SB18 200 – 2018 Overhaul to PERA

Senate Bill 18 200 is a comprehensive overhaul of PERA. Secure PERA is a coalition that operates by consensus. Most of the groups making up Secure PERA have taken individual positions on the bill, but Secure PERA as a coalition does not have a consensus position.

SB18 200 is sponsored by Senators Jack Tate (Centennial – R), Kevin Priola (Adams County – R) & Cheri Jahn (Jefferson County – U) along with Representatives KC Becker (Boulder – D) and Dan Pabon (Denver-D).

The PERA Board met on March 7th and did not take a position on the bill. They asked the PERA staff to continue working with the Legislators on the bill.

You can view PERA’s information on the changes here.

Here is the final version of SB 200.

PERA
Currently (2018)
SB 200
Final Version
Employer Contribution 10% – 13.66% ↑. 25% (no increase for local government employers)
Employee Contribution 8% ↑ 2% Total
— ↑ .75%  on 7/1/2019
— ↑ .75%  on 7/1/2020
— ↑ .5% on 7/1/2021
(all employees)
State Contribution $225 million annually to PERA starting 7/1/2018
Highest Average Salary (HAS) 3 years 5 years
(non-vested as of 12/31/2019 and new employees only)
Retirement Age 58/60 64 years old
(new employees as of 1/1/2020)
COLA Suspension 2 years
(3 years for those not already retired – 1 year from SB1)
COLA Rate 2% 1.50%
(starting 7/1/2020, after 2 years suspension)
PERA Includable Salary Net to Gross
(new employees as of 7/1/2019)
Auto – Adjust Yes (employer, employee, COLA and state contribution involved)
View PERA’s one pager on the auto adjust here.
Defined Contribution State after 2006 has option Expanded to all State Division and Local Division Employees. No Expansion to Judicial, Schools or DPS Employees.

Starting 1/1/2021 the state and local government employers will have to pay a DC Supplement to cover the additional costs of the DC plan.

Other -Pension Review Commission, 5 Senator & 5 Reps — to review PERA & FPPA pensions

-Pension Review Subcommittee consisting of 14 members including legislators and community members

– PERA Board to do an annual sensitivity study to ensure PERA is on track and report to Governor, JBC, Audit and Finance Committees.

-Starting on 1/1/2020 new hires that are state corrections officers classified I thru IV or county sheriff, undersheriff, deputy sheriff, non-certified deputy sheriff, or detention officer hired by  a local government division employer will receive benefits equivalent to state troopers.