House Bill 25-1105 Preamended

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.

• This Unofficial Version Includes Committee

• Amendments Not Yet Adopted on Second Reading

• 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) and (1.7)(h) 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 subsection (1.7)(h)

• Page 2, Line 5of this section and section 24-51-413, the employer and member

• Page 2, Line 6contribution rates shall be based upon the rates for the

• Page 2, Line 7appropriate division as set forth in the following table

• Page 2, Line 8multiplied by the salary, as defined in section 24-51-101 (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 5(h)  On or after July 1, 2025, and prior to July 1, 2030, if an

• Page 3, Line 6increase in employer and member contribution rates is

• Page 3, Line 7implemented pursuant to section 24-51-413(3), in addition to the

• Page 3, Line 8increase in the employer contribution rate pursuant to section

• Page 3, Line 924-51-413 (3)(b), the board may increase the employer

• Page 3, Line 10contribution rate for employers in the Denver public schools

• Page 3, Line 11division by up to one-half of one percent; except that the board

• Page 3, Line 12shall not increase the employer contribution rate for

• Page 3, Line 13employers in the Denver public schools division pursuant to this subsection (1.7)(h) by more than a total of one percent.

• Page 3, Line 14SECTION 2.  In Colorado Revised Statutes, 24-51-208, amend (1) introductory portion and (1)(f.5) as follows:

• Page 3, Line 1524-51-208.  Allocation of moneys. (1)  The moneys money of the

• Page 3, Line 16association shall be divided into several trust funds, including, but not limited to:

• Page 3, Line 17(f.5)  The Denver public schools division health care trust fund,

• Page 3, Line 18created pursuant to the provisions of section 24-51-1201 (2), which

• Page 3, Line 19consists of a portion of the employer contributions equal to one and two

• Page 3, Line 20one-hundredths two-tenths of one percent of member salaries; a

• Page 4, Line 1portion of the amount paid by members to purchase service credit relating

• Page 4, Line 2to noncovered employment as determined pursuant to section 24-51-505

• Page 4, Line 3(7); deductions of premium amounts from monthly benefits of

• Page 4, Line 4participating benefit recipients; premiums paid directly to the trust fund

• Page 4, Line 5by participating benefit recipients, members, and dependents; monthly

• Page 4, Line 6payments made by employers on behalf of participating benefit recipients,

• Page 4, Line 7members, and dependents; and interest; in addition to a proportional share of investment income earned thereon;

• Page 4, Line 8SECTION 3.  Effective date. This act takes effect July 1, 2025.

• Page 4, Line 9SECTION 4.  Safety clause. The general assembly finds,

• Page 4, Line 10determines, and declares that this act is necessary for the immediate

• Page 4, Line 11preservation of the public peace, health, or safety or for appropriations for

• Page 4, Line 12the support and maintenance of the departments of the state and state institutions.