CO SB127

Eliminates the existing defined contribution plan under PERA and establishes a new defined contribution plan effective January 1, 2012, with all existing DC plan members automatically transitioning to the new plan.

Mandates that all employees hired on or after January 1, 2012, must enroll in the new defined contribution plan and cannot choose the defined benefit plan.

Allows defined benefit plan members who are not yet eligible for retirement benefits to make an irrevocable election to transfer to the new defined contribution plan, with their employee contributions and matching employer contributions transferred to individual accounts.

Requires members to be immediately and fully vested in their own contributions and 50% of employer contributions, with vesting increasing 10% per year until reaching 100% vesting after five years of membership.

Directs PERA to offer at least five investment alternatives allowing members control over their individual account investments, with PERA and employers bearing no responsibility for investment losses; requires retirees returning to work and members changing employers after January 1, 2012, to participate in the new DC plan.