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PERA News Archives (former Latest News items for
2006)
Board of Trustees Election
Slated - Candidates Sought
In May 2007, Colorado PERA will hold an
election for seats on the Board of Trustees for the following
positions:
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One Judicial Division position
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One Retiree position (According to
state law, both retiree positions on the Board cannot be
held by retirees who retired from the same division. The
2007 retiree vacancy can only be filled by a retiree who
retired from the State, Judicial, or Local Government
Division.) |
Candidacy packets will be available January 2,
and may be obtained by writing to:
Colorado PERA
Internal Audit Director
1300 Logan Street
Denver, CO 80203-2386
To be placed on the ballot, a candidate must
fulfill the requirements explained in the candidacy packet.
Requests for candidacy packets should include the name, Social
Security number, PERA Division, mailing address, daytime
telephone number, and signature of the candidate. Retirees from
the State Division who are interested in being a candidate
should also indicate whether they are a member of the PERA
Defined Benefit Plan or the PERA Defined Contribution Plan.
The Board of Trustees meets monthly (except in
May, August, and December) and is responsible for adopting the
rules and policies for the administration of PERA. Elected Board
members serve without pay, but are reimbursed for necessary
expenses.
PERA members from the Judicial Division and
retirees from the State, Local Government, and Judicial
Divisions will be sent ballots in early May. Returned ballots
must be postmarked by May 31, 2007.
PERA will be holding elections for the seats
currently held by James Casebolt from the Judicial Division and
Sara Alt who retired from the State Division, whose terms expire
June 30, 2007.
The seats currently held by F. Elizabeth Friot
from the State Division (Higher Education), Patricia Kelly from
the Local Government Division, and Marcus Pennell from the
School Division, also expire on June 30, 2007. However, as a
result of legislation enacted in 2006, they will be replaced
with trustees appointed by the Governor and confirmed by the
Senate. Additionally, the State Auditor will no longer hold an
ex-officio position on the Board as of January 1, 2007.
PERA Looks Back at 75 Years with
New Online Museum
PERA welcomes you to join in our celebration
of 75 years of providing retirement benefits by viewing the new
online PERA museum. You can view photos and learn facts about how
PERA has changed since it began as the State Employees
Retirement Association (SERA) on August 1, 1931.
View online PERA museum
October 26 Meetings Canceled
in Fairplay
The Colorado PERA 401(k) and Purchasing
Service Credit meetings that were scheduled for 4:00 p.m. and
6:30 p.m. on October 26 have been canceled because of adverse
weather.
The meetings were to be held at the Park
County RE 2 School District Administration Building, 640
Hathaway in Fairplay. We regret any inconvenience that may
result. The meetings will be rescheduled for a later date;
details will be posted on the PERA Web site.
For additional information please contact
Dennis Gatlin, Field Education Manager, at 303-832-9550 ext.
6188.
Colorado PERA Shareholder
Presentation
If you are unable to attend one of the
Shareholder meetings scheduled in your area, a copy of the
presentation is below.
2006 Shareholder Presentation
Colorado PERA Shareholder
Presentation
If you are unable to attend one of the
Shareholder meetings scheduled in your area, a copy of the
presentation is below.
2006 Shareholder Presentation
Colorado PERA "Shareholder"
Meetings Scheduled--New Locations
As a PERA member or benefit recipient, you are also a
“shareholder” of PERA, which means you need to know about the
state of your retirement plan. To help you learn and understand
more about your retirement plan, PERA will travel throughout
Colorado this fall to inform members and benefit recipients
about some of the issues facing PERA.
PERA members and retirees are encouraged to
attend and hear about recent legislation and PERA’s financial
condition, as well as the legislative outlook heading into the
2007 legislative session.
Please refer to the
schedule of
"Shareholder" meetings for new locations.
