HB 23-1176

Abstract

Current law allows only specified employees to participate in the public employees' retirement association's (PERA) defined contribution plan. Employer and member contribution rates for PERA's defined contribution plan are fixed in statute and vary per division. Members of the school division or the Denver public schools (DPS) division of PERA are not able to enroll in the defined contribution plan and are enrolled in the defined benefit plan administered by PERA. The bill requires the PERA board to establish and administer a flexible defined contribution plan and gives PERA members who are hired on or after January 1, 2024, and who are members of the school division or DPS division (eligible employees), the option to participate in the flexible defined contribution plan. If an eligible employee opts to participate in the flexible defined contribution plan, the eligible employee may determine the employee's contribution rate. Employers of eligible employees who opt into the flexible defined contribution plan are required to contribute an amount equal to 6.5% of the member's salary toward the member's account, and contribute an amount equal to 15% of the member's salary to the defined benefit plan. (Note: This summary applies to this bill as introduced.)