On Monday afternoon, Governor Hickenlooper signed into law Senate Bill 18-200, Modifications To PERA Public Employees’ Retirement Association To Eliminate unfunded liability (SB 200). The ceremony took place in the Capitol Building foyer outside the Governor’s office and was attended by the bill’s co-sponsors, General Assembly leadership and staff, PERA representatives, and media.
The Colorado legislature passed the bipartisan legislation just before midnight on May 9, in the waning hours of the 2018 session. The bill was co-sponsored by four lawmakers: state senators Jack Tate (R-District 27) and Kevin Priola (R-District 25) and state representatives KC Becker (D-District 13) and Dan Pabon (D-District 4). It is designed to restore Colorado PERA’s retirement plan for public employees to full funding within 30 years.
In praising the legislature for passing the complex bill, Governor Hickenlooper acknowledged that it contains components that each group of stakeholders might like or dislike, and by doing so, “[SB 200] is an example of a genuine Colorado compromise.”
Echoing the governor, state Senator Tate added, “I’m very happy with this outcome, primarily because we had an outcome. [This bill] was always about one thing, which was maintaining retirement security for Colorado’s public servants.”
SB 200 adopted many of the recommendations that the PERA Board proposed in late-2017. The Board finalized its proposals after a yearlong fact-finding process by PERA staff that solicited extensive input—from financial experts and various stakeholder groups, including PERA members, retirees, and employers—which PERA then passed on to lawmakers. “These behind-the-scenes conversations were where the action really happened, and we credit the PERA Board for setting the tone early on,” said state Senator Priola.
The Board’s proposal and SB 200 both advocate for sharing responsibility in such a way that will pay down PERA’s unfunded liability within the actuarially sound 30-year timeframe, which will also help sustain, and possibly improve, Colorado’s credit rating.
“When the 2018 session started, more than a few people told me this bill had about a five percent chance of passing,” said House Majority Leader Becker. “But the shared responsibility aspects of SB 200 are a win for retirees and their families, as well as for the entire state.”
For more information about SB 200, view this rundown of how the new law will affect PERA employees, employers, and retirees.
Unfunded liabilityThe difference between the projected amount of money needed to pay benefits earned to date and the amount of money currently available to pay those benefits.
Nice to know that PERA offers me an “individual account where money is always mine.” So where is the interest it’s been earning (or has my account (my money) been borrowed to pay PERA’s debts?)? Utah, Oregon, and Washington are providing their usual 2.5% AI.
Mismanagement in the high country?
Name it….and PERA has failed. What are those people smiling about during the signature?
No one sent to court over this horrendous debacle. I suspect our former directors will be living a good life…….just saying.
Well said, and yet it’s more than “failure”. This was engineered with a purpose.
New State Motto ?
“Colorado…… Where the Helpers are Hurt, the Servants Swindled, and Pensions can be Pillaged”.
So shameful.
Bennet and Boasberg sold out to Wall Street. They both need to be investigated.
This may be a “genuine compromise” for the legislators, Governor Hickenlooper and the PERA board, but it is not for retirees who were expecting much more when retiring from PERA. Only three weeks before we retirees were counting on a COLA increase effective July 1, this bill pulled the rug out from under us.
Back in 2000, PERA was actually overfunded. Then, state lawmakers and former Gov. Bill Owens boosted benefits and cut contributions. The legislators screwed with us then and are doing the same thing now. PERA retirees will need to hope that we receive another COLA increase after the two year moratorium.
Thanks for nothing in 2018 and 2019.
Retirees not only took it on the chin with SB 200 but additionally with PERA health insurance out of pocket costs raised from $2500 annually to $6700 annually. Hey, when do retirees get a break?
Current retirees are but a memory and no one–least of all the Governor–care two hoots about our welfare. We have been cheated and lied to. I’m sorry I trusted PERA!
Were the actuaries asleep over the past half dozen years?