(June 4) – Gov. John Hickenlooper signed legislation today sponsored by House Majority Leader KC Becker and Rep. Dan Pabon to assure the long-term solvency of ColoradoPERA, the retirement plan for over 560,000 government employees.
“The system was in need of reform to bring it back into solvency, and with billions of tax payer dollars at stake, kicking the can down the road was not an option,” said Majority Leader Becker. “This bill will ensure the long-term solvency of PERA, so that the state can meet its commitment to our active and retired public servants well into the future. I thank all of the stake-holders involved for their work on this important measure.”
The credit rating agency Standard and Poors cautioned of a credit downgrade for the state if no action was taken this year to reform PERA.
“Our state’s credit rating hung in the balance, which could have cost Colorado taxpayers millions of extra and unnecessary dollars in order to build our roads, our schools and much needed infrastructure around the state,” said Rep. Pabon, chairman of the Finance Committee. “It’s a plan to put our state on good financial footing but it is not without shared sacrifice.”
SB18-200, also sponsored by Sen. Jack Tate and Sen. Kevin Priola, will ensure that PERA remains a steady and solvent retirement fund. The bill commits $225 million in ongoing new funding to reduce PERA’s liability and set it on the path to full funding within 30 years.