3/1/17 UPDATE: House State Affairs Committee members voted 6-3 to postpone indefinitely (PI) this bill killing it.
2/22 UPDATE: The House State Affairs Committee will hear this bill on 3/1/17 at 1:30 pm.
UPDATE: The Senate has passed this bill on 3rd reading on a partisan vote.
Senate Bill 113 is sponsored by Senator Neville (R- Littleton) and Representative Everett (R- Littleton).
You can read the bill in its entirety by clicking here.
This bill would cap employer contribution rates at 2018 levels. This bill concerns us for several reasons:
- PERA’s Board has voted to conduct an outreach tour this spring and summer to educate us all on the status of PERA and what that status would look like if any changes were made to contribution amounts or benefit structure. With this process going on, it is very important that we leave all options on the table and not mislead employers about what their contribution rates will be well into the future. In essence, the three Senate Finance committee members said that any changes would have to come from employees and retirees – that is unacceptable to us.
- In the past, employers have not paid 100% of their required annual contribution. This under-funding of the divisions is part of what led to the need for Senate Bill 1. In Senate Bill 1, we strived to bring employers up to 100% funding. We will spend the next few months reviewing with PERA how all of the pieces of Senate Bill 1 worked – there were 33 changes in SB1 along with numerous assumptions. This comprehensive review by PERA, Secure PERA and the numerous other stakeholders and interested parties needs to occur before we talk about locking in any contribution rates.
- Lastly, the judicial division went into the yellow category this past year, causing us and PERA some concern. Many of the solutions the judicial division and PERA are talking about to reduce the number of years before the judicial division is 100% funded require additional employer contributions. This bill would prevent that fix.