Each employer in the public employees' retirement association (PERA) contributes a percentage of its total employer payroll to PERA in the form of an employer contribution, an amortization equalization disbursement (AED), and a supplemental amortization equalization disbursement (SAED). A portion of the employer contribution goes to the health care trust fund and the remainder is deposited into the pension trust fund for each division of PERA to pay benefits. The AED and the SAED are to reduce PERA's unfunded liability and amortization period.
The bill requires that for the calendar year beginning January 1, 2018, and for each calendar year thereafter, the total of the employer contribution, the AED, and the SAED for any employer will not exceed the total contribution rates for the 2018 calendar year pursuant to current law. The rates are as follows:
- For the state division, 20.15% of an employer's total payroll; except that, for state troopers, the total is 22.85% of an employer's total payroll;
- For the school division, 20.15% of an employer's total payroll;
- For the Denver public schools division, 20.15% of an employer's total payroll;
- For the local government division, 13.70% of an employer's total payroll; and
- For the judicial division, 17.36% of an employer's total payroll.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)