Colorado PERA Issues Actuarial
Services RFP
Colorado PERA has issued an RFP for actuarial
services. Those interested in submitting an RFP should
refer to the information below:
Cover
letter
Scope of
Consulting Services
Eligibility Requirements
RFP Questions
Actuarial Services Agreement
2005
Comprehensive Annual Financial Report (CAFR)
PERA Law
PERA Rules
Proposed Rules Changes
Senate
Bill 06-006
Senate
Bill 06-235
Actuarial Report
Actuarial Experience Study
Mercer Actuarial Review (July 2005)
Upcoming Hearing on Colorado PERA
Rules
Each year, Colorado PERA has the opportunity
to update the administrative regulations that guide how PERA law
is applied in practice. The process for updating the Rules
provides for public comment on the proposed changes. The Public
Hearing on PERA’s proposed changes to its Rules will take place
at 11:00 a.m. on October 20, 2006, during the monthly PERA Board
of Trustees Meeting held at 1300 Logan Street in Denver. If you
would like to comment on these proposed Rules changes, please
plan on attending the hearing on October 20. You can review
information on attending Board meetings on the
Board of Trustee meeting page.
Summary of
Proposed Rules
PERA to Legislative Audit
Committee: On Track to Being Fully Funded
Officials from the Colorado Public Employees’
Retirement Association (PERA) reported to the Legislative Audit
Committee of the Colorado General Assembly some good news. With
the legislation that was passed earlier in the year, the state’s
largest pension plan is on track to being 100 percent funded.
The Legislative Audit Committee also heard from an actuarial
consulting firm that PERA’s liabilities had declined by over
$300 million at the end of 2005 compared to what would have been
expected.
“The bottom line is that the data clearly
indicate that the reform legislation passed by the Colorado
General Assembly and supported by PERA’s Board will have the
desired effect, returning PERA to a stronger financial footing
and ensuring that the interests of Colorado taxpayers and PERA
members and retirees are protected far into the future,” said
Meredith Williams, Colorado PERA’s Executive Director. “In 2005,
PERA’s assets increased by $2.3 billion and its funded ratio
improved. These indicators of PERA’s financial health are moving
in the right direction.”
Other items reported to the legislative
committee included:
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PERA’s 2005 investment return was 9.8%
(gross of fees)
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PERA’s annualized investment return
for the past 25 years is 10.95 percent
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PERA’s funded status increased from
70.6 percent at the end of 2004 to 73.3 percent at the
end of 2005 |
The Legislative Audit Committee also heard the
results of the 2005 annual financial audit in which no material
control issues were found in PERA’s operations. All
recommendations made by the auditors to improve PERA’s business
practices have been either completed or are in progress. A
follow up report on PERA’s performance audit was also given to
the committee. All recommendations from that audit have been
completed or have been incorporated in ongoing practices.
Colorado PERA Board Election
Results Announced
Colorado PERA members elected Carol Hoglund to
the vacant State Division seat of the 16-member Board of
Trustees. She will serve a four-year term.
Two seats were uncontested and the Board
approved not holding an election for those seats. Scott Murphy
was appointed to a four-year term in the School Division and
Mark Anderson was appointed to a four-year term in the Local
Government Division.
In the election, a total of 7,833 votes were
cast. Hoglund received 4,185 or 53.43 percent of the votes cast.
Other candidates included Randy Jensen, who received 2,749 or
35.10 percent of the votes, and Michael Command, who received
899 votes or 11.47 percent of the votes.
Hoglund is the Chief Business Officer for Aims
Community College and has worked in Colorado higher education
for over 25 years. She has held both chair and vice chair
positions in the Higher Education Accounting Standards Committee
and the vice chair position for the Higher Education Financial
Advisory Committee.
“I am truly humbled by the support I received
during the election,” said Hoglund. “I am committed and look
forward to being part of the PERA team. I take seriously the
challenges that lie ahead and will continue to build on the
excellent work that has been completed.”
Mark Anderson, City of Colorado Springs Risk
Manager, has served on the Board for 13 years. Scott Murphy,
Superintendent of Littleton Public Schools, has served on the
Board since 2005.
By state law, the management of the Public
Employees’ Retirement Association is vested in the Board of
Trustees while the General Assembly sets contribution rates and
benefit levels. The Board is composed of 16 Trustees, including
the State Auditor and the State Treasurer who serve as voting
ex-officio members of the Board. Fourteen Trustees are elected
by mail ballot by their respective Division members and serve on
the Board for four-year terms. Five members are elected from the
School Division, four from the State Division, two from the
Local Government Division, and one from the Judicial Division.
Two members are elected by retirees.
