House narrowly approves measure to create invested account using pension surplus language
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Summary
Lawmakers approved a Senate amendment establishing an account to be invested by the State Investment Board tied to an overfunded pension plan. Supporters said it prudently uses resources to address future budget pressures; opponents warned it sets a dangerous precedent and could prompt lawsuits and harm retirees.
On final passage the House approved the Senate amendment to Engrossed Second Substitute House Bill 20-34, a measure that includes language establishing an account to be invested by the State Investment Board and discussed potential transfers from an overfunded pension plan.
Representative Ormsby urged concurrence with the amendment and framed the change as establishing resources to help address unknown future budget pressures, noting the underlying pension plan is overfunded. “This is an integral part of setting this up for success in the future,” Ormsby said, adding that the pension plan remained overfunded even after the change.
Opponents across the floor described the proposal as unprecedented and risky. Several lawmakers warned that using overfunded pension assets for near-term budget fixes could produce lawsuits and harm retirees. One lawmaker called the approach “a mistake” and urged colleagues to vote no, while another described the proposal as a “slippery slope.” Members referenced counts and averages for Left 1 members and retirees in arguing the human impact of any sweep or transfer.
Following remarks the roll call concluded with 50 yays, 46 nays and 2 excused; the presiding officer declared the bill passed as amended by the Senate.