Republican lawmakers are forgingahead with a series of    bills that would impose new restraints on the Colorado public    retirement system and its managers, setting the tone for a    debate that is all but certain to spill into the next    legislative session  and an election year.  
    On one thing all sides agree: For the second time since the    Great Recession, the Public Employees Retirement Association        finds itself in a precarious financial position. Retirees    are living longer, and     investment returns are lower than PERA expected when a    broad reform package was passed in 2010.  
    The situation isnt as dire as it was then, but it has    deteriorated to a point thatPERA officials will have to    return tostatelawmakers with a plan tocut    benefits, boosttaxpayer contributions or both to restore    the pension system to its recommended funding levels.  
    So far, the battle for reforms is shaping up as a partisan    fight, with Republican State Treasurer Walker Stapleton  a    potential gubernatorial candidate in 2018  at the center.  
    The Republican-controlled Senate this month passed a    Stapleton-backed bill to cap taxpayer contributions at 2018    levels  a policy designed to take additionalpublic    supportoff the table as PERAs staff and board of    directors consider how to shore up the systems finances.  
    Republicans say its a needed safeguard for taxpayers, whose    contributions have gone up every year since the reforms took    effect. Different divisions contribute different amounts. But    as an example, school districts today are contributing45    percent more toward PERA than they were in January 2010.  
    This is an issue of such import, Stapleton told lawmakers at    a committee hearing this month.The giant sucking sound    of a drainis real and its coming for the budgets of our    school districts and our cities and our government.  
    Democrats counter that Republicans are putting the cart before    the horse, sayinglawmakers should wait for PERAs staff    to complete its own review and make recommendations, after a    planned statewide listening tour set for later this year.  
    I personally think that we should work closely with PERA     rely on the professionals and actuaries who do this, Sen. Andy    Kerr, D-Lakewood, who co-sponsored the 2010 reforms, said in an    interview. Other peopleseem to think that throwing    bombs is the better course of action.  
     Were nowhere close to where we were seven to eight years    ago, Kerr added.  
    When the reforms were passed in 2010, PERA assumed an 8 percent    annual return on its investments. That target was later reduced    to 7.5 percent, then to 7.25 percent last year. Stapleton    believes even that is too optimistic  he has advocated for an    assumed 6 percent return, which would make PERAs finances look    even worse than they do now.  
    In reality, PERAs returns fluctuate wildly from year to year.    Over the past five years, PERA has averaged a 7.5 percent    return. Over the past 10, it achieved 6 percent, and over the    last 35, it yielded 9.5 percent.  
    Caught in the middle of the legislative battle are    PERAs550,000 current and future retirees, who fear what    further changes will do to their retirement livelihoods.    SecurePERA, a group that represents PERA members, argues that    employees alreadybore    the brunt ofthe sacrifices in the 2010 reforms.  
    Some of the increased taxpayer contributions effectively came    from the employees pockets, because PERA took a portion of    each annual pay raise employees would have otherwise received.    Retirees took an evenbigger hit from benefit reductions,    such as annual cost-of-living increases that were scaled back.  
    Other Republican-sponsored bills would shake up the membership    of the board of directors and give the treasurer access to    financial information that today is considered confidential,    two moves that Stapleton says are neededto increase    accountability.  
    PERAsboard of directors voted to opposeall three    bills, and theyre unlikely to pass the Democrat-controlled    House.  
    The Board did not believe that these bills would improve the    administration of PERA or benefit the PERA membership in any    way, Timothy OBrien, the board chairman, said in a statement.  
    The contribution cap measure, in particular,is largely    symbolic. Current law freezes contributions in 2018, anyway     and lawmakerswould have to pass a bill to change that.    But it sends a message to the PERA board to think carefully    before asking taxpayers to spend more.  
    Broader reforms arent expected tohappen until next year    at the earliest. But the statement bill from    Republicanscomplicates legislation that was expected to    be introduced this year to addressthe judicial division,        which is in the worst shape of any of PERAs retirement    funds.  
    PERA officials have declined to say what solutions theyre    considering to shore up the judiciary, but in a message to its    members, SecurePERA, the advocacy group, suggested that higher    taxpayer contributions are among the options    beingnegotiated. Because it was in better shape than the    other divisions in 2010, the judiciary was exempt from the    contribution increases required ofother government    agencies.  
    Many of the solutions the judicial division and PERA are    talking about to reduce the number of years before the judicial    division is 100 percent funded require additional employer    contributions, SecurePERA officials wrote in a message to    theirmembers. This bill would prevent that fix.  
    The early message from Republicans is thats just fine with    them.  
    Maybe they need to come up with more creative financial    (solutions), said state Rep. Justin Everett, R-Littleton, who    sponsored two of the three bills. Theres other ways to skin a    cat.  
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With reform fight looming, Colorado Republicans push to rein in PERA - The Denver Post