HB 1400 — Adjust Public Employees' Retirement Association's Allocations to Trust Funds

NOTE:

This bill has been prepared for the signatures of the appropriate legislative officers and the Governor.

To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

CONCERNING ADJUSTMENTS TO THE PUBLIC EMPLOYEESEMPLOYEES' ' RETIREMENT ASSOCIATIONASSOCIATION'SALLOCATIONOFMONEYTOTRUSTFUNDS. S ALLOCATION OF MONEY TO TRUST FUNDS .

Be it enacted by the General Assembly ofofthe the State ofofColorado: Colorado:

In Colorado Revised Statutes, 24-51-208, amend (1)(f)(l)(f) as follows:

(1)(I) The money ofofthe 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 twomo FIFTYFIFTY-TWO TWO one-hundredths OF ONE percent of member salaries;

a portion ofofthe 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 deletionsdeletionsfrom from existing law andandsuch such material is not part of the act.

premiums paid directlytodirectly to the trust fund byparticipatingby participating benefit recipients, members, and dependents;

in addition to a proportional share ofofinvestment investment income earned thereon;

SECTION2.SECTION 2.

InColoradoRevisedStatutes,24-51-414,In amend(4)Colorado Revised Statutes, 24-51-414, amend (4) as follows:

except that the association shall not allocate anyportionany ofportion theofthe direct distribution amount to the local government division or the Denver public schools division ofofthe the association.

(b) (I) Notwithstanding any provisionptovision ofofthis this subsection (4) to the contrary, on or after July 1, 2025, ififthe the allocation methodology described in this subsection (4) would resultIcsult in the blended total contributioncont1ibution amount equaling less than ninety-eight percent of the blended total requiredrequited contributioncont1ibution the association may instead allocate the directditcct distributiondist1ibution to the trusttrnst funds ofofeach each division ofofthe the association in an actuarial manner as necessary to achieveachicvc at least ninety-eight percentpctcent of the blended total requiredrequited contribution;contribution, except that the association shall not allocate any portion ofthe direct distribution amount to the local government division ofthe association.

except(II) thatAs theused associationin shallthis notsubsection allocate(4)(b) anySUBSECTION portion( of4), theunless direct distribution amount to the localcontext governmentotherwise divisionrequires: of the association.

(II)(A) As"Blended usedtotal incontribution thisamount" subsectionhas (4)(b)the SUBSECTIONsame (4),meaning unlessas thein contextsection otherwise24-51-413 requires:(l)(a).

(A)(B) "Blended total contributionrequited amount"contribution" has the same meaning as PAGE 2-HOUSE BILL 26-1400 in section 24-51-413 (1)(a).(l)(b).

(B)(C) "Blended"Fulfillment totalyeat" required contribution" has the same meaning as PAGEset 2-HOUSEforth BILLtn 26-1400subsection in(8.S)(d)(III) sectionofthis 24-51-413section. (1)(b).

(C)(c) "FulfillmentBeginning year"July has1, 2030 WITH THE DIRECT DISTRIBUTION OCCURRING ON JULY 1, 2026AND ON JULY 1 OF EACH YEAR THEREAFTER, the sameassociation meaningshall asallocate setthe forthdirect distribution to the trust funds o f each division o f the associatias it would an employet eonttibution, in subsectiona (8.5)(d)(III)mannet that is prnportionate to the annual payrnll of thiseach section.division as teported to the association, except thatON AN ACTUARIAL BASIS TO MAXIMIZETHEBLENDEDTOTALCONTRIBUTIONAMOUNTINA MANNERTHAT 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 o fthe direct distribution amount to the local government division OR THE DENVER PUBLIC SCHOOLS DIVISION OF THE ASSOCIATION.

(c)BEGINNING Beginning July 1, 2030 WITH THE DIRECT DISTRIBUTION OCCURRING ON JULY 1,1,2030, 2026,ANDAND ON JULY 11OF OF EACH YEAR THEREAFTERTHEREAFTER, ,THE theassociationshallallocatethedirectdistributiontothetrustfundsofeachASSOCIATION divisionSHALL ofNOT theALLOCATE associationANY asPORTION itOF wouldTHE anDIRECT employerDISTRIBUTION contribution,AMOUNT inTO aTHE mannerLOCAL thatGOVERNMENT isDIVISION proportionateOF toTHE theASSOCIATION. annual payroll of each division as reported to the association;

except thaON AN ACTUARIAL BASIS TO MAXIMIZETHEBLENDEDTOTALCONTRIBUTIONAMOUNTINAMANNERTHAT LIMITS,TO THE EXTENT POSSIBLE ,ADJUSTMENTS REQUIRED BY SECTION 24-51-413 (3).

EGINNING JULY 1, 2026,AND ON JULY 1 OF EACH YEAR PRECEDING 2030,theassociationshallnotallocate anyportion of the direct distribution amount to the local government divisionR 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 .

This act takes effect JulyJ1, 1, 2026.

The general assembly finds, determines, and declares that this act is necessary for the immediate preservation ofo f the public peace, health, or safety or for appropriations for PAGE 3-HOUSE BILL 26-1400 the support and maintenance of the departments of the state and state institutions.

____________________________~ ____________________________ Julie McCluskie James Rashad Coleman, Sr.

SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________v ____________________________~ ~ Vanessa Reilly Esther van Mourik CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE APPROVED________________________________________APPROVED a\'Y\r')anovj f JW l~ 2#2.foe..11\~O O n ~ (Date and Time) _________________________________________~TE JaredO~COLORADO S.PAGE 4-HOUSE BILL 26-1400

Polis GOVERNOR OF THE STATE OF COLORADO PAGE 4-HOUSE BILL 26-1400