Posted: Aug 16, 2010 7:13 AM by Bea Karnes, News First 5
Updated: Aug 16, 2010 7:16 AM
Colorado lawmakers are getting an update on the health of the state employee retirement plan.
The legislature cut benefits this year to keep the plan from going broke. Under the new law retirees got no cost of living increase this year instead of the normal 3.5 percent increase.
Next year they would get the lesser of inflation or 2 percent and, after that, annual increases could be no higher than 2 percent.
The pension system covers 450,000 state workers, teachers and local government employees, as well as lawmakers.
State budget officials warned that without changes, the Public Employees Retirement Association plan would go broke in 20 years.