Gov. Bill Owens and Democratic legislators are battling over the format of a meeting set up to discuss reforming the Colorado Public Employees Retirement Association, the state’s largest pension plan.
Rep. Bernie Buescher, D-Grand Junction, plans to bring various factions together Monday for discussions at a neutral space that the Denver Metro Chamber of Commerce has agreed to provide.
Buescher invited Owens to send one of his representatives to the discussions but said he was told Thursday it won’t happen.
Owens said the format Buescher proposed had a heavy representation of public-employee groups but lacked taxpayer voices like University of Colorado professor Barry Poulson and former state Sen. John Andrews, who favor switching future public employees to a defined-contribution plan.
“If he says talks have broken down, I have only begun to talk,” Owens said, noting that the legislative session has several more weeks to go. “I am fully prepared to talk to anyone at any time on PERA.”
At the heart of the disagreement is who will cover an $11 billion shortfall in PERA, which counts more than 370,000 employees, former employees and retirees as members.
“PERA’s plan is to shore up the shortfall from the taxpayer side,” Owens said.
Owens favors a bill from Sen. Dave Owen, R-Greeley, that would divert 1 percent of employee pay, taken out of future pay raises for the next three years, to shore up the plan with an infusion of $75 million.
He also favors reforms that would give taxpayers and investment professionals a stronger voice on the board of trustees that oversees the pension plan. PERA operates under a 16-member board of trustees, 14 of whom are beneficiaries of the plan.
Owens said he fears that Democrats will sideline the Owen proposal rather than give it serious consideration.
“PERA needs to take this more seriously,” he said. “I don’t think the Democratic majority will take the steps necessary.”
PERA favors a bill that reduces benefits for future employees, with some of their contributions going to fund the shortfall.
But even PERA is working to build consensus among various employee groups.
Buescher acknowledged that Owens, who could veto any bills passed without his support, holds the upper hand.
Failure to reach a compromise would boost a fall ballot measure that the Americans for Prosperity Foundation has in the works to shift all future PERA members into a defined-contribution plan.
Owens said his reforms are much more moderate than the ballot measure and that he is serious about seeing the pension plan stabilized before he leaves office.
Whoever follows him will have a much more difficult time pushing through reforms, he said, and he is willing to expend a great deal of his political capital.
Buescher said he wants Owens in the talks but will move forward regardless.
“They haven’t suggested any other process. I will go ahead and get the other interests together,” he said.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
