Signed by Governor Bill Ritter, Jr.

Vote Smart's Synopsis:

Vote to pass a bill that makes changes to the Public Employee Retirement Association (PERA), including, but not limited to, the following highlights.

Highlights:

-Establishes the following new retirement eligibility requirements for state employees, other than state troopers (Sec. 12):

-For all employees who were not members, active members, or retirees on December 1, 2010, but will be members, inactive members, or retirees on December 31, 2016:
-35 years of service credit with no age requirement; -58 years of age and 30 years of service credit; or -65 years of age and 5 years of service credit;
-For employees, other than members of the school division or Denver public schools division, who will not be members, inactive members, or retirees on December 31, 2016:
-35 years of service credit with no age requirement; -60 years of age and 30 years of service credit; or -65 years of age and 5 years of service credit; and
-For members of the school division or Denver public schools division who will not be members, inactive members, or retirees on December 31, 2016:
-35 years of service credit with no age requirement; -58 years of age and 30 years of service credit; or -65 years of age and 5 years of service credit.

-Authorizes state employees to collect retirement benefits pursuant to existing law (24-51-603) without the scheduled reduction (24-51-603) if they are eligible to collect any retirement benefits, have at least 5 years of service credit, and the number of years of their age plus the number of years of their service credit equals the following (Sec. 12):

-88 years for all employees who were not members, active members, or retirees on December 1, 2010, but who will be members, inactive members, or retirees on December 31, 2016; -90 years for employees, other than members of the school division or Denver public schools division, who will not be members, inactive members, or retirees on December 31, 2016; or -88 years for members of the school division or Denver public schools division who will not be members, inactive members, or retirees on December 31, 2016.

-Increases the amortization equalization disbursement (AED) (employer contribution to PERA) for 2013 through 2017 as follows (Sec. 9):

-For employers in the school division and Denver public schools division, the payment shall be increased 0.4 percent of total payroll for 2013 through 2015 and 0.3 percent for 2016; and -For employers in the state division, the payment shall be increase by 0.4 percent of total payroll.

-Increases the supplemental amortization equalization disbursement (SAED) (employer contribution to PERA using funds that would otherwise be used to fund compensation adjustments) for 2014 through 2018 by 0.5 percent of total payroll for employers in the state division, school division, and Denver public schools division (Sec. 9). -Requires the AED and SAED for employers in the state division, school division, and Denver public schools division to be reduced by 0.5 percent if the actuarial funded ratio of the division is at or above 103 percent (Sec. 9). -Requires the AED and SAED for employers in the state division, school division, and Denver public schools division to be increased by 0.5 percent if the actuarial funded ratio of the division is below 90 percent (Sec. 9). -Limits the AED and SAED to no more than 5 percent of total payroll (Sec. 9). -Limits the cost of living increase for retirement benefits to the lesser of 2 percent or the average of the annual increases in the consumer price index for each month, as calculated by the U.S. Department of Labor (Sec. 20).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that makes changes to the Public Employee Retirement Association (PERA), including, but not limited to, the following highlights.

Highlights:

-Establishes the following new retirement eligibility requirements for state employees, other than state troopers (Sec. 12):

-For all employees who were not members, active members, or retirees on December 1, 2010, but will be members, inactive members, or retirees on December 31, 2016:
-35 years of service credit with no age requirement; -58 years of age and 30 years of service credit; or -65 years of age and 5 years of service credit;
-For employees, other than members of the school division or Denver public schools division, who will not be members, inactive members, or retirees on December 31, 2016:
-35 years of service credit with no age requirement; -60 years of age and 30 years of service credit; or -65 years of age and 5 years of service credit; and
-For members of the school division or Denver public schools division who will not be members, inactive members, or retirees on December 31, 2016:
-35 years of service credit with no age requirement; -58 years of age and 30 years of service credit; or -65 years of age and 5 years of service credit.

-Authorizes state employees to collect retirement benefits pursuant to existing law (24-51-603) without the scheduled reduction (24-51-603) if they are eligible to collect any retirement benefits, have at least 5 years of service credit, and the number of years of their age plus the number of years of their service credit equals the following (Sec. 12):

-88 years for all employees who were not members, active members, or retirees on December 1, 2010, but who will be members, inactive members, or retirees on December 31, 2016; -90 years for employees, other than members of the school division or Denver public schools division, who will not be members, inactive members, or retirees on December 31, 2016; or -88 years for members of the school division or Denver public schools division who will not be members, inactive members, or retirees on December 31, 2016.

-Increases the amortization equalization disbursement (AED) (employer contribution to PERA) for 2013 through 2017 as follows (Sec. 9):

-For employers in the school division and Denver public schools division, the payment shall be increased 0.4 percent of total payroll for 2013 through 2015 and 0.3 percent for 2016; and -For employers in the state division, the payment shall be increase by 0.4 percent of total payroll.

-Increases the supplemental amortization equalization disbursement (SAED) (employer contribution to PERA using funds that would otherwise be used to fund compensation adjustments) for 2014 through 2018 by 0.5 percent of total payroll for employers in the state division, school division, and Denver public schools division (Sec. 9). -Requires the AED and SAED for employers in the state division, school division, and Denver public schools division to be reduced by 0.5 percent if the actuarial funded ratio of the division is at or above 103 percent (Sec. 9). -Requires the AED and SAED for employers in the state division, school division, and Denver public schools division to be increased by 0.5 percent if the actuarial funded ratio of the division is below 90 percent (Sec. 9). -Limits the AED and SAED to no more than 5 percent of total payroll (Sec. 9). -Limits the cost of living increase for retirement benefits to the lesser of 2 percent or the average of the annual increases in the consumer price index for each month, as calculated by the U.S. Department of Labor (Sec. 20).

Full Bill Text