HB 25-1105 — Public Employees' Retirement Association True-up of Denver Public Schools Division Employer Contribution

First Regular Session Seventy-fifth General Assembly STATE OF COLORADO ENGROSSEDREENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO.

25-0648.01 Nicole Myers x4326 HOUSE BILL 25-1105 HOUSE SPONSORSHIP Camacho and Bacon, Duran, Espenoza, Froelich, Mabrey, Sirota SENATE SPONSORSHIP Gonzales J., House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT CONCERNINGC ONCERNING AN ADJUSTMENT TO THE TOTAL EMPLOYER CONTRIBUTIONRATEOFTHE D ENVERPUBLICSCHOOLDIVISION OF THE PUBLIC EMPLOYEES ' RETIREMENT ASSOCIATION IN CONNECTION WITH THE EQUALIZATION STATUS OF THE ASSOCIATION S'S DDENVER ENVER PUBLIC SCHOOLS DIVISION WITH THE g ASSOCIATION SSCHOOLDIVISIONASREQUIREDBYTHEMERGER d OF THE DENVERD ENVER PUBLIC SCHOOLS RETIREMENT SYSTEM WITH e 2 S R 2 THE ASSOCIATION .

U 3 4 H d r d p Bill Summary e A A (Note:

This summary applies to this bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill g passes third reading in the house of introduction, a bill summary that id a25 applies to the reengrossed version of this bill will be available at SE R2e 0 U R , O nl7n i Shading denotes HOUSE amendment.

H d p Capital letters or bold & italic numbers indicate new material to be added tdto existingexistind law.

e m A http://leg.colorado.gov.) In 2009, the general assembly enacted legislation to merge the Denver public schools retirement system into the public employees' retirement association (PERA), effective January 1, 2010.

(4) (aRIOR(RIOR TOJULYTO ULY 1, 2030, 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;

(b) BEGINNINGBEGINNINGJULY JULY1,2030, 1,2030,THETHE ASSOCIATION SHALLALLOCATE THEDIRECTDISTRIBUTIONTOTHETRUSTFUNDSOFEACHDIVISIONOFTHE 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 .

In Colorado Revised Statutes, 24-51-413, amend (1)(a), (1)(b), (2), (3)(b), and (6)(b) as follows:

(a) "Blended total contribution amount" meansmeans: the weighted average of the total amounts paid bythe employer and the member to the associationforeachofthefiveTHESTATE ,SCHOOL,LOCALGOVERNMENT , AND JUDICIAL divisions pursuant to sections 24-51-401 (1.7) and 24-51-411, and the amount the association receives pursuant to section 24-51-414, but shall not include theportionof theemployer contribution remittedtothe health caretrustfundpursuanttosection24-51-208(1)(f) and (1)(f.5) and the portion of the employer contribution remitted to the -4- 1105 annual increase reserve.

(b)(I) "BlendedPRIOR totalTO requiredJULY contribution"1, means2030, the weighted average of the total amountspaidbytheemployerandthemembertotheassociationforeach of the association'sfiveTHE reportedSTATE actuarially,SCHOOL determined, contributionLOCAL ratesGOVERNMENT ,AND JUDICIAL divisions pursuant to sections 24-51-401 (1.7) and member24-51-411, contributionand ratesthe ofamount the fivSTATEassociation ,receives SCHOOLpursuant ,LOCALto GOVERNMENTsection ,AND24-51-414, JUDICIALbut divisionshall notincludetheportionoftheemployercontributionremittedtothehealth care trust funds.fund pursuant to section 24-51-208 (1)(f) and (1)(f.5) and the -4- 1105 portion of the employer contribution remitted to the annual increase reserve.

(2)(II) BeginningBEGINNING JulyJULY 1, 2019,2030THE andWEIGHTED eachAVERAGE JulyOF 1THE thereafter,TOTAL employerAMOUNTS contributionPAID rateOFBY THE EMPLOYER AND THE MEMBER TO THE ASSOCIATION FOR EACH OF THE FIVE DIVISIONS,DIVISIONS memberPURSUANT contributionTO rates,SECTIONS annual24-51-401 increase(1.7)AND amounts,24-51-411,AND andTHE theAMOUNT directTHE distributionASSOCIATION amountRECEIVESPURSUANTTOSECTION shall24-51-414BUTSHALLNOTINCLUDETHE remainPORTION unchangedOF untilTHE suchEMPLOYER timeCONTRIBUTION asREMITTED changesTO areTHE requiredHEALTH pursuantCARE toTRUST thisFUND section.PURSUANT TO SECTION 24-51-208 (1)(fAND (1)(f.5) AND THE PORTION OF THE EMPLOYER CONTRIBUTION REMITTED TO THE ANNUAL INCREASE RESERVE .

(b) "Blended total required contribution" means:

(I) RIORTO JULY 1,2030,theweightedaverageofthetotalofthe association's reported actuarially determined contribution rates and member contribution rates of the five STATE, SCHOOL , LOCAL GOVERNMENT ,AND JUDICIALdivision trust funds.

(II) BEGINNING JULY 1, 2030THE WEIGHTED AVERAGE OF THE TOTAL OF THE ASSOCIATION 'S REPORTED ACTUARIALLY DETERMINED CONTRIBUTION RATES AND MEMBER CONTRIBUTION RATES OF THE FIVE DIVISION TRUST FUNDS.

(b) The employer contribution rate will be increased by up to one-halfofonepercent,butatnotimewilltheemployercontributionrate be increased to exceed the employer contribution rates under section -5- 1105 24-51-401 (1.7)(a)(ISECTION 24-51-401 (1.7)(a)(V), plus two percent;

-5- 1105 SECTION 6.