Colorado Gov. John Hickenlooper has signed a bill to shore up the state’s troubled pension.
The new law calls for sweeping changes to pay off the pension’s $32 billion unfunded debt within 30 years.
The measure cuts cost-of-living raises for retirees and requires employees and government agencies to contribute more of each paycheck.
The state will also chip in $225 million a year to pay down the debt.
Monday’s bill signing marks the second time since 2010 that Colorado has enacted a major pension rescue plan.
The prior reforms fell short, leaving Colorado’s public pension among the most poorly funded in the country.
Roughly 1 in 10 Coloradans are pension recipients.
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