HB 26-1026

HB 26-1026, which has been signed into law, allows Colorado public employees to buy additional service credit for periods when they were unemployed after turning 21 years old. It also requires PERA (Public Employees' Retirement Association) to offer more investment options, including tax-deferred and Roth contributions, for both its voluntary investment program and deferred compensation plan. This bill affects current and future PERA members by providing them with more flexibility in their retirement planning. Since the bill has been signed, it is now law and will be implemented according to its provisions.

Official Summary

Under current law, a member of the public employees' retirement association (PERA) earns service credit for each year worked during which the member makes contributions to PERA. A member may purchase additional years of service credit for any previous period of public or private employment during which the member was not making contributions to PERA, subject to certain conditions. Sections 1 and 3 of the bill allow a member of PERA to also purchase service credit for previous periods of unemployment during which the member was 21 years old or older, subject to certain conditions. Sections 2, 3, 4, and 7 make conforming amendments.      Sections 5 and 6 require PERA's voluntary investment program to include options for an employee to make tax-deferred voluntary contributions and Roth voluntary contributions to the program and make other conforming changes.      Sections 8 and 9 require PERA employers to affiliate with PERA's deferred compensation plan and offer the plan to employees. The sections require the deferred compensation plan to include options for an employee to make pre-tax voluntary contributions and Roth voluntary contributions to the plan and make other conforming changes.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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