HB13-1040 Summary

• Increases the number of years used to calculate retirement benefits for Public Employees' Retirement Association (PERA) members from 3 years to 7 years of highest annual salaries for new members joining after December 31, 2013.

• Existing PERA members, inactive members, and retirees as of December 31, 2013 retain the current 3-year calculation method.

• For new members, establishes a salary growth cap limiting each year's salary to no more than 108 percent of the previous year's salary used in the calculation, based on an eight-year lookback period.

• Excludes members of the Judicial Division from the 7-year calculation, except for DPS members who exercised portability and selected the DPS benefit structure.

• Takes effect 90 days after final adjournment of the general assembly, subject to potential referendum petition that could require voter approval in November 2014.