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Senate Finance sends DPS PERA true‑up (HB1105) to Appropriations after advocates say savings will fund pay
Summary
Senate Finance voted 8–1 to send HB1105, a PERA ‘true‑up’ for the Denver Public Schools division, to Appropriations after DPS officials and unions said near‑term employer contribution reductions would be passed back to staff.
Senate Finance advanced House Bill 1105, a statutory “true‑up” for the Denver Public Schools (DPS) division within the Public Employees’ Retirement Association (PERA). The bill reduces the employer contribution rate for the DPS PERA division beginning 07/01/2025; sponsors and DPS representatives said the change reflects the division’s funded status and is intended to return near‑term savings to school employees.
What the bill does The legislation lowers the DPS employer contribution rate (specific statutory percentages are set in the bill language) to reflect the division’s funding level, per actuarial advice discussed in committee. DPS officers said the division’s funded ratio is roughly 90% and that the change would slow the timetable for reaching full funding by about 18 months to two years, depending on actuarial inputs. DPS leaders and employee representatives told the committee the district intends to use the near‑term savings to boost employee compensation.
Testimony - Chuck Carpenter, CFO, Denver Public Schools: explained the 2008–2013 bond transactions that prefunded parts of the liability and said DPS remains about 90% funded; he said any timing impacts on full funding were limited and that adjusting the employer contribution does not change employee contribution rates. - Rob Gould, president of the Denver Classroom Teachers Association, and Deirdre Smith, president of the Denver Federation of Paraprofessionals and Nutrition Service Employees, said unions negotiated with DPS to ensure the savings are directed to staff compensation and retention. Gould said an MOU was near completion to place savings into educator pay and workforce supports. - Pratik Datta read testimony from a charter network leader reporting the para true‑up would represent roughly $200,000 in savings for two charter schools and would support staff funding.
Questions and fiscal considerations Committee members asked technical questions about the 2008–2013 certificates of participation (COPs) DPS used to prefund pension obligations, the outstanding principal on those instruments and whether the COPs and employer‑rate change affect PERA’s overall liability. DPS and sponsor testimony indicated the change would not jeopardize PERA and that PERA’s actuaries (Segal) analyzed the impact; PERA did not present testimony at this hearing and committee members requested additional actuarial/technical materials for the record.
Vote and next step The committee recorded an 8–1 favorable vote (1 ‘no’ vote recorded by Senator Volker) and moved HB1105 to the Committee on Appropriations.
