HB26-1400 • 2026

Adjust Public Employees' Retirement Association's Allocations to Trust Funds

Joint Budget Committee. Current law requires the state treasurer to issue a warrant in the amount of $225 million to the public employees' retirement association (PERA) on July 1 of each year as a dir

Labor

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. E. Sirota, Rep. R. Taggart, Sen. J. Bridges, Sen. B. Kirkmeyer, Rep. K. Brown, Sen. J. Amabile
Last action: 2026-04-14
Official status: Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide specific details on the impact of reduced health care contributions or consequences for failing to meet funding levels.

Adjusting PERA's Allocations to Trust Funds

This bill changes how PERA allocates $225 million from the state treasurer each year starting July 1, 2026, based on actuarial needs and reduces employer contributions for health care costs.

What This Bill Does

Changes how PERA must allocate $225 million from the state treasurer each year starting July 1, 2026, based on an actuarial basis to maximize PERA's blended total contribution amount in a manner that limits automatic adjustments if trust funds fall below targeted levels.
Reduces the percentage of employer contributions going to health care costs from 1.02% to 0.52%.

Who It Names or Affects

Public employees and retirees who are part of PERA.
The state treasurer, who issues the warrant for $225 million each year.
PERA, which manages trust funds for public employee benefits.

Terms To Know

Actuarial basis: A method of calculating financial needs based on statistical data and risk analysis.
Automatic adjustment provisions: Rules that trigger changes in funding when trust funds fall below a certain level.

Limits and Unknowns

The bill does not specify how the reduced health care contributions will affect employee benefits.
It is unclear what happens if PERA cannot meet the target funding levels despite these changes.

Bill History

2026-04-14 Senate
Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole
2026-04-13 Senate
Introduced In Senate - Assigned to Appropriations
2026-04-11 House
House Third Reading Passed - No Amendments
2026-04-10 House
House Third Reading Laid Over Daily - No Amendments
2026-04-09 House
House Second Reading Special Order - Passed - No Amendments
2026-04-08 House
House Second Reading Special Order - Laid Over Daily - No Amendments
2026-04-06 House
House Committee on Appropriations Refer Unamended to House Committee of the Whole
2026-04-02 House
Introduced In House - Assigned to Appropriations

Official Summary Text

Joint Budget Committee.
Current law requires the state treasurer to issue a warrant in the amount of $225 million to the public employees' retirement association (PERA) on July 1 of each year as a direct distribution (direct distribution) and requires PERA to allocate the direct distribution to the trust funds of each division of PERA as it would an employer contribution, in a manner that is proportionate to the annual payroll of each division, except in certain circumstances. The bill changes the allocation of the direct distribution by specifying that, beginning with the direct distribution occurring on July 1, 2026, and on July 1 of each year thereafter, PERA is required to allocate the direct distribution to the trust funds of each division of PERA on an actuarial basis to maximize PERA's blended total contribution amount in a manner that limits, to the extent possible, the triggering of automatic adjustment provisions, which are triggered when PERA's divisions fall below a targeted level of funding.
The bill also changes the amount of PERA employer contributions that are allocated to the health care trust fund from 1.02% of member salaries to 0.52% of member salaries.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Current Bill Text

