
<p>Retirement insights from a Colorado PERA perspective</p>



<p></p>


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


<p class="has-medium-font-size"><a href="https://coloradosun.com/2025/06/04/pera-colorado-law-enforcement-funding-deal-proposition-130/" target="_blank" rel="noreferrer noopener"><strong>How PERA Could Be the Big Winner of Colorado’s Police Funding Deal | The Colorado Sun</strong></a></p>



<p>One of the PERA-related bills that lawmakers passed during the recently concluded legislative session uses a unique funding mechanism for the voter-approved Proposition 130, which creates a fund to support public safety in Colorado. Under the bill, the State will give PERA a lump sum of $500 million and then may reduce its annual payments to PERA in future years based on our investment earnings, until the public safety fund reaches a total of $350 million.</p>



<p class="has-medium-font-size"><a href="https://www.cbsnews.com/news/social-security-fairness-act-payments-june-2025/" target="_blank" rel="noreferrer noopener"><strong>Social Security Says over 2.5 million Retroactive Payments Have Been Processed. Here&#8217;s What to Know. | CBS News</strong></a></p>



<p>The Social Security Administration says it has processed the majority of retroactive payments due to beneficiaries who had previously been affected by the Windfall Elimination Provision (WEP) and/or Government Pension Offset (GPO). The agency said that while affected individuals should have received their retroactive payments by the end of March and their updated benefit amounts in April, more complicated cases that require manual processing will take more time.</p>



<p class="has-medium-font-size"><a href="https://www.npr.org/sections/shots-health-news/2025/06/04/nx-s1-5423538/medicare-drug-price-negotiations-ozempic-otezla" target="_blank" rel="noreferrer noopener"><strong>Medicare seeks lower prices for drugs, including Ozempic : Shots &#8211; Health News : NPR</strong></a></p>



<p>The Centers for Medicare and Medicaid Services has begun its second round of price negotiations with prescription drug manufacturers. The agency is targeting 15 drugs for lower prices, including popular weight-loss medications Ozempic and Wegovy. Any lower prices would go into effect in 2027.</p>



<p class="has-medium-font-size"><a href="https://www.investopedia.com/emergency-fund-for-retirement-11741359" target="_blank" rel="noreferrer noopener"><strong>Retired? Here&#8217;s 5 Reasons You Still Need an Emergency Fund—Plus How Much It Should Cover | Investopedia</strong></a></p>



<p>If you’re retired, you may be thinking more about withdrawals from your savings rather than stashing away extra cash, but experts say it’s important to keep saving. Unexpected expenses such as medical bills, home repairs, and other emergencies can wreak havoc on any budget and especially for someone on a fixed income.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: PERA Could Benefit from Public Safety Law


<p><em>Editor&#8217;s note (6-10-25): This article was updated to show that all four bills have been signed into law.</em></p>



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<p>That’s a wrap on the 2025 legislative session—the Colorado General Assembly concluded on Wednesday, May 7.</p>



<p>Lawmakers introduced more than 650 bills over the course of the 120-day session, seven of which related directly to PERA. Of those, four bills passed both chambers and are now on the governor’s desk. Below are summaries of those four bills and their impact on PERA.</p>



<p>Visit our <a href="https://www.copera.org/pera-on-the-issues/2025-proposed-pera-related-legislation-status" target="_blank" rel="noreferrer noopener">legislation tracking page</a> for more information on these bills and the bills that didn’t pass.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Which bills passed?</h2>



<p><strong><a href="https://leg.colorado.gov/bills/sb25-028" target="_blank" rel="noreferrer noopener">Senate Bill 28</a>: Public Employees’ Retirement Association Risk Reduction Measures</strong></p>



<p>This bill establishes in state law certain reporting practices the PERA Board of Trustees already performs on a regular basis, including actuarial experience studies and independent reviews through actuarial audits. The bill aims to align the timeline of those activities with the Pension Review Subcommittee’s independent review, which it conducts on a regular basis.</p>



<p><a href="https://leg.colorado.gov/bills/hb25-1105" target="_blank" rel="noreferrer noopener"><strong>House Bill 1105</strong></a><strong>: PERA True-Up of Denver Public Schools Division Employer Contribution</strong></p>



<p>Legislation that merged the Denver Public Schools Retirement System (DPSRS) into PERA in 2010 included a requirement that PERA perform a “true-up” calculation every five years to determine if the Denver Public Schools (DPS) Division’s employer contribution rate should be adjusted to ensure the DPS and School Divisions reach equal funding ratios within 30 years.</p>



<p>This bill reduces the DPS Division employer contribution rate by 3.0%, diverts a portion of the DPS Division’s Health Care Trust Fund contributions towards the DPS Division’s Pension Trust Fund, temporarily removes the DPS Division from the Automatic Adjustment Provision calculation (though it remains subject to any changes from the AAP) and temporarily prevents the DPS Division from receiving allocations of the annual direct distribution from the State in order to negate the impact of the reduced contributions having a negative effect on the AAP calculation.</p>



<p><a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener"><strong>Senate Bill 147</strong></a><strong>: Modify Board Management PERA</strong></p>



<p>This bill modifies a number of provisions under current law related to the PERA Board, including changes to how PERA is designated for purposes of open meetings laws, establishing term limits for Trustees, and requiring that certain financial information, including various administrative costs and other expenses, be posted on PERA’s website and updated on an annual basis.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/pera-on-the-issues/pera-board-supports-bill-that-codifies-board-practices-enhances-transparency" target="_blank" rel="noreferrer noopener">PERA Board Supports Bill That Codifies Board Practices, Enhances Transparency</a></p>



