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

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







Last updated: June 8, 2022



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



<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>



Bill summary: 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.



Sponsors: <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>



Bill status: Signed into law.



Position: As fiduciaries, the PERA Board supports restoring the missed direct distribution.



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



<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>



Bill summary: 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.



Sponsors: <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>



Bill status: Signed into law.



Position: 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.



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



<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>



Bill summary: 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.



Sponsor: <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>



Bill status: Signed into law.



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



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



<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>



Bill summary: 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.



Sponsors: <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>



Bill status: Signed into law.



Position: 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.

2022 Proposed Legislation Status

The Colorado General Assembly wrapped up the 2021 legislative session in June, but legislative work has continued in the ensuing months at the Capitol. Some of that work over the summer and fall involved committees that conduct routine oversight into Colorado PERA and its operations.



PERA and its Board of Trustees appreciate the value of rigorous review and transparency, so staff regularly engage with these legislative panels to provide updates on PERA’s finances, answer questions and listen to feedback from lawmakers and others. Summaries of those activities are included below.



<h4 class="wp-block-heading">Legislative Audit Committee</h4>



The <a href="http://leg.colorado.gov/committees/legislative-audit-committee/2021-regular-session" target="_blank" rel="noreferrer noopener">Legislative Audit Committee</a> met in August to hear an update on PERA’s financial status and receive the results of an independent audit of PERA’s <a href="https://www.copera.org/colorado-pera-board-releases-2020-annual-report" target="_blank" rel="noreferrer noopener">Comprehensive Annual Financial Report</a>. The Committee heard from PERA Executive Director Ron Baker, Chief Investment Officer Amy C. McGarrity, external auditors, and actuarial consultants.



The auditors gave PERA’s annual report a clean audit with no significant issues or outstanding recommendations.



Read more <a href="https://content.copera.org/pera-oversight-continues-between-legislative-sessions/" target="_blank" rel="noreferrer noopener">here</a>.



<h4 class="wp-block-heading">Pension Review Commission and Pension Review Subcommittee</h4>



The legislature’s <a href="http://leg.colorado.gov/committees/pension-review-subcommittee/2021-regular-session" target="_blank" rel="noreferrer noopener">Pension Review Subcommittee</a>, which was established as part of the PERA reforms of Senate Bill 200 in 2018, consists of legislators and members of the public with expertise in topics such as accounting, economics and investment management.



At its Sept. 10 meeting, the Subcommittee voted to draft a bill for the 2022 legislative session that would make up the legislature’s missed $225 million direct distribution payment to PERA from July 2020. The Subcommittee forwarded that bill to the <a href="http://leg.colorado.gov/committees/pension-review-commission/2021-regular-session" target="_blank" rel="noreferrer noopener">Pension Review Commission</a>, which then forwarded the draft to <a href="http://leg.colorado.gov/committees/pension-review-commission/2021-regular-session" target="_blank" rel="noreferrer noopener">Legislative Council</a> for review. In November, the Legislative Council voted to approve the bill, clearing the way for it to be introduced in the upcoming legislative session, which begins in January.



Read more about that bill <a href="https://peraontheissues.com/legislative-committee-seeks-to-make-up-missed-225m-payment-to-pera/" target="_blank" rel="noreferrer noopener">here</a>.



The Pension Review Subcommittee also conducted an independent review of the actuarial assumptions PERA uses in its financial calculations and reporting. Based on that review, the Subcommittee made three recommendations to the PERA Board regarding PERA’s funding policy and Signal Light methodology and reporting.



At its November meeting, the Board discussed the recommendations in detail and heard from PERA staff as well as PERA’s actuarial consultants. Following the discussion, the Board decided to draft a letter to the Pension Review Subcommittee responding to the recommendations. In the letter, the Board stated it agrees with the Subcommittee that there’s a need for clearer communication in the Signal Light report and the Board will consider implementing changes in future versions of the report. The Board also said it will consider making changes to <a href="https://www.copera.org/despite-changes-in-accounting-standards-pera-remains-on-track" target="_blank" rel="noreferrer noopener">PERA’s funding policy</a> when it undertakes its planned review of the policy in 2023.



