
<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>The Colorado PERA Board of Trustees met on Friday, June 27. The Board released PERA’s annual financial reports, announced the results of Trustee elections, and more.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Annual Comprehensive Financial Report</h2>



<p>At its June meeting every year, the PERA Board approves the release of the <em>Annual Comprehensive Financial Report</em> (ACFR) for the previous calendar year. The report contains detailed information on PERA’s financial health, operations, and membership.</p>



<p>As of December 31, 2024, PERA manages an investment portfolio of $66.7 billion for the defined benefit trust funds. The portfolio ended the year with a return of 10.8% net-of-fees. Over the past 30 years, the portfolio has earned an annualized return of 8.4%.</p>



<p>As of the end of the year, the combined funded ratio for the defined benefit trust funds was 69.2%. While that’s a slight decrease from the year before, it’s well within the expected range of volatility.</p>



<p>Based on 2024’s financial results, adjustments via the <a href="https://copera.org/automatic-adjustment-provision" target="_blank" rel="noreferrer noopener">Automatic Adjustment Provision</a> will not be needed in 2026. That means there will be no adjustments to contribution rates and all eligible benefit recipients will receive a 1.0% increase this July and most, if not all, will receive 1.0% in July 2026.</p>



<p>The <a href="https://copera.org/annual-report" target="_blank" rel="noreferrer noopener"><em>ACFR</em></a> and a summary version, the <a href="https://copera.org/2024-popular-annual-financial-report" target="_blank" rel="noreferrer noopener"><em>Popular Annual Financial Report</em></a> (PAFR), are available online, and an interactive version with report highlights is available at <a href="https://secure.copera.org/staticcontent/digitalsnapshot/acfr-2024/" target="_blank" rel="noreferrer noopener">copera.org/snapshot</a>.</p>



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



<p>Another important item the Board completes at its June meeting is releasing the results of Trustee elections. This year, elections were held to fill five seats on the Board:</p>



<ul>
<li><strong>School Division:</strong> Trustees Marcus Pennell and Eunice Botchway were each reelected to 4-year terms and Tonya J. Thompson was elected to a 1-year term.</li>



<li><strong>State Division:</strong> Maruti D. Moré was elected to a 4-year term.</li>



<li><strong>Retiree:</strong> Tina Mueh was elected to a 4-year term.</li>
</ul>



<p></p>



<p>Elected Trustees began their terms on July 1.</p>



<p>In addition to the above election results, the Trustees voted to elect Trina Ruhland as Vice Chair of the Board. Trina Ruhland fills the role that was vacated by Hon. Rebecca R. Freyre, who assumed the role of Chair to replace outgoing Chair Taylor McLemore.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/news/pera-board-announces-results-of-2025-trustee-elections-new-vice-chair-elected" target="_blank" rel="noreferrer noopener">PERA Board Announces Results of 2025 Trustee Elections; New Vice Chair Elected</a></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 and Government Affairs Michael Steppat joined CEO/Executive Director Andrew Roth to discuss the recently concluded legislative session. In total, legislators introduced 657 bills over the course of four months, 476 of which passed and were signed into law.</p>



<p>Four of those enacted bills related to PERA. They modify things such as Board terms and meeting rules, the timing of some PERA reports, the employer contribution rate in the Denver Public Schools Division, and funding for voter-approved Proposition 130.</p>



<p><strong>READ MORE:</strong> <a href="https://copera.org/pera-on-the-issues/colorado-legislature-passes-four-pera-related-bills-in-2025-session" target="_blank" rel="noreferrer noopener">Colorado Legislature Passes Four PERA-Related Bills in 2025 Session</a></p>



<p>Steppat also briefed the Trustees on upcoming legislative hearings that PERA staff will attend as part of the State’s regular review and oversight of PERA. While the Pension Review Commission and Pension Review Subcommittee won’t be meeting this summer as usual due to a bill <a href="https://leg.colorado.gov/bills/sb25-199" target="_blank" rel="noreferrer noopener">pausing interim committee activity</a>, PERA staff will appear before the Legislative Audit Committee in August and the Joint Budget Committee sometime in the fall.</p>