<p><a href="https://leg.colorado.gov/bills/sb25-310" target="_blank" rel="noreferrer noopener"><strong>Senate Bill 310</strong></a><strong>: Proposition 130 Implementation</strong></p>



<p>The final PERA-related bill introduced this session involved Proposition 130, the voter-approved measure that directs the state to spend $350 million to recruit, train, and retain local law enforcement officers. The provisions that apply to PERA relate to funding for the bill, which will involve giving PERA a lump-sum payment of $500 million on July 1, 2025 and reducing future years’ direct distributions to PERA based on our investment earnings on the $500 million.</p>



<p>Despite reductions in future direct distributions, the bill is expected to be a net positive for PERA’s funding and also allows PERA to allocate the $500 million in a way that reduces the likelihood of triggering the AAP based on PERA’s funding progress in the future.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What’s next?</h2>



<p>Gov. Jared Polis signed all four PERA-related bills into law.</p>



<p>In addition to the above bills, the Legislature passed Senate Bill 199, which suspends interim legislative activities for the year. That means the Pension Review Commission and Pension Review Subcommittee, which usually meet in the period between sessions and begin work on drafting legislation, will not meet this summer. PERA staff will still appear before the Legislative Audit Committee in August to discuss our financial status and receive the results of the State’s annual audit.</p>



<p>Last session, the Legislature <a href="https://www.copera.org/pera-on-the-issues/lawmakers-pass-bill-to-refresh-study-on-value-of-peras-defined-benefit-plan" target="_blank" rel="noreferrer noopener">approved a bill</a> that directs the Office of the State Auditor to commission an updated study comparing the value of PERA’s&nbsp;hybrid&nbsp;defined benefit plan to other plan designs. We expect to receive the results of that study sometime this summer, and we’ll be sure to share that information when we have it.</p>


Colorado Legislature Passes Four PERA-Related Bills in 2025 Session


<p>The PERA Board of Trustees met at PERA’s offices in Denver on Friday, March 14 for its second regular meeting of the year.</p>



<p>The Trustees took action and received updates on several important topics, including strategic planning, legislation, and the upcoming Board election.</p>



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



<p>PERA’s internal audit team presented an update on this year’s <a href="https://copera.org/board-election-2025" target="_blank" rel="noreferrer noopener">Board election</a>. There are five seats up for election and 21 candidates will be vying for those seats, staff said.</p>



<p>PERA members and retirees who are eligible to vote will receive ballots in early May. New this year, voting will be available through the <a href="https://copera.org/pera-mobile-app" target="_blank" rel="noreferrer noopener">Colorado PERA mobile app</a> and secure online portal in addition to mail and phone voting.</p>



<p>The Board will announce election results at its June 27 meeting.</p>



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



<p>CEO/Executive Director Andrew Roth and Director of Public &amp; Government Affairs Michael Steppat provided an update on the 2025 legislative session so far.</p>



<p>Of the six PERA-related bills introduced so far, two remain under consideration: <a href="https://leg.colorado.gov/bills/hb25-1105" target="_blank" rel="noreferrer noopener">House Bill 1105</a>, which would reduce the employer contribution rate for the Denver Public Schools Division, and <a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">Senate Bill 147</a>, which would modify a number of provisions under current law related to the PERA Board. Two bills that would have provided tax relief to retirees, <a href="https://leg.colorado.gov/bills/hb25-1052" target="_blank" rel="noreferrer noopener">House Bill 1052</a> and <a href="https://leg.colorado.gov/bills/sb25-136" target="_blank" rel="noreferrer noopener">Senate Bill 136</a>, have failed.</p>



<p>In addition, lawmakers passed a bill that will suspend interim legislative activity in an effort to reduce costs and free up funds for the state budget. That means the Pension Review Commission and Pension Review Subcommittee, which usually meet every year in between legislative sessions, will not meet this year.</p>



<p><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>



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



<p>Following many months of work, the Board took the important step of adopting PERA’s next strategic plan, which will guide organizational priorities and aspirations over the next three years. The plan defines PERA’s long-term direction and provides a high-level roadmap for achieving its priorities, ensuring alignment between the Board and staff.</p>



<p>The plan focuses on three main strategic goals:</p>



<ul>
<li><strong>Financial stability:</strong> Strengthen PERA’s long-term financial health</li>



<li><strong>Customer/stakeholder experience:</strong> Be a trusted partner in service to members</li>



<li><strong>Organizational excellence and modernization:</strong> Create value through exceptional performance</li>
</ul>



<p></p>



<p>With the Board’s adoption of the plan, it’s now up to staff to implement it. Yearly implementation plans will provide concrete steps toward achieving the plan’s goals and objectives over the next three years.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/news/pera-board-adopts-new-three-year-strategic-plan" target="_blank" rel="noreferrer noopener">PERA Board Adopts New Three-Year Strategic Plan</a></p>



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



<p>PERA is in the early stages of a multi-year project to modernize the core technology systems used to administer benefits, and staff have been providing the Board with regular updates as the project progresses.</p>



<p>Chief Technology Officer Ryan Ericson, Chief Administrative Officer Jeremy Hill, and Chief Benefits Officer Patrick Lane highlighted some of the preparatory work staff have been doing, such as data cleanup, business process mapping and improvement, and staff onboarding.</p>



