Colorado School and Public Employees Retirement Association
 

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View most recent news and updates on proposed state and federal legislation as well as news from legislative oversight committees from PERA.

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2023 Issues Forum Video

State Representatives Hamrick and Kolker explain how we can help with legislation for PERA


August 31, 2023

News Archive

2023

Sept 5th Breaking News:

Pension Review Subcommittee Completes Summer Work
Recommends State Income Tax Credit for Certain PERA Retirees

 

In prior years, our State Legislature created the Pension Review Commission and the Pension Review Subcommittee. Both groups review the state’s public employee pensions.The Pension Review Subcommittee, whose appointees are both legislators and private citizens, may make recommendations for pension legislation to the Pension Review Commission.The Pension Review Commission considers such recommendations, and may decline or choose to propose recommended legislation in the next session (January 2024). Only the Pension Review Commission, which is made up entirely of elected legislators, may propose legislation.

As a result of its summertime meetings, the Pension Review Subcommittee has recommended a PERA-related bill to the Pension Review Commission. The proposal involves a state income tax credit of at least $700 annually for certain PERA retirees (means-tested based on overall income). The proposal also recommends a source of funds for the tax credit measure.

Here is the text of the recommendation sent to the Pension Review Commission:

“The Pension Review Subcommittee recommends that the Pension Review Commission draft a bill for the 2024 legislative session that would provide a limited duration (potentially until a future auto-adjusted COLA increase) income tax credit of at least $700 annually to each PERA retiree based on the retiree’s overall income (through a to-be-determined means test) with state revenue that would otherwise be returned to taxpayers via TABOR and not to impact the state’s direct distribution.” Will a bill along that line be submitted to the 2024 General Assembly? There are a number of steps along the way to a bill actually being submitted. The next step involves the consideration of the recommendation by the Pension Review Commission.
The Pension Review Commission is scheduled to discuss this matter on Wednesday, September 13. You are encouraged to send comments now to Commission members, whose contact information is listed below. Comments from all citizens help shape the decisions of legislators. Comments from local constituents are especially impactful on legislative votes.

Pension Review Commission

Rep. Cathy Kipp Chair (D) 303-866-4569 cathy.kipp.house@coleg.gov
Sen. Chris Kolker Vice Chair (D) 303-866-4883 chris.kolker.senate@coleg.gov
Rep. Eliza Hamrick (D) 303-866-3706 eliza.hamrick.house@coleg.gov
Sen. Chris Hansen (D) 303-866-4861 chris.hansen.senate@coleg.gov
Sen. Larry Liston (R) 303-866-2737 larry.liston.senate@coleg.gov
Rep. Marc Snyder (D) 303-866-2932 marc.snyder.house@coleg.gov
Sen. Tom Sullivan (D) 303-866-4873 tom.sullivan.senate@coleg.gov
Rep. Rick Taggart (R) 303-866-3068 rick.taggart.house@coleg.gov
Sen. Kevin Van Winkle (R) 303-866-4881 kevin.vanwinkle.senate@coleg.gov
Rep. Don Wilson (R) 303-866-2191 don.wilson.house@coleg.gov

Breaking News Oct:

An early look ahead…
Possible PERA-impacting bills of 2024

The legislature’s Pension Review Commission has posted online a group of draft bills being considering for the 2024 session. This CSPERA bulletin provides a brief description of those draft bills. Additional bills may materialize during the session.

The first two bills listed would most broadly impact PERA retirees and the PERA fund. We encourage members to participate in shaping your retirement plan by watching for in-session bulletins that notify of PERA bill hearings, and by sending comments to the legislators who will vote on the bills.

PERA Retiree Refundable Income Tax Credit
For tax years 2024 and 2025 only, this bill creates a $700 refundable state income tax credit for qualifying PERA retirees. In the draft bill, a qualifying PERA retiree is: 65 years old or older at the close of the income tax year for which the credit is claimed, and has an annual gross income of no more than $38,000 if filing as a single filer or $76,000 if filing as a joint filer.

Compensatory Direct Distribution to PERA
The bill requires the State Treasurer to transfer $21M to the Colorado Public Employee’s Retirement Association (PERA), paid from the General Fund, to complete the reimbursement of PERA for its losses when the required annual direct distribution payment was missed in 2020.

Additional PERA Service Retirees for Schools
The bill allows school districts to hire up to 10 retirees whenever the district identifies the need for additional instructors. Additionally, school districts may exceed the 10 retiree cap by 1 retiree for every 1,000 students above 10,000 students.

State Contribution to Fire and Police Pension Association Death & Disability Fund
Each July 1 from 2024 to 2026, the bill requires the State Treasurer to transfer $9.13M from the General Fund to the Death and Disability Payment Cash Fund, and transfer the same amount to the Fire and Police Pension Association (FPPA) for deposit into the FPPA’s Statewide Death and Disability Trust Fund.

Fire and Police Pension Law Technical Corrections
The bill makes clarifications and corrects statutory references regarding the Fire and Police Pension Association’s statewide retirement plan that are consistent with current practices.

PERA Exclusion of Contracted Employees for Schools
The bill changes the definition of a PERA “member” to exclude employees of any private, third- party entity with which school districts, district charter schools, or institute charter school (school) has contracted. Any employee of a third-party entity which is fully separate from the school is deemed a third-party employee. Schools that employ third-party employees will experience cost savings from employer contributions no longer being made on behalf of third- party employees.

Find full details on the draft bills at: https://leg.colorado.gov/content/ipensionrevew2023a 

Nov Breaking News:

Pension Review Commission Advances Two Draft PERA Bills

Earlier this fall the state legislature’s Pension Review Commission began its conversations about six draft PERA-related bills.

The Pension Review Commission has now decided to move forward with two of those draft PERA bills. One could provide a state income tax benefit for certain PERA retirees, and a second could impact school districts experiencing employee shortages. Here is a summary of each of the draft bills.

PERA Retiree Refundable Income Tax Credit
This draft bill stipulates that for tax years 2024 and 2025 only, there shall be a $700 state income tax credit for qualifying PERA retirees. The draft bill defines a qualifying PERA retiree as (1) 65 years old or older at the close of the income tax year for which the credit is being claimed, and (2) having an annual gross income of no more than $38,000 if filing as a single filer, or no more than $76,000 if filing as a joint filer.

The term “refundable” indicates that the draft bill’s wording would allow a qualifying PERA retiree whose income tax bill is less than the $700 credit to receive payment for the amount in excess of his or her tax bill.

Additional PERA Service Retirees for Schools
This draft bill would expand a school district’s opportunity to hire PERA retirees to fill areas of employee shortages. It would allow school districts to hire up to ten retirees whenever the school district identifies the need for additional instructors. Additionally, school districts would be allowed to exceed the ten retiree cap by one additional retiree for every 1,000 students
above 10,000 students in the district.

In January, when the 2024 legislature convenes, CSPERA will watch for the appearance of those drafts as submitted bills. We’ll work to provide bulletins that describe final bill content, the dates of House and Senate Committee hearings, and contact information for the legislators who will be deciding whether to move the bill forward or defeat it in committee.

Almost every year new state legislation alters some provisions of your PERA retirement plan. We hope PERA employees and retirees will watch for during-session CSPERA bulletins, and participate in the democratic process that shapes your retirement plan by commenting to your local Representative and Senator about bills being considered.