DENVER (AP) — The board that oversees Colorado state pensions is recommending higher contributions from employees and taxpayers and cuts to retirees’ benefits, saying the changes are necessary to shore up the underfunded system.

The Denver Post first reported the board’s approval on Friday. Lawmakers must approve the changes as well.

According to the latest financial report, the Public Employees’ Retirement Association is 58.1 percent funded, down from 62.1 percent in December of 2015.

The recommendations include: cutting the annual cost of living adjustment from 2 percent that most retirees get to 1.5 percent and making 65 the eligible age for full benefits starting with new employees in 2020.

The board also recommended increasing employee contributions by 2 to 3 percent and a 2 percent increase on taxpayers’ payments toward the fund.

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