(1) (a) Except as otherwise
provided in subsections (6), (7), (8), and (8.5) of this section, on July 1, 2018, on July 1,
2019, on July 1, 2021, and on July 1 each year thereafter until there are no unfunded
actuarial accrued liabilities of any division of the association that receives the
distribution pursuant to this section, the state treasurer shall issue a warrant to the
association in an amount equal to two hundred twenty-five million dollars. Such
amount shall be paid to the association from the general fund, or any other fund,
subject to section 24-51-413.
(b) The state treasurer shall not issue a warrant to the association pursuant
to subsection (1)(a) of this section during the 2020-21 state fiscal year.
(2) For the purpose of allocating appropriate indirect, cash funded, or federal
costs for the direct distribution pursuant to subsection (1) of this section, the office
of state planning and budgeting may include funding sources other than the
general fund in the governor's annual budget request for the 2019-20 fiscal year
and each fiscal year thereafter to satisfy the funding amounts of the direct
distribution.
(3) The distribution pursuant to subsection (1) of this section shall end when
there are no unfunded actuarial accrued liabilities of any division of the association
that receives such distribution. By September 1, 2019, and by September 1 of each
year thereafter, until the distribution pursuant to subsection (1) of this section is no
longer required, the board shall determine whether the sum of the employer and
member contributions pursuant to section 24-51-401 (1.7)(a), the contributions
pursuant to section 24-51-411, and the distribution pursuant to subsection (1) of this
section, is greater than the amount necessary to eliminate the unfunded actuarial
accrued liability of each division of the association that receives the distribution in
the next fiscal year. If the board determines that the total amount of the
distribution pursuant to subsection (1) of this section will not be required to
eliminate the unfunded actuarial accrued liability of each division of the association
that receives the distribution, the board shall notify the office of state planning and
budgeting and the joint budget committee of the general assembly by September 1
of the applicable year.
(4) (a) Prior to July 1, 2030, the association shall allocate the direct
distribution to the trust funds of each division of the association as it would an
employer contribution, in a manner that is proportionate to the annual payroll of
each division as reported to the association; except that the association shall not
allocate any portion of the direct distribution amount to the local government
division or the Denver public schools division of the association.
(b) (I) Notwithstanding any provision of this subsection (4) to the contrary, on
or after July 1, 2025, if the allocation methodology described in this subsection (4)
would result in the blended total contribution amount equaling less than ninety-eight percent of the blended total required contribution the association may instead
allocate the direct distribution to the trust funds of each division of the association
in an actuarial manner as necessary to achieve at least ninety-eight percent of the
blended total required contribution; except that the association shall not allocate
any portion of the direct distribution amount to the local government division of the
association.
(II) As used in this subsection (4)(b), unless the context otherwise requires:
(A) Blended total contribution amount has the same meaning as in section
24-51-413 (1)(a).
(B) Blended total required contribution has the same meaning as in section
24-51-413 (1)(b).
(C) Fulfillment year has the same meaning as set forth in subsection
(8.5)(d)(III) of this section.
(c) Beginning July 1, 2030, the association shall allocate the direct
distribution to the trust funds of each division of the association as it would an
employer contribution, in a manner that is proportionate to the annual payroll of
each division as reported to the association; except that the association shall not
allocate any portion of the direct distribution amount to the local government
division.
(5) (a) Beginning with the annual general appropriation act for the 2019-20
state fiscal year, and for each annual general appropriation act thereafter, money
distributed to the association pursuant to subsection (1) of this section shall be
included for informational purposes in the annual general appropriation bill or in
supplemental appropriation bills for the purpose of complying with the limitation on
state fiscal year spending imposed by section 20 of article X of the state
constitution and section 24-77-103. The information included in the annual general
appropriation bill shall include an estimate of the amount of the distribution
pursuant to subsection (1) of this section that is attributable to the state and the
amount that is attributable to public education from kindergarten through the
twelfth grade.
(b) Subsection (5)(a) of this section does not apply for the 2020-21 state
fiscal year.
(6) In order to recompense the association for a distribution in an amount
equal to two hundred twenty-five million dollars that it had been scheduled to
receive on July 1, 2020, pursuant to subsection (1)(a) of this section but did not
receive due to the enactment of House Bill 20-1379, which amended subsection
(1)(a) of this section and added subsection (1)(b) of this section to eliminate the
distribution, in addition to the warrants issued pursuant to subsection (1)(a) of this
section, on June 7, 2022, or as soon as possible thereafter, the state treasurer shall
issue a warrant to the association in the amount of three hundred eighty million
dollars. The warrant shall be paid to the association from the PERA payment cash
fund created in section 24-51-416.
(7) The amount of the warrant to be issued on July 1, 2023, to the association
pursuant to subsection (1) of this section is reduced by the sum of one hundred
fifty-five million dollars and an amount equal to seven and one-quarter percent
multiplied by three hundred eighty million dollars; except that, if the 2021 annual
rate of return on investments as reported in the association's annual report for 2021
exceeds seven and one-quarter percent, then the reduction shall be the sum of one
hundred fifty-five million dollars and an amount equal to the association's rate of
return on investments multiplied by three hundred eighty million dollars. If the
annual rate of return is less than seven and one-quarter percent but greater than
zero, then the reduction shall be the sum of one hundred fifty-five million dollars
and an amount equal to the annual rate of return in the association's annual report
for 2021 multiplied by three hundred eighty million dollars. In no event shall the
total reduction be less than one hundred fifty-five million dollars or be greater than
one hundred ninety million dollars.