Clarification to Media
Reports on PERA’s Funded Status
Recent news reports indicating that PERA’s
funded status has deteriorated are misleading. In fact, PERA's
funded status has improved. PERA’s actuaries had expected the
unfunded liability of the PERA trust funds to be $13.8 billion
at the end of 2005. (The pension plan has an unfunded liability
when future benefits owed are greater than assets on hand.) When
all actuarial gains and losses have been taken into account for
2005, PERA’s unfunded liabilities totaled $12.4 billion or $1.4
billion less than was expected for 2005.
Additionally, this number was determined
without calculating the impact of important PERA reform
legislation enacted in 2006 (which PERA supported). PERA’s
unfunded liabilities are expected to decline further when
projections are made that include the benefit changes contained
in SB 06-235 for members hired after January 1, 2007. When the
actuary projects the impact of the legislative changes, the
projections indicate that all divisions will reach the
statutorily prescribed amortization period on unfunded
liabilities within the 30-year actuarial projection period.
The 9.6 rate of return listed in recent news
reports are net of fees. For more information on PERA's rate of
return for 2005, see
Colorado PERA Investment Returns Surpass Benchmarks.
Governor Owens Signs Senate Bill
06-235
Governor Owens signed
Senate Bill 06-235 into law on Thursday, May 25. This bill
was sponsored by Sen. Paula Sandoval (Denver) and Rep. Rosemary
Marshall (Denver).
Ballot Initiative to Reform PERA
Pulled by Proponents
A proposed ballot initiative to reform
Colorado PERA was withdrawn by its sponsors on Wednesday, May
10. Proponents of Ballot Initiative #106 have informed the
Colorado Secretary of State that they no longer wish to pursue
the effort.
Attorneys retained by PERA mounted an
aggressive legal challenge to the initiative approval process.
Additionally, the PERA Board of Trustees has consistently
opposed wholesale conversion to defined contribution plans,
which was a main component of the initiative. Legislation that
passed the General Assembly on a 98-2 vote May 5 and has been
sent to the Governor (Senate Bill 06-235 sponsored by Sen. Paula
Sandoval and Rep. Rosemary Marshall) addresses PERA’s long-term
financial health. Senate Bill 06-235 was the result of many
months of negotiations between PERA, employer and employee
groups, and elected officials and puts PERA on a stable path to
being fully funded without drastically cutting benefits or
adopting a risky defined contribution plan for public employees.
Clarification to
Media Reports
Some information reported in various print
media regarding provisions of Senate Bill 06-235 is inaccurate
and is causing concern to PERA retirees. The Supplemental
Amortization Equalization Disbursement, or Supplemental AED,
only applies to current contributing members—not retirees. The
Supplemental AED of 0.5 percent will come from the increases in
compensation that active members are scheduled to receive over
the next six years, and not from the 3.5 percent annual
increases that retirees currently receive.
Overview of Senate Bill 06-235 provisions.
Election Ballots Mailed
Ballots for the 2006 Colorado PERA Board of
Trustees election were mailed on May 1, 2006, to active PERA
members working for State employers.
If you have lost or not received a ballot, the
deadline for requesting a duplicate ballot is May 22, 2006. Such
requests must be in writing and directed to the Colorado PERA
Internal Auditor at 1300 Logan Street, Denver, CO 80203. Written
requests must include name, address, Social Security number, and
reason for the request.
Ballots must be postmarked by May 31, 2006.
Colorado PERA Files Motion
Challenging Ballot Initiative
The Public Employees’ Retirement Association
of Colorado (Colorado PERA) filed a motion today with the
Colorado Title Setting Board at the Office of the Secretary of
State challenging the 2-1 ruling of the Board earlier this month
that approved the title of Initiative #93 “PERA Reform.” The
initiative can be found
online.
Elements of Colorado PERA’s motion for
rehearing include:
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The provisions of the initiative must
comply with state statutes that require ballot
initiatives to cover a single subject.
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The title set by the Board is
misleading, inaccurate, or incomplete based on the
content of Initiative #93. |
It is anticipated that the motion for
rehearing will be heard by the Title Board on Wednesday, April
19. The motion was filed on PERA’s behalf by attorneys Mark G.
Grueskin and Edward T. Ramey of the Denver law firm of Isaacson
Rosenbaum, P.C.
