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HOUSE BILL 26-1400
BY REPRESENTATIVE(S) Sirota and Taggart, Brown;
also SENATOR(S) Bridges and Kirkmeyer, Amabile, Hinrichsen, Kolker.
CONCERNING ADJUSTMENTS TO THE PUBLIC EMPLOYEES' RETIREMENT
ASSOCIATION'S ALLOCATION OF MONEY TO TRUST FUNDS.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 24-51-208, amend
(l)(f) as follows:
24-51-208. Allocation of money.
(I) The money of the association shall be divided into several trust
funds, including, but not limited to:
(f) The health care trust fund, created pursuant to the provisions of
section 24-51-1201 ( 1 ), which consists of a portion of the employer
contributions equal to one and mo FIFTY-TWO one-hundredths OF ONE
percent of member salaries; a portion of the amount paid by members to
purchase service credit relating to noncovered employment as determined
pursuant to section 24-51-505 (7); thirty percent of the amount of any
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
reduction in the employer contribution rates as determined in section
24-51-408.5 ( 5) to amortize any overfunding in each division's trust fund;
deductions of premium amounts from monthly benefits of participating
benefit recipients; premiums paid directly to the trust fund by participating
benefit recipients, members, and dependents; monthly payments made by
employers on behalf of participating benefit recipients, members, and
dependents; and interest; in addition to a proportional share of investment
income earned thereon;
SECTION 2. In Colorado Revised Statutes, 24-51-414, amend ( 4)
as follows:
24-51-414. Direct distribution -definitions.
(4) (a) Prior to July 1, 2030 JULY 1, 2026, the association shall
allocate the direct distribution to the trust funds of each division of the
association as it would an employer contribution, in a manner that is
proportionate to the annual payroll of each division as reported to the
association; except that the association shall not allocate any portion of the
direct distribution amount to the local government division or the Denver
public schools division of the association.
(b) (I) Notwithstanding any pt o vis ion of this subsection (4) to the
contrary, on or after July 1, 2025, if the allocation methodology described
in this subsection (4) would I csult in the blended total cont1 ibution amount
equaling less than ninety-eight percent of the blended total requited
cont1 ibution the association may instead allocate the dit cct dist1 ibution to
the trnst funds of each division of the association in an actuarial manner as
necessary to achic v c at least ninety-eight pct cent of the blended total
requited contribution, except that the association shall not allocate any
portion of the direct distribution amount to the local government division
of the association.
(II) As used in this subsection (4)(b) SUBSECTION ( 4 ), unless the
context otherwise requires:
(A) "Blended total contribution amount" has the same meaning as
in section 24-51-413 (l)(a).
(B) "Blended total requited contribution" has the same meaning as
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in section 24-51-413 (l)(b).
(C) "Fulfillment yeat" has the same meaning as set forth tn
subsection (8.S)(d)(III) of this section.
(c) Beginning July 1, 2030 WITH THE DIRECT DISTRIBUTION
OCCURRING ON JULY 1, 2026, AND ON JULY 1 OF EACH YEAR THEREAFTER,
the association shall allocate the direct distribution to the trust funds of each
division of the association as it would an employet eonttibution, in a
mannet that is prnportionate to the annual payrnll of each division as
teported to the association, except that ON AN ACTUARIAL BASIS TO
MAXIMIZE THE BLENDED TOTAL CONTRIBUTION AMOUNT IN A MANNER THAT
LIMITS, TO THE EXTENT POSSIBLE, ADJUSTMENTS REQUIRED BY SECTION
24-51-413 (3). BEGINNING JULY 1, 2026, AND ON JULY 1 OF EACH YEAR
PRECEDING 2030, the association shall not allocate any portion of the direct
distribution amount to the local government division OR THE DENVER
PUBLIC SCHOOLS DIVISION OF THE ASSOCIATION. BEGINNING JULY 1, 2030,
AND ON JULY 1 OF EACH YEAR THEREAFTER, THE ASSOCIATION SHALL NOT
ALLOCATE ANY PORTION OF THE DIRECT DISTRIBUTION AMOUNT TO THE
LOCAL GOVERNMENT DIVISION OF THE ASSOCIATION.
SECTION 3. Effective date. This act takes effect July 1, 2026.
SECTION 4. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
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the support and maintenance of the departments of the state and state
institutions.
SPEAKER OF THE HOUSE
OF REPRESENTATIVES
v~~
Vanessa Reilly
CHIEF CLERK OF THE HOUSE
OF REPRESENTATIVES
~ Rashad Coleman, Sr.
PRESIDENT OF
THE SENATE
Esther van Mourik
SECRETARY OF
THE SENATE
APPROVED a\'\ Y\r')anol171 vj f JW le~ 2#2.fo e..-:\-11 ~ OOn~
(Date and Time)
~TE O~COLORADO
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