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



<p>Board meetings commonly include an update from PERA’s CEO/Executive Director, Andrew Roth. Roth detailed some of the work he and staff have been doing to engage with stakeholders and enhance transparency.</p>



<p>Since he joined PERA last year, Roth has been meeting with many stakeholder groups, such as legislators and business leaders as well as educator groups like the Colorado Education Association and coalitions like Secure PERA.</p>



<p>On transparency, Roth discussed PERA’s efforts to make information about the Board and <a href="https://copera.org/about/board-and-leadership/board-meetings" target="_blank" rel="noreferrer noopener">Board meetings</a> more readily available. That includes posting three years’ worth of meeting materials, livestream recordings of past meetings, and ensuring materials for upcoming meetings are posted online ahead of time.</p>



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



<p>Chief Investment Officer/Chief Operating Officer Amy C. McGarrity provided the Trustees with an update on recent economic and market conditions. McGarrity explained that U.S. stocks—particularly tech stocks—have seen volatility so far this year and there’s uncertainty in the markets. And while inflation is down, concerns remain that higher prices will persist in coming years.</p>



<p>McGarrity also explained that while PERA sometimes receives questions or criticisms about its investment program and active asset management, the Board’s strategic asset allocation, with its focus on diversification, has proven itself over the long term.</p>



<p>“Certainly in any short-term period we may experience volatility and even underperform the markets, but long-term we’ve done really well,” McGarrity said. As of Dec. 31, 2024, PERA’s total portfolio has earned an annualized return of 8.3% over the past 30 years.</p>



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



<p>The Board concluded by reviewing meeting dates for the remainder of the year. They are:</p>



<ul>
<li>June 27</li>



<li>September 17-19 (offsite planning session and meeting)</li>



<li>November 21</li>
</ul>



<p></p>



<p>For more information on upcoming Board meetings or to view materials from past meetings, visit <a href="https://copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">copera.org/about/board-and-leadership</a>.</p>


PERA Board Adopts New Strategic Plan at March 2025 Meeting


<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://coloradosun.com/2025/03/17/colorado-budget-shortfall-recession-risk-march-forecast/" target="_blank" rel="noreferrer noopener">Recession Risk Grows, Adding Uncertainty to Colorado Budget Crunch | The Colorado Sun</a></h2>



<p>There’s still a lot of uncertainty as the deadline approaches for the Legislature to release its budget plan for the next fiscal year. State economists say that while Colorado’s economy is growing, unemployment is rising and spending and economic growth are slowing. At the same time, lawmakers are trying to find ways to cut over $1 billion from the state budget.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.cnbc.com/2025/03/15/investment-fraud-how-to-protect-yourself.html" target="_blank" rel="noreferrer noopener">Americans Lost $5.7 Billion to Investment Scams in 2024, FTC Says. Here’s How to Protect Yourself | CNBC</a></h2>



<p>Investment scams are on the rise—the latest data from the Federal Trade Commission show Americans lost $5.7 billion to investment scams in 2024, up 24% from the year before. Officials say scamming operations have become more sophisticated, and criminals stole an average of more than $9,000 from victims last year. Here are some tips for spotting and avoiding potential scams.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.cnet.com/personal-finance/taxes/the-irs-has-issued-a-whopping-145-billion-in-tax-refunds-so-far/" target="_blank" rel="noreferrer noopener">The IRS Has Issued a Whopping $145 Billion in Tax Refunds so Far | CNET</a></h2>



<p>Tax season is well underway, and the Internal Revenue Service (IRS) reports its tax return processing is mostly on par with last year, so far. The IRS says it has processed more than 60 million returns since tax season began and issued more than 43 million refunds, with an average refund of more than $3,300.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.npr.org/2025/03/04/g-s1-51748/trump-crypto-reserve-bitcoin-stockpile-ether" target="_blank" rel="noreferrer noopener">What to Know About Trump&#8217;s &#8216;Crypto Strategic Reserve&#8217; Plan | NPR</a></h2>



<p>President Donald Trump announced his intent to create a strategic reserve of cryptocurrency similar to the U.S. stockpile of gold. While there are still many questions about how a cryptocurrency reserve might work, the U.S. government already holds billions of dollars in bitcoin seized from criminal cases.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: Latest Forecasts Add Uncertainty to State Budget


<p>The Colorado PERA Board of Trustees voted to support <a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">SB25-147</a>, a bill that proposes changes to statute regarding Board operations and transparency. The Trustees held a special meeting on Friday, February 28 to discuss the bill and take a position.</p>



<p>The bill from sponsors Sen. Byron Pelton, Sen. Chris Kolker, Rep. Lori Garcia Sander, and Rep. Meghan Lukens would modify state law to impose term limits on Trustees; define the PERA Board as a local public body instead of a state public body as it applies to the Colorado Open Meetings Law; and require that PERA post certain financial information online, including staff compensation and various other administrative expenses.</p>



<p>In addition to the above changes, the bill sets out in state law some current Board and staff practices, including:</p>



<ul>
<li>Posting Board meeting materials and recordings on PERA’s website: PERA currently streams every Board meeting on <a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">copera.org</a> and <a href="https://www.youtube.com/@ColoradoPERA" target="_blank" rel="noreferrer noopener">YouTube</a>, and recordings are available afterward. Agendas for Board meetings are posted in advance and materials from past meetings are also available online.</li>



