SB 23-056

Senate Bill 23-056 is a Colorado law that requires the state to pay an additional $10 million to the Public Employees' Retirement Association (PERA) to make up for a missed payment of $225 million in July 2020. This bill ensures PERA receives full compensation for the canceled distribution, which helps maintain the financial stability of the retirement fund for public employees. The law was signed by the governor and went into effect on June 2, 2023, meaning the state is now obligated to issue this payment from its general fund.

Official Summary

To recompense the public employees' retirement association (PERA) for the cancellation of a previously scheduled July 1, 2020, direct distribution of $225 million, House Bill 22-1029, concerning a requirement that the state make an additional direct distribution to the public employees' retirement association to fully recompense the association for the cancellation of a previously scheduled July 1, 2020, direct distribution, required an additional direct distribution to PERA. However, the additional direct distribution did not fully recompense PERA for the cancellation of the previously scheduled direct distribution. To fully recompense PERA, the act requires the state treasurer to issue a warrant to PERA that consists of the balance of the PERA payment cash fund plus $10 million paid from the general fund. The PERA payment cash fund is repealed, effective July 1, 2023. APPROVED by Governor June 2, 2023 EFFECTIVE June 2, 2023 (Note: This summary applies to this bill as enacted.)

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