Governor Proposes Changes to PERA

On November 1st, Governor Hickenlooper announced a proposed package of changes to the PERA system. Here, we walk through these proposed changes and how they compare to those offered by the PERA Board of Trustees. Once you’ve read it through, take our survey to let us know what you think.

We are your voice at the Capitol and we need to hear your thoughts. Secure PERA has not taken a position on either plan. Right now, we need to hear from you.

GOVERNOR’S PROPOSED PLAN

Under Governor Hickenlooper’s new plan, there would be no additional employer contributions. Employee contribution rates would increase by 2% (beginning January 1, 2019). The COLA for all current and future retirees would be reduced to 1.25%. The Governor also proposed increasing the salaries for state employees by 3% starting July 1, 2018, which would cover the PERA 2% employee increase slated to begin January 1, 2019 and provide a 1% pay increase.

HOW DOES IT COMPARE TO PERA’S PLAN?

PERA Plan    
Gov Plan    
Employer Contribution Increase
↑ 2%
↑ 0%
Existing Employee Contribution Increase
↑ 3%
↑ 2%
New Employee Contribution Increase
↑ 2%
↑ 2%
COLA Rate
1.5%
1.25%

Both plans also:

  • Include an auto adjust provision
  • Increase the retirement age to 65 for new employees
  • Increase the Highest Average Salary calculation to 5 years
  • Suspend the COLA for two additional years (total of 3 years for those not retired yet)
  • Change the definition of salary to gross salary
  • Change the way FTEs are calculated

COMPLETE the Secure PERA survey by following this link. Thanks for your time and energy!