A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.


<p class="wp-block-paragraph">The PERA Board of Trustees gathered at PERA’s offices in Denver on Friday, January 17 for its first regularly scheduled meeting of 2025.</p>



<p class="wp-block-paragraph">The meeting consisted of important updates and discussions about legislation, strategic planning, actuarial assumptions, and more.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Legislative update</h2>



<p class="wp-block-paragraph">Director of Public &amp; Government Affairs Michael Steppat and CEO/Executive Director Andrew Roth led the Board in a discussion about the legislative session and PERA-related bills, including two that have been introduced so far.</p>



<p class="wp-block-paragraph">The first, <a href="https://leg.colorado.gov/bills/hb25-1052" target="_blank" rel="noreferrer noopener">House Bill 1052</a>, is identical to a&nbsp;bill from last session&nbsp;that would provide a temporary tax credit for PERA retirees to reduce the impact of inflation. The second, <a href="https://leg.colorado.gov/bills/sb25-028" target="_blank" rel="noreferrer noopener">Senate Bill 28</a>, would codify into state law certain reporting practices the PERA Board already performs on a regular basis and would modify the cadence of those reports.</p>



<p class="wp-block-paragraph"><strong>READ MORE:</strong> <a href="https://www.copera.org/pera-on-the-issues/2025-proposed-pera-related-legislation-status" target="_blank" rel="noreferrer noopener">2025 Proposed PERA-Related Legislation Status</a></p>



<p class="wp-block-paragraph">Steppat also addressed Governor Jared Polis’ proposed “conversion” of Pinnacol Assurance, which is currently the State’s workers’ compensation insurer. That conversion would carry implications for PERA, since Pinnacol employees are currently PERA members and Pinnacol would have to disaffiliate from PERA if it were to become a private entity. The Governor’s proposal also calls for using proceeds from the conversion to offset the State’s annual $225 million direct distribution to PERA.</p>



<p class="wp-block-paragraph">PERA CEO/Executive Director Andrew Roth concluded by providing an update on the Social Security Fairness Act, which President Joe Biden recently <a href="https://www.copera.org/pera-on-the-issues/president-biden-signs-wep-gpo-repeal-bill-into-law" target="_blank" rel="noreferrer noopener">signed into law</a>. The bill repeals Social Security’s Windfall Elimination Provision and Government Pension Offset, two provisions that reduced Social Security benefits for some PERA members. Roth said he expects it will take some time for the Social Security Administration to release details about how the bill will be implemented. Visit <a href="https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html" target="_blank" rel="noreferrer noopener">ssa.gov</a> for the latest information.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Rules hearing</h2>



<p class="wp-block-paragraph">PERA’s legal team joined the Board to conduct a hearing on proposed changes to rules that govern some PERA benefit provisions. The Board and staff periodically review those rules to ensure they’re up to date, clarifying processes and procedures and updating language to reflect legislative changes.</p>



<p class="wp-block-paragraph">Changes approved in this rule hearing included:</p>



<ul class="wp-block-list">
<li>Removing the list of PERA-affiliated employers from PERA Rules, as this list is <a href="https://copera.org/employers/affiliating-with-pera/affiliated-employers" target="_blank" rel="noreferrer noopener">posted and regularly updated online</a>.</li>



<li>Clarifying that designations of beneficiaries, cobeneficiaries and coannuitants can be made electronically.</li>



<li>Updating rules for <a href="https://copera.org/working-after-retirement/" target="_blank" rel="noreferrer noopener">working after retirement</a> to align with recently passed legislation.</li>
</ul>



<p class="wp-block-paragraph">The full text of proposed changes is <a href="https://content.copera.org/wp-content/uploads/2024/12/PERARules-Redline-12-17-24.pdf" target="_blank" rel="noreferrer noopener">available online</a>.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Strategic plan update</h2>



<p class="wp-block-paragraph">The Board continues to work on drafting PERA’s next strategic plan. During the meeting, Trustees reviewed the draft plan and provided feedback.</p>



<p class="wp-block-paragraph">Incorporating feedback from previous discussions and work sessions, the draft plan sorts PERA’s strategic objectives into three main goals:</p>



<ul class="wp-block-list">
<li>Financial stability: Strengthening PERA’s long-term financial health</li>



<li>Customer/stakeholder experience: Serving as a trusted partner to members and stakeholders</li>



<li>Organizational excellence and modernization: Creating value through high performance and strong governance</li>
</ul>



<p class="wp-block-paragraph"></p>



<p class="wp-block-paragraph">The Board is expected to sign off on the final version of the plan at its March meeting, after which PERA staff will begin the work of implementing and executing the plan.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Actuarial experience study results</h2>



<p class="wp-block-paragraph">For several months the Board’s actuarial consultant, Segal, has been conducting what’s known as an experience study. That analysis involves comparing current actuarial assumptions—factors such as expected investment returns, price inflation, payroll growth, and life expectancy—to the economic outcomes and member behaviors experienced over the past several years. That process, which takes place every few years, ensures PERA has an accurate picture of its financial health.</p>



<p class="wp-block-paragraph">As a result of the study, Segal recommended adjustments to some demographic assumptions and the Board voted to adopt those recommendations for the 2024 <em>Annual Comprehensive Financial Report</em>, which will be released in June.</p>



<p class="wp-block-paragraph"><strong>READ MORE:</strong> <a href="https://copera.org/pera-on-the-issues/actuarial-experience-study-refining-the-financial-view-of-the-future" target="_blank" rel="noreferrer noopener">Actuarial Experience Study: Refining the Financial View of the Future</a></p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Update on legacy modernization initiative</h2>



<p class="wp-block-paragraph">One of the final agenda items was an update from CEO/Executive Director Andrew Roth. Roth discussed the long-term initiative to <a href="https://www.copera.org/news/colorado-pera-board-approves-increase-in-operating-budget-to-fund-technology-upgrades" target="_blank" rel="noreferrer noopener">modernize the core technology systems</a> used to administer benefits—a major project that is expected to take multiple years to complete.</p>



<p class="wp-block-paragraph">Roth said the project is still in the beginning stages with staff conducting preparatory work, including data cleanup, staff development, and business process improvements. Roth will continue to provide the Board with updates on this major initiative as it moves forward in the coming months and years.</p>



<p class="wp-block-paragraph">The Board’s next scheduled meeting is set for March 14.</p>



<p class="wp-block-paragraph">Learn more at <a href="https://www.copera.org/board-and-leadership" target="_blank" rel="noreferrer noopener">copera.org/board-and-leadership</a>.</p>


Recap of PERA Board’s January 2025 Meeting