Colorado PERA Plan Options Expansion Bill HB26-1026

Detected February 28th, 2026

Summary

Colorado Bill HB26-1026 proposes to expand plan options for the Public Employees' Retirement Association (PERA). Key provisions include allowing members to purchase service credit for previous periods of unemployment and requiring PERA employers to affiliate with and offer PERA's deferred compensation plan to employees.

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What changed

Colorado Bill HB26-1026, currently under consideration, aims to expand retirement plan options for members of the Public Employees' Retirement Association (PERA). The bill introduces provisions that would allow PERA members to purchase service credit for prior periods of unemployment, provided they meet certain conditions. Additionally, it mandates that PERA employers affiliate with and offer PERA's deferred compensation plan to their employees, which would include options for both pre-tax and Roth voluntary contributions.

While this bill is still in draft and under consideration, its passage would introduce new options and requirements for both PERA members and their employers. Employers will need to ensure their deferred compensation plans comply with the new requirements, and members will have new avenues to purchase service credit. The bill is scheduled for a House General Orders - Second Reading on March 3, 2026, indicating a potential path towards enactment.

What to do next

Monitor the progress of Colorado Bill HB26-1026 through the legislative process.
Review current PERA deferred compensation plan offerings for compliance with potential new pre-tax and Roth contribution options.
Assess eligibility criteria for members seeking to purchase service credit for prior periods of unemployment.

Source document (simplified)

HB26-1026

Expanding Plan Options for PERA

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | State Government |
Concerning an expansion of plan options for the public employees' retirement association.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

Under current law, a member of the public employees' retirement association (PERA) earns service credit for each year worked during which the member makes contributions to PERA. A member may purchase additional years of service credit for any previous period of public or private employment during which the member was not making contributions to PERA, subject to certain conditions. Sections 1 and 3 of the bill allow a member of PERA to also purchase service credit for previous periods of unemployment during which the member was 21 years old or older, subject to certain conditions. Sections 2, 3, 4, and 7 make conforming amendments.

Sections 5 and 6 require PERA's voluntary investment program to include options for an employee to make tax-deferred voluntary contributions and Roth voluntary contributions to the program and make other conforming changes.

Sections 8 and 9 require PERA employers to affiliate with PERA's deferred compensation plan and offer the plan to employees. The sections require the deferred compensation plan to include options for an employee to make pre-tax voluntary contributions and Roth voluntary contributions to the plan and make other conforming changes.
(Note: This summary applies to this bill as introduced.)