Senate Finance advances PERA bill to Appropriations to let members buy caregiving service credit and require 457/Roth offers

The Senate Finance Committee on March 26 voted unanimously to forward House Bill 10‑26, which would expand certain PERA options, to the Appropriations Committee.

Sponsor Senator Kolker said the bill has two primary components. First, it would allow PERA members who are vested to purchase up to five years of non‑qualified service credit — time such as caregiving or other unpaid work — at actuarial cost. Kolker said the measure also preserves existing rules that allow purchases of qualified time (employment with a government employer) under current actuarial tables.

Second, the bill would require PERA‑covered employers to offer 457(b) deferred compensation plans and to make Roth options available for 401(k) and 457(b) plans. Michael Steppett, director of public and government affairs for Colorado PERA, testified in support and said PERA and many employers already offer these options; the change would require employers to offer them and would help plans remain compliant with federal changes under SECURE Act 2 that affect Roth catch‑up treatment.

The committee adopted amendment L003, which clarifies health‑care trust fund allocations for purchases of service credit by certain DPS members, and Senator Kolker moved the bill to Appropriations. The committee recorded a unanimous roll call in favor of forwarding the measure; the bill’s petition clause gives PERA and employers until Jan. 1, 2027, to implement the required offerings unless a petition refers the measure to the ballot.

Committee members asked technical questions about actuarial cost calculations and the bill’s effective date; sponsors and PERA emphasized that purchases must be paid at actuarial cost and that the defined‑benefit trust funds’ funding status is not intended to be affected by the bill’s purchase provisions.