Public Employees' Retirement Association True-up Of Denver Public Schools Division Employer Contribution
The bill's impact is primarily financial, as it directly lowers the employer contribution rate for the DPS division, which may result in substantial savings for the school district. These adjustments are intended to ensure that the unfunded actuarial accrued liability ratio of DPS aligns with that of the overall school division over a specified 30-year period. While the primary focus is on fiscal adjustment, this change may also influence the financial planning and budgeting processes within the Denver Public Schools, potentially affecting their overall funding and capacity to manage retirement commitments.
Senate Bill 23-104, also known as the Public Employees' Retirement Association True-up of Denver Public Schools Division Employer Contribution, proposes to reduce the total employer contribution rate for the Denver Public Schools (DPS) division of the Public Employees' Retirement Association (PERA) from 10.4% to 7.15% of salary, effective July 1, 2023. This adjustment follows a merger enacted by the Colorado General Assembly in 2009, which combined the DPS retirement system into the PERA and established distinct contribution rates. The merger legislation mandated that PERA perform a review—termed a true-up—every five years to evaluate whether the employer contribution rates should be modified to maintain equity between the DPS division and the broader PERA school division.
While the summary does not detail specific points of contention, it is reasonable to anticipate differing opinions regarding the adjustment of employer contribution rates. Stakeholders within the education sector, including school administrators and teachers' unions, may have varying perspectives on how such changes impact retirement security. Some may view the reduction as beneficial for budgetary flexibility, whereas others could argue that it undermines the financial integrity of the retirement system for educators. As this bill progresses, discussions may arise concerning its long-term implications for employee benefits within the educational framework.