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DENVER, CO - The House Finance Committee today passed legislation, sponsored by Representatives Bob Marshall and Eliza Hamrick, to create more flexibility for employees and employers to strengthen Public Employees’ Retirement Association (PERA) retirement benefits. HB26-1026 passed by a vote of 9-2.
“This bill would improve flexibility for retirement planning for employees and ensure they have access to investment tools that significantly contribute to their retirement funds,” said Rep. Bob Marshall, D-Highlands Ranch. “This bill would expand retirement investment opportunities and allow Coloradans to buy credits for periods of unemployment on an actuarially sound basis, like caring for an aging or disabled loved one, so they don’t have to push back their retirement plan just because of a career gap. By expanding retirement planning and investment options, we’re giving Coloradans more power and control in their retirement goals.”
“We’re expanding retirement pathways for public school employees, judicial staff and other hardworking Coloradans who work in the public sector,” said Rep. Eliza Hamrick, D-Centennial. “Colorado Democrats believe that our economy should work so every Coloradan can thrive, which means ensuring public employees can retire with a stable, livable retirement pension. This legislation gives Colorado public employees more options with how and when they save for retirement.”
Currently, PERA members can purchase service credit for up to five years of non-PERA-affiliated jobs to boost their retirement benefits, like higher benefit amounts or allowing them to retire earlier. HB26-1026 would expand this option to allow PERA members to purchase service credit for up to five years of unemployment under certain conditions, so PERA members can build up their retirement despite career gaps.
The bill would also offer more investment opportunities by requiring PERA-affiliated employers to offer both tax-deferred and Roth voluntary contribution options for 401k and 457 plans and make these options available for all employees.
Under HB26-1026, PERA-affiliated employers would also participate in and offer PERA’s deferred compensation plan to all employees, ensuring that all PERA members have access to both pre-tax and Roth voluntary contributions.