(1) (a) There is hereby created the pension review commission, referred to in this section as the "commission". Beginning in the first regular session of the seventy-second general assembly, the commission shall be comprised of five senators, three of whom are appointed by the president of the senate and two of whom are appointed by the minority leader of the senate, and five representatives, three of whom are appointed by the speaker of the house of representatives and two of whom are appointed by the minority leader of the house of representatives. The chair shall be designated by the speaker of the house of representatives in odd-numbered years and by the president of the senate in evennumbered years. The vice-chair shall be appointed by the speaker of the house of representatives in even-numbered years and by the president of the senate in odd-numbered years. Members of the commission shall receive the same per diem allowance authorized for other members of the general assembly serving on interim study committees and actual expenses for participation in meetings of the commission. Staff services for the commission and the pension review subcommittee created pursuant to subsection (3) of this section shall be furnished by the state auditor's office, the legislative council, and the office of legislative legal services. The state auditor, with the approval of the commission, may contract for services deemed necessary for the implementation of this article 51.1.
(b) The terms of members appointed or reappointed by the speaker, the minority leader of the house of representatives, the president, and the minority leader of the senate shall expire on the convening date of the first regular session of each general assembly, and all subsequent appointments and reappointments shall be made as soon as practicable after such convening date. The person making the original appointment or reappointment shall fill any vacancy by appointment for the remainder of an unexpired term. Members appointed or reappointed by the speaker, the minority leader of the house of representatives, the president, and the minority leader of the senate shall serve at the pleasure of the appointing authority and shall continue in office until the member's successor is appointed.
(2) The commission shall study and develop proposed legislation relating to funding of police officers' and firefighters' pensions in this state and benefit designs of such pension plans. In addition, the commission shall study and develop proposed legislation relating to the public employees' retirement association. The commission study of police officers' and firefighters' pensions and of the public employees' retirement association shall include a review of, and the proposed legislation may include, among other subjects, the following, as applicable:
Normal retirement age;
Payment of benefits prior to normal retirement age;
Service requirements for eligibility;
Rate of accrual of benefits;
Disability benefits;
Survivors' benefits;
Vesting of benefits;
Employee and employer contributions;
Postretirement increases;
Creation of an administrative board;
Creation of a consolidated statewide system;
Coordination of benefits with other programs;
The volunteer firefighter pension system;
The provisions of articles 30, 30.5, and 31 of title 31; and(o) The provisions of article 51 of this title 24.
(3) (a) There is hereby created the pension review subcommittee. The subcommittee shall consist of fourteen members appointed as follows:
The speaker of the house of representatives, the minority leader of the house of representatives, the president of the senate, and the minority leader of the senate shall each appoint one legislator whom he or she has appointed to serve on the pension reform commission to also serve on the subcommittee;
The speaker of the house of representatives and the president of the senate shall bothappoint two people from the community with experience or knowledge of investment management, corporate or public finance, compensation and benefit systems, economics, accounting, pension administration, or actuarial analysis;
The minority leader of the house of representatives and the minority leader of thesenate shall both appoint two people from the community with experience or knowledge of investment management, corporate or public finance, compensation and benefit systems, economics, accounting, pension administration, or actuarial analysis;
The governor shall appoint one person from the community with experience orknowledge of investment management, corporate or public finance, compensation and benefit systems, economics, accounting, pension administration, or actuarial analysis; and
The state treasurer shall appoint one person from the community with experience orknowledge of investment management, corporate or public finance, compensation and benefit systems, economics, accounting, pension administration, or actuarial analysis.
The chair of the subcommittee shall be designated by the speaker of the house ofrepresentatives in odd-numbered years and by the president of the senate in even-numbered years. The vice-chair of the subcommittee shall be appointed by the speaker of the house of representatives in even-numbered years and by the president of the senate in odd-numbered years. The chair and vice-chair shall be designated from the legislative members of the subcommittee.
The nonlegislative members of the subcommittee shall serve without compensationfrom the general assembly.
