Bill to let facility schools opt into PERA advances after testimony on retention, portability

The Senate Finance Committee voted to advance House Bill 26-1146, which would create a statutory pathway for Department of Education–approved facility schools that receive public funding to apply to affiliate with the Public Employees’ Retirement Association (PERA).

Sponsor Senator Kolker framed the bill as a tool to help facility schools — which educate students with intensive needs and serve as placements when a traditional classroom is not appropriate — recruit and retain therapists, social workers and specialized teachers by giving them an option to join PERA’s local government division. “Giving facility schools the option to join PERA opens up the pool of social workers, occupational therapists, psychologists, teachers to come work with these students,” Kolker said.

PERA’s Michael Stepett (director of public and government affairs) testified the legislation creates a process for affiliation that would place approved facility-school employers into the local government division; affiliation typically results in employees becoming PERA members who and contribute along with the employer. PERA staff explained that existing retirement vehicles (for example 401(k) plans) can often be rolled into PERA plans or used to purchase service credit, and that division-specific contribution rates and automatic-adjustment provisions could affect employer or member rates over time.

Facility-school leader Amy Gearhart (founder/CEO, Spectra Centers) described difficulty recruiting and retaining staff without comparable retirement benefits and welcomed the bill’s optional approach, acknowledging employer contribution costs but emphasizing the value to staff. Committee members asked about contribution rates, portability of 401(k) balances, and whether adding facility schools could affect division rates; PERA staff answered that outcomes vary case-by-case and that the local government division currently is in a stronger funding position than the school division.

Outcome: Sponsors moved HB261146 to the Committee of the Whole with a favorable recommendation and the bill was placed on the consent calendar. The committee adjourned afterward.