<p>In addition, PERA is awaiting the results of <a href="https://copera.org/pera-on-the-issues/why-the-state-is-commissioning-a-study-on-peras-plan-design" target="_blank" rel="noreferrer noopener">an independent study</a> comparing the cost and effectiveness of the PERA Defined Benefit Plan to alternative plan designs. We expect to receive that study this summer.</p>



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



<p>Chief Investment Officer/Chief Operating Officer Amy C. McGarrity and the Board’s investment consultant, Aon, discussed financial markets and economic conditions in 2024 and so far in 2025.</p>



<p>While markets started 2024 with strong positive returns, the second half of the year saw increased volatility, with fixed income and real estate assets in particular struggling to make up losses. In PERA’s portfolio, strong returns from global equities were a major factor in our 10.8% overall return. According to Aon, PERA’s portfolio performed better than 85% of public pension funds in its peer group in 2024, and the 10-year return of 8.3% was better than 95% of the peer group.</p>



<p>In the first quarter of 2025, uncertainty around federal trade policy contributed to market downturns, particularly in global equities. Since then, markets have largely recovered, with both equities and bonds up for the year so far, Aon said.</p>



<p>The PERA Board’s strategic asset allocation and focus on long-term performance has paid off, according to Aon, allowing PERA to beat its benchmark returns over the course of multiple decades.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/pera-on-the-issues/how-colorado-pera-invests-for-long-term-retirement-security" target="_blank" rel="noreferrer noopener">How Colorado PERA Invests for Long-Term Retirement Security</a></p>



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



<p>A recording of the Board meeting and accompanying materials are available at <a href="https://www.copera.org/about/board-and-leadership/board-meeting-archive" target="_blank" rel="noreferrer noopener">copera.org</a>.</p>



<p>The Board’s next regularly scheduled meeting is the annual planning session from September 17 to 19.</p>


PERA Board Releases Annual Report, Announces Election Results at June 2025 Meeting


<p>PERA’s executive leadership team hosted two Town Halls on Tuesday, July 1 to provide updates on PERA and take questions from members and retirees.</p>



<p>CEO/Executive Director Andrew Roth was joined by Chief Investment Officer/Chief Operating Officer Amy C. McGarrity, Chief Benefits Officer Patrick Lane, and Chief Administrative Officer Jeremy Hill.</p>



<p>Below are clips of some of the executives’ answers to participant questions.</p>



<p>Full recordings of each Town Hall are available at <a href="https://copera.org/townhall" target="_blank" rel="noreferrer noopener" class="broken_link">copera.org/townhall</a>.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">How did PERA’s investment portfolio perform in 2024?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-investment-performance.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2025/07/amy-investments-2.jpg" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-investment-performance.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>McGarrity highlighted PERA’s financial results from 2024, as reported in the recently released 2023&nbsp;<em>Annual Comprehensive Financial Report</em> (ACFR).</p>



<p>“For the year ended December 31, 2024, PERA’s investment portfolio earned a return of 10.8% net-of-fees,” McGarrity said. “The value of the total defined benefit fund was $66.7 billion and our funded status was 69.2%.”</p>



<p>Based on 2024’s financial results, PERA remains on track to meet its funding goals. That means there will be no adjustments to contribution rates and all eligible benefit recipients will receive a 1.0% increase this July and most, if not all, will receive 1.0% in July 2026.</p>



<p>View more highlights from the 2024 <em>ACFR</em> at <a href="https://copera.org/snapshot" target="_blank" rel="noreferrer noopener">copera.org/snapshot</a>.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">If PERA’s investments earned positive returns in 2024, why aren’t retirees getting a bigger Annual Increase?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-annual-increase.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2025/07/andrew-annual-increase.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-annual-increase.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>Roth acknowledged that the <a href="https://copera.org/retirees/benefit-basics-for-retirees/annual-benefit-increases" target="_blank" rel="noreferrer noopener">1% Annual Increase</a> retirees have received in recent years has been a challenge and reiterated that while PERA has unfunded liabilities, the Annual Increase is limited under state law to keep the plan on track to full funding.</p>



