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SUBJECT: POLICE MASTER PLAN WITH COMPENSATION AND BENEFITS <br />DATE: MAY 9, 2017 <br />PAGE 7 OF 17 <br />PERA was established in 1931 and operates by authority of the Colorado General <br />Assembly and is administered under title 24, Article 51, of the Colorado Revised <br />Statues. PERA is governed by a 16 -member Board of Trustees; 12 members, including <br />non-voting representatives from the Denver Public School Division, are elected by the <br />membership to serve four-year terms. Three Trustees are appointed by the governor <br />and confirmed by the Senate. The Board has the responsibility for the investment of <br />PERA's funds. These funds are invested in common stocks of top-rated companies, <br />corporate bonds, U.S. Treasury and other government securities, mortgages, real <br />estate property, and other investment vehicles. <br />Members' PERA contributions are tax-deferred until they are withdrawn through a <br />refund or monthly benefit. Members also earn tax-deferred interest on their <br />contributions and completed service credit purchases. Employers contribute a <br />percentage of their total payroll to PERA according to state law. The table below lists <br />PERA's 2017 Statutory Employer Contribution Rates. <br />z.O17 ST, TU •f.'Y EMPLCAEIR <br />CONTRIBUTION RATES <br />Total PMA <br />anklet Employer <br />Gann AEI SAED Contribution <br />State DiAsion 10.t5% 5.00% 5.00% 20,15% <br />School Division 10.15% 4.50% 5.00% 19.56% <br />Stats Troopers 12.1% 5.006 5.00% 22.6-5% <br />Judicial Division 13.66% 2.20% 1.50% 17.36% <br />[acs] DaiRmrnern 10. 220% 1.50' 13..70% <br />Division <br />OF`SDiwision` 10.t.5% 4.50% 5.00'16 19.65% <br />AcWaY DPS Eivpioff c9ntIOCIRS fritti the DPSJM par/ basso' <br />payment knovid r&ptinvon otinpaari,9 tardy. <br />In 2004 and 2006, legislation was passed that required employers to remit additional <br />contributions to PERA. These additional contributions are the Amortization Equalization <br />Disbursement (AED) and the Supplemental Amortization Equalization Disbursement <br />(SAED). The AED and the SAED for the Local Government and Judicial Divisions are <br />slated to adjust based on the year-end funded status for each division. These are <br />designed to reduce PERA's unfunded liability and amortization period. <br />If the City joins PERA, the City would need to contribute 13.70% of our total payroll (for <br />all City employees) into PERA. This is not an option we can select for only Sworn Police <br />CITY COUNCIL COMMUNICATION <br />