US - A bill to move Denver Public School's (DPS) retirement system into the Colorado Public Employees' Retirement Association (PERA) was introduced on Friday 3 April in Colorado's legislature.
Benefits will also be allowed to be portable between the DPS' division and other divisions of PERA.
The bill specifies provisions concerning a range of factors, including the adjustment of the employer contribution rate to ensure that the DPS division's ratio of unfunded actuarial liability is equalised with PERA's ratio. The provisions also cover the transfer of employees of the DPS retirement system to PERA.
In May last year, Bill 08-1403 was enacted, which allowed - although did not require - a merger between the DPS' retirement system and the state-wide PERA.
It enabled the parties involved in the merger to attempt to reach an agreement which would potentially result in merging the two systems. However, due to the complexities of the transaction along with the sharp decline in financial markets, among other factors, an agreement was not reached at the time.
Other states have looked to merge the administrative functions of retirement systems in a bid to cut costs. The Indiana house of representatives is discussing legislation to provide one board of directors and administrative system for the state's two largest pension funds, a move that could result in a one-off saving of US$8.9m and annual savings of $1.2m. (Global Pensions, 5 March 2009)
PERA delivers retirement benefits to over 400 government agencies and public entities in Colorado, comprising most teachers in the state, as well as many university and college employees.
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