Read the Board’s letter <a href="http://leg.colorado.gov/sites/default/files/images/colorado_pera_board_responses_to_pension_review_subcommittee_recommendations_-_11.29.21.pdf" target="_blank" rel="noreferrer noopener">here</a>.



<h4 class="wp-block-heading">Joint Budget Committee</h4>



On Dec. 9, PERA Executive Director Ron Baker and Chief Investment Officer Amy C. McGarrity appeared before the <a href="http://leg.colorado.gov/committees/joint-budget-committee/2021-regular-session" target="_blank" rel="noreferrer noopener">Joint Budget Committee</a> for that panel’s annual hearing on PERA. Baker and McGarrity provided the Committee with updates on a number of topics — including PERA’s finances and membership, results of <a href="https://peraontheissues.com/2020-experience-study-preparing-for-a-secure-future/" target="_blank" rel="noreferrer noopener">2020’s actuarial experience study</a>, and market performance in 2021 — and answered questions from committee members.



<h4 class="wp-block-heading">What’s ahead in 2022</h4>



The Colorado General Assembly will convene to kick off the 2022 legislative session on Jan. 12. PERA On The Issues will keep track of any proposed legislation that pertains to Colorado PERA, including the draft bill to make up the state’s missed 2020 payment of $225 million, and provide updates throughout the session. If you haven’t already subscribed to our newsletter, <a href="https://www.copera.org/pera-oversight-continues-between-legislative-sessions" target="_blank" rel="noreferrer noopener">you can do so here</a>.

PERA Oversight Continues Between Legislative Sessions

Below you&#8217;ll find summaries of proposed legislation affecting Colorado PERA. The status of each bill will be updated regularly. 



Any position the Colorado PERA Board takes on a bill will be reflected below as soon as it becomes available.



Last updated: Aug. 31, 2021



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<h1 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb21-228" target="_blank" rel="noreferrer noopener">SB 21-228</a></h1>



Bill Title: PERA Public Employees Retirement Association Payment Cash Fund



Concerning the creation of the PERA payment cash fund to be used for future payments to the public employees&#8217; retirement association, and, in connection therewith, making an appropriation.



Bill Summary: The bill creates the PERA payment cash fund (fund) and appropriates $380 million from the general fund to the fund for the 2020-21 state fiscal year. The state treasurer is required to use the money in the fund for the $225 million direct distribution payment to PERA on July 1, 2022, subsequent direct distributions, and any of the state&#8217;s employer contributions or disbursements.



Sponsors: <a href="https://leg.colorado.gov/legislators/chris-hansen" target="_blank" rel="noreferrer noopener">Sen. Chris Hansen</a> and <a href="https://leg.colorado.gov/legislators/dominick-moreno" target="_blank" rel="noreferrer noopener">Sen. Dominick Moreno</a>, <a href="https://leg.colorado.gov/legislators/julie-mccluskie" target="_blank" rel="noreferrer noopener">Rep. Julie McCluskie</a> and <a href="https://leg.colorado.gov/legislators/kim-ransom" target="_blank" rel="noreferrer noopener">Rep. Kim Ransom</a>



Bill Status: Signed into law by Gov. Polis on May 4, 2021



Bill History: 



<ul><li>May 4: Signed by the Governor</li><li>April 5: Introduced in Senate</li><li>April 6: Passes Senate Appropriations Committee with <a href="https://s3-us-west-2.amazonaws.com/leg.colorado.gov/2021A/amendments/SB228_L.001.pdf" target="_blank" rel="noreferrer noopener">amendment</a></li><li>April 8: Passes Senate second reading </li><li>April 9: Approved by Senate, introduced in House</li><li>April 13: House Committee on Appropriations refers unamended to Committee of the Whole</li><li>April 14: Passes House second reading</li><li>April 15: Approved by House</li></ul>



PERA Board position: The PERA Board did not take a position on this bill.