<li>Providing instructions for members of the public to participate in Board meetings: PERA currently provides multiple ways to communicate with the Board, including public comment (in person and over the phone) at every regular meeting and a Board-specific email address on the <a href="https://www.copera.org/contact-us" target="_blank" rel="noreferrer noopener">Contact Us page</a>.</li>



<li>Posting audited financial statements online: PERA’s <a href="https://copera.org/annual-report" target="_blank" rel="noreferrer noopener"><em>Annual Comprehensive Financial Report</em></a> (ACFR) contains detailed information about PERA’s finances, membership, and operations. The <em>ACFR</em> and all other annual financial reports are <a href="https://www.copera.org/forms-resources/financial-reports-and-studies" target="_blank" rel="noreferrer noopener">available online</a>.</li>
</ul>



<p></p>



<p>In their conversation about the bill and its proposed changes, Trustees discussed the importance of transparency in maintaining trust with stakeholders. The Board’s vote to support the bill demonstrates its commitment to making PERA more open and accountable.</p>



<p>“Strong governance and clear communication with our members and the public are vital to a mission-driven organization like Colorado PERA, and we believe Senate Bill 147 helps affirm our commitment to transparency,” said CEO/Executive Director Andrew Roth. “I want to thank the sponsors for bringing this bill before the Legislature, and we look forward to further engagement with policymakers as it makes its way through the General Assembly.”</p>



<p>On February 25, the Senate Finance Committee voted unanimously to refer the amended bill to Appropriations, where it remains under consideration.</p>



<p>Learn more and read the full text of the bill on the <a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">General Assembly’s website</a>.</p>


PERA Board Supports Bill That Codifies Board Practices, Enhances Transparency


<p>The 2025 legislative session is well underway with more than 400 bills introduced so far.</p>



<p>To hear the latest from the State Capitol, we caught up with PERA Director of Public &amp; Government Affairs Michael Steppat, who meets regularly with lawmakers throughout the legislative process.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Let’s start with a quick recap of the PERA-related bills we’ve seen so far and where they stand.</h2>



<p>So far this session, legislators have introduced six bills that affect PERA or our members. <a href="https://leg.colorado.gov/bills/hb25-1052" target="_blank" rel="noreferrer noopener">One of those bills</a>—which reintroduced last year’s bill to create a temporary tax credit for retirees—has already been defeated in committee.</p>



<p>The five bills that remain under consideration touch on a variety of topics. For example, <a href="https://leg.colorado.gov/bills/sb25-136" target="_blank" rel="noreferrer noopener">SB25-136</a> would remove the state income tax deduction limit on pension income, and <a href="https://leg.colorado.gov/bills/hb25-1150" target="_blank" rel="noreferrer noopener">HB25-1150</a> would require a PERA member who’s convicted of a sex crime to forfeit part of their benefits.</p>



<p>Two of the bills—<a href="https://leg.colorado.gov/bills/sb25-028" target="_blank" rel="noreferrer noopener">SB25-028</a> and <a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">SB25-147</a>—propose changes to state law that in many cases codify work PERA and the PERA Board are already doing. That includes things such as financial studies and reporting, video streaming Board meetings and posting meeting materials online. As a mission-driven organization, transparency is important to the work we do, and we appreciate working with the Legislature to ensure all stakeholders have the information they need.</p>



<p><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>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Writing the State’s budget is always an important part of the legislative session; how’s that process going this year?</h2>



<p>Lawmakers began the session with a challenging budget situation—a shortfall of nearly $700 million. There have also been some questions about whether anything in Washington, DC will affect the hundreds of millions of dollars Colorado receives from the federal government. Throughout the budget writing process, lawmakers are keeping a close eye on any potential impacts to the state budget.</p>



<p>The Legislature will release its budget proposal, known as the “long bill,” in March and finalize it in April. While the state budget doesn’t determine PERA’s budget or the payment of benefits, we’ll keep an eye out for anything that might affect PERA or PERA employers down the line.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Do any of the changes in the federal government, such as staffing reductions and spending freezes, affect PERA?</h2>



<p>PERA does not receive federal funding and so far, none of the changes in the federal government have any direct impact on PERA. All of our funding comes from employee and employer contributions, investment returns, and an annual $225 million direct distribution from the state. PERA benefits are paid from the PERA trust funds and are not subject to federal funding or programs.</p>



<p>The Colorado General Assembly created PERA and remains in charge of things like benefit provisions and legislative oversight. While the federal government has limited jurisdiction over public retirement plans like PERA, it does oversee other benefits PERA members and retirees may receive, such as Medicare and Social Security.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Speaking of Social Security, what’s the latest on the Social Security Fairness Act and the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)?</h2>



<p>Since the Social Security Fairness Act <a href="https://www.copera.org/pera-on-the-issues/president-biden-signs-wep-gpo-repeal-bill-into-law">became law in early January</a>, the Social Security Administration (SSA) has been working to figure out how it will implement all the necessary changes and recalculate retiree benefits. That could take some time under the best of circumstances, since it’s a complicated issue with millions of affected beneficiaries.</p>



<p>The SSA said it’s been under a hiring freeze since November so it’s working with limited staff, and that’s likely to cause a delay in implementing the law. If we see further reductions in the SSA workforce, it’s possible the delay could stretch even further. Only time will tell, and we’re keeping an eye out for any updates or developments from SSA.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/pera-on-the-issues/social-security-fairness-act-rollout-could-take-a-year-or-more" target="_blank" rel="noreferrer noopener">Social Security Fairness Act Rollout Could Take A Year or More</a></p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What’s the best way to stay up to date throughout the session?</h2>