Guest Editorial in the
Rocky Mountain News
March 25, 2006
(The following editorial was published on
March 25, 2006, in the Rocky Mountain News under the
headline: No panacea for PERA; Reform is necessary, but
ideology threatens system)
Colorado PERA Proposes Sensible Reform
By Meredith Williams
The discussion over the future of the Colorado
Public Employees’ Retirement Association (PERA) is too important
to be reduced to sound bites, scare tactics, overheated rhetoric
or personal attacks.
Unfortunately, there’s been too much of this
kind of posturing – and that’s been a disservice to the people
of Colorado.
We’ve witnessed “conflict of interest”
allegations against legislators conscientiously pursuing
measured reform. We’ve seen PERA members such as school
teachers attacked as a “privileged class.” And we’ve heard
reckless and inaccurate claims about PERA’s financial health.
It’s little wonder that we’ve also received
calls from some of PERA’s nearly 380,000 members and retirees
who are unnecessarily worried that their pensions will suddenly
evaporate, leaving them financially destitute.
It’s time for us all to take a few deep
breaths, step back and examine the facts.
PERA provides retirement benefits to most of
Colorado’s public servants, from snowplow drivers to school
teachers to corrections officers.
The average PERA benefit is about $2,400 a
month for retirees, hardly lavish considering that most PERA
members (unlike most Americans) do not qualify for Social
Security and may have no other retirement safety nets.
PERA is nowhere close to being bankrupt. In
fact, PERA currently holds assets with a market value of over
$35 billion and is expected to have assets totaling more than
$60 billion in 2034. However, PERA does face financial
challenges that we take very seriously.
PERA currently has assets on hand to pay about
74 percent of the benefits owed to both current and future
retirees (many of the latter group will work for decades more
before they are eligible to even start receiving these
benefits).
While PERA’s funded status is a significant
issue, this very long timeframe means we don’t have to fix the
problem overnight so long as we put PERA back on track towards a
solid financial footing.
So how did PERA get in this position? High
investment returns by PERA allowed the Colorado Legislature to
reduce the amount that state and local governments and school
districts paid into the system by 25 percent since 2000, saving
public employers more than $325 million.
However,
that reduction has contributed to PERA’s decline from an over
100 percent funding level to 74 percent. Adding to the
challenge was the stock market downturn in the early 2000s that
was not kind to investors large or small, an increased number of
retirements, earlier-than-predicted retirements, service credit
purchases at discounted rates and retirees living longer.
It’s a
common misconception that the PERA Board can unilaterally change
benefits or contribution levels. In fact, the Colorado
Legislature and Governor must ultimately approve such changes.
However, we accept a share of the blame for the current
situation. In large measure, PERA endorsed these changes that
have contributed to the liability. These actions were taken at
a time when PERA enjoyed an overfunded status and upon the
advice of nationally renowned investment and actuarial
professionals before 9/11.
As far as PERA is concerned, it’s now not a
question of reform versus no reform. Rather, it’s a question of
whether Colorado opts for thoughtful, measured reform or pursues
an ideologically motivated plan that would undermine the very
foundation of PERA.
PERA’s proposal – which is reflected in Senate
Bill 174 – would reduce liabilities over time and put PERA on
solid footing. However, we appreciate that it isn’t the only
plan on the table. We are confident that legislators focused on
the best interests of all Colorado taxpayers – including but not
limited to PERA members or retirees – will approach the various
proposals in a constructive and nonpartisan way.
However, we are concerned that some interests
are trying to capitalize on PERA’s situation to completely
discard the current system of retirement benefits for Colorado’s
public servants. We believe their proposed ballot initiative
could actually put an added burden on taxpayers. That’s why
PERA has worked hard to develop a sensible approach to return
Colorado’s largest financial institution to solid ground.
Guest
Editorial in The Colorado
Springs Gazette
March 14, 2006
(The following editorial was published in
The Colorado Springs Gazette March 14, 2006)
PERA Works to Preserve
Employees’ Futures
By Meredith Williams
A recent guest column in
The Gazette about Colorado Public Employees Retirement
Association made a number of charges that are at odds with the
facts. The author, Barry Poulson, presented himself as a
self-styled representative of the taxpayer. However, his
proposal for dismantling the pension program for most of the
state’s public servants, from teachers to state troopers, would
present an unacceptable risk to these employees and the rest of
the state’s taxpayers.
