Modify Public Employees Retirement Association Allowed Affiliation and Board of Trustees

0 SENATE BILL 26-151

BY SENATOR(S) Kolker and Gonzales J., Cutter, Jodeh, Kipp, Marchman, Coleman; also REPRESENTATIVE(S) Bacon and Lukens, Clifford, Duran, English, Goldstein, Hamrick, Lieder, Nguyen, Phillips, Rutinel, Rydin, Smith, Stewart K., Titone, McCluskie.

CONCERNING MODIFICATIONS TO THE PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION.

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 24-51-203, amend (1) introductory portion; repeal (1.5); and add (l)(h) as follows: 24-51-203. Board - composition and election.

(1) The board consists of the following fifteen SIXTEEN trustees: (h) ONE TRUSTEE ELECTED BY THE DENVER PUBLIC SCHOOLS DIVISION THROUGH A DENVER PUBLIC SCHOOLS ELECTION ADMINISTERED BY THE ASSOCIATION. THE TRUSTEE POSITION CREATED IN THIS SUBSECTION ( 1)(h) EXISTS SO LONG AS THE DENVER PUBLIC SCHOOLS DIVISION REMAINS

Capital letters or bold & italic numbers indicate new material added to existing law; dashes through words or numbers indicate deletions from existing law and such material is not part of the act.

AS A SEPARATE DIVISION OF THE ASSOCIATION. THE TRUSTEE ELECTED PURSUANT TO THIS SUBSECTION (1 )(h) MUST BE A MEMBER OR RETIREE OF THE DENVER PUBLIC SCHOOLS DIVISION. EFFECTIVE JUNE 1, 2026, THE TRUSTEE ELECTED PURSUANT TO THIS SUBSECTION ( 1)(h) IS A VOTING MEMBER OF THE BOARD.

(1.5) In addition to the board members specified in subsection (1) of this section, there shall be one ex officio board member frnm the Den vet public schools division. The ex officio boat d member shall be elected by the Den\Jet public schools division through a Denver public schools division member election administered by the association. The Denver public schools division ex officio member position exists so long as the Den\Jet public schools div is ion t emains as a separate di" is ion of the association. The Denver public schools di" is ion ex officio member shall be a member or retiree of the Denver public schools division and shall be treated like all other members of the board, subject to the following. (a) The ex officio member may sit with the board and participate in discussions of agenda items, but shall not be allowed to vote on any matter coming before the board or any committee of the boat d, or to make any motion regarding any matter before the board or any committee of the board, (b) The ex officio member may be reimbursed for his or her actual and necessary expenses incun ed in the execution of his or her duties as an ex officio member of the boat d, subject to the same I equir ements and restrictions as apply to reimbursement of expenses of statutory members of the board, (c) The ex officio member's fiduciary obligations and responsibilities shall be the same as any other board member, shall flow to the entire association membership, and are not limited to those of the Denver public schools di" ision, (d) The ex officio member shall be provided the same board and committee meeting materials as are pt o vided to other members of the board, including any information that may be deemed confidential, (e) The ex officio member shall be allowed to participate in or attend executive or closed sessions of the board or of any committee of the

board subj eet to all assoeiation board I ules, Iegulations, and polieies, ineluding, but not limited to, eonfidentialicy and eonfliet of interest, (f) The ex offieio member ma, not be elected as an offieer of the board, (g) At the request of the ex offieio member, the ehait of the board ma, appoirrt the ex offieio member as an ex offieio member of any standing committee of the board, (h) The ex offieio member shall be allowed to attend and partieipate in any open meeting discussion at any board or committee meeting, and (i) The ex offieio membet shall observe all mks, tegulations, and polieies applicable to nrembets of the board and any other conditions, Iesttietions, ot t equit ements established or dit eeted by vote of a major icy of the membets of the bmud.

