Posted: Jan 26, 2010 8:18 AM by Associated Press
A plan to change the state's pension system is set to get its first hearing at the Capitol.
The bill has the backing of Senate leadership and is expected to pass a vote in the Senate Finance Committee Tuesday.
One of the proposed changes would likely wipe out annual cost of living increases for retirees over the next two years and then limit increases to 2 percent. The proposal would also increase employee and employer contributions by 2 percent.
Colorado is believed to be the first state to try to limit annual increases for existing retirees.
So far Senate Minority Leader Josh Penry is the only GOP co-sponsor. He says some Republicans want to hold out for a 401(k) style plan but he says cooperating with Democrats now will prevent the system from going broke.