Colorado pensioners see COLA cut and actives see contribution rate and minimum retirement age raised

From John Curry, February 24, 2010

http://www.pionline.com/apps/pbcs.dll/article?AID=/20100224/DAILYREG/100229957&NoCache=1&template=printart

Colorado governor OKs pension contribution hikes

By Timothy Inklebarger
Source: Pensions & Investments
Date: February 24, 2010

Colorado Gov. Bill Ritter signed a bill that raises contributions to the $35.4 billion Colorado Public Employees' Retirement Association, Denver.

The law aims to return COPERA to fully funded status within a 30-year amortization period, spokeswoman Katie Kaufmanis wrote in an e-mail. The pension fund had a 52% funded ratio as of Dec. 31, 2008, the most recent period for which funded status was calculated, Ms. Kaufmanis wrote.

The new law increases school district employers' contributions by 1.5% of payroll and school district employees' contributions by 2.5% of salary. Non-school district employers will contribute an additional 2% of payroll and state employees not working for school districts will contribute an extra 2% of salary.

The law also raises the retirement age to 60 from 55 for all state employees hired after Jan. 1, 2011, except school district employees.

It also increases the number of years a state employee must serve within the system to 30 from 25 before retiring. Those retiring earlier will receive reduced benefits.

Annual COLA increases also will decline to 2% from 3.5% in 2011.