Colorado governor signs bill to shore up state’s troubled public pension

DENVER (AP) — Colorado Gov. John Hickenlooper has signed a bill to shore up the state’s troubled pension.

The new law calls for sweeping changes to pay off the pension’s $32 billion unfunded debt within 30 years.

The measure cuts cost-of-living raises for retirees and requires employees and government agencies to contribute more of each paycheck.

The state will also chip in $250 million a year to pay down the debt.

Monday’s bill signing marks the second time since 2010 that Colorado has enacted a major pension rescue plan.

The prior reforms fell short, leaving Colorado’s public pension among the most poorly funded in the country.

Roughly 1 in 10 Coloradans are members of the pension. It provides retirement benefits to state, school district and some local government workers.