Collective Bargaining
Agreement
Contact Info:
2851
S. Parker Rd
Suite 1000
Aurora, Colorado 80014
Phone:
303-696-6265
Fax: 303-696-0104
Email: mhaney@lps.k12.co.us
GOV. RITTER SIGNS BIPARTISAN PERA REFORM BILL INTO LAW Feb.23,2010
The most significant pieces of the legislation are phased in employer and employee contribution increases of 2% beginning in 2013 and a reduction in the annual 3 ½% cost of living allowance (COLA) provided to retirees. Current retirees will not receive any COLA increase in 2010 and will begin receiving 2% COLAs in July 2011. All future retirees will have to wait one year after retirement before becoming eligible for the future 2% COLAs. Future COLAs can only fall below 2% if PERA has a negative investment return in any year and the Consumer Price Index (CPI) falls below 2%.
Some of the PLUS elements of the proposal include an anti-spiking provision which limits the recognition of year over year salary increases to 8% when calculating a retiree’s 3-year highest average salary, the establishment of a 5-year vesting requirement to be eligible for a 50% match of employee contributions when members withdraw from PERA before retirement, and a requirement that all PERA retirees who work after retirement under the 110 day rule pay an employee contribution of 8% into PERA. Additionally, all school employees hired after January 1, 2011 will be subject to a minimum retirement age of 58 and a modified Rule of 88 (combined age and years of service) to be eligible for full retirement. This increased age requirement does not affect any current employees.
Senate Bill 1 also made other technical changes to PERA. More information can be found at www.securePERA.org , the website of the Colorado Coalition for Retirement Security.