Feb 1, 2010 12:55 PM by Associated Press

Senate backs pension overhaul

Colorado is moving to become the first state to cut retiree benefits to prevent its pension system from going broke.

The state Senate voted 25-10 on Monday to back a proposal to overhaul the Public Employees Retirement Association. It now moves to the House.

Backers say the bill is needed to prevent the system from going broke in 20 years.

Retirees would get no cost of living increase this year and a 2 percent increase next year, saving the state $3 million. The retirement age would rise from 55 to 60, and contributions would increase for both employers and employees.

The Senate voted to also warn pension participants that benefits could change if the fund runs into trouble again.


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