<p>We post regular updates here on <em>PERA On The Issues</em>, so <a href="https://www.copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener">subscribing to the biweekly newsletter</a> is a great way to receive the latest news in your inbox. The legislative session will run through early May, and we’ll be sure to let everyone know about any new bills that come up between now and then.</p>


Checking in on the 2025 Legislative Session So Far


<p>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>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>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>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><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>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>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" class="broken_link">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>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>Changes approved in this rule hearing included:</p>



<ul>
<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>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>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>Incorporating feedback from previous discussions and work sessions, the draft plan sorts PERA’s strategic objectives into three main goals:</p>



<ul>
<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></p>



<p>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>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>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><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>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>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>The Board’s next scheduled meeting is set for March 14.</p>



<p>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


<p><em>The 2025 legislative session commenced January 8 and concluded May 7.</em></p>



<p><em>Below you’ll find summaries of proposed legislation affecting Colorado PERA. The status of each bill will be updated regularly.</em></p>



<p>Last updated: June 4, 2025</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb25-028" target="_blank" rel="noreferrer noopener">SB25-028</a></h2>



<h3 class="wp-block-heading">Public Employees&#8217; Retirement Association Risk-Reduction Measures</h3>



<p><strong>Summary:</strong> Codifies into state law certain reporting practices the PERA Board already performs on a regular basis and modifies the cadence of those reports, including actuarial experience studies and independent reviews of actuarial audits.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/eliza-hamrick" target="_blank" rel="noreferrer noopener">Rep. Eliza Hamrick</a>, <a href="https://leg.colorado.gov/legislators/rick-taggart" target="_blank" rel="noreferrer noopener">Rep. Rick Taggart</a>, <a href="https://leg.colorado.gov/legislators/chris-kolker" target="_blank" rel="noreferrer noopener">Sen. Chris Kolker</a></p>



<p><strong>Status:</strong> Passed; Gov. Jared Polis signed into law Feb. 26.</p>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb25-1052" target="_blank" rel="noreferrer noopener">HB25-1052</a></h2>



<h3 class="wp-block-heading">Income Tax Credit for Public Employees&#8217; Retirement Association Retirees</h3>



<p><strong>Summary:</strong> Creates a temporary refundable tax credit of $700 for qualifying PERA retirees. To qualify, a retiree would have to be 65 or older at the end of tax year 2025 or 2026, and have annual gross income of no more than $38,000 for single tax filers or $76,000 for joint filers.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/eliza-hamrick" target="_blank" rel="noreferrer noopener">Rep. Eliza Hamrick</a>, <a href="https://leg.colorado.gov/legislators/rick-taggart" target="_blank" rel="noreferrer noopener">Rep. Rick Taggart</a>, <a href="https://leg.colorado.gov/legislators/chris-kolker" target="_blank" rel="noreferrer noopener">Sen. Chris Kolker</a></p>



<p><strong>Status:</strong> House Finance Committee voted to postpone indefinitely Jan. 27.</p>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb25-1105" target="_blank" rel="noreferrer noopener">HB25-1105</a></h2>



<h3 class="wp-block-heading">PERA True-Up of Denver Public Schools Division Employer Contribution</h3>



<p><strong>Summary:</strong> Would reduce the total employer contribution rate for the Denver Public Schools Division from 10.4% to 7.4% of salary beginning July 1, 2025.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/sean-camacho" target="_blank" rel="noreferrer noopener">Rep. Sean Camacho</a></p>



<p><strong>Status:</strong> Passed; Gov. Polis signed into law May 23.</p>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb25-1150" target="_blank" rel="noreferrer noopener">HB25-1150</a></h2>



<h3 class="wp-block-heading">Forfeiture of PERA Benefits by Sex Offenders</h3>



<p><strong>Summary:</strong> Requires a PERA member to forfeit part of their retirement benefits should that individual be convicted of a sex crime. It would also establish a new fund into which forfeited benefits would be transferred and these monies would be used to provide grants to survivors of a sex crime for necessary medical and mental health resources.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/ron-weinberg" target="_blank" rel="noreferrer noopener">Rep. Ron Weinberg</a></p>



<p><strong>Status:</strong> House Finance Committee voted to postpone indefinitely Feb. 24.</p>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">SB25-147</a></h2>



<h3 class="wp-block-heading">Modify Board Management PERA</h3>



<p><strong>Summary:</strong> Would modify a number of provisions under current law related to the PERA Board of Trustees, including changes to how PERA is designated for purposes of open meetings laws, establishing term limits for Trustees, and requiring that certain financial information, including various administrative costs and other expenses, be posted on PERA&#8217;s website and updated on an annual basis.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/byron-pelton" target="_blank" rel="noreferrer noopener">Sen. Byron Pelton</a>, <a href="https://leg.colorado.gov/legislators/chris-kolker" target="_blank" rel="noreferrer noopener">Sen. Chris Kolker</a>, <a href="https://leg.colorado.gov/legislators/lori-garcia-sander" target="_blank" rel="noreferrer noopener">Rep. Lori Garcia Sander</a>, <a href="https://leg.colorado.gov/legislators/meghan-lukens" target="_blank" rel="noreferrer noopener">Rep. Meghan Lukens</a></p>



<p><strong>Status:</strong> Passed; Gov. Polis signed into law June 3.</p>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb25-136" target="_blank" rel="noreferrer noopener">SB25-136</a></h2>