Read the full stored bill text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 26-0845.01 Caroline Martin x5902 HOUSE BILL 26-1400
House Committees Senate Committees
Appropriations
A BILL FOR AN ACT
CONCERNING ADJUSTMENTS TO THE PUBLIC EMPLOYEES' RETIREMENT101
ASSOCIATION'S ALLOCATION OF MONEY TO TRUST FUNDS.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/.)
Joint Budget Committee. Current law requires the state treasurer
to issue a warrant in the amount of $225 million to the public employees'
retirement association (PERA) on July 1 of each year as a direct
distribution (direct distribution) and requires PERA to allocate the direct
distribution to the trust funds of each division of PERA as it would an
employer contribution, in a manner that is proportionate to the annual
HOUSE
3rd Reading Unamended
April 11, 2026
HOUSE
2nd Reading Unamended
April 9, 2026
HOUSE SPONSORSHIP
Sirota and Taggart, Brown,
SENATE SPONSORSHIP
Bridges and Kirkmeyer, Amabile
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
payroll of each division, except in certain circumstances. The bill changes
the allocation of the direct distribution by specifying that, beginning with
the direct distribution occurring on July 1, 2026, and on July 1 of each
year thereafter, PERA is required to allocate the direct distribution to the
trust funds of each division of PERA on an actuarial basis to maximize
PERA's blended total contribution amount in a manner that limits, to the
extent possible, the triggering of automatic adjustment provisions, which
are triggered when PERA's divisions fall below a targeted level of
funding.
The bill also changes the amount of PERA employer contributions
that are allocated to the health care trust fund from 1.02% of member
salaries to 0.52% of member salaries.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-51-208, amend2
(1)(f) as follows:3
24-51-208. Allocation of money.4
(1) The money of the association shall be divided into several trust5
funds, including, but not limited to:6
(f) The health care trust fund, created pursuant to the provisions7
of section 24-51-1201 (1), which consists of a portion of the employer8
contributions equal to one and two FIFTY-TWO one-hundredths OF ONE9
percent of member salaries; a portion of the amount paid by members to10
purchase service credit relating to noncovered employment as determined11
pursuant to section 24-51-505 (7); thirty percent of the amount of any12
reduction in the employer contribution rates as determined in section13
24-51-408.5 (5) to amortize any overfunding in each division's trust fund;14
deductions of premium amounts from monthly benefits of participating15
benefit recipients; premiums paid directly to the trust fund by16
participating benefit recipients, members, and dependents; monthly17
payments made by employers on behalf of participating benefit recipients,18
members, and dependents; and interest; in addition to a proportional share19
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of investment income earned thereon;1
SECTION 2. In Colorado Revised Statutes, 24-51-414, amend2
(4) as follows:3
24-51-414. Direct distribution - definitions.4
(4) (a) Prior to July 1, 2030 JULY 1, 2026, the association shall5
allocate the direct distribution to the trust funds of each division of the6
association as it would an employer contribution, in a manner that is7
proportionate to the annual payroll of each division as reported to the8
association; except that the association shall not allocate any portion of9
the direct distribution amount to the local government division or the10
Denver public schools division of the association.11
(b) (I) Notwithstanding any provision of this subsection (4) to the12
contrary, on or after July 1, 2025, if the allocation methodology described13
in this subsection (4) would result in the blended total contribution14
amount equaling less than ninety-eight percent of the blended total15
required contribution the association may instead allocate the direct16
distribution to the trust funds of each division of the association in an17
actuarial manner as necessary to achieve at least ninety-eight percent of18
the blended total required contribution; except that the association shall19
not allocate any portion of the direct distribution amount to the local20
government division of the association.21
(II) As used in this subsection (4)(b) SUBSECTION (4), unless the22
context otherwise requires:23
(A) "Blended total contribution amount" has the same meaning as24
in section 24-51-413 (1)(a).25
(B) "Blended total required contribution" has the same meaning26
as in section 24-51-413 (1)(b).27
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(C) "Fulfillment year" has the same meaning as set forth in1
subsection (8.5)(d)(III) of this section.2
(c) Beginning July 1, 2030 WITH THE DIRECT DISTRIBUTION3
OCCURRING ON JULY 1, 2026, AND ON JULY 1 OF EACH YEAR THEREAFTER,4
the association shall allocate the direct distribution to the trust funds of5
each division of the association as it would an employer contribution, in6
a manner that is proportionate to the annual payroll of each division as7
reported to the association; except that ON AN ACTUARIAL BASIS TO8
MAXIMIZE THE BLENDED TOTAL CONTRIBUTION AMOUNT IN A MANNER9
THAT LIMITS , TO THE EXTENT POSSIBLE , ADJUSTMENTS REQUIRED BY10
SECTION 24-51-413 (3). BEGINNING JULY 1, 2026, AND ON JULY 1 OF EACH11
YEAR PRECEDING 2030, the association shall not allocate any portion of12
the direct distribution amount to the local government division OR THE13
DENVER PUBLIC SCHOOLS DIVISION OF THE ASSOCIATION. BEGINNING JULY14
1, 2030, AND ON JULY 1 OF EACH YEAR THEREAFTER , THE ASSOCIATION15
SHALL NOT ALLOCATE ANY PORTION OF THE DIRECT DISTRIBUTION16
AMOUNT TO THE LOCAL GOVERNMENT DIVISION OF THE ASSOCIATION.17
SECTION 3. Effective date. This act takes effect July 1, 2026.18
SECTION 4. Safety clause. The general assembly finds,19
determines, and declares that this act is necessary for the immediate20
preservation of the public peace, health, or safety or for appropriations for21
the support and maintenance of the departments of the state and state22
institutions.23
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