Bill

SB 25-028

Public Employees' Retirement Association Risk-Reduction Measures

2025 Regular Session Introduced by Jeff Bridges and 17 co-sponsors

Directs PERA risk-reduction measures to stabilize funding, adjust contributions/benefits, and strengthen governance for PERA-covered workers, retirees, and employers.

Governor Signed

WeVote Research Nonpartisan

Bill Summary · SB 25-028

SB 25-028 — Public Employees' Retirement Association Risk‑Reduction Measures

Status: Governor Signed (2025-03-26)
Introduced: 2025-01-08

Overview / Purpose

SB 25‑028 is titled “Public Employees' Retirement Association Risk‑Reduction Measures.” It was enacted to direct changes aimed at reducing funding and benefit‑administration risks faced by the Public Employees' Retirement Association (PERA). The bill’s intent, as indicated by its title and sponsors, is to strengthen the long‑term sustainability and resilience of the state’s public pension system.

Note: The full bill text is not included in the materials provided. The summary below describes the bill’s status, sponsors, and the types of provisions ordinarily associated with “risk‑reduction” pension legislation. For exact statutory language, effective dates, and fiscal impacts consult the enrolled bill and the legislative fiscal note.

Legislative timeline & final status

Introduced in Senate (Assigned to Finance): 2025-01-08
Passed Senate (Third Reading): 2025-02-18
Passed House (Third Reading): 2025-03-10
Sent to Governor: 2025-03-19
Governor Signed: 2025-03-26

The bill cleared both chambers without floor amendments on final passage and was signed by the Governor on March 26, 2025.

Likely key provisions (based on bill title)

Because the bill text is not provided here, the exact provisions are not listed. Typical elements of pension “risk‑reduction” legislation that this bill may include:
- Changes to contribution policies (e.g., adjustment of employer and/or employee contribution rates, elimination or modification of “contribution holidays”).
- Modifications to benefit indexing or cost‑of‑living adjustments (COLAs) to better align benefits with funding status.
- Alterations to actuarial assumptions, amortization schedules, or funding targets to shorten unfunded liability paydown periods.
- Governance and investment policy reforms (e.g., enhanced stress testing, revised asset‑allocation rules, or investment risk limits).
- Creation or strengthening of reserve or stabilization accounts to smooth employer contribution volatility.
- Reporting, transparency, and oversight requirements (regular risk assessments, board reporting, or contingency planning).

Who would be affected

Active and future public employees covered by PERA (potentially through changes in contributions or benefit adjustments).
Retirees and beneficiaries if COLA or benefit formulas are modified.
Public employers (state agencies, local governments, school districts) through changes in employer contribution obligations.
State and local budgets/taxpayers if employer costs increase or decrease.
PERA’s governance and administrative operations if reporting or investment rules change.

Potential impacts and considerations

Short‑term: Employers may see higher or more stable required contributions depending on measures adopted.
Long‑term: Intended improvement in PERA’s funded status and reduced volatility in employer costs; impact depends on specific policy choices, actuarial assumptions, and market returns.
Fiscal: The actual budgetary effect requires the fiscal note and actuarial analysis attached to the enrolled bill.

Next steps / Where to find the full details

To determine the exact statutory changes, effective date(s), and fiscal impacts, review:
- The enrolled bill text and session law (available from the state legislature’s website).
- The fiscal note and actuarial analysis prepared during committee consideration.
- PERA communications and administrative guidance following enactment.

If you’d like, I can fetch the enrolled bill text and fiscal note (if you provide access or link), then prepare a line‑by‑line summary of the actual statutory changes.

Compiled from official sources — confirm details with the bill’s official record.