<h3 class="wp-block-heading">Expand Deduction for Retirement Benefits</h3>



<p><strong>Summary:</strong> For tax years commencing on or after Jan. 1, 2026, would remove all caps on the deduction for amounts received as pensions and annuities from the individual&#8217;s federal taxable income when determining the individual&#8217;s state taxable income.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/byron-pelton" target="_blank" rel="noreferrer noopener">Sen. Byron Pelton</a>, <a href="https://leg.colorado.gov/legislators/ryan-gonzalez" target="_blank" rel="noreferrer noopener">Rep. Ryan Gonzalez</a></p>



<p><strong>Status:</strong> Senate State, Veterans, &amp; Military Affairs Committee voted to postpone indefinitely Feb. 27.</p>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb25-310" target="_blank" rel="noreferrer noopener">SB25-310</a></h2>



<h3 class="wp-block-heading">Proposition 130 Implementation</h3>



<p><strong>Summary:</strong> Would implement and modify Proposition 130, approved by voters in the November 2024 general election, which directs the state to spend $350 million to help recruit, train, and retain local law enforcement officers. The provisions concerning PERA relate to funding for the bill, which would involve giving PERA a lump-sum payment of $500 million on July 1, 2025. Those funds are to be invested and based on the earnings there may be reductions made to the statutorily required direct distributions to PERA in future years in order to provide funding to the public safety fund.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/barbara-kirkmeyer" target="_blank" rel="noreferrer noopener">Sen. Barbara Kirkmeyer</a>, <a href="https://leg.colorado.gov/legislators/jeff-bridges" target="_blank" rel="noreferrer noopener">Sen. Jeff Bridges</a>, <a href="https://leg.colorado.gov/legislators/shannon-bird" target="_blank" rel="noreferrer noopener">Rep. Shannon Bird</a>, <a href="https://leg.colorado.gov/legislators/rick-taggart" target="_blank" rel="noreferrer noopener">Rep. Rick Taggart</a></p>



<p><strong>Status:</strong> Passed; Gov. Polis signed into law June 2.</p>


2025 Proposed PERA-Related Legislation Status


<p>State lawmakers convened at the Capitol Building in Denver on January 8 to begin the 75<sup>th</sup> Colorado General Assembly. Over the course of 120 days, legislators will introduce and debate hundreds of bills that could become law.</p>



<p>As in past legislative sessions, a handful of those bills will be related to PERA and its members. We caught up with PERA Director of Public &amp; Government Affairs Michael Steppat ahead of the new session to get his perspective on what to expect.</p>



<h2 style="color:#00793a;" class="wp-block-heading has-dartmouth-green-color has-text-color has-medium-font-size">What role does the State Legislature play in PERA?</h2>



<p>While the PERA Board of Trustees is responsible for administering benefits and overseeing PERA’s investments, the Colorado General Assembly is responsible for many other aspects of PERA, such as contribution rates, benefit levels, providing oversight through various legislative committees, and setting the amount of the annual benefit increases that retirees receive.</p>



<p>It’s important to make sure lawmakers understand how PERA works and how legislation can potentially affect our funding progress. The majority of time spent in the weeks leading up to the start of the new session involves meeting with legislators and other stakeholders on PERA-related issues and potential legislation for the upcoming session.</p>



<h2 style="color:#00793a;" class="wp-block-heading has-dartmouth-green-color has-text-color has-medium-font-size">How does the recent election impact PERA?</h2>



<p>Due to term limits for state legislators in Colorado and just natural turnover, the previous election cycle and futures cycles include many individuals being elected for the very first time. This means it is an ongoing process to educate lawmakers on PERA-related issues. As is the case with most public policy issues, there are very few who are experts right out of the gate in every aspect of an issue and this is especially true with a state retirement system. There will certainly be incoming lawmakers with experience in finance or investments or actuarial science, but it is not common for someone to have experience in all aspects of a pension plan like PERA.</p>



<p>A primary focus, both year-round and following a recent election, is to meet with and educate lawmakers. To get a good sense of how quickly the state legislature turns over, just look at how many legislators are still part of the General Assembly who voted on Senate Bill 200 in 2018—it’s fewer than a dozen out of 100 total legislators.</p>



<h2 style="color:#00793a;" class="wp-block-heading has-dartmouth-green-color has-text-color has-medium-font-size">We already have an idea of some of the PERA-related legislative issues lawmakers will be looking at this year. Can you tell us more about that?</h2>



<p>Legislative work doesn’t only happen while the General Assembly is in session—throughout the summer and fall, various “interim” (the period when the legislature is not in regular session) committees meet and begin work on studying issues and drafting bills for the next session. This past September, the Pension Review Commission drafted two bills related to PERA.</p>



<p>The first, known as Bill A (until it is given a bill number after being officially introduced), is identical to a <a href="https://leg.colorado.gov/bills/sb24-044" target="_blank" rel="noreferrer noopener">bill from last session</a> that would provide a temporary tax credit for PERA retirees to reduce the impact of inflation. The second, Bill B, 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><strong>READ MORE:</strong> <a href="https://www.copera.org/pera-on-the-issues/state-lawmakers-pursuing-two-pera-related-bills-in-2025" target="_blank" rel="noreferrer noopener">State Lawmakers Pursuing Two PERA-Related Bills in 2025</a></p>