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<h1 class="wp-block-heading"><a href="http://leg.colorado.gov/bills/HB21-1246" target="_blank" rel="noreferrer noopener">HB 21-1246</a></h1>



Bill Title: PERA Public Employees&#8217; Retirement Association Divestment From Fossil Fuel Companies



Concerning divestment action by the public employees&#8217; retirement association against companies financially involved with fossil fuel companies.



Bill Summary: The bill would require the PERA Board to create an exclusion list of all direct investments PERA has in fossil fuel companies.



Within 6 months after completing the exclusion list, the Board would be required to determine whether divestment from the companies on the exclusion list complies with the Board&#8217;s fiduciary obligations. If the Board determines that divestment from any company on the exclusion list does not comply with its fiduciary obligations, the Board will remove the company from the exclusion list.



If the Board determined that divestment from any company on the exclusion list does comply with its fiduciary duty, the Board would be required to divest from those companies on the exclusion list. And the Board would be required to cease new direct investments in any company that is a fossil fuel company.



Beginning one year after the effective date of the bill, the Board would be required to ensure that no money or assets of the fund are invested in an indirect investment vehicle unless the Board is satisfied that such indirect investment vehicle is unlikely to have in excess of 2% of its assets directly or indirectly invested in fossil fuel companies.



The Board would be required to issue periodic reports to the members of the pension review commission of the General Assembly outlining all actions taken to comply with the requirements of the bill.



Sponsors: <a href="http://leg.colorado.gov/legislators/emily-sirota" target="_blank" rel="noreferrer noopener">Rep. Emily Sirota</a> and <a href="http://leg.colorado.gov/legislators/sonya-jaquez-lewis" target="_blank" rel="noreferrer noopener">Rep. Sonya Jaquez Lewis</a>



Bill Status: Postponed indefinitely



Bill History: 



<ul><li>March 25: Introduced in House</li><li>March 19: Postponed indefinitely by House Finance Committee</li></ul>



PERA Board Position: Per the Board’s <a href="https://www.copera.org/pera-board-of-trustees-updates-divestment-policy-statement" target="_blank" rel="noreferrer noopener">Statement on Divestment</a>, PERA serves the singular purpose of ensuring the retirement security of Colorado’s current and former public servants. Global issues are difficult to prioritize and proper recourse falls beyond the duty of the retirement system. PERA opposes divestment efforts unless such opposition is inconsistent with its fiduciary duty and recommends the legislature thoughtfully consider such proposals with caution and fiduciary care.



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<h1 class="wp-block-heading"><a href="http://leg.colorado.gov/bills/HB21-1136" target="_blank" rel="noreferrer noopener">HB 21-1136</a></h1>



Bill Title: Judicial Division Retirees Temporary Judicial Duties Compensation



Concerning modifications to the policies governing judicial division retirees returning to temporary judicial duties.



Bill Summary: Retired judges may currently perform judicial duties for 60 or 90 days with written permission from the chief justice of the Colorado Supreme court. This bill would allow retired judges to do the same for 20, 30, 60, or 90 days per year. In addition, under current law a retired judge must enter into the agreement prior to retirement or within thirty days prior to the retirement anniversary in the next five years of retirement. This bill would remove that limitation.



Sponsors: <a href="http://leg.colorado.gov/legislators/kerry-tipper" target="_blank" rel="noreferrer noopener">Rep. Kerry Tipper</a> and <a href="http://leg.colorado.gov/legislators/terri-carver" target="_blank" rel="noreferrer noopener">Rep. Terri Carver</a>



Bill Status: Signed into law by Gov. Polis on May 4, 2021 



Bill History: 



<ul><li>May 4: Signed by the Governor</li><li>April 26: Senate passes on third reading</li><li>April 23: Senate passes on second reading</li><li>April 23: Senate Appropriations Committee refers to Committee of the Whole</li><li>April 14: Senate Judiciary refers unamended to Senate Appropriations Committee</li><li>April 9: Introduced in Senate</li><li>April 8: Passed by House</li><li>April 7: House passes with <a href="https://s3-us-west-2.amazonaws.com/leg.colorado.gov/2021A/amendments/HB1136_L.001.pdf" target="_blank" rel="noreferrer noopener">amendments</a></li><li>April 5: House Appropriations Committee refers to Committee of the Whole with <a href="https://s3-us-west-2.amazonaws.com/leg.colorado.gov/2021A/amendments/HB1136_J.001.pdf" target="_blank" rel="noreferrer noopener">amendments</a></li><li>March 1: Introduced in House</li></ul>



PERA Board Position: The PERA Board does not have a position on this bill.



