The state’s largest pension plan is racing to address an $11 billion shortfall in the state legislature before a competing ballot measure takes the issue to voters in November.
The Colorado Public Employees Retirement Association scored a legislative victory last week when a bill from Rep. Joe Stengel, R-Littleton, was quashed in the Business Affairs and Labor Committee.
Stengel’s bill sought to put public-sector hires covered under PERA into a defined contribution plan, similar to a 401(k) plan, eventually phasing out the pension plan.
In a move that could outflank other reform efforts, the Americans for Prosperity Foundation and supporters are moving forward with a ballot initiative similar to Stengel’s bill.
PERA executive director Meredith Williams on Friday told the association’s board of trustees – who would lose their seats under a board restructuring the ballot initiative also seeks – that voters needed an alternative.
“The battle is made easier if legislation is passed,” Williams told PERA’s board of trustees.
Sen. Paula Sandoval, D-Denver, introduced a bill last week that follows a PERA proposal of creating a “two-tiered” pension plan. New hires would receive a lower benefit payout, with some of their contributions going to shore up the plan for existing members.
Sen. Dave Owen, R-Greeley, also has a bill pending that would raise the retirement age for future PERA beneficiaries and direct a portion of employee wage increases for three years into PERA to pump $75 million into the plan.
Williams said discussions are planned to see what common ground can be found between the two bills. Owen said his bill has the backing of Gov. Bill Owens, whose signature is needed to win passage of any reform measure.
PERA trustee Maryann Motza urged the association to get more assertive in telling its story.
“The impression out there is that PERA is the Titanic, and that is not true,” Motza said. “We have not been as forceful in getting our message out.”
PERA covers nearly 380,000 members with an investment portfolio of about $34 billion at the end of last year.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
