PIed – SB 13-055 PERA Actuarial Soundness & Reporting Requirements

Update: on Feb 4th Senate Bill 55 was killed in committee.

Senate Bill 55 is sponsored by Sen. Kent Lambert (R – Colorado Springs) and Rep. Lori Saine (R-Dacono)

Status: The bill has been assigned to the Senate State, Veterans & Military Affairs Committee.

CCRS opposes Senate Bill 55 and on January 18th the PERA Board also voted to oppose the bill.

You can read the bill in its entirety here.

The  bill sets one component of the measure of the actuarial soundness of the  defined benefit pension plan trusts by “assuming a discount rate [on liabilities] equal to the  state’s long-term debt interest rate.” The bill requires the PERA Board of  Trustees to annually submit recommendations to the General Assembly on  possible methods to bring the trusts to full funding based upon a 30-year  amortization period on unfunded liabilities. The bill extends the current  authority of the General Assembly to adjust contribution rates. Finally, the  bill mandates that the Board publically publish its Comprehensive Annual  Financial Report (CAFR) by May 31 of every year for the prior calendar year.  Currently, PERA publishes the CAFR by June 30 in compliance with the  Government Finance Officers Association’s best practices.