SB 23-104

Abstract

In 2009, the general assembly enacted legislation to merge the Denver public schools retirement system into the public employees' retirement association (PERA), effective January 1, 2010. The merger legislation created a Denver public schools (DPS) division within PERA and set the employer and member contribution rates for that division. The merger legislation also required PERA to calculate a true-up beginning January 1, 2015, and every fifth year thereafter, to determine whether the DPS employer contribution rate must be adjusted to assure the equalization of the DPS division's ratio of unfunded actuarial accrued liability over payroll to the PERA school division's ratio of unfunded actuarial accrued liability over payroll at the end of the 30-year period that began on January 1, 2010 (equalization of the 2 divisions). If necessary, the PERA board is required to recommend that the general assembly adjust the DPS total employer rate to assure the equalization of the 2 divisions. The general assembly enacted the last true-up for the equalization of the 2 divisions in 2015. In furtherance of the true-up for the equalization of the 2 divisions, beginning on July 1, 2023, the bill reduces the total employer contribution rate for the DPS division from 10.4% to 7.15% of salary. The bill does not alter the employer or member contribution rate for any other division of PERA. (Note: This summary applies to this bill as introduced.)