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Adjust PERA's Allocations to Trust Funds

Concerning adjustments to the public employees' retirement association's allocation of money to trust funds.

HB26-1400 2026 Regular Session Signed into Law State Government State Revenue & Budget

Cost estimates

At the first note read
$0
FACT April 2, 2026
At the last note read
$0
FACT July 9, 2026
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

The note states no appropriation is required.

An appropriation is money the legislature sets aside. It is not money spent.

The appropriation field, read from the note: No appropriation is required.

Bill summary

     Current law requires the state treasurer to issue a warrant in the amount of $225 million to the public employees' retirement association (PERA) on July 1 of each year as a direct distribution (direct distribution) and requires PERA to allocate the direct distribution to the trust funds of each division of PERA as it would an employer contribution, in a manner that is proportionate to the annual payroll of each division, except in certain circumstances. The act changes the allocation of the direct distribution by specifying that, beginning with the direct distribution occurring on July 1, 2026, and on July 1 of each year thereafter, PERA is required to allocate the direct distribution to the trust funds of each division of PERA on an actuarial basis to maximize PERA's blended total contribution amount in a manner that limits, to the extent possible, the triggering of automatic adjustment provisions, which are triggered when PERA's divisions fall below a targeted level of funding. Beginning July 1, 2026, the act prohibits PERA from allocating any portion of the direct distribution to the local government division or the Denver public schools division; except that, beginning July 1, 2030, the Denver public schools division is no longer excluded.

     The act also changes the amount of PERA employer contributions that are allocated to the health care trust fund from 1.02% of member salaries to 0.52% of member salaries.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)