The Public Employees’ Retirement Association (PERA) Board of Trustees has approved Senate President Brandon Shaffer’s recommended changes to the PERA Board’s legislative proposal. Those changes include increasing employee and employer contributions by 2% and reducing cost-of-living increases for current retirees from 3.5% this year, capping them at 2%, according to the Associated Press.
According to an update on the Colorado PERA website, those changes to the original legislative proposal still accomplish the Board’s goal of reaching 100% funded levels for each of PERA’s divisions in 30 years.
An update on the PERA website notes that these new recommendations “comply with the Board’s previously determined principles of shared responsibility among members, retirees and employers, intergenerational equity, long-term sustainability, preservation of the defined benefit plan, and maintaining the same benefit structure for PERA’s different divisions”.
Subject to Review
The Board’s support of the Senate President’s bill is subject to review of the final legislation that will be introduced to the General Assembly early in the session that begins January 13. The bipartisan bill is slated to be introduced as Senate Bill 1 and will have Senator Josh Penry as a prime cosponsor along with other cosponsors, according to the PERA website.
A table outlining the Senate President’s recommended changes is available at http://www.copera.org/pdf/Misc/2010LegChart1-7.pdf