Click here for the latest information on proposed PERA-related legislation.
The second regular session of the 74th Colorado General Assembly got underway on January 10, and lawmakers will spend the following 120 days introducing and debating hundreds of bills that could alter state law.
Colorado PERA’s representative at the State Capitol, Public and Government Affairs Manager Michael Steppat, helps make sure legislators understand how PERA works and how legislation affects PERA and its members. We caught up with Steppat to discuss the upcoming session.
How and why does PERA engage in the legislative process?
While the PERA Board of Trustees is responsible for administering benefits and overseeing PERA’s investments, the General Assembly is responsible for many other aspects of PERA, such as contribution rates, benefit levels, and the amount of the annual benefit increases that retirees receive.
During and between sessions, PERA staff provide regular updates to the Legislature so lawmakers can make informed decisions on issues that affect our members.
What are some of the issues we expect to come up this session?
Last year’s session was an interesting one that included several legislators stepping down. As a result, legislative leaders from both parties have expressed a desire for more decorum heading in to the 2024 legislative session.
The Democratic majority remains in place at the Capitol, and there aren’t any statewide offices up for election this year. It’s likely the new session will see bills continuing to address the rise in property taxes across the state, which was addressed temporarily during the special session a couple months ago, but work continues on finding a long-term solution. Additionally, included in the Governor’s budget proposal is a request to buy down the state’s budget stabilization factor, which was created during the Great Recession and diverted money from Colorado’s public schools. This would be a huge investment in K-12 funding and should receive bipartisan support. Some of the other priority issues relate to others that lawmakers have tackled in recent years, such as affordable housing and the increasing cost of health care.
PERA doesn’t typically garner the same level of attention as other public policy issues during legislative sessions, but we already know about two bills that lawmakers intend to introduce this year. These two bills are among 54 total which lawmakers have already approved for introduction after being recommended by legislative interim committees that have met since the 2023 legislative session concluded. One of those bills would expand the number of PERA retirees who can work for school districts without reductions in their benefits, and the other would provide a temporary tax credit to PERA retirees. The latter is an attempt from lawmakers to address concerns from folks regarding a larger annual benefit increase, but doing so in a way that does not negatively affect PERA’s funding status.
READ MORE: Pension Review Commission Eyes Two Bills for 2024 Legislative Session
Speaking of funding, do you have a sense of what the state’s next budget looks like?
Gov. Jared Polis released his budget proposal in November, and while the Legislature ultimately decides the state budget, it’s an important first step in the process. His proposal calls for increases in education funding and pay raises for teachers, among other things. Lawmakers will release their own draft of the budget, known as the Long Bill, in March. It’s important to note the state budget does not directly affect PERA’s funding, but it does affect funding for many of PERA’s employers.
Is there anything happening at the federal level that could affect politics here in Colorado?
2024 is a presidential election year, and this time around, Colorado will be one of 14 states holding primaries on Super Tuesday in March. That means Colorado voters will have their voices heard earlier in the campaign process than in years past, and it’s likely candidates will make stops in our state.
In addition, the 2023-2024 Congress continues, and lawmakers have introduced several bills that would modify or repeal Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). We often hear from PERA members about these provisions and their effects on Social Security benefits, and we will continue to monitor and update our stakeholders if Congress decides to take action on those bills.
READ MORE: An Update on 2023 WEP/GPO Legislation
What’s the best way for people to get involved in the legislative process?
I always tell people the most important thing they can do is contact their legislators about issues that are important to them. In addition, the General Assembly website has lots of great information. You can listen to committee meetings, view calendars, review the status of a bill, and sign up to testify at committee meetings.
And of course the PERA On The Issues biweekly newsletter will have up-to-date information on any legislation that affects PERA. We also encourage people to sign up for the PERA Ambassadors newsletter here.
Windfall elimination provisionA provision of federal law that may reduce Social Security benefit payments to retirees who receive a pension based on work during which they did not contribute to Social Security. The WEP does not apply to those with 30 or more years of substantial earnings in Social Security.Government pension offsetA provision of federal law that reduces Social Security dependent benefit payments to spouses, widows, and widowers who receive a government pension like PERA.
WHAT ‘NOT’ TO EXPECT IS MORE RELEVANT!!!
Sure, a rehash of the last session’s crumbs* (HB23-1016, temporary tax cut for low-income Colorado PERA retirees, which failed) may be re-introduced along with the usual increase for education (that like TABOR rebates are financed by retirees who lost their COLA), but the real issue is what is NOT being proposed, i.e., restoring the COLA at 3.5%!
STOP THE THEFT! PERA beneficiaries need to protest at the capitol, attend their March 9, 2024, neighborhood caucuses, and join a lawsuit that’s forming.
In solidarity (real solidarity, not fake yellow dog union solidarity ;-o), – Guy
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Footnote* – Tax credit, health care subsidy, or certificates of appreciation, whatever the General Assembly offers will only be platitudes. So, PERA beneficiaries need to be seen and heard now!
Right on the mark. Thank you.
