Be Active in the Future of Your Retirement System

Colorado PERA is committed to empowering our members with the proper tools to become engaged in the public policy process that could impact the future of your retirement system. We have developed a Legislative Action Center, which is a fast and convenient service for our members to respond to legislative issues. Register for PERA ALERTS and you will be added to our e-mail list to receive news alerts.

Legislative Updates (Updated February 22, 2012)

Listed below are the bills affecting Colorado PERA that have been introduced during the 2012 Legislative session and PERA's position on these bills. By clicking on the bill name, you will be directed to the Colorado General Assembly Web site where you can view the various versions of the bill.

Video/Audio Broadcasts of Chamber and Committee Hearings

House Bill 12-1142: New PERA Employee Defined Contribution Plan Choice

HB 12-1142 is sponsored by Representative Brian DelGrosso (R-Loveland). The bill would expand to all members the option to participate in the PERA defined contribution (DC) plan in lieu of the PERA defined benefit plan. The option is currently available to certain State Division employees.

Status: The bill has been assigned to the House Finance Committee and is scheduled to be heard upon adjournment on Thursday, February 23, in the Legislative Services Building, Hearing Room A.

PERA's Position: The PERA Board voted to oppose HB 12-1142.

 

House Bill 12-1150: PERA Seven Year Highest Average Salary Calculation

HB 12-1150 is sponsored by Representative Kevin Priola (R-Henderson) and Senator Kent Lambert (R-Colorado Springs). The bill would change the Highest Average Salary (HAS) calculation from three years to seven years for members who are eligible for a full or reduced service retirement on or after January 1, 2013. This bill does not affect members who are eligible for a full or reduced service retirement before January 1, 2013.

Status:The bill has been assigned to the House Finance Committee and is scheduled to be heard upon adjournment on Thursday, February 23, in the Legislative Services Building, Hearing Room A.

PERA's Position: The PERA Board voted to oppose HB 12-1150.

 

House Bill 12-1179: Composition Of PERA Board

HB 12-1179 is sponsored by Representative Jim Kerr (R-Littleton). The bill would replace four of the elected positions on the PERA Board of Trustees with four Governor-appointed Trustees approved by the Senate. The new appointees would join the Board as the terms of elected Trustees expire. When fully implemented, seven Trustees would be elected by PERA members/benefit recipients and seven Trustees would be Governor appointees. The State Treasurer would remain on the Board as a voting member and a non-voting member or retiree from the Denver Public Schools (DPS) Division would remain on the Board.

The bill also provides that in both the State and the School Divisions, at least one of the two Trustees elected from each Division after January 1, 2013, be 15 or more years from retirement eligibility on the date the Trustee begins serving his or her first term on the Board.

Status:The bill has been assigned to the House Finance Committee and is scheduled to be heard upon adjournment on Thursday, February 23, in the Legislative Services Building, Hearing Room A.

PERA's Position: The PERA Board voted to oppose HB 12-1179.

 

House Bill 12-1245: Health Care Options Gov Employees

HB 12-1245 is sponsored by Representative Rhonda Fields (D-Aurora). The bill would establish a 13-member task force to study how the combined buying power of State and local governments might be leveraged for the purchase of employee health care benefits and other issues. The task force would also look at ways to control costs while improving outcomes and would meet after the legislative session ends. Recommendations would be reported to the Legislature by December 15, 2012. A representative from PERA would be one of the 13 members.

Status: The bill has been assigned to the State, Veterans, & Military Affairs Committee.

PERA's Position: The PERA Board has not yet taken a position on this bill.

 

House Bill 12-1250: PERA Health Care Trust Fund Employer Contributions

HB 12-1250 is sponsored by Representative Chris Holbert (R-Parker) and Senator Ted Harvey (R-Highlands Ranch). The bill would eliminate the premium subsidy for PERACare participants age 65 and over, beginning January 1, 2013. This proposed legislation would impact approximately 37,000 retirees who receive a subsidy. Eliminating the subsidy would result in a premium increase of up to $115 each month for these Medicare-eligible retirees. The premium subsidy for PERACare enrollees who are under age 65 and not enrolled in Medicare would continue at its current rate, up to a maximum of $230 per month.

