A Bill for an Act
Page 1, Line 101Concerning an adjustment to the total employer
Page 1, Line 102contribution rate of the Denver public school division
Page 1, Line 103of the public employees' retirement association in
Page 1, Line 104connection with the equalization status of the
Page 1, Line 105association's Denver public schools division with the
Page 1, Line 106association's school division as required by the merger
Page 1, Line 107of the Denver public schools retirement system with
Page 1, Line 108the association.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
In 2009, the general assembly enacted legislation to merge the Denver public schools retirement system into the public employees' retirement association (PERA), effective January 1, 2010. The merger legislation created a Denver public schools (DPS) division within PERA and set the employer and member contribution rates for that division. The merger legislation also required PERA to calculate a true-up beginning January 1, 2015, and every fifth year thereafter, to determine whether the DPS employer contribution rate must be adjusted to assure the equalization of the DPS division's ratio of unfunded actuarial accrued liability over payroll to the PERA school division's ratio of unfunded actuarial accrued liability over payroll at the end of the 30-year period that began on January 1, 2010 (equalization of the 2 divisions). If necessary, the PERA board is required to recommend that the general assembly adjust the DPS total employer contribution rate to assure the equalization of the 2 divisions.
In furtherance of the true-up for the equalization of the 2 divisions, beginning on July 1, 2025, the bill reduces the total employer contribution rate for the DPS division from 10.4% to 7.4% of salary. The bill does not alter the employer or member contribution rate for any other division of PERA.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 24-51-401, add (1.7)(a)(V) as follows:
Page 2, Line 324-51-401. Employer and member contributions.
Page 2, Line 4(1.7) (a) (V) Effective July 1, 2025, subject to section 24-51-413,
Page 2, Line 5the employer and member contribution rates shall be based upon
Page 2, Line 6the rates for the appropriate division as set forth in the
Page 2, Line 7following table multiplied by the salary, as defined in section
Page 2, Line 824-51-101 (42), paid to members and retirees for the payroll period:
Page 2, Line 9TABLE E
CONTRIBUTION RATES
Page 2, Line 10DivisionMembershipEmployer RateMember Rate
State All Members10.4%10.0%
Page 3, Line 1 Except
State Troopers13.1%12.0%
Page 3, Line 2School All Members10.4%10.0%
Local
Page 3, Line 3Government All Members10.0%8.0%
Judicial All Members13.91%10.0%
Page 3, Line 4DPS All Members7.4%10.0%
Page 3, Line 5SECTION 2. Safety clause. The general assembly finds,
Page 3, Line 6determines, and declares that this act is necessary for the immediate
Page 3, Line 7preservation of the public peace, health, or safety or for appropriations for
Page 3, Line 8the support and maintenance of the departments of the state and state institutions.