The Colorado Supreme Court has already ruled that Colorado PERA beneficiaries have no contractural right to an annual COLA. Of course, I fully acknowledge I could be wrong, but it looks like another lawsuit would cost the filers money, as well as PERA beneficiaries to fund the attorney expenses. Why would the Colorado Supreme Court overturn its own ruling?
Mike,
Two out of four Colorado Supreme justices pulled a fast one in disregarding the Contract Clause of the Constitution and upholding a silly fairy tale contrived by lower court Judge Hyatt, to override the correct Court of Appeals decision recognizing the 3.5% annual increase was a lifetime benefit for PERA beneficiaries who vested under the statute providing that amount. The heist was rewarded with that waste of taxpayers’ money in the great new digs southeast of the Capitol on 14th St., built at great expense to profit Tramell Crow and Mortenson, and to supply the legislature a huge slush fund by raiding state pension trusts). At least the other two jurists properly recused themselves, as this was essentially a federal bankruptcy matter that the state successfully turned into a budget issue instead of the illegal takings that it is!
And yes, it costs money to litigate, but PERA retirees should pony up if another lawsuit is brought (trust me the state has more to lose, especially in federal court where a fair trial might actually be possible, than a bunch of pensioners who’ll die before legal bills come due but may starve to death before without a fair COLA). Bottom line, it’s time to get in line for TABOR rebate money before the politicians steal all of it.
Of course, the corrupt Colorado State Supreme Court won’t reverse itself, any more than most politicians will even acknowledge PERA retirees’ pleas, and that’s why PERA beneficiaries need to flood the caucuses and then sue (in federal court) if the legislature still doesn’t restore 3.5% annual increases to those who were promised and entitled to that rate.
In my opinion, only former politicians, education administrators (not classroom teachers), upper management, cronies, many judges, and other over paid bureaucrats (who are now PERA retirees and could afford to contribute to a lawsuit) would be the free riders who’d refuse to contribute to a legal defense fund because they’re greedy, callous, and neither need nor deserve a COLA.
In closing, I don’t suspect you were expecting an answer from PERA staff or from anyone, but in case your question wasn’t rhetorical, I thought I give you my two-cents worth.
Best, – Guy
I would very much like to support the lawsuit to restore the 3.5% COLA that I was promised by contract when I retired. It has always been a thorn in my side, that state government, and particularly the Supreme Court, achieved their agenda at that time by denying retirees their contractual rights.
Colorado state government ethics and achievements need to be judged by how they have, and will treat the elderly and retirees.
In my view, Colorado state government performance in this area is very poor.
Lawsuit In Due Time
After the March 9th neighborhood caucuses, PERA retiree attendance should be known by mid-March along with the strength to sway the majority party’s priorities for this year’s General Assembly; and test everyone’s political will in April at the state assembly/convention; but regardless, lawsuits won’t likely form until after Sine Die (May 9th., last day of the session). Watch “The PERA SITE” fbook page or email ‘handsoffmypera@hotmail.com’ to get or share information about pending litigation, after Memorial Day. In the meanwhile, those attending their local caucus are encouraged to contact me at ‘handsoffmypera@hotmail.com’ to say how it went and if they’ll be an Alternate or Delegate to their county assembly.
Happy MLK Day – Guy
P.S. – Remember to attend parades and political rallies to politely needle your elected statehouse representatives to start actually representing you by restoring a fair PERA COLA (don’t settle for anything less than 3.5%).
Tone deaf. That describes the failure of state government and its leadership to provide a reasonable COLA increase to retirees. Property taxes up 40%, significant increases in both residential and auto insurance, and the list goes on and on. It is nothing short of a debacle………. Try writing your legislator……generally no responses. Abysmal at best.
Just my opinion on this gripe blog. Give it up. Cola increase and or WEP repeal aren’t likely with the bunch of out of touch politician’s we have that spend all OUR time arguing and investigating each other. Most are Lawyers, what’s that tell you? Total madness, with nothing good (for the people) coming from it. Better off avoiding the News, never any good News these days anyway.
I agree, our elected representatives are lacking; and the odds of state legislators doing the right thing by themselves and increasing the COLA is unlikely; but I’m not going to bury my head in the sand. I’ll try to salvage my retirement by working for a restored COLA. You’re entitled to your opinion, and I understand how discouraging it appears, but surrendering when someone effortlessly robs you, encourages that behavior. Some of us expect a decade or more of retirement, but years of inflation will result in negative annual adjustments which compounded annually could easily cut our buying power in half (over ten years of less than 1% average annual increases)! For those who’ll die before political action or litigation works, or won’t do anything for other reasons, then why bother to post a comment? Some of us are doing more than griping, we’re preparing.
P.S. – I doubt, as the General Assembly drags on, this website will allow replies to be posted (or will censor even innocuous comments – so folks should “gripe” while they can, as it serves to establish a record and proof that members want a fair COLA).
P.P.S. – It’s your U.S. Congresspersons who control the repeal of WEP, only Colorado’s Republican delegation refuses to support the Fairness In Social Security Act.
