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 met on Friday, Nov. 17 for its final regular meeting of 2023.</p>



<p class="wp-block-paragraph">Below are highlights of some of the major topics of discussion and important actions the Board took during the meeting.</p>



<h2 class="wp-block-heading">2024 Board election</h2>



<p class="wp-block-paragraph">The Board approved the calendar for the <a href="https://www.copera.org/four-seats-on-pera-board-up-for-election-in-2024" target="_blank" rel="noreferrer noopener">2024 Board election</a>, during which four seats will be up for election: Two in the State Division, one in the School Division, and one in the Denver Public Schools Division.</p>



<p class="wp-block-paragraph">Candidacy information will be available to members of those divisions in early January, and the election will take place in May.</p>



<h2 class="wp-block-heading">Member contribution interest rate</h2>



<p class="wp-block-paragraph">Every PERA Defined Benefit Plan account accrues interest, compounded annually. If a PERA member leaves PERA-covered employment and requests a refund of their account, they receive their contributions, the interest earned on that balance, and any applicable employer match. If that member keeps their account with PERA, the balance will continue to accrue interest and the member has multiple options upon reaching retirement eligibility, including choosing a lifetime monthly benefit.</p>



<p class="wp-block-paragraph">The Board is responsible for setting the interest rate every year; it currently stands at 3 percent. The Board’s policy, <a href="https://content.copera.org/recap-of-the-pera-boards-november-2022-meeting-2/" target="_blank" rel="noreferrer noopener">updated in 2020</a>, evaluates the interest rate as a component of members’ overall retirement benefit. After discussing the issue, Trustees voted to keep the interest rate at 3 percent for 2024.</p>



<h2 class="wp-block-heading">Asset/liability study update</h2>



<p class="wp-block-paragraph">In September, the Board kicked off an important analysis of PERA’s investment portfolio and asset allocation strategy known as an asset/liability study. The project will help the Board determine if it needs to make any changes to PERA’s mix of investments. PERA’s strategic asset allocation is the primary driver of investment returns, and the Board adopted its current allocation following the last asset/liability study in 2019.</p>



<p class="wp-block-paragraph">The Board’s investment consultant, Aon, said in the meeting that it continues to work with PERA’s investment staff to gather and analyze information. That process will continue over the next few months, with additional discussion in January.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p class="wp-block-paragraph"><strong>READ MORE:</strong> <a href="https://peraontheissues.com/asset-liability-study-a-guide-to-building-a-strategic-portfolio/" target="_blank" rel="noreferrer noopener">Asset/Liability Study: A Guide to Building a Strategic Portfolio</a></p>
</blockquote>



<h2 class="wp-block-heading">PERA-related legislation</h2>



<p class="wp-block-paragraph">With the 2024 General Assembly around the corner, the Trustees discussed the upcoming session and potential PERA-related legislation. The conversation included two bills that lawmakers on the Pension Review Commission expect to introduce: One that aims to expand the number of PERA retirees who can work for school districts without reductions in their benefits, and one that proposes a $700 tax credit for qualifying retirees in tax years 2024 and 2025.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p class="wp-block-paragraph"><strong>READ MORE:</strong> <a href="https://peraontheissues.com/pension-review-commission-eyes-two-bills-for-2024-legislative-session/" target="_blank" rel="noreferrer noopener">Pension Review Commission Eyes Two Bills for 2024 Legislative Session</a></p>
</blockquote>



<p class="wp-block-paragraph">The Board’s first meeting of 2024 will take place on Jan. 19.</p>


Empty boardroom with several chairs and microphones arranged on a table. A sign reads "PERA Board of Trustees, Nov. 17, 2023 Meeting.

Recap of PERA Board’s November 2023 Meeting