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<h1 class="wp-block-heading" id="block-aed2a52c-4dde-4844-bab2-cc1c9c9133a8"><a href="https://leg.colorado.gov/bills/hb21-1213" target="_blank" rel="noreferrer noopener">HB 21-1213</a></h1>



Bill Title: Conversion Of Pinnacol Assurance



Concerning the conversion of Pinnacol Assurance from a political subdivision of the state into a stock insurance company owned by a mutual insurance holding company.



Bill Summary: This bill would convert Pinnacol Assurance, which provides workers’ compensation insurance, into a private company. As part of this conversion, Pinnacol would disaffiliate from PERA and make a payment to PERA to cover its portion of PERA’s liabilities. Current Pinnacol employees would become inactive PERA members after the disaffiliation date but would be eligible for future benefits. Current PERA retirees who were employed by Pinnacol are not affected by this bill.



Sponsors: <a href="https://leg.colorado.gov/legislators/matt-soper" target="_blank" rel="noreferrer noopener">Rep. Matt Soper</a>



Bill Status: Postponed indefinitely 



Bill History: 



<ul><li>March 22: Postponed indefinitely by the House State, Civic, Military, &amp; Veterans Affairs Committee</li><li>Introduced March 5</li></ul>



PERA Board Position: The PERA Board holds that all disaffiliations should be treated the same and the methodology used to determine the cost for disaffiliation should align with the framework provided by the general assembly under current statute.



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2021 Proposed Legislation Status

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



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<a href="https://leg.colorado.gov/bills/hb20-1379" target="_blank" rel="noreferrer noopener">HB 20-1379</a>



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



Concerning suspending the direct distribution to the public employees&#8217; retirement association for the 2020-21 state fiscal year, and, in connection therewith, reducing an appropriation.



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



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



Sponsors: <a rel="noreferrer noopener" href="https://leg.colorado.gov/legislators/kim-ransom" target="_blank">Rep. Kim Ransom</a> (R-Douglas County) | <a rel="noreferrer noopener" href="https://leg.colorado.gov/legislators/bob-rankin" target="_blank">Sen. Bob Rankin</a> (R-Carbondale)



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



Bill History: Bill introduced 5/26, assigned to <a rel="noreferrer noopener" href="https://leg.colorado.gov/committees/appropriations/2020-regular-session-0" target="_blank">House Appropriations </a>committee. House Appropriations referred the bill, unamended, to House Committee of the Whole on 5/27. Bill passed Second Reading unamended on 6/1. Bill passed House on Third Reading on 6/3: Aye-48, No-14, Other-3. 



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



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



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<a rel="noreferrer noopener" href="https://leg.colorado.gov/bills/hb20-1394" target="_blank">HB 20-1394</a>



Public Employees&#8217; Retirement Association Judicial Division Contribution Rate Modification



Concerning a modification to the contribution rates to the public employees&#8217; retirement association for the judicial division of the association for certain fiscal years, and, in connection therewith, reducing an appropriation.



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



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



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



Sponsors: <a rel="noreferrer noopener" href="https://leg.colorado.gov/legislators/julie-mccluskie" target="_blank">Rep. Julie McCluskie</a> (D-Dillon) | <a rel="noreferrer noopener" href="https://leg.colorado.gov/legislators/kim-ransom" target="_blank">Rep. Kim Ransom</a> (R-Douglas County) | <a rel="noreferrer noopener" href="https://leg.colorado.gov/legislators/dominick-moreno" target="_blank">Sen. Dominick Moreno</a> (D-Commerce City) | <a href="https://leg.colorado.gov/legislators/bob-rankin" target="_blank" rel="noreferrer noopener">Sen. Bob Rankin</a> (R-Carbondale)



