HB 1400: Adjust Public Employees' Retirement Association's Allocations to Trust Funds - Colorado

Final Act → Signed Act · 4 edits · Jun 3, 2026

MODERATE

This bill amends the Public Employees' Retirement Association's allocation rules, primarily adjusting the health care trust fund contribution rate and updating the timeline for direct distribution allocations. The changes modify specific funding percentages and shift key implementation dates, while also correcting several typographical errors in the statutory text.

Scope change

The bill modifies the financial obligations and allocation timelines for the Public Employees' Retirement Association and its trust funds.

FISCAL

The contribution rate for the health care trust fund was adjusted from one and two-fifty-two hundredths of one percent to one and fifty-two one-hundredths of one percent of member salaries.

TIMELINE

The deadline for the association to allocate direct distributions based on payroll proportions was changed from July 1, 2030, to July 1, 2026.

The effective date for the new allocation methodology and the requirement to maximize the blended total contribution amount was advanced from July 1, 2030, to July 1, 2026.

TECHNICAL

Numerous typographical errors, such as misspelled words and incorrect capitalization, were corrected throughout the statutory text.

Rerevised → Final Act · 4 edits · May 29, 2026

MODERATE

This bill updates how the Public Employees' Retirement Association (PERA) allocates state funds to its various divisions. It changes the effective start date of a new allocation method from 2030 to 2026 and adjusts the percentage of member salaries contributing to the health care trust fund from 1.02% down to 0.52%. The changes aim to improve funding stability and reduce the likelihood of automatic rate increases for retirees.

Scope change

The bill applies to the Public Employees' Retirement Association (PERA) and its divisions, specifically altering how direct state distributions are allocated and how the health care trust fund is funded.

TIMELINE

The effective date for a new actuarial allocation method was moved forward from July 1, 2030, to July 1, 2026.

FISCAL

The contribution rate for the health care trust fund was reduced from 1.02% of member salaries to 0.52% of member salaries.

REQUIREMENT

A new requirement was added allowing PERA to use an actuarial allocation method starting July 1, 2025, if the standard method would result in contributions below 98% of the required amount.

ELIGIBILITY

The exclusion of the Denver Public Schools division from receiving direct state allocations was expanded to include the local government division starting July 1, 2026.

Revised → Rerevised · 4 edits · Apr 16, 2026

MODERATE

The bill was re-revised to include additional Senate sponsors and updated the status to reflect amendments adopted in the Second House. Substantively, the text removed a definition for 'Fulfillment year' and deleted the specific start date for direct distribution, which was originally set to begin on July 1, 2026, with subsequent annual occurrences starting July 1, 2030.

Scope change

The bill's scope regarding the legislative process was updated to include new sponsors, while the scope of the program's operational timeline was altered by removing the specific start date for direct distribution.

SCOPE

Added three new Senate sponsors (Hinrichsen, Kolker) to the bill's sponsorship list.

Updated the document header to reflect that amendments were adopted in the Second House rather than on Second Reading.

TIMELINE

Deleted the specific provision establishing the start date for direct distribution as July 1, 2026, and the recurring annual schedule starting July 1, 2030.

DEFINITION

Removed the definition for 'Fulfillment year' that referenced subsection (8.5)(d)(III).

Reengrossed → Revised · 6 edits · Apr 15, 2026

MODERATE

The bill was reengrossed and revised to include amendments adopted during the second reading in the Senate. The substantive policy content regarding Public Employees' Retirement Association (PERA) funding allocations remains unchanged, with the primary modifications being the addition of reading status headers and the correction of a date in the summary section from July 1, 2026, to April 15, 2026.

TECHNICAL

Added headers indicating the bill is 'Revised' and includes amendments adopted on second reading in the Second House, replacing the 'Reengrossed' status.

Added a '2nd Reading Unamended' status line with a new date (April 15, 2026) to the Senate section.

Updated the summary note date in the Senate section from April 11, 2026, to April 15, 2026.

Corrected a date in the House section from April 9, 2026, to April 15, 2026.

Removed the '3rd Reading Unamended' status line and associated date (April 11, 2026) from the summary section.

Removed the '2nd Reading Unamended' status line and associated date (April 9, 2026) from the House section.

Engrossed → Reengrossed · 3 edits · Apr 11, 2026

MINOR

The bill was reengrossed to include amendments adopted during the House of Introduction, updating the header and summary availability dates. Substantively, the bill removes a requirement for the association to allocate funds to the Denver Public Schools Division, limiting future direct distributions only to the Local Government Division.

Scope change

The bill's scope regarding fund allocation was narrowed by removing the Denver Public Schools Division as a recipient of direct distributions.

FISCAL

Removed the requirement for the association to allocate any portion of the direct distribution amount to the Denver Public Schools Division of the Association.

TIMELINE

Removed the specific timeline provision stating that beginning July 1, 2030, allocations would be restricted only to the Local Government Division.

TECHNICAL

Updated the document header from 'Engrossed' to 'Reengrossed' and revised the availability date for the reengrossed bill summary to April 11, 2026.

Introduced → Engrossed · 3 edits · Apr 9, 2026

MINOR

The bill has progressed from its initial introduction to an engrossed version containing all House amendments. The most significant substantive change is the deletion of Sections 3 and 4, which previously established the bill's effective date (July 1, 2026) and included a 'safety clause' to justify the legislation. The text also includes administrative updates to the bill number and page headers to reflect the amendment history.

Scope change

The bill's scope regarding its implementation timeline has been altered by removing the specific effective date provision.

TIMELINE

The specific effective date of July 1, 2026, was deleted, meaning the bill no longer contains a self-contained start date for its provisions.

REQUIREMENT

The 'safety clause' was removed, which previously declared that the act was necessary for the preservation of public peace, health, or safety.

TECHNICAL

The bill number was updated from HB26-1400 to 1400, and the status header was changed from 'Introduced' to 'Engrossed' to reflect the inclusion of all adopted amendments.

Adjust Public Employees' Retirement Association's Allocations to Trust Funds

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