The Colorado senate is drafting a bill that would ask new state employees to choose between joining the $29 billion Colorado Public Employees' Retirement Association defined benefit plan or an alternative defined contribution plan.
The alternative was suggested by Colorado Gov. Bill Owens, who vetoed a bill last session that did not contain a provision for a new defined contribution plan. Sen. Dave Owen said that PERA would most likely not be the sponsor of the new 401(a) plan.
Existing employees would remain in the defined benefit plan and still have the option of participating in the state's existing optional $830 million 401(k) plan.
Katie Kaufmanis, Colorado PERA spokeswoman, said that PERA officials have not seen the senator's bill and could not comment. She added that PERA officials and the governor are still negotiating on the defined contribution plan.