Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0182.01 Gregg Fraser x4325 SENATE BILL 12-016 SENATE SPONSORSHIP Lambert, Brophy, Cadman, Grantham, Harvey, King K., Lundberg, Neville HOUSE SPONSORSHIP DelGrosso, Gardner B., Joshi Senate Committees House Committees State, Veterans & Military Affairs A BILL FOR AN ACT Concerning the authority of employers in the local government division of the public employees' retirement association to make optional modifications to the contribution rates to the association. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The employer and member contribution rates for the public employees' retirement association (PERA) are specified in statute. For the calendar year beginning January 1, 2013, the bill allows employers in the local government division of PERA only to decrease the employer contribution rate and increase the member contribution rate by an amount to be determined by the employer, so long as: The total of the employer and member contribution rates is not less than the total of the employer and member contribution rates currently required to be delivered to PERA on behalf of each employee of an employer; and The increase in the member contribution to PERA and the corresponding decrease in the employer contribution is not greater than 2.5%. Any change to the employer and member contribution rates to PERA is required to occur through a vote of the governing body of the employer at an official meeting of the governing body. Any employer that votes to alter the employer and member contribution rates to PERA is required to provide annual notice to PERA regarding the percentage of the employer and member contributions. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 24-51-401, amend (1.7) (a); and add (1.7) (g) as follows: 24-51-401. Employer and member contributions. (1.7) (a) Employers shall deliver a contribution report and the full amount of employer contributions, member contributions, and working retiree contributions to the association within five days after the date members and retirees are paid. Except as provided in paragraph (f) paragraphs (f) and (g) of this subsection (1.7), subsection (7) of this section, and section 24-51-408.5, such contributions shall be based upon the rates for the appropriate division as set forth in the following table multiplied by the salary, as defined in section 24-51-101 (42), paid to members and retirees for the payroll period: TABLE A CONTRIBUTION RATES Division Membership Employer Rate Member Rate State All Members 10.15% 8.0% Except State Troopers 12.85% 10.0% School All Members 10.15% 8.0% Local Government All Members 10.0% 8.0% Judicial All Members 13.66% 8.0% DPS All Members 13.75% 8.0% (g) (I) For the calendar year beginning January 1, 2013, and for each calendar year thereafter, each employer in the local government division of the association may designate alternative employer and member contribution rates to the rates specified in paragraph (a) of this subsection (1.7), so long as: (A) The total of the employer and member contributions made to the association on behalf of each employee pursuant to this paragraph (g) equals the total of the employer and member contributions that would be made pursuant to paragraph (a) of this subsection (1.7); and (B) The increase in the member contribution delivered to the association and the corresponding decrease in the employer contribution delivered to the association is not greater than two and one-half percent. (II) The designation of alternative employer and member contribution rates pursuant to subparagraph (I) of this paragraph (g) shall be made by a vote of the governing body of the employer at an official meeting of the governing body that is open to the public. The governing body may vote to alter the employer and member contribution rates for one year or for multiple years. (III) An employer that designates alternative employer and member contribution rates for any calendar year pursuant to subparagraph (I) of this paragraph (g) shall notify the association annually, in a time and manner to be determined by the association, of the employer and member contribution rates for the applicable calendar year. An employer is required to provide such annual notice to the association even if the employer designates alternative employer and member contribution rates for multiple years pursuant to subparagraph (II) of this paragraph (g). The association may require an employer to submit any additional information or documentation along with the notice required pursuant to this subparagraph (III) that is reasonably required for the implementation and administration of this paragraph (g). SECTION 2. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 7, 2012, if adjournment sine die is on May 9, 2012); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2012 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.