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



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



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



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



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<a rel="noreferrer noopener" aria-label="SB 20-057 (opens in a new tab)" href="https://leg.colorado.gov/bills/sb20-057" target="_blank">SB 20-057</a>



Fire Prevention &amp; Control Employee Benefits



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



Bill summary: Currently, wildfire firefighters employed by the state contribute to PERA and receive benefits as determined by standard PERA Tables. This bill would reclassify these firefighters as &#8220;safety officers,&#8221; which would adjust their contribution rates and benefits to those found on PERA&#8217;s Safety Officer Tables, formerly known as Trooper Tables.



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



The bill also addresses other benefits available to firefighters.



Sponsors: <a rel="noreferrer noopener" aria-label=" (opens in a new tab)" href="https://leg.colorado.gov/legislators/pete-lee" target="_blank">Sen. Pete Lee</a> (D-Colorado Springs) | <a rel="noreferrer noopener" aria-label="Rep. Marc Snyder (opens in a new tab)" href="https://leg.colorado.gov/legislators/marc-snyder" target="_blank">Rep. Marc Snyder</a> (D-Manitou Springs) and <a rel="noreferrer noopener" aria-label="Rep. Lisa Cutter (opens in a new tab)" href="https://leg.colorado.gov/legislators/lisa-cutter" target="_blank">Rep. Lisa Cutter</a> (D-Littleton) 



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



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



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



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



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<a href="http://leg.colorado.gov/bills/HB20-1127" target="_blank" rel="noreferrer noopener" aria-label="HB 20-1127 (opens in a new tab)">HB 20-1127</a>



Extend Public Employees&#8217; Retirement Association Retiree Work After Retirement Limit



Concerning an extension of the employment-after-retirement limitations for retirees of the public employees&#8217; retirement association employed by a board of cooperative services after retirement. 



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



BOCES could address this issue by hiring PERA retirees to fill these roles, but PERA&#8217;s working-after-retirement provisions, including the limitation on the number of days in a calendar year that a service retiree may work for a PERA employer without a reduction in benefits, could be a barrier for some retirees.



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



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



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



The bill requires a BOCES that hires a PERA retiree to provide full payment of all PERA employer contributions, disbursements, and working retiree contributions. In addition, the BOCES is required to pay an additional amount equal to two percent of the retiree&#8217;s salary to PERA.



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



PERA is required to submit a report to the general assembly regarding specified aspects of the extension of PERA&#8217;s working-after-retirement limitations.



Sponsors: <a rel="noreferrer noopener" aria-label=" (opens in a new tab)" href="http://leg.colorado.gov/legislators/julie-mccluskie" target="_blank">Rep. Julie McCluskie</a> (D-Dillon) | <a rel="noreferrer noopener" aria-label="Rep. Barbara McLachlan (opens in a new tab)" href="http://leg.colorado.gov/legislators/barbara-mclachlan" target="_blank">Rep. Barbara McLachlan</a> (D-Durango) | <a rel="noreferrer noopener" aria-label="Sen. Nancy Todd (opens in a new tab)" href="http://leg.colorado.gov/legislators/nancy-todd" target="_blank">Sen. Nancy Todd</a> (D-Aurora) | Sen. <a rel="noreferrer noopener" href="http://leg.colorado.gov/legislators/jerry-sonnenberg" target="_blank">Jerry Sonnenberg</a> (R-Sterling) 



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



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



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



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

2020 Proposed Legislation Status

Colorado’s legislature temporarily adjourned on March 14, well before the clock ran out on the 120 days legislators have to work with. This shutdown, of course, was due to COVID-19, a virus that has altered nearly every aspect of life around the globe. The medical reasons to shut down were clear. But the outlook on reopening is still hazy.



The Colorado Supreme Court cleared up some confusion earlier this month. It <a rel="noreferrer noopener" href="https://www.cpr.org/2020/04/01/colorado-supreme-court-decides-legislative-session-can-extend-end-date/" target="_blank">ruled</a> that, because the adjournment occurred under a rule of procedure that allows for increased flexibility during disease-related emergencies, the legislature’s countdown clock would be paused, resuming when they return, instead of continuing to tick down while they are away. 



