A Bill for an Act
Page 1, Line 101Concerning a requirement that the public employees'
Page 1, Line 102retirement association implement certain
Page 1, Line 103risk-reduction measures.
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/.)
Pension Review Commission. Currently, the public employees' retirement association (PERA) board (board) conducts or causes to be conducted an actuarial experience study of PERA and a periodic actuarial audit of PERA. Both the actuarial experience study and the periodic actuarial audit, neither of which are referenced in current law, are conducted approximately once every 5 years, but the timing of the actuarial experience study and the periodic actuarial audit is not aligned.
The bill requires the board to conduct or cause to be conducted the actuarial experience study in the 2025 calendar year and every 4 years thereafter, rather than every 5 years. In addition, the bill requires the board to conduct or cause to be conducted the periodic actuarial audit of PERA in the 2026 calendar year and every 4 years thereafter, rather than every 5 years, and ensure that each periodic actuarial audit takes into consideration the results and findings of the actuarial experience study that was conducted during the prior calendar year.
In addition, beginning in the 2027 calendar year, and every 4 years thereafter, the state auditor is required to commission an independent review of the periodic actuarial audit that the board conducted or caused to be conducted in the prior calendar year by experts other than those already working on behalf of PERA. The experts commissioned to conduct the independent review are required to analyze how the periodic actuarial audit was conducted and provide an independent interpretation of the results of the periodic actuarial audit, including whether the periodic actuarial audit appropriately considered the results of the most recent actuarial experience study that the board conducted or caused to be conducted.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 24-51-204, add (12) as follows:
Page 2, Line 324-51-204. Duties of the board. (12) Beginning with the
Page 2, Line 4actuarial experience study of the association that the board
Page 2, Line 5conducted in the 2024 calendar year, and every four years
Page 2, Line 6thereafter, the board shall conduct or cause to be conducted
Page 2, Line 7an actuarial experience study of the association. In addition,
Page 2, Line 8beginning in the 2026 calendar year, and every four years
Page 2, Line 9thereafter, the board shall conduct or cause to be conducted
Page 2, Line 10a periodic actuarial audit of the association. The board shall
Page 2, Line 11ensure that the periodic actuarial audit of the association
Page 2, Line 12conducted in the 2026 calendar year and every four years
Page 3, Line 1thereafter pursuant to this subsection (12) takes into
Page 3, Line 2consideration the results and findings of the most recent
Page 3, Line 3actuarial experience study of the association that was conducted pursuant to this subsection (12).
Page 3, Line 4SECTION 2. In Colorado Revised Statutes, 24-51.1-101, amend (4)(a) introductory portion, (4)(a)(I), and (4)(h) as follows:
Page 3, Line 524-51.1-101. Pension review commission - repeal. (4)
(a)Page 3, Line 6subcommittee shall review the items specified in subsection (2) of this
Page 3, Line 7section as they relate to the public employees' retirement association, as applicable. In addition, the subcommittee shall:
Page 3, Line 8(a) (I) Study the provisions of article 51 of this title 24 and make
Page 3, Line 9necessary recommendations to the commission or the public employees' retirement association;
Page 3, Line 10(h) Every
threePage 3, Line 11release of the periodic actuarial audit of the association
Page 3, Line 12conducted or caused to be conducted by the board of the public
Page 3, Line 13employees' retirement association in 2026 and every four years
Page 3, Line 14thereafter pursuant to section 24-51-204 (12), commission an
Page 3, Line 15independent review of the economic and investment assumptions used to
Page 3, Line 16model the public employees' retirement association financial situation.
Page 3, Line 17The subcommittee shall use experts other than those already working on
Page 3, Line 18behalf of the association and shall ensure that the experts review
Page 3, Line 19the findings from the most recent periodic actuarial audit of the association conducted pursuant to section 24-51-204 (12).
Page 3, Line 20SECTION 3. Safety clause. The general assembly finds,
Page 3, Line 21determines, and declares that this act is necessary for the immediate
Page 3, Line 22preservation of the public peace, health, or safety or for appropriations for
Page 4, Line 1the support and maintenance of the departments of the state and state institutions.