A possible merger between Denver Public Schools’ pension system and the state’s public employees retirement system would remove employment barriers for teachers and save the district millions of dollars, supporters say.
Denver is the only school district in the state with its own retirement system. Teachers from the other 177 districts pay into the Public Employees’ Retirement Association.
That means teachers who leave DPS must also leave behind their pensions. And teachers outside the district must abandon their PERA pensions for jobs in Denver.
“Right now, we have a siloed system,” said Denver Superintendent Michael Bennet. “Over the medium- and long-term, having our employees and retirees be a part of a larger pool is good for everybody.”
A bill establishing the framework for a merger is awaiting the governor’s signature. Twice before, PERA and DPS have unsuccessfully tried to merge their pensions.
This time Denver is coming to the table with a fully funded pension after the district sold $750 million in bonds to pay off its $400 million pension shortfall and help it refinance $300 million in debt at a lower interest rate.
Boards for the three parties involved — DPS, the district’s retirement system and PERA — will begin negotiations this summer. They will be following the legislative order that says neither system shall subsidize the other.
The chief discussion will be about what liabilities PERA would be taking on, said Meredith Williams, PERA’s executive director.
“It’s basically pricing the deal in real, straightforward terms,” he said.
Jeremy P. Meyer: 303-954-1367 or jpmeyer@denverpost.com