A provision of this bill would make beneficiaries and their dependents who are eligible for Medicare coverage ineligible to participate in PERACare. The 42,000 retirees and their dependents who would be affected by this proposal will have to try to find health care insurance on their own at substantially increased costs since PERA has the ability to secure attractive group rates for a large retiree population.

Another provision of the bill would affect PERACare participants who do not qualify for Medicare Part A coverage. Currently, the law provides that PERACare participants who do not qualify for Medicare Part A coverage pay the same PERACare plan premiums as those who do have Part A coverage (although Denver Public Schools [DPS] benefit structure retirees would not be affected). HB 12-1250 would remove this provision and result in significant premium increases for affected retirees. Retirees over the age of 65 who do not qualify for Medicare Part A would also be subject to penalties for not enrolling in Part A when they turned 65.

Going forward, the PERA and DPS Health Care Trust Funds would be funded on a pay-as-you-go basis, rather than being pre-funded.

Status: The bill has been assigned to House Finance and House Appropriations Committees and is scheduled to be heard on Thursday, February 23, upon adjournment.

PERA's Position: The PERA Board voted to oppose HB 12-1250.

 

Senate Bill 12-016: Local Gov Option To Change PERA Contribution Rates

Senate Bill 12-016 is sponsored by Senator Kent Lambert (R-Colorado Springs) and Representative Brian DelGrosso (R-Loveland), with seven Republican Senators and two Republican Representatives as cosponsors. The bill would allow any PERA employer in the Local Government Division to vote to increase member contribution rates by up to 2.5 percent of salary, and to decrease employer contribution rates by the same percentage, effective January 1, 2013. This contribution swap could be made effective for one year only or for multiple years, depending on the decision of the governing board of the Local Government Division employer.

Status: The bill was postponed indefinitely by the Senate State, Veterans & Military Affairs Committee on January 30.

PERA's Position: The PERA Board voted to oppose SB 12-016.

 

SB 12-082: PERA Retirement Age Same As Social Security

This bill was introduced by Senator Ted Harvey (R-Highlands Ranch). It would require that age requirements for receiving PERA benefits would match the age requirements for receiving Social Security benefits for any new PERA member hired on or after January 1, 2013.

Status: The bill was postponed indefinitely by the Senate Finance Committee on February 9.

PERA's Position: The PERA Board voted to oppose SB 12-082.

 

SB 12-084: PERA Transparency

SB 12-084 is sponsored by Senator Kent Lambert (R-Colorado Springs) and Representative Spencer Swalm (R-Centennial). Currently, law provides that all information contained in records of members, former members, inactive members, and benefit recipients, as well as records of participants in PERA defined contribution plans, be kept confidential by PERA. The bill would create an exception to current law and require PERA publicly disclose certain PERA information on individual elected officials and cabinet-level appointees of elected officials on a yearly basis.

Information to be reported would include the member's name, each position held during employment with a PERA employer, the annual salary paid for each position, the employer and employee contributions paid on that salary, age of retirement, Highest Average Salary, and amount of any benefits paid.

Status: The bill was postponed indefinitely by the Senate Finance Committee on February 14.

PERA's Position: The PERA Board voted to oppose SB 12-084.

 

SB 12-119: PERA Fiscal Sustainability

SB 12-119 is sponsored by Senator Tim Neville (R-Littleton) and Representative Chris Holbert (R-Parker). The bill would require the PERA Board to reduce benefit provisions when the amortization period for any Division exceeds 30 years. The Board would be required to make changes to the provisions for service credit, service retirement, benefit amounts, and annual increases in order to bring the affected Division back within a 30-year amortization period within one year of implementing the adjustments.

Under the bill, the Board and the General Assembly are prohibited from increasing member and employer contributions, AED, or SAED amounts above the rates allowed by law as of December 31, 2011.

Status: The bill was postponed indefinitely by the Senate Finance Committee on February 9.

PERA's Position: The PERA Board voted to oppose SB 12-119.