(8) The amount of the warrant to be issued on July 1, 2024, to the association
pursuant to subsection (1) of this section is reduced by the lesser of an amount
equal to seven and one-quarter percent multiplied by three hundred eighty million
dollars or an amount equal to the association's annual rate of return on investments
as reported in the association's annual report for 2022 multiplied by three hundred
eighty million dollars; except that there shall be no reduction if the rate of return is
zero or less.
(8.5) (a) (I) The amount of a warrant to be issued on July 1, 2027, and each
July 1 thereafter through the fulfillment year, to the association pursuant to
subsection (1) of this section is reduced by the least of thirty-five million dollars, the
deferred inflow of resources amount, the deferred inflow of resources amount
multiplied by the annual rate of return on investments for the association in the
immediately preceding association fiscal year as published in the relevant annual
actuarial valuation report pursuant to section 25-41-204 (7), or the amount
necessary for the total amount transferred by the state treasurer to the peace
officer training and support fund pursuant to section 24-33.5-122 (2)(b) to equal
three hundred fifty million dollars; except that, if the amount of the warrant is
reduced pursuant to section 24-75-201.1 (5)(b)(II), the amount of the warrant is not
also reduced pursuant to this subsection (8.5)(a)(I).
(II) On or before June 30, 2027, and each June 30 thereafter through the
fulfillment year, the office of state planning and budgeting shall report to the state
treasurer the amount by which the warrant issued to the association pursuant to
subsection (1) of this section is reduced pursuant to subsection (8.5)(a)(I) of this
section.
(b) (I) On or before June 30, 2034, and each June 30 thereafter through the
fulfillment year, the office of state planning and budgeting shall calculate, for the
purposes of determining the adjusted warrant reduction amount and the fulfillment
year:
(A) The total of the amount that the state treasurer has previously
transferred to the peace officer training and support fund pursuant to section 24-33.5-122 (2)(b) and the amount that the state treasurer is projected to transfer to
the peace officer training and support fund pursuant to section 24-33.5-122 (2)(b)
on July 1 of the next state fiscal year; and
(B) The total of the amount described in subsection (8.5)(b)(I)(A) of this
section and the amount that the state treasurer is projected to transfer to the
peace officer training and support fund pursuant to section 24-33.5-122 (2)(b) on
July 1 of the next state fiscal year immediately succeeding the next state fiscal
year.
(II) If the total amount calculated by the office of state planning and
budgeting pursuant to subsection (8.5)(b)(I)(A) of this section exceeds three
hundred fifty million dollars, the office of state planning and budgeting shall report
to the state treasurer, the association, the department of public safety, and the
joint budget committee that the next state fiscal year is projected to be the
fulfillment year.
(III) If the total amount calculated by the office of state planning and
budgeting pursuant to subsection (8.5)(b)(I)(B) of this section exceeds three
hundred fifty million dollars, the office of state planning and budgeting shall report
to the joint budget committee of the general assembly that the office of state
planning and budgeting projects that the state fiscal year immediately succeeding
the next state fiscal year is projected to be the fulfillment year.
(c) (I) The association shall deem the amount of the warrants issued by the
state treasurer pursuant to section 24-75-201.1 (5)(a)(I), any earnings on that
amount, and any adjustments made pursuant to subsection (8.5)(c)(II) of this section
as a deferred inflow of resources.
(II) For 2027, and each year thereafter through the fulfillment year, if,
pursuant to subsection (8.5)(a)(I) of this section or section 24-75-201.1 (5)(b)(II),
there is a reduction in the amount of the warrant to be issued to the association
pursuant to subsection (1) of this section, the association shall recognize a portion
of the deferred inflow of resources amount equal to the amount of that reduction as
a direct distribution subject to allocation pursuant to subsection (4) of this section.
(III) After the fulfillment year, the association may recognize any amount of
deferred inflow of resources as a direct distribution for purposes of section 24-51-413 (1), as necessary pursuant to subsection (4)(b) of this section.
(d) As used in this subsection (8.5), unless the context otherwise requires:
(I) Adjusted warrant reduction amount means the amount necessary to
ensure that the state treasurer transfers a total amount equal to three hundred fifty
million dollars to the peace officer training and support fund pursuant to section
24-33.5-122 (2)(b).
(II) Deferred inflow of resources amount means the amount designated as
a deferred inflow of resources by the association pursuant to subsection (8.5)(c)(I)
of this section.
(III) Fulfillment year means the first state fiscal year during which the total
amount transferred by the state treasurer to the peace officer training and support
fund pursuant to section 24-33.5-122 (2)(b) equals or exceeds three hundred fifty
million dollars.
(9) In addition to any other distributions to the association pursuant to this
section, on June 2, 2023, or as soon as possible thereafter, the state treasurer shall
issue a warrant to the association that consists of the balance of the PERA payment
cash fund created in section 24-51-416, as of the date the payment is made, plus
ten million dollars paid from the general fund. The amount paid to the association
pursuant to this subsection (9) is to recompense the association, in addition to the
amount already paid to the association as partial recompensation pursuant to
subsection (6) of this section, for the distribution that it was scheduled to receive on
July 1, 2020, pursuant to subsection (1)(a) of this section, that the association did not
receive due to the enactment of House Bill 20-1379.