Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Pensions Pera Dps topic
No spam. Unsubscribe anytime.
House passes bill to adjust Denver Public Schools employer contribution to PERA, sparking fiscal questions
Summary
House Bill 11‑05, which reduces Denver Public Schools' employer contribution rates modestly and redirects some savings toward educator pay, passed the House after sponsor amendments excluding DPS from some distributions and adding carve-outs; members pressed for PERA assurances about long‑term solvency.
The Colorado House on Monday passed House Bill 11‑05, a measure adjusting the employer contribution rate associated with the Denver Public Schools (DPS) division of the Public Employees' Retirement Association (PERA). Sponsors said the change would modestly lower DPS employer contributions and direct savings toward educator pay.
Representative Camacho, the bill sponsor, told the House the bill addresses a long-standing imbalance from DPS's 2009 merger into the Association division and cited an independent actuarial analysis saying DPS could reduce contributions by as much as 10% without harming funding targets. The sponsors said they opted for a modest reduction—about 3% in the bill text—and added amendments to limit immediate distribution impacts on other entities. Amendment L005 excludes DPS from a direct distribution for a five-year period; amendment L006 excludes DPS from an auto‑adjust provision.
The floor saw questions about PERA's long-term liabilities and whether the changes could increase unfunded obligations. Representative Taggart and others asked for explicit assurance from PERA that the changes would not harm PERA's solvency. Sponsors said committee discussions included PERA staff and that the actuarial analysis supports the modest change; Representative Herzog noted testimony that current retirees would not lose benefits and that sponsors were confirming no negative impact to future retirees under the adopted amendments.
Supporters said the measure returns some money to educators—an average pay increase of about $2,500 for affected staff, according to sponsors—and would not affect pension payouts already promised to retirees. Opponents cautioned that PERA faces substantial unfunded liabilities (discussed on the floor as roughly $225 million in some context) and expressed concern about making contribution changes during market volatility.
After floor debate and the adoption of committee amendments, the House adopted the bill. Sponsors said they would continue to work with PERA and stakeholders to confirm actuarial assumptions as the bill progressed.
