Committee advances bill letting PERA members buy service credit and expands voluntary Roth options
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Summary
The House Finance Committee voted to send House Bill 26 10 26 to appropriations after sponsors and PERA officials said the measure lets members purchase missing service credit for qualifying unemployment periods and requires purchases to be actuarially sound; it also mandates Roth and tax‑deferred options for voluntary plans.
Representative Brett Hamrick urged the House Finance Committee to back House Bill 26 10 26, saying the measure would protect retirement security for public employees who had interrupted careers and would expand voluntary retirement savings options statewide. "The goal here is clear, protect retirement security for employees with career gaps and expand retirement options without reducing existing benefits," the sponsor said in the bill's overview.
The bill would allow PERA members to purchase service credit for qualifying periods when they were unemployed (the sponsor emphasized an age floor and documentation requirements). It also would require PERA's Voluntary Investment Program and affiliated deferred‑compensation plans to offer both tax‑deferred and Roth contribution options, broadening choices for employees.
Sponsors and PERA officials repeatedly stressed actuarial protections. Andrew Roth, CEO of Colorado PERA, told the committee the pension administrators worked with sponsors on language designed to prevent shifting cost to the PERA trust. "What you heard about the actuarial soundness was something that we all take very seriously," Roth said, adding the bill contains provisions PERA requested to protect the funds.
Key guardrails described by sponsors include an age threshold for purchase eligibility, documentary proof of the unemployment period, limits that preserve existing purchase caps (members hired on or after Jan. 1, 1999 would still be limited to purchasing up to 5 years of certain non‑covered service with an overall cap around 10 years), and a requirement that the member pay the full actuarial cost so the trust is not subsidizing purchases.
Committee members asked about near‑term fiscal impacts and likely participation. Representative Gazelle pressed whether the policy would bring a large up‑front cash inflow into PERA; the sponsor replied that a large immediate influx was unlikely because members must pay the full actuarial cost (as an example, a 50‑year‑old buying one year of credit could pay roughly $18,000 up front). PERA leaders reiterated the long‑term nature of liabilities and protections in the text.
After brief closing remarks by the sponsors, Representative Marshall moved to send the bill to the Appropriations Committee with a favorable recommendation; the motion passed on a roll call, 9 to 2.
Next steps: HB 26 10 26 will be considered by the Appropriations Committee. The bill sponsors said they will continue to coordinate with PERA staff and budget analysts to refine fiscal assumptions before further action.