<p>In addition, there’s been discussion at the Capitol regarding a potential <a href="https://www.axios.com/local/denver/2024/11/13/pinnacol-privatize-polis-colorado" target="_blank" rel="noreferrer noopener" class="broken_link">”conversion” of the State’s share of Pinnacol Assurance</a>, which is currently the State’s workers’ compensation insurer, after the proposal was included as part of the Governor’s budget request to the General Assembly last month. The proposed conversion has two main aspects related to PERA that were both included in the budget request. The first is that if Pinnacol becomes a private entity, then it cannot continue to be part of PERA both for current and future employees, and it would have to disaffiliate from PERA. The second involves using the proceeds from the sale of Pinnacol to offset the State’s $225m ‘direct distribution’ payment to PERA in future years.</p>



<h2 style="color:#00793a;" class="wp-block-heading has-dartmouth-green-color has-text-color has-medium-font-size">Aside from PERA-related topics, what are some other legislative priorities lawmakers will likely be pursuing this year?</h2>



<p>A top priority for the Legislature this session will be <a href="https://www.axios.com/local/denver/2024/12/02/colorado-budget-writers-warn-cuts-2025" target="_blank" rel="noreferrer noopener" class="broken_link">coming up with a balanced budget</a>. When Gov. Jared Polis submitted his budget proposal to the Joint Budget Committee, it included nearly $700 million in cuts to fill a projected funding gap. The Legislature ultimately develops the State budget, and they may have different ideas for how to make up the shortage, so we’ll be closely monitoring as that process plays out to see if there are implications to PERA.</p>



<p>It is important to note PERA benefits come out of the trust funds reserved for paying those benefits, which are funded through contributions from employees and their employers as well as investment returns.</p>



<h2 style="color:#00793a;" class="wp-block-heading has-dartmouth-green-color has-text-color has-medium-font-size">At the federal level, a new Congress is just getting underway. What can we expect in Washington, DC?</h2>



<p>The beginning of the year will be busy for Congress. The House and Senate convened on January 3, and President Trump will be sworn in for his second term on January 20. Then, Congress will begin confirmation hearings for Trump’s various nominees. With Republicans controlling the White House and both chambers of Congress, we can expect to see the party try to push through many of its legislative priorities on issues such as immigration, trade, and regulation. One policy issue at the federal level which does often impact PERA more than many others is changes to healthcare policy and we will continue to monitor what, if any, proposals come forward in that respect.</p>



<h2 style="color:#00793a;" class="wp-block-heading has-dartmouth-green-color has-text-color has-medium-font-size">In the final days of the last Congress, legislators took the historic step of approving a bill to repeal Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), and President Biden has since signed the bill into law. What’s the latest on that issue?</h2>



<p>Congress had been trying to repeal or modify WEP and GPO for decades without success, but the political environment was just right to make it happen at the end of 2024. We were encouraged to see legislators take action to improve the retirement security of public employees and we’ll be watching closely to see how the repeal of those two federal provisions unfolds.</p>



<p>There’s still a lot we don’t know at this point—it’s unclear what the implementation of the Social Security Fairness Act will look like, and the Social Security Administration has yet to release any details. As written the bill should apply to Social Security benefits paid in 2024, so some retirees may be owed additional benefit payments, but we don’t yet know when that might happen.</p>



<h2 style="color:#00793a;" class="wp-block-heading has-dartmouth-green-color has-text-color has-medium-font-size">What do you recommend to anyone who wants to get involved in the legislative process?</h2>



<p>I always tell people the most important thing they can do is contact their&nbsp;<a href="https://leg.colorado.gov/legislators" target="_blank" rel="noreferrer noopener">legislators</a>&nbsp;about issues that are important to them. In addition, the General Assembly&nbsp;<a href="https://leg.colorado.gov/" target="_blank" rel="noreferrer noopener">website</a>&nbsp;has lots of great information. You can listen to&nbsp;<a href="https://leg.colorado.gov/content/committees" target="_blank" rel="noreferrer noopener">committee meetings</a>, view&nbsp;calendars, review the&nbsp;<a href="https://leg.colorado.gov/bills" target="_blank" rel="noreferrer noopener">status of a bill</a>, and sign up to testify at committee meetings.</p>



<p>And of course the biweekly <a href="https://www.copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener"><em>PERA On The Issues</em>&nbsp;newsletter</a> will have up-to-date information on any legislation that affects PERA.</p>


What to Expect from the 2025 Legislative Session


<p>The Colorado PERA Board of Trustees convened for its final regular meeting of 2024 on Friday, November 15.</p>



<p>Below are summaries of some of the key actions the Board took during the meeting. You may also view a <a href="https://www.youtube.com/live/PEsqqE25_w0?feature=share" target="_blank" rel="noreferrer noopener">recorded livestream</a> of the meeting.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><strong>PERA operating budget</strong></h2>



<p>Following a budget workshop during which PERA executives briefed the Board on the need for a larger budget to cover important technology upgrades, the Board approved PERA’s 2025 operating budget of $132 million. The 19.6% increase over 2024’s budget includes costs associated with a multi-year project to modernize the core technology systems necessary to administer benefits as well as other critical needs.</p>



<p>Read more about <a href="https://www.copera.org/news/colorado-pera-board-approves-increase-in-operating-budget-to-fund-technology-upgrades" target="_blank" rel="noreferrer noopener">PERA’s 2025 budget</a>.</p>



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



<p>For months now, the Board, PERA staff, and consultants have been working together to develop PERA’s next three-year strategic plan. That process has involved stakeholder research, identifying areas of strength and opportunity, and solidifying long-term priorities and goals for the organization.</p>



