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ColoradoHB26-10262026 Regular SessionHouseWALLET

Expanding Plan Options for PERA

Sponsored By: Bob Marshall (Democratic), Chris Kolker (Democratic), Eliza Hamrick (Democratic)

Signed by Governor

State Government

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

More retirement savings choices for public workers

Beginning January 1, 2027, covered employees get pre-tax and Roth options through PERA's voluntary investment and deferred compensation programs. These programs are additional to other public retirement systems. The voluntary investment program must cover all employees of employers within its scope. Covered employers must join the deferred compensation plan, making their employees eligible to save through it. Employers affiliated before July 1, 2009, remain affiliated, including employers outside PERA. Pre-tax contributions avoid federal and state income taxes until distribution; Roth contributions use after-tax money. Employers must send contributions through PERA or its designated provider within five days after participants are paid.

Bought pension credit cannot qualify disability benefits

Beginning January 1, 2027, PERA credit bought for noncovered time does not count toward certain earned-service requirements. Members cannot use it to qualify for disability retirement, short-term disability payments, or survivor benefit coverage. This restriction does not bar other allowed uses of the purchased credit.

Public workers face pension credit purchase limits

Beginning January 1, 2027, PERA members can buy credit for eligible time without PERA service credit, subject to limits. Qualified service means time outside the federal nonqualified-service category; buying it requires one earned PERA year and employment and salary records. For nonqualified service, members joining before January 1, 1999, need one earned year; later members need five. Members joining on or after that date face a five-year limit on noncovered-time purchases. Purchases initiated on or after November 1, 2003, generally have a ten-year total cap. Proof of earlier entitlement submitted by October 31, 2003, preserves an exception. Certain public-entity affiliation purchases have no year cap but must finish before employment ends and within three years after affiliation, or by November 1, 2006, where applicable. Unemployed time before age 21 cannot be purchased; employed time before age 21 requires employment and salary records. Denver Public Schools members can also buy credit for refunded accounts and noncovered time. Their employment before January 1, 2010, follows prior rules; later employment follows updated rules, with transition rules for purchases underway that day. The law's January 1, 2027, start is subject to its referendum rule: a petition filed within 90 days after final adjournment requires approval at the November 2026 election. Approved provisions take effect January 1, 2027, or upon certification as specified.

Pension credit purchases help fund retiree healthcare

Beginning January 1, 2027, noncovered-time pension credit purchases must be priced to fully cover their pension liability. From each purchase payment, PERA directs an amount based on 1.02% of the member's highest average salary, plus interest, to the health care trust. This is not 1.02% of the purchase payment or a separate added fee. Employer funding equals 1.01% of member salaries for the state health trust and 0.20% for the Denver Public Schools health trust. The state trust also receives 30% of employer rate reductions used to amortize overfunding. Both trusts receive premiums, monthly employer payments, interest, and shares of investment income. Certain service-purchase refunds come from the member's division trust, not the health care trust.

Public workers' savings count toward pension contributions

Beginning January 1, 2027, voluntary savings in both PERA programs remain part of salary used to calculate pension contributions. This applies to member, working-retiree, and employer contribution calculations. Deferring pay into savings does not remove that pay from the contribution base. This can mean higher employee and employer contributions than excluding the deferred pay. However, retirees' voluntary contributions are exempt from the member and matching employer contribution rules.

Sponsors & Cosponsors

Sponsors

  • Bob Marshall

    Democratic • House

  • Chris Kolker

    Democratic • Senate

  • Eliza Hamrick

    Democratic • House

Cosponsors

  • Alex Valdez

    Democratic • House

  • Brianna Titone

    Democratic • House

  • Chad Clifford

    Democratic • House

  • Jennifer Bacon

    Democratic • House

  • Junie Joseph

    Democratic • House

  • Julie McCluskie

    Democratic • House

  • Jacque Phillips

    Democratic • House

  • Kenny Nguyen

    Democratic • House

  • Lori Goldstein

    Democratic • House

  • Michael Carter

    Democratic • House

  • Monica Duran

    Democratic • House

  • Mandy Lindsay

    Democratic • House

  • Manny Rutinel

    Democratic • House

  • Ryan Gonzalez

    Republican • House

  • Sean Camacho

    Democratic • House

  • Sheila Lieder

    Democratic • House

  • Tisha Mauro

    Democratic • House

  • Cathy Kipp

    Democratic • Senate

  • Judy Amabile

    Democratic • Senate

  • James Coleman

    Democratic • Senate

  • Jessie Danielson

    Democratic • Senate

  • Lisa Cutter

    Democratic • Senate

  • Marc Snyder

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 229 • No: 36

House vote • 5/4/2026

Senate amendments: Concur

Yes: 63 • No: 2

House vote • 5/4/2026

Senate amendments: Repass

Yes: 51 • No: 14

Senate vote • 4/23/2026

Third reading: Bill

Yes: 31 • No: 4

Senate vote • 4/22/2026

Refer House Bill 26-1026 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar.

Yes: 7 • No: 0

Senate vote • 3/24/2026

Refer House Bill 26-1026, as amended, to the Committee on Appropriations.

Yes: 9 • No: 0

House vote • 3/5/2026

Third reading: Bill

Yes: 49 • No: 13

House vote • 2/27/2026

Refer House Bill 26-1026 to the Committee of the Whole.

Yes: 10 • No: 1

House vote • 2/9/2026

Refer House Bill 26-1026 to the Committee on Appropriations.

Yes: 9 • No: 2

Actions Timeline

  1. Governor Signed

    6/1/2026House

  2. Signed by the Speaker of the House

    5/19/2026House

  3. Signed by the President of the Senate

    5/19/2026Senate

  4. Sent to the Governor

    5/19/2026House

  5. House Considered Senate Amendments - Result was to Concur - Repass

    5/4/2026House

  6. House Considered Senate Amendments - Result was to Laid Over Daily

    4/24/2026House

  7. Senate Third Reading Passed - No Amendments

    4/23/2026Senate

  8. Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole

    4/22/2026Senate

  9. Senate Second Reading Special Order - Passed with Amendments - Committee

    4/22/2026Senate

  10. Senate Committee on Finance Refer Amended to Appropriations

    3/24/2026Senate

  11. Introduced In Senate - Assigned to Finance

    3/10/2026Senate

  12. House Third Reading Passed - No Amendments

    3/5/2026House

  13. House Third Reading Laid Over Daily - No Amendments

    3/4/2026House

  14. House Second Reading Special Order - Passed - No Amendments

    3/3/2026House

  15. House Committee on Appropriations Refer Unamended to House Committee of the Whole

    2/27/2026House

  16. House Committee on Finance Refer Unamended to Appropriations

    2/9/2026House

  17. Introduced In House - Assigned to Finance

    1/14/2026House

Bill Text

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