Starting January 1, 2027, Colorado workplace plans must offer payroll savings options, while PERA members may buy eligible credit for past service.
PERA members may buy credit for eligible past time when they did not earn PERA credit, if they meet service, age, and recordkeeping rules.
The voluntary investment program must let employees save through payroll with tax-deferred or Roth contributions, alongside other retirement plans.
Employees of affiliated employers may use the deferred savings plan, which must offer pre-tax and Roth contribution options.
PERA members may buy service credit for eligible time when they did not earn PERA credit. Members need at least one year of earned PERA service to buy qualified service. Members who first joined on or after January 1, 1999, need at least five years to buy nonqualified service. Members must provide employment dates and salary records. Members cannot buy credit for time when they were unemployed and under age 21. They may buy credit for work before age 21 if they provide those records. A purchase cannot give a member retirement benefits for the same service under more than one plan, except as federal law requires. The purchase cost is set to cover the retirement cost of the added credit. A member must meet the service requirement when making the purchase. Members who first joined on or after January 1, 1999, may buy no more than five years of nonqualified service. A separate 10-year limit generally applies to purchases of noncovered time.
The voluntary investment program must offer employees tax-deferred and Roth payroll contributions. The program is for employees of an employer, including PERA members and retirees where applicable. The program is in addition to other state or local retirement and tax-deferred savings plans. Contributions are subject to federal limits. The act is set to take effect January 1, 2027, unless a referendum petition is filed; in that case, the challenged provisions take effect only if voters approve them.
Employees of employers affiliated with the deferred compensation plan may participate, and the plan must offer pre-tax and Roth contributions. Employees may participate whether or not they are PERA members or retirees. An employer applies to the association to affiliate, and the application is subject to approval. Employers affiliated before July 1, 2009, remain affiliated without applying again. Payroll contributions are subject to federal limits. Employees may participate once their employer is affiliated with the plan.
No hearings or votes scheduled.