A summary of proposed legislation affecting Colorado PERA. Check back often for new bills and updated status reports. Last updated: May 20, 2019.
PERA Local Government Division Member Contribution Rate
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 Senate Bill 18-200, 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.
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.
PERA Board Assess Climate-related Financial Risks
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:
- A comprehensive analysis of any climate-related financial risk of the association’s portfolio, and exposure of the fund to long-term risks;
- A summary of climate-related financial risk-related engagement activities undertaken;
- 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.
Status: Postponed indefinitely by the House Finance Committee 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.