Kolker Bill to Expand Retirement Options Passes Committee

DENVER, CO – The Senate Finance Committee today passed legislation to increase flexibility and expand savings opportunities for Public Employees’ Retirement Association (PERA) employees. 

HB26-1026, sponsored by Senator Chris Kolker, D-Centennial, would protect retirement security for public employees with gaps in their career paths, expand access to supplemental retirement savings options, and give PERA members greater control over how they plan and save for retirement. 

“Everyone deserves the opportunity to work hard, save for retirement, and live out their senior years in dignity,” said Kolker. “This bill would give our hardworking public employees – teachers, librarians, and all the people who keep our state running – more flexibility in how they choose to save for retirement and prevent career gaps from impacting retirement readiness.”

Currently, PERA members can purchase service credit for up to five years of non-PERA-affiliated jobs to boost their retirement benefits, like higher benefit amounts or allowing them to retire earlier. HB26-1026 would expand this option to allow PERA members to purchase service credit for up to five years of unemployment under certain conditions, so PERA members can build up their retirement despite career gaps.

The bill would also offer more investment opportunities by requiring PERA-affiliated employers to offer both tax-deferred and Roth voluntary contribution options for 401k and 457 plans and make these options available for all employees. It would also require that all PERA-affiliated employers participate in and offer PERA’s deferred compensation plan to all employees, ensuring consistent access to retirement savings options. 

HB26-1026 now heads to the Senate Appropriations Committee for further consideration. Track its progress HERE.