The top Democrat and top Republican in the state Senate say they have reached a deal on legislation that would shore up Colorado’s public employees pension fund, although negotiations are ongoing.
Their proposal calls for employers and employees kicking in more money to the system, while reducing cost-of-living increases.
“We have agreed on 95 percent of the terms of the proposal,” Senate President Brandon Shaffer, D-Longmont, said Tuesday.
He said he still is negotiating with Minority Leader Josh Penry, R-Grand Junction, on raising the retirement age for employees but said they are close.
Currently, state employees can retire as early as 50 or 55, depending on when they were hired.
The two lawmakers are co-sponsoring Senate Bill 1, scheduled to be introduced when the session opens in one week.
“If we can’t fix this ticking time bomb it doesn’t speak very well of us,” Penry said.
The Public Employees Retirement Association pension fund is facing $27.5 billion in unfunded liabilities, threatening the long-term existence of the retirement plan.
More than 400 governmental and public agencies in Colorado belong to PERA, including school districts and state government.
Penry and Shaffer said their bill models a proposal PERA offered in October to shore up the fund, with some differences. Their proposal includes increasing contributions from employees and employers an additional 2 percent, while tying the cost-of-living increase to the Consumer Price Index and capping it at 2 percent. The PERA board had recommended higher contributions.
Shaffer said he hopes the bill can pass the legislature and be signed into law before March, when retirees are scheduled to receive a 3.2 percent cost-of-living increase.
House Speaker Terrance Carroll, D-Denver, was unavailable for comment on what chance it has in the House.
Democratic Gov. Bill Ritter’s spokesman, Evan Dreyer, said the governor’s office has been involved in the negotiations.
“All elements of this proposal are acceptable,” he said. “This is a fair package for taxpayers and for employees.”
The Colorado Coalition for Retirement Security, which represents 200,000 PERA members, including retirees and active employees, has not seen the deal, said spokeswoman Lynea Hansen.
She said coalition members agree something must be done but disagreed with some of the PERA recommendations.
“The employees absorb 90 percent of the cost of this fix,” she said, noting the employers’ increased contributions come from raises that would have gone to workers.
Penry said one of his goals was to “reduce some of the sweetheart deals” that had been built into the system. For example, he said, a lawmaker who collected $30,000 annually and then got a job in the administration for six figures could retire after three years and collect 75 percent of the higher pay for an annual pension. He said the proposed bill changes that.
Lynn Bartels: 303-954-5327 or lbartels@denverpost.com
