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) and (13) as follows:
Page 2, Line 324-51-204. Duties of the board. (12) Beginning in the 2025
Page 2, Line 4calendar year, and every four years thereafter, the board
Page 2, Line 5shall conduct or cause to be conducted an actuarial experience
Page 2, Line 6study of the association. In addition, beginning in the 2026
Page 2, Line 7calendar year, and every four years thereafter, the board
Page 2, Line 8shall conduct or cause to be conducted a periodic actuarial
Page 2, Line 9audit of the association. The board shall ensure that the
Page 2, Line 10periodic actuarial audit of the association conducted in the 2026
Page 2, Line 11calendar year and every four years thereafter pursuant to this
Page 2, Line 12subsection (12) takes into consideration the results and findings
Page 3, Line 1of the actuarial experience study of the association that was conducted during the prior calendar year.
Page 3, Line 2(13) Beginning in the 2027 calendar year, and every four
Page 3, Line 3years thereafter, the board shall submit to and the state
Page 3, Line 4auditor shall commission an independent review of the periodic
Page 3, Line 5actuarial audit that the board conducted or caused to be
Page 3, Line 6conducted in the prior calendar year pursuant to subsection
Page 3, Line 7(12) of this section. The auditor shall use experts other than
Page 3, Line 8those already working on behalf of the association. The experts
Page 3, Line 9commissioned to conduct the independent review shall analyze
Page 3, Line 10how the periodic actuarial audit was conducted and provide an
Page 3, Line 11independent interpretation of the results of the periodic
Page 3, Line 12actuarial audit, including whether the periodic actuarial audit
Page 3, Line 13appropriately considered the results of the most recent
Page 3, Line 14actuarial experience study of the association that the board
Page 3, Line 15conducted or caused to be conducted pursuant to subsection (12) of this section.
Page 3, Line 16SECTION 2. Safety clause. The general assembly finds,
Page 3, Line 17determines, and declares that this act is necessary for the immediate
Page 3, Line 18preservation of the public peace, health, or safety or for appropriations for
Page 3, Line 19the support and maintenance of the departments of the state and state institutions.