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Colorado legislature passes PERA rescue bill - KOAA.com | Continuous News | Colorado Springs and Pueblo

Colorado legislature passes PERA rescue bill

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DENVER (AP) -

Colorado lawmakers closed 2018 legislative session after a final-hour approval to pass a bill to stabilize the state pension fund.
  
The Democrat-led House and Republican-led Senate OK'd a compromise bill less than an hour before the midnight Wednesday session deadline.

The state would also contribute $225 million annually to help pay off the system's unfunded debt, which totals $32 to $50 billion.

Under the proposal, current workers will put in an extra two percent of their income each year and employers will see a .25 percent increase in their contribution.

The retirement age to receive full benefit will rise from 58 to 64.

Current retirees will not receive a cost of living increase for two years, and the cost of living raise will drop from 2 percent to 1.5 percent following the two year gap.

Gov. John Hickenlooper urged Democrats to pass the bill despite opposition from the Colorado Education Association.
  
The Public Employees' Retirement Association provides guaranteed retirement benefits to 560,000 state, school and local government employees. That's about 1 in 10 Coloradans.

(Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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