In contrast, PERA supports
a more measured approach to reform that treats both taxpayers
and public servants and employees fairly.
Here are some facts about
Colorado PERA and its reform proposal:
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PERA has a
membership of 370,000 members and retirees. Most are
teachers or other public school employees. Others work
for the state or local governments across the state.
Chances are some of your family, friends or neighbors
are covered by PERA. |
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Poulson claimed
that public employees are “a privileged class.” Tell
that to the snowplow driver who labors to keep
Interstate 70 open during a blizzard at 3 a.m. or the
kindergarten teacher trying to maintain control of an
overcrowded classroom. This attack by Poulson on public
servants perhaps provides more insight than he intended
into his real agenda. |
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The average PERA
benefit is less than $30,000 annually for retirees,
hardly lavish considering that most PERA members don’t
qualify for Social Security so this pension may be their
only retirement safety net.
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The annual
government contribution to PERA benefits is currently
lower than the average percentage contribution of
private corporations into their pension plans.
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But this much is true: PERA
faces what is known as an “unfunded liability” as a result of
factors ranging from declines in the amount that state and local
governments paid into the pension fund and the stock market
downturn in the early 2000s.
Does this mean that PERA is
broke? Not even close. In fact, PERA is expected to have assets
of more than $60 billion in 2034. PERA enjoyed a positive cash
flow of more than $1 billion in 2005 while paying $2 billion in
benefits to residents of the state of Colorado, providing a
positive economic impact on every Main Street in Colorado.
Nevertheless, PERA takes
its funded status seriously. That’s why PERA took the initiative
to propose reform, which is represented by Senate Bill 174
currently under consideration by the Colorado General Assembly.
Such legislation is needed
because all changes in PERA benefits and contribution rates are
set by the Legislature with the approval of the governor (a fact
that critics conveniently ignore when they claim that the PERA
Board of Trustees has a conflict of interest).
Senate Bill 174–which
is the product of extensive work by actuaries and financial
professionals over the past year–will
reduce the amount PERA owes over time and put the state’s
largest financial engine on solid footing.
Specifically, PERA proposes
restoring the percentage contributed by public employers to more
historically typical levels–current
employer contribution rates are 25 percent lower than they were
just a few years ago–while
imposing modest new limits on benefits to current PERA members.
Poulson wrote that PERA’s
proposal creates “second-class status” for new public employees.
What he conveniently omitted, however, is that while it reduces
their benefits, it also reduces the proportion of their salary
they must contribute to their retirement benefits. It makes
sense–they
pay less into the system but get lower benefits over time.
The mistruths spread about
PERA by its critics are just the latest efforts designed to
undercut public servants. Poulson should review the most recent
report by the state’s Department of Personnel and Administration
on state employee compensation or Colorado’s public school
teacher salary rankings. These public servants know their
pension is one of the few remaining decent benefits they have
left.
The truth is that Poulson’s
defined-contribution “solution” could end up costing taxpayers
much more in the long term. West Virginia recently returned to a
defined-benefit pension plan (the same kind used by PERA)
because its experiment with a defined-contribution plan left the
state in a precarious financial position.
In fact, the challenges
currently facing PERA look small compared to the problems that
would be caused by Poulson’s so-called solution.
Williams is the executive
director of Colorado’s Public Employees Retirement Association.
Guest
Editorial in The
Pueblo Chieftain
March 12, 2006
(The following editorial was published in
The Pueblo Chieftain on March 12, 2006)
By James Casebolt, Chair of the Colorado PERA
Board of Trustees
A recent
column in The Pueblo Chieftain about Colorado PERA
suggested that Colorado taxpayers will have to “pony up”
millions of dollars annually to fund the retirement benefits for
thousands of public employees.
Unfortunately,
the column was unnecessarily alarmist and mistaken on key
points. Here are the facts:
Colorado PERA
is the retirement plan covering most public employees in
Colorado, including those who work for the state, local
governments, and school districts. In fact, there are over 4,600
residents of Pueblo County receiving monthly benefits from PERA
and 8,800 active participants in PERA in the county.
Most PERA
members do not contribute to Social Security, so they do not
receive Social Security benefits in retirement. The average
annual benefit received by retirees from PERA is less than
$30,000, which is hardly lavish.
