Colorado Gov. John Hickenlooper has signed a bill to shore up the state’s troubled pension.
The new law calls for sweeping changes to pay off the pension’s $32 billion unfunded debt within 30 years.
The measure — — cuts cost-of-living raises for retirees and requires employees and government agencies to contribute more of each paycheck. Colorado’s pension program is called the Public Employees Retirement Association.
The state will also chip in $225 million a year to pay down the debt.
Monday’s bill signing marks the second time since 2010 that Colorado has enacted a major pension rescue plan.
The prior reforms fell short, leaving Colorado’s public pension among the most poorly funded in the country.
Roughly 1 in 10 Coloradans are pension recipients.