PERA Board Releases 2022 Annual Report
Inside Colorado PERA
June 21, 2023
The Colorado Board of Trustees on Friday, June 16 approved the release of PERA’s 2022 Annual Comprehensive Financial Report (ACFR). The ACFR contains a detailed account of PERA’s finances, investment performance, and funded status for the year ended Dec. 31, 2022.
The ACFR provides valuable insight into PERA’s financial health, operations, and membership for the year. PERA has routinely earned awards for excellence in financial reporting for the ACFR.
Financial highlights
Like many investors, Colorado PERA experienced a negative return on its investment portfolio in 2022. The total fund ended the year with a return of -13.4% net of fees, compared to the benchmark’s -13.7% return.
While the markets may go up or down in a given year, PERA’s portfolio is designed to generate value over the course of several decades. Over the past 10 years, the total fund has achieved an annualized return of 8.0%, while the benchmark earned 7.1%.
“2022 was a challenging year for investors, including Colorado PERA, but our strategic asset allocation ensures we have a well-diversified portfolio that can withstand different market environments,” said Interim Executive Director/Chief Investment Officer Amy C. McGarrity. “Our focus on long-term financial outcomes contributed to our ability to pay $5.2 billion in benefits to more than 135,000 PERA retirees last year alone.”
As of the end of 2022, PERA manages an investment portfolio of $55.9 billion for the defined benefit plans and $5.1 billion for the defined contribution plans. PERA’s funded status at the end of the year was 69.9%.
Explore highlights from the ACFR in an interactive online format here.
Automatic Adjustment Provision
The Automatic Adjustment Provision (AAP), as set in state statute, adjusts member and employer contributions and annual benefit increases based on PERA’s progress toward its goal of full funding by the end of 2047. The AAP calculation is made on an annual basis, to take effect the following year.
Based on 2022’s financial results, adjustments via the AAP will not be needed next year. That means member contributions will remain unchanged in 2024. Eligible benefit recipients will receive a 1% Annual Increase in July 2023 and another 1% Annual Increase in July 2024.
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