Senate panel advances several PERS bills: deferred compensation fees, defined‑contribution cleanup and budget items

Committee members advanced a package of bills affecting the Public Employees Retirement System (PERS), including a provision to charge participant accounts in the deferred compensation (457) plan a quarterly administrative fee, a bill to change funding options for the defined‑contribution conversion, and related budget items.

Derek Holbein, Chief Operating and Financial Officer for PERS, told the division the deferred compensation bill (House Bill 11‑13) would authorize the board to charge participants to cover administrative expenses and provide a continuing appropriation. Holbein said the board recommends a flat fee of about $10 per participant per quarter, assessed only to accounts with balances of $1,000 or more, and noted the fee is intended to be transparent and predictable for participants. He said the fee is estimated to generate about $900,000 and that the board used industry guidance when recommending the $1,000 threshold.

Senators questioned the fairness of a flat fee for small accounts. Senator Davison observed the fee is proportionally higher for small balances and that the approach “really puts younger people at a disadvantage over the long term,” while Holbein responded the board considered basis‑point alternatives and industry practice favors flat fees for transparency. Holbein said the $1,000 threshold could be revisited by the board and that changes to the threshold affect the per‑participant charge.

The division moved a due‑pass recommendation on House Bill 11‑13. Roll call indicated the motion carried with present‑votes recorded in committee (see Actions).

On House Bill 11‑46, a cleanup and policy bill related to last session’s conversion to a defined‑contribution plan, Holbein described three principal elements: allowing political‑subdivision employers to opt into the defined‑contribution plan; treating 21 entities that do not receive legislative budget approval more like political subdivisions for contribution purposes; and adding legislative flexibility to accept a lump‑sum infusion instead of charging employers an actuarially determined employer contribution (ADEC). Holbein said the ADEC increase included in the current statute would be applied in 2026 unless the legislature authorizes lump‑sum transfers; he said a $90,000,000 minimum lump‑sum would avoid the automatic employer contribution increases. The committee voted to recommend due pass on 11‑46.

The division also advanced the PERS operating budget (House Bill 10‑23) and a related bill (House Bill 11‑14, insulin caps for PERS) to the full committee with due‑pass recommendations. Committee members asked for further detail on the composition of the $900,000 deferred‑comp fee projection, the share of participants with accounts under $1,000, and long‑term plans to consolidate related flex compensation programs under PERS to create future savings.

Ending: Committee chairs said staff would carry the bills to the full committee and return them to policy for further floor action; members asked PERS to return with additional detail on fee modeling and participant counts.