Colorado 2023 Regular Session

Colorado Senate Bill SB104

Introduced
1/31/23  
Refer
1/31/23  

Caption

Public Employees' Retirement Association True-up Of Denver Public Schools Division Employer Contribution

Impact

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.

Summary

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.

Contention

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.

Companion Bills

No companion bills found.

Previously Filed As

CO SB099

Public Employees' Retirement Association Employment after Retirement for Rural Schools

CO HB1159

Contracted Private Employee Exclusion from Public Employees' Retirement Association

CO HB1427

Public Employees' Retirement Association Study Conducted by an Actuarial Firm

CO SB044

Public Employees' Retirement Association Retiree Refundable Income Tax Credit

CO SB186

County Coroner & Deputy Coroner Public Employees' Retirement Association Eligibility

CO SB169

State Firefighter Public Employees' Retirement Association Job Classification

CO SB232

Public Employees' Workplace Protections

CO SB073

Maximum Number of Employees to Qualify as Small Employer

CO HB1409

Employment-Related Funding & Workforce Enterprise

CO HB1448

New Public School Finance Formula

Similar Bills

No similar bills found.