HB 1265 is sponsored by Representatives KC Becker (D-Boulder, Clear Creek, Gilpin, Grand, Jackson) and Dan Nordberg (R-El Paso) along with Senators Andy Kerr (D-Jefferson) & Kevin Priola (R-Adams)
The bill has been assigned to House Finance and will be heard on March 29th upon adjournment in LSB-A.
Secure PERA is still evaluating this bill and expect to take a position on March 20th.
You can read the bill in its entirety by clicking here.
HB 1265 will increase employer contributions (AED & SEAD) to the Judicial Division of PERA. There will be incremental increases until 2023 when the total amount paid will equal the State Division.
In 2004 and 2006, the general assembly enacted legislation that required each employer in the public employees’ retirement association (PERA) to make additional contributions to PERA. The additional employer contributions are the amortization equalization disbursement (AED) and a supplemental amortization equalization disbursement (SAED). Although the SAED is an employer contribution, it is funded by money that would otherwise be available for employee salary increases. The AED and the SAED are to reduce PERA’s unfunded liability and amortization period.
Both the AED and the SAED increase gradually over time for all PERA divisions. In 2010, the general assembly capped the AED and the SAED for the judicial division and the local government division at the 2010 levels, which for the AED is 2.20% of the employer’s total payroll and for the SAED is 1.50% of the employer’s total payroll.
For the calendar year beginning in 2019, for the judicial division only, the bill increases the AED to 3.40% of total payroll and requires the AED payment to increase by 0.4% of total payroll at the start of each of the following 4 calendar years through 2023. In addition, for the calendar year beginning in 2019, for the judicial division only, the bill increases the SAED to 3.40% of total payroll and requires the SAED payment to increase by 0.4% of total payroll at the start of each of the following 4 calendar years through 2023.