Whenever lawmakers do return, they will face a list of questions with no easy answers.



The Road Forward



This ruling gives the legislature additional time to do their work—if the court had decided the legislative clock would continue ticking, session would end on May 6. But the additional time granted to legislators does not necessarily offset the scope of the challenge ahead.



The legislature has a plan to address a few high priority items. For example, the Joint Budget Committee is <a rel="noreferrer noopener" href="https://leg.colorado.gov/committees/joint-budget-committee/2020-regular-session" target="_blank">scheduled</a> to meet on May 12 to hear an updated economic forecast presented by the Governor’s Office of State Planning &amp; Budgeting and Legislative Council Staff. Other high-priority legislation includes the School Finance Act and reviewing <a rel="noreferrer noopener" href="https://leg.colorado.gov/sites/default/files/the-sunset-process.pdf" target="_blank" class="broken_link">sunset</a> legislation, not to mention any additional legislation required to address the pandemic.



While the legislature has mapped out the first steps forward, nobody knows where, how, or when this year’s legislative session will end. The legislature might reconvene to pass a budget, temporarily adjourn again, and reconvene later in the year. They might consider rules to do their work remotely. 



To what extent legislators address bills that were introduced as of March 14 is another unknown. This includes addressing <a rel="noreferrer noopener" href="https://peraontheissues.com/2020-proposed-legislation-status/" target="_blank">bills</a> that would modify the status of firefighters in PERA and change working-after-retirement rules for PERA retirees employed by a board of cooperative services.



Revisiting the State Budget 



Passing a budget will be a daunting challenge. The six lawmakers on the Joint Budget Committee, who were allocating dollars amid a bustling Colorado economy in January, now find themselves facing a significant <a rel="noreferrer noopener" href="https://www.denverpost.com/2020/04/09/colorado-budget-cuts-coronavirus/" target="_blank">shortfall</a>. 



&#8220;Before the emergence of COVID-19, the JBC was working with an increase in funding of more than $500 million over last year,&#8221; said Michael Steppat, Colorado PERA’s Public and Government Affairs Manager. &#8220;Now they face a shortfall that could approach $3 billion. Plus, they have a little more than a month to revisit every single spending decision they have made whereas the normal budgeting process typically takes months.&#8221;



The manner in which PERA’s funding is part of the budgeting process is nuanced. Members and employers send PERA contributions based on a percentage of pay. The state budgeting process sets pay rates and employment levels for state employees—a legislative task separate from setting the contribution rates—while school districts and local governments determine pay and employment levels for their employees. As part of SB 18-200, the legislature also created the <a rel="noreferrer noopener" href="https://content.copera.org/legislative-update-an-uncertain-path-ahead/" target="_blank">Direct Distribution</a>, in which an amount, currently $225 million each fiscal year, is sent to PERA, although this component is not appropriated by the Joint Budget Committee.



Federal Funds and the State’s Budget



Over the past two months, the U.S. Congress has passed a <a href="https://leg.colorado.gov/sites/default/files/r20-348_summary_of_new_federal_families_first_act_0.pdf" target="_blank" rel="noreferrer noopener">number of bills</a> that provide economic relief to individuals, businesses, and also funds for governments at the state, territorial, local, and tribal level. To date, the aid provided by all “phases” of legislation amounts to $2.7 trillion.



About $2.2 billion was allocated for Colorado, as part of the CARES Act, to be split between the state and local jurisdictions with populations exceeding 500,000. The funds do come with strings attached. According to U.S. Treasury <a rel="noreferrer noopener" href="https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local-and-Tribal-Governments.pdf" target="_blank">guidelines</a>, &#8220;expenditures must be used for actions taken to respond to the public health emergency.&#8221; In other words, the funds may not be used to offset indirect costs related to the pandemic, including &#8220;backfilling&#8221; the state budget.



PERA On The Issues will continue following this highly unusual legislative session and post updates as they occur.

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