<p>“The good news is because we’re having strong investment returns, there is no decrease to the Annual Increase,” Roth said.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What will happen to my PERA benefits if there’s a recession?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-recession.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2025/07/amy-recession-2.jpg" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-recession.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“First and foremost, nothing happens to the benefits that are being paid,” McGarrity said, affirming that PERA would continue to pay earned benefits if there were a downturn in the economy.</p>



<p>As far as PERA’s portfolio is concerned, McGarrity said that because PERA is invested in the markets, it would likely experience the effects of a recession. However, the Board’s focus is on achieving returns <a href="https://copera.org/pera-on-the-issues/how-colorado-pera-invests-for-long-term-retirement-security" target="_blank" rel="noreferrer noopener">over the course of decades</a>, regardless of what happens in any one year.</p>



<p>“That’s really why the Board underscores a strategic approach and remains invested in the asset classes across the markets through various environments in order to achieve our very long-term objectives,” she said.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Does the repeal of the Windfall Elimination Provision and Government Pension Offset through the Social Security Fairness Act mean PERA members have to start contributing to Social Security?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-social-security.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2025/07/andrew-social-security.jpg" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-social-security.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“The short answer is no changes that resulted from the Social Security Fairness Act will impact PERA members with regard to their contributions,” Roth said, adding that PERA serves as a <a href="https://copera.org/retirees/benefit-basics-for-retirees/pera-and-social-security" target="_blank" rel="noreferrer noopener">substitute for Social Security</a> for most members, and a person’s PERA benefit is never affected by any other benefit they may receive.</p>



<p>PERA members who were previously affected by WEP or GPO will no longer see reductions in their Social Security benefits since those two provisions have been repealed.</p>



<p>For more information on the Social Security Fairness Act, visit <a href="https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html?tl=2%2C6%2C10" target="_blank" rel="noreferrer noopener" class="broken_link">ssa.gov</a>.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What can retirees expect for PERACare plans in 2026?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-peracare.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2025/07/patrick-peracare-2.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-peracare.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“We will continue to offer the same plans and carriers for our Medicare and pre-Medicare offerings in the 2026 plan year,” Lane said. “We’re still in the process of finalizing premium information, but we do expect premiums to go up across the board next year, so I want to be very transparent about that.”</p>



<p>Lane added that while PERA does its best to negotiate competitive rates with PERACare carriers, there are many factors that affect premiums and other health plan costs, such as rising costs for services and prescription drugs and regulatory changes at the federal level.</p>



<p>We’ll have more information on 2026 PERACare premiums in the fall.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">How do I know when I can retire and how much my monthly benefit will be?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-when-can-i-retire.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2025/07/patrick-retirement.jpg" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-when-can-i-retire.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“The <a href="https://copera.org/app" target="_blank" rel="noreferrer noopener" class="broken_link">PERA mobile app</a> is a really valuable tool to help you through this process,” Lane said. “It has calculators, it can help you determine your dates for eligibility to receive benefits, and it can help you go through some hypothetical scenarios that would help you gain a better understanding of your retirement.”</p>



<p>Lane also pointed out other tools and resources that are available on PERA’s website, including <a href="https://www.copera.org/welcome-pera-members/benefit-basics/highest-average-salary-tables" target="_blank" rel="noreferrer noopener">highest average salary tables</a>, <a href="https://content.copera.org/webinars/" target="_blank" rel="noreferrer noopener">webinars</a>, and <a href="https://www.copera.org/forms-resources/video-library" target="_blank" rel="noreferrer noopener">educational videos</a>.</p>



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



<p>For full recordings of both Town Halls, visit&nbsp;<a href="https://copera.org/about/pera-town-hall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>


PERA Executives Give Updates, Take Questions at 2025 Town Halls


<p>The Colorado Board of Trustees on <a href="https://peraontheissues.com/pera-board-announces-election-results-at-june-meeting/" target="_blank" rel="noreferrer noopener">Friday, June 16</a> approved the release of PERA’s 2022 <em>Annual Comprehensive Financial Report </em>(ACFR). The <em>ACFR</em> contains a detailed account of PERA’s finances, investment performance, and funded status for the year ended Dec. 31, 2022.</p>



<p>The <em>ACFR</em> provides valuable insight into PERA’s financial health, operations, and membership for the year. PERA has routinely earned awards <a href="https://peraontheissues.com/pera-earns-certificate-of-excellence-