Guy
Email:’handsoffmypera@hotmail.com’
Sure, our elected representatives are lacking; and the odds of state legislators doing the right thing by themselves and increasing the COLA is unlikely; but what is there to lose by fighting back (starting with attending your March 9th local caucus). I’ll try to salvage my retirement by working for a restored COLA. Folks are entitled to their opinions, and I understand how discouraging it appears, but surrendering when someone effortlessly robs you, encourages that behavior. Those of us expecting a decade or more of retirement, will get negative annual adjustments (which compounded annually could easily cut our buying power in half over ten years of less than 1% average annual increases)! To those who’ll die before political action or litigation works, or won’t do anything for other reasons, then why bother to post a comment? Some of us are doing more than griping, we’re preparing.
P.S. – I doubt, as the General Assembly drags on, this website will allow replies to be posted (or will censor even innocuous comments – so folks should “gripe” while they can, as it serves to establish a record and proof that members want a fair COLA).
P.P.S. – It’s your U.S. Congresspersons who control the repeal of WEP, only Colorado’s Republican delegation refuses to support the Fairness In Social Security Act.
Guy
Email:’handsoffmypera@hotmail.com’
I agree with, and support, all of your PERA posts about PERA Board and CO Legislature ignoring PERA retirees. Existing PERA employees are receiving annual merit/COLA increases to offset any rise in PERA contributions that they must pay. However, retirees don’t have this luxury because all of us are on a fixed pension payment with an inadequate AI of 1% that is projected to decrease in the future!
Blah blah blah
“Blah, blah, blah…” I know much of what gets posted here is griping or is “pearls before swine;” and folks that read PERA On The Issues (P.O.T.I.) are probably better-informed than most beneficiaries; but politicians count on the vast majority of members (and electorate) to be like sheep … out of apathy, despair and/or ignorance (an ignorance the politicians cultivate).
Because members don’t take direct political action, they get robbed while PERA board & Staff (PERA B.S.) runs interference for the politicians (they know which side their bread is buttered). Attend your March 9th caucuses (some are virtual, so you don’t have to leave your house, if going down the block is too difficult) and keep contacting them DO NOT TAKE NO FOR AN ANSWER OR ACCEPT LESS THAN A 3.5% COLA!
– GUY (handsoffmypera@hotmail.com)
Once again, once again, once again, the NEA, AARP, etc. are in support of eliminating the WEP and GPO–unsuccessfully. As retired and presently employed educators, it would be advantageous to know the names of Congresspersons who appose repealing these provisions that presently adversely affect our Social Security payments and those of our heirs.
Hi Steve,
I’m absolutely dumbfounded by why the Fairness in Social Security Act has not passed by now, but those who are preventing its passage are the Republicans in the House of the U.S. Congress. I’m not being partisan, it’s simply a fact. Likewise, I actually think AARP has been pretty silent on this issue, and they’ve never replied to my inquiries about their support (or lack thereof) for repealing the GPO and WEP.
Any other AARP members out there reading this want to correct me, then please contact me at ‘handsoffmypera@hotmail.com.’
Why do retirees never hear from our PERA Board elected member for retirees? See her information below. Seems very odd to me that she has said nothing about retirees COLA/AI concerns! She is supposed to be our advocate.
Julie Friedemann
Term: Expires: June 30, 2025
Appointing Authority: Retirees
Julie Friedemann was appointed to the PERA Board of Trustees in 2017.
A PROPOSAL ON HOW TO PROPERLY PROPOSE PROPER LEGISLATION:
Legislative relief can be secured through one of two ways which PERA beneficiaries have. Not waiting for PERA Board & Staff (PERA B.S.), but by contacting your elected representatives in a way they’ll be hard pressed to ignore you (except when looking to rob you). ATTEND YOUR LOCAL CAUCUS!
PERA retirees should attend March 9th neighborhood caucuses, after which attendance should be known by mid-March along with the strength to sway the majority party’s priorities for this year’s General Assembly; and test everyone’s political will in April at the state assembly/convention; but regardless, lawsuits (the other way to impact legislation) won’t start forming until after Sine Die (May 9th., last day of the session). Watch “The PERA SITE” fbook page or email ‘handsoffmypera@hotmail.com’ to get or share information about pending litigation, after Memorial Day. In the meanwhile, those attending local caucus are encouraged to contact me at ‘handsoffmypera@hotmail.com’ to say how it went and if they’ll be an Alternate or Delegate to their county assembly.
REGISTER WITH A PARTY BY FEBURARY 16, AND ATTEND YOUR NEIGHBORHOOD CAUCUS ON MARCH 9. Note: Caucuses along the front range for Democrats are the ones that matter (because they’re the majority party). PERA members need to attend and get elected as delegates and alternates!
Happy MLK Day – Guy
P.S. – If you attend parades and political rallies, politely needle your elected statehouse representatives to start actually representing you by restoring a fair PERA COLA (don’t settle for anything less than 3.5%).