SECTION 2. In Colorado Revised Statutes, amend 24-51-309 as follows: 24-51-309. Affiliation by public entities. Except as otherwise provided in section 24-51-320, any political subdivision within the state of Colorado or any public agency created by the state or any of its political subdivisions may make application to the board to affiliate with the association. Any such entity specified in this section that previously exempted its employees from membership in the association may, by ordinance or resolution, apply to the board to be affiliated with the association. All applications shall be ARE subject to approval by the board, and upon approval the benefits, duties, and responsibilities of employers and members shall begin from the date of affiliation with the association. 'fhe Den vet publie sehools div is ion shall inelude ehartet schools that partieipate in the DPS plan ptiot to January 1, 2010, and any future chartet sehools that ate apptoved by the Denvet public schools board ofedueation and that entet into a ehartet contr aet with the Denver public schools board of edueation ott or after January 1, 2010. The board shall not allow affiliation into the Den\! er public sehools div is ion of any employ er not approved by the Den\leI public sehools board of edueation THE DENVER PUBLIC SCHOOLS DIVISION INCLUDES DENVER SCHOOL OF SCIENCE AND

TECHNOLOGY CHARTER SCHOOLS, ANY CHARTER SCHOOLS THAT CONTRACT WITH THE DENVER PUBLIC SCHOOLS BOARD OF EDUCATION, AND ANY FUTURE CHARTER SCHOOLS THAT ARE APPROVED BY THE DENVER PUBLIC SCHOOLS BOARD OF EDUCATION AND THAT ENTER INTO A CHARTER CONTRACT WITH THE DENVER PUBLIC SCHOOLS BOARD OF EDUCATION. SECTION 3. In Colorado Revised Statutes, 24-51-505, amend (2)(d) as follows: 24-51-505. Purchase of service credit relating to noncovered employment. (2) (d) (I) EXCEPT AS PROVIDED IN SUBSECTION (2)(d)(II) OF THIS SECTION, members employed by a public entity affiliated with the association pursuant to section 24-51-309 may purchase service credit for years employed by the entity without limit, if the purchase is completed before the member terminates employment with the entity, and any such purchase for years employed by the entity in excess of ten years is completed or installment payments initiated within three years after the date the employer affiliates with the association or November 1, 2006, whichever is later. (II) A MEMBER EMPLOYED BY A DENVER SCHOOL OF SCIENCE AND TECHNOLOGY CHARTER SCHOOL THAT IS AFFILIATED WITH THE ASSOCIATION PURSUANT TO SECTION 24-51-309 MAY PURCHASE SERVICE CREDIT FOR YEARS EMPLOYED BY THE CHARTER SCHOOL WITHOUT LIMIT IF THE PURCHASE IS COMPLETED BEFORE THE MEMBER TERMINATES EMPLOYMENT WITH THE CHARTER SCHOOL AND ANY SUCH PURCHASE FOR YEARS EMPLOYED BY THE CHARTER SCHOOL IN EXCESS OF TEN YEARS IS COMPLETED OR INSTALLMENT PAYMENTS ARE INITIATED WITHIN THREE YEARS AFTER JULY 1,2026.

SECTION 4. In Colorado Revised Statutes, 24-51-1747, amend (l)(k) as follows: 24-51-1747. Portability between the Denver public schools division and the other four divisions within the association - definitions. (1) As used in this section, unless the context otherwise requires:

(k) "Denver public school district charter school" means a charter school that was approved befure January 1, 2010, by the Denver public school distt iet boat d of education and that has employees participating in the Denver public schools retirement system befute January 1, 2010, and that is certified as a Denver public school district charter school. at the time of merger "Denver public school district charter school" also means a charter school approved by the Denver public school board of education. on 01 after January 1, 2010 A Denver public school district charter school is considered an employer within the Denver public schools division.

SECTION 5. Effective date. This act takes effect July 1, 2026; except that sections 1, 5, and 6 of this act take effect June 1, 2026. SECTION 6. Safety clause. The general assembly finds, determines, and declares that this act is necessary for the immediate

preservation of the public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions.

Julie McCluskie SPEAKER OF THE HOUSE OF REPRESENTATIVES

James Rashad Coleman, Sr. PRESIDENT OF THE SENATE

Vanessa Reilly CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES

Esther van Mourik SECRETARY OF THE SENATE

APPROVED on Thursday May 28th 2026 at 12:00pm (Date and Time)

Jared S. Polis GOVERNOR OF THE STATE OF COLORADO