A key component of SB 200, the legislation passed at the end of the 2018 legislative session that will put PERA on a path to full funding within 30 years, is a direct infusion of funding from the state budget.
If this legislation is signed into law by Governor Hickenlooper, beginning on July 1, 2018, PERA will receive $225 million as a direct distribution from the state. By statute, payments will continue each year until PERA is fully funded, meaning that there are no unfunded actuarial accrued liabilities in any division of PERA that receives the distribution.
PERA will allocate the direct distribution as proportionate to the trust of each division (Denver Public Schools, Judicial, School, and State). The Local Government Division Trust Fund, which has a higher funded ratio, will not receive an allocation. Unlike the other divisions, SB 200 does not increase the employer contribution from the Local Government Division.
The $225 million allocation can be impacted by the auto adjustment provision in SB 200, but by no more than $20 million per year. Additionally, the disbursement is capped at $225 million.
All funds from the direct distribution will go toward paying off PERA’s unfunded liability.
For additional information on this provision of SB 200, please see this fact sheet.