But the total
benefits paid to all retirees (over $2 billion in 2005) together
create an economic boost to the Colorado economy, as almost 90
percent of all PERA retirees and benefit recipients reside in
Colorado.
Colorado PERA
also invests in Colorado businesses and owns Colorado real
estate. Contributions are invested on the members’ behalf by
PERA’s investment staff, saving taxpayers tens of millions of
dollars annually that would otherwise be paid in fees to money
management companies headquartered outside of Colorado.
The column’s
most sensational and misleading charge is that PERA will “run
out of money to cover all retirees by the mid-2030s” without
reforms. This simply isn’t the case. In fact, PERA’s assets are
estimated to be in excess of $60 billion in 2034.
Colorado PERA
is like many other pension plans (whether corporate or
governmental) across the nation that have what are known as
“liabilities.” If you think of PERA in terms of your home
mortgage, PERA’s “mortgage” is 74 percent paid off. You wouldn’t
expect to have to pay off your home the first day you moved in,
would you? Of course not. The same is true for PERA–not every
dollar of the benefits PERA owes to future retired public
servants of Colorado is due and payable today.
Nevertheless,
PERA believes that thoughtful legislative reform is a prudent
course of action to protect both current and future retirees and
taxpayers. Specifically, PERA is proposing that the Colorado
Legislature and Governor Bill Owens consider accelerating the
increase in employer contribution rates–increases that are
already called for in state law.
Historically,
PERA’s employer contribution rate (the amount contributed by the
state, local government, or school district that employs the
PERA member) has averaged about 12 percent of salary. As PERA
grew to be 100 percent funded in 2000, this rate was decreased
to below 9 percent, saving the public employers in Colorado more
than $325 million. We don’t think it’s unreasonable that these
contribution rates be restored to the levels they were in the
past.
The column
erroneously states that member contributions would decrease
under the reform plan that PERA supports. In fact the member
contribution of 8 percent would be maintained for all current
members.
Only in the
proposed new tier of membership that begins after 2007 would the
new member contribution rate be reduced by one percent. This is
in recognition of a lower benefit that would be earned by these
new members. It’s simply common sense–members who will receive
decreased benefits should not have to pay as much into the
system. (Details on
legislation impacting PERA)
Is PERA in a
crisis situation where immediate and drastic action needs to be
taken? No, it is not. Certainly, we would like for employer
contribution levels to be immediately restored to past levels.
But we also know that the state and our other public employers
are also recovering from financial stress.
We believe the
solution to improving PERA’s financial health is a measured
approach that includes the gradual restoration of the employer
contribution rate as well as benefit changes for new PERA
members.
The solution
to PERA’s funded status is not a quick fix that would throw the
baby out with the bathwater. Prudent people know that complex
problems require intelligent, well-thought out responses that
are seasoned with political and economic reality. We welcome the
constructive suggestions for change that have been presented.
However, we also want to set the record straight on the issue of
PERA’s reliance on the Colorado taxpayer.
The Colorado
PERA Board of Trustees and staff believe that accountability and
transparency are hallmarks of good pension plan management. The
alternative to Colorado PERA would neither be in the best
interests of Colorado PERA members nor the taxpayers of the
State of Colorado.
James
Casebolt is a judge on the Colorado Court of Appeals and has
served on the PERA Board since 1999.
Colorado PERA Quick Facts
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Established as an Instrumentality of
the State in 1931, predating Social Security |
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Board of Trustees–16 voting members,
14 elected by membership plus the State Treasurer and
the State Auditor |
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Membership–375,000 |
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Average monthly benefit paid in
2005–$2,400 |
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Assets Under Management–$35 billion |
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Number of Affiliated Employers–400 |
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Benefits Paid in 2005–$2 billion
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Member Contribution–8% of salary |
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Employer Contribution–10.65% of salary
(1.02% dedicated to the Health Care Trust Fund) |
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PERA Portfolio Annual Rate of Return
(past 25 years)–10.9% |
A Message from PERA's Executive
Director: A Political Problem, Not a Financial Crisis
Given all the headlines about Colorado PERA lately, I wanted to
touch base with the PERA membership and the public about what
you have been reading and hearing about the state’s largest
pension fund. The headline in the February 21, 2006, Denver Post
summed it up: “PERA solution promises to be elusive.” While that
is true, PERA continues to work hard to promote thoughtful
legislative reform that will address issues facing PERA while
treating members, retirees, and all taxpayers fairly. We remain
optimistic that such a legislative solution is attainable this
year.
