Colorado PERA Responds to Pension Oversight Committees

DENVER—Colorado PERA reported to the Pension Review Subcommittee that it is on track to meet full funding targets under Senate Bill 18-200, and it is not recommending any changes to existing benefits in 2025. PERA also presented information to the Pension Review Commission in response to draft bills under consideration.

The State Legislature’s Pension Review Subcommittee was tasked with commissioning a report from an independent firm that is meant to evaluate the various assumptions PERA uses to forecast its financial health, as well as determining whether PERA is on track to meet its goal of full funding and a handful of other assessments.

Following the report, the Subcommittee provided three recommendations to PERA regarding its operations:

1. Provide more granular benchmark details against which PERA measures its portfolio’s performance.
2. Making the PERA Board proceedings readily available to the general public via recording.
3. Studying the cost of unvested employees who choose to withdraw their money from PERA when they leave employment.

PERA reported to the Subcommittee it accepted the three recommendations. PERA will continue to enhance its risk analysis and reporting via the annual Signal Light Report; YouTube videos of the Board meetings, currently livestreamed, will be archived on copera.org beginning in November; and PERA will study the cost to the Plan of providing an actual investment return amount for interest on refunded accounts, rather than the current 3 percent guaranteed interest.

PERA appreciates the Subcommittee’s continued engagement and demonstrated commitment to the financial health of the trust funds, as well as the focus on ensuring that stakeholders understand pension risks and considerations. PERA remains on track to meet its goal of full funding. No changes from the Automatic Adjustment Provision were necessary last year, this year, or next year, and PERA is not recommending any changes to benefits. Current and future retirees can continue to count on PERA to provide a source of income in retirement they cannot outlive.

Colorado PERA provides retirement and other benefits to nearly 700,000 current and former teachers, State Troopers, corrections officers, snowplow drivers, and other public employees who provide valuable service to all of Colorado. PERA is a vital and stable contributor to Colorado’s economy, distributing $4.56 billion in 2023 to more than 114,000 retirees who live in Colorado.