(4) (a) The subcommittee shall review the items specified in subsection (2) of this section as they relate to the public employees' retirement association, as applicable. In addition, the subcommittee shall:
Study the provisions of article 51 of this title 24 and make necessary recommendations to the commission or the public employees' retirement association;
Determine the necessity of continuing the direct distribution to the public employees'retirement association pursuant to section 24-51-414;
Suggest to the public employees' retirement association enhancements that the association could make to the annual analysis that it conducts pursuant to Senate Bill 14-214, enacted in 2014, to determine whether the association's model assumptions are meeting targets and achieving sustainability;
Review the annual actuarial valuation of the public employees' retirement association and make comments as necessary to the association regarding the actuarial valuation; and
Make recommendations to the board of trustees of the public employees' retirementassociation regarding assumptions, funding policy, reporting practices, or other operational policy.
Review semi-annually the overall financial health of the public employees' retirement association, including the levels of benefits, its sources of funding, and its overall financial viability based on both the assumptions of the association board of directors and the requirements of the governmental accounting standards board. The subcommittee may request that the association provide general financial reporting based on assumptions for economic and investment factors, including, but not limited to, inflation, economic growth, employment growth, and rate of return, that differ from board assumptions. If the subcommittee determines that the association's board of directors is using assumptions that are too conservative or too aggressive, the subcommittee shall request that the association adjust its assumptions accordingly.
Review annually the calculated normal costs that will cover current pension benefitsand the share of contributions going to cover the unfunded liability of the public employees' retirement association;
Review semi-annually the planned reduction of the unfunded liability of the publicemployees' retirement association. If full funding will not be achieved by 2048, the subcommittee shall make additional recommendations to the commission, the joint budget committee, and the general assembly to achieve full funding by 2048. If, upon that review, the subcommittee determines that the association does not have at least a sixty-seven percent likelihood of achieving full funding by 2048, then the association shall provide recommendations to the subcommittee for policy changes that would return the association to fully funded status by 2048. Notwithstanding section 24-1-136 (11)(a)(I), the subcommittee shall annually report to the general assembly regarding whether or not the association is on track to achieve full funding by 2048 and if not, the corrective actions recommended by the subcommittee or the association to rectify the shortfall.
Annually report in writing to the citizens of Colorado regarding whether or not thepublic employees' retirement association is on track to achieve full funding by 2048 and if not, the corrective actions recommended by the subcommittee or the association to the general assembly to rectify the shortfall. Such communication shall be made in a manner that is clear, concise, and accessible to laypeople. This communication shall quantify the net present value of any funding deficit on a per citizen basis. For example, fifty billion dollars on five million five hundred thousand people equals nine thousand ninety dollars per person. The certified annual financial report shall not serve as this communication.
After full funding is achieved, make recommendations to the commission, the jointbudget committee, and the general assembly during each legislative session regarding changes to the plan to maintain full funding;
Ensure the public employees' retirement association board is administering the association as mandated and make recommendations for the association board structure as warranted; and
Every three years, commission an independent review of the economic and investment assumptions used to model the public employees' retirement association financial situation. The subcommittee shall use experts other than those already working on behalf of the association.
(5) Each member of the subcommittee shall be required to:
Attend at least one meeting per year of the board of trustees of the public employees'retirement association;
Attend the hearing of the legislative audit committee when the committee reviewsthe annual actuarial valuation that the public employees' retirement association is required to submit to the legislative audit committee pursuant to section 24-51-204 (7); and
Attend the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" hearing of the joint finance committee pursuant to part 2 of article 7 of title 2 when the joint finance committee reviews the public employees' retirement association.
(6) (a) Notwithstanding any provision of this section, neither the commission nor the subcommittee shall meet during the 2020 interim, and legislative members of the subcommittee are not required to attend the meetings and hearings specified in subsection (5) of this section during the 2020 interim. However, if a legislative member of the subcommittee attends a meeting or hearing specified in subsection (5) of this section during the 2020 interim, the legislative member is not entitled to per diem. The subcommittee is not required to comply with the review and reporting requirements set forth in subsection (4) of this section during the 2020 interim.
(b) This subsection (6) is repealed, effective July 1, 2021.
Source: L. 2018: Entire article added, (SB 18-200), ch. 370, p. 2259, § 27, effective June
4. L. 2020: (6) added, (SB 20-214), ch. 200, p. 982, § 8, effective June 30.
Editor's note: This section is similar to former § 31-31-1001 as it existed prior to 2018.
Cross references: For the legislative declaration in SB 18-200, see section 1 of chapter 370, Session Laws of Colorado 2018.