1999







SENATE JOINT RESOLUTION 99-010

BY SENATORS Arnold, Anderson, Lamborn, Pascoe, Powers, Reeves, Tebedo, Wham, Congrove, Dennis, Evans, Musgrave, Owen, and Sullivant;

also REPRESENTATIVES Gotlieb, Alexander, Johnson, McPherson, Miller, Paschall, Allen, Bacon, Berry, Chavez, Clarke, Coleman, Dean, Decker, Fairbank, Gagliardi, George, Grossman, Hefley, Hoppe, Johnson, Kaufman, Kester, King, Larson, Lawrence, Lee, Leyba, Mace, McKay, McPherson, Miller, Mitchell, Morrison, Pfiffner, Plant, Ragsdale, Saliman, Sinclair, Smith, Spence, Stengel, Sullivant, Swenson, Tapia, Taylor, Tochtrop, Tool, Tupa, Veiga, Vigil, Webster, S. Williams, T. Williams, Windels, Witwer, Young, and Zimmerman..





CONCERNING THE COLORADO GENERAL ASSEMBLY'S OPPOSITION TO ANY FEDERAL LEGISLATION THAT WOULD MANDATE PARTICIPATION BY STATE AND LOCAL GOVERNMENT EMPLOYEES IN THE FEDERAL SOCIAL SECURITY SYSTEM.

WHEREAS, Most Colorado state and local government employees have been provided pension plans as a substitute to mandatory participation in the federal social security system; and

WHEREAS, These plans cover over 200,000 different state and local government employees, including employees of school districts, police officers, firefighters, faculty at institutions of higher education, employees of municipalities, as well as thousands of benefit recipients; and

WHEREAS, Colorado's state and local government employee pension plans have been carefully developed with the cooperation of the Colorado General Assembly, employers, and employees to meet the unique needs of such public employees at a reasonable cost; and

WHEREAS, These pension plans have been funded on an actuarially sound basis and the moneys in such plans have been appropriately and successfully invested in diversified investments in accordance with modern portfolio theory; and

WHEREAS, State and local government employees in Colorado are covered by many different, separate retirement plans, including statewide plans, local plans, defined benefit plans, and defined contribution plans, all of which meet applicable federal standards; and

WHEREAS, Colorado fire, police, and state trooper pension plans offer benefits that are designed to address the physical demands and high risks inherent in public safety work and that are not available through the federal social security system, including lower retirement ages and comprehensive death and disability benefits; and

WHEREAS, It is anticipated that federal legislation will be introduced that would include a requirement that state and local government employees hired after a certain date participate in the federal social security system; and

WHEREAS, Current estimates indicate that participation by state and local government employees in the federal social security system would extend the solvency of the applicable trust funds by only two years, after which time benefits payable to retiring state and local government employees would cause a depletion of moneys in those trust funds; and

WHEREAS, The lack of mandatory participation in the federal social security system by state and local government employees in Colorado has not been a cause of financial problems affecting that system, and Colorado state and local government employees receive no special or unfair benefits from that system; and

WHEREAS, If participation in the federal social security system is mandated for Colorado state and local government employees, then integrating the federal system with existing state and local pension plans would be an extremely complex process that is likely to result in the loss of some benefits to Colorado state and local government employees; and

WHEREAS, A federal mandate that Colorado state and local government employees participate in the federal social security system would threaten not only the integrity of the pension systems in place for such employees, but also the public safety and general welfare of the citizens of Colorado; now, therefore,

Be It Resolved by the Senate of the Sixty­second General Assembly of the State of Colorado, the House of Representatives concurring herein:

That the Congress of the United States is urged to preserve the right of state and local governments to operate pension plans for their employees in place of the federal social security system, and to support legislation for responsible reform of the federal social security system that does not include mandatory participation by employees of state and local governments.

Be It Further Resolved, That a copy of this Resolution be sent to each member of Colorado's delegation to the United States Congress.


_________________________ _________________________

Ray Powers Russell George

PRESIDENT OF SPEAKER OF THE HOUSE

THE SENATE OF REPRESENTATIVES


_________________________ _________________________

Patricia K. Dicks Judith M. Rodrigue

SECRETARY OF CHIEF CLERK OF THE HOUSE

THE SENATE OF REPRESENTATIVES