<p>From here, work will continue on crafting the plan, with a draft expected to be ready for Board review in January. Once approved, it will be up to staff to begin implementing the plan and fulfilling its strategic vision.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Member contribution interest rate</h2>



<p>Every PERA Defined Benefit Plan account accrues interest, compounded annually. If a PERA member <a href="https://copera.org/welcome-pera-members/life-and-job-changes/leaving-employment" target="_blank" rel="noreferrer noopener">leaves PERA-covered employment</a> 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>The Board is responsible for setting the interest rate every year; it currently stands at 3 percent. The Board’s policy 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 2025.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Trustee appointment and Board officer election</h2>



<p>The Board held elections to name a new Chair and Vice Chair, as terms for current Chair Marcus Pennell and Vice Chair Taylor McLemore are set to expire. Current Vice Chair Taylor McLemore was elected Chair, and the Hon. Rebecca R. Freyre was elected Vice Chair. Outgoing Chair Marcus Pennell served the limit of two terms as Chair and was ineligible for reelection.</p>



<p>Both McLemore and Freyre will serve two-year terms.</p>



<p>In addition to electing new officers, the Board appointed Dr. Louis Fletcher to fill a School Division seat vacated by Trustee Scott Smith in September. Fletcher had the second-highest number of votes in the 2024 election for that seat, and will serve until the next election in 2025.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/news/pera-board-elects-new-chair-vice-chair" target="_blank" rel="noreferrer noopener">PERA Board Elects New Chair, Vice Chair</a></p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Denver Public Schools “true-up” discussion</h2>



<p>When legislation was passed to merge Denver Public Schools Retirement System into Colorado PERA in 2010, it included a provision that aims to equalize the ratio of unfunded actuarial accrued liability over payroll of the DPS Division and the School Division in 30 years. Every five years, PERA conducts an analysis of those ratios and whether adjustments to the DPS Division employer contribution rate would be needed to stay on track.</p>



<p>The results show that a reduction in the DPS Division’s employer contribution rate would be necessary to equalize this ratio in 2039, but the PERA Board has previously taken a formal stance in opposition to the defunding provisions—such as the 5-year “true-up”—that were included in the merger legislation, and more recently has opposed any legislation seeking to reduce contributions pursuant to the Board&#8217;s funding policy.</p>



<p>Additionally, a reduction in employer contributions from the DPS Division could increase the possibility of triggering the Automatic Adjustment Provision in future years, which could increase contributions in other divisions and further decrease the Annual Increase retirees receive on their retirement benefit.</p>



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



<p>Director of Public &amp; Government Affairs Michael Steppat and Chief Executive Officer/Executive Director Andrew Roth provided the Trustees with an update on interim legislative activity and PERA-related bills that could be introduced in the upcoming 2025 legislative session.</p>



<p>The&nbsp;<a href="https://leg.colorado.gov/committees/pension-review-commission/2024-regular-session" target="_blank" rel="noreferrer noopener">Pension Review Commission</a>, which is responsible for recommending legislation pertaining to PERA and the Fire and Police Pension Association of Colorado, drafted two bills for the 2025 session.</p>



<p>The first, known as Bill A, is similar to a bill from last session that would provide a temporary tax credit for PERA retirees to reduce the impact of inflation. The second draft, Bill B, pertains to PERA studies and reporting and aims to lay out in statute some of the work the PERA Board already does on a regular basis and modify the cadence of those reports.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/pera-on-the-issues/state-lawmakers-pursuing-two-pera-related-bills-in-2025" target="_blank" rel="noreferrer noopener">State Lawmakers Pursuing Two PERA-Related Bills in 2025</a></p>



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



<p>In order to accurately estimate PERA’s financial status and how much money is needed to provide benefits now and into the future, we use a set of predictions, known as actuarial assumptions, that undergo regular review and updates as needed. Those assumptions include economic factors like inflation, investment returns and payroll growth, as well as demographic assumptions such as when people retire and how long they’ll live.</p>



<p>The process of reviewing those assumptions is known as an actuarial experience study, so called because the study involves comparing PERA’s assumptions with the actual experience over a set time period. The last experience study <a href="https://www.copera.org/pera-on-the-issues/2020-experience-study-preparing-for-a-secure-future" target="_blank" rel="noreferrer noopener">took place in 2020</a>. While nobody can predict the future perfectly, regularly performing experience studies ensures our estimates of current and future benefit obligations are as accurate as possible.</p>



<p>The current experience study will look at the period between January 1, 2020 and December 31, 2023. This is an important period because it will show the effects of the COVID-19 pandemic, such as higher mortality and earlier retirements.</p>



<p>Over the coming months, PERA staff will continue working with actuarial consultants to conduct the study, after which the consultants may recommend changes to some assumptions. If the Board adopts any recommended changes, we’ll be sure to provide an update on what that might mean for PERA’s finances.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2025 Board election</h2>



<p>The Board’s final action item was approving the calendar for next year’s Board election.</p>



<p>There will be five seats up for election in 2025: Three active member seats in the School Division, one active member seat in the State Division (excluding higher-education employers), and one retiree seat (School, Local Government, and Judicial Divisions only). Candidacy will open in early January, with the election taking place in May.</p>



<p>New in 2025, members and retirees will have the added option of being able to cast their votes via the Colorado PERA <a href="https://www.copera.org/pera-mobile-app" target="_blank" rel="noreferrer noopener">mobile app</a> or on copera.org, in addition to the option to vote by mail.</p>



<p>The Board’s next regularly scheduled meeting will take place on January 17, 2025.</p>


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