Date: 02/23/2012
Final
BILL SUMMARY for HB12-1150
HOUSE COMMITTEE ON FINANCE
| Votes: View--> | Action Taken: |
| . The motion passed without objection. | |
10:01 AM -- House Bill 12-1150 - Concerning PERA's Highest Average Salary Calculation
Representative Priola, prime sponsor, explained that House Bill 12-1150 changes the manner in which the benefit amount payable to most members in the Public Employees' Retirement Association (PERA) is calculated. He noted that for members who are not eligible for retirement as of January 1, 2013, benefits will be calculated using seven periods of the member's highest average salary (HAS) rather than three. Representative Priola noted that the bill applies to all members, except those in the Judicial division who did not transfer from the Denver Public Schools (DPS) division.
The committee discussed the fiscal note and the policy changes under House Bill 12-1150 as they apply to PERA retirees. Representative Priola continued by discussing PERA's pension investments.
The following persons testified:
10:35 AM -- Mr. Meredith Williams, Executive Director for PERA, testified in opposition of the bill. Mr. Williams began by discussing the current three-year salary calculation for retirees under current law for purposes of calculating pension benefits under PERA. He noted that this bill will affect about 165,000 people in the PERA system and may have some constitutional concerns. He closed by saying that legislation in 2010 took a comprehensive approach and any new legislation should be incremental.
The committee continued a discussion on PERA's benefit calculation using the three highest years' salary and the potential issues that may be attributed to changing to a seven-year highest average salary calculation. Mr. Williams closed by discussing some of the changes resulting from the passage of Senate Bill 10-001.
11:19 AM -- Mr. John MacPherson, representing the Colorado Coalition for Retirement Security, testified in opposition of the bill. Mr. MacPherson discussed the proposed changes under Senate Bill 10-001 and discussed the anti-spiking provisions that affect salary increases for purposes of calculating pension benefits.
11:25 AM -- Mr. Randy Novotny, Association of Colorado State Patrol Professionals, testified in opposition of the bill.
11:31 AM -- Mr. Charles Olmsted, testified in opposition of the bill. He closed by discussing the potential impacts of changing the three-year highest average calculation to a seven-year calculation.
11:34 AM -- Mr. Bruce Chittenden, representing himself, testified in opposition of the bill. He noted that the bill would reduce his pension benefits.
After a brief committee discussion, Representative DelGrosso, Chair, laid over House Bill 12-1150 to Thursday, March 1, 2012.