PERA’s critics are learning that providing
benefits to over 70,000 current retirees and managing $35
billion in retirement trust fund dollars is not so simple. The
PERA Board and PERA staff have been working to improve PERA’s
funded status since the market downturn in early 2000. Evidence
of these efforts includes a bill that was passed by the
Legislature but vetoed by the Governor in 2003 and compromise
legislation passed and signed in 2004 that will partially
restore the employer contribution to pre-2000 levels, while
expanding defined contribution options for new State employees.
The Board and staff spent most of 2005 working with actuaries
and financial professionals in developing a package that is
reflected in Senate Bill 174, which currently is pending before
the Colorado General Assembly.
After months of running various scenarios
related to investment return and a multitude of other
demographic variables, the Board developed this plan that brings
PERA to a fully funded status with all liabilities paid off in a
reasonable amount of time in terms of pensions. Yes, it does
take time, but the fact is that pension policy has long-term and
far-reaching impacts. I wish there was a magic wand that could
be waved to eliminate PERA’s liabilities, but I am also a
realist who knows that there are no quick fixes when it comes to
pension policy.
Please remember that there are no immediate
solutions that do not negatively impact some segment of PERA’s
family, which includes active and inactive members, benefit
recipients, and PERA’s public employers. Please contact your
elected officials and let them know the importance of keeping
PERA secure and strong by supporting Senate Bill 174. You can
look up current legislation affecting PERA and who represents
you on PERA's
Legislation page.
–Meredith Williams
Notice–Proposed
Changes to Colorado PERA's Board of Trustees
As a member or beneficiary of Colorado PERA,
you are hereby notified that proposed legislation has been
introduced recommending a change to the structure of the
governing board of PERA. PERA board members are trustees with
the fiduciary duty to oversee your trust fund.
Proposals are being made that would alter the
composition and size of the board, the process for selecting
board members, as well as determining board member
qualifications. PERA will provide up-to-date information
regarding these potential changes during the legislative session
under the Legislation
link on this Web site. Information on bills affecting PERA is
also available at
www.leg.state.co.us by using either the House or Senate
bills link and searching for All Bills for "PERA." Please use
these sources to remain informed about your trust fund.
Colorado PERA Mails 1099-Rs
Colorado PERA mailed 1099-Rs to benefit
recipients and to those individuals who withdrew their PERA
accounts in 2005 on January 25, 2006. Our
Understanding Your 1099-R
overview can help you to better understand the information on
your 1099-R.
Board Of Trustees Election
Slated–Candidates Sought
In May 2006, Colorado PERA will hold an
election for seats on the Board of Trustees for the following
positions:
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One School Division position |
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One State Division position |
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One Local Government Division position
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PERA members from a School, State, and Local
Government Division employer will be sent ballots in early May
to elect representatives in the above categories.
Any PERA member who works for a State, School, or Local
Government employer is eligible to run for a Trustee position on
the Board if he or she completes a candidacy packet and meets
the statutory requirements. Incumbents may run for re-election.
Terms expire on June 30, 2006, for School
Division Trustee Scott Murphy; State Division Trustee Donna
Bottenberg; and Local Government Division Trustee Mark Anderson.
To be placed on the ballot, a candidate must
fulfill the requirements explained in the candidacy packet,
including the submission of a petition form signed by 100 PERA
members in the candidate’s employer division, along with a
biographical sketch that must be returned to PERA by March 1,
2006.
Candidacy packets are available by writing to:
Chief Administrative Officer
Colorado PERA
1300 Logan Street
Denver, CO 80203-2386
Requests for candidacy packets should include
the name, Social Security number, PERA Division, mailing
address, daytime telephone number, and signature of the
candidate. State Division candidates must also indicate if they
are a member of the PERA Defined Benefit or PERA Defined
Contribution Plan.
The Board of Trustees meets monthly (except in
May, August, and December) and is responsible for adopting the
rules and policies for the administration of PERA. Board members
serve without pay, but are reimbursed for necessary expenses.
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