Posted: Jan 25, 2010 4:00 PM by Associated Press
A plan to keep the state's pension system from going bankrupt is set to get its first hearing at the Capitol.
Senate President Brandon Shaffer and Senate Minority Leader Josh Penry are backing the bill and expect it to pass its first vote in the Senate Finance Committee on Tuesday.
One of the major changes would likely wipe out annual cost of living increases for retirees over the next two years and then limit increases to 2 percent. The proposal would also increase employee and employer contributions by 2 percent.
Colorado is believed to be the first state to try to limit annual increases for existing retirees. Changing contribution limits is also rare, but at least four other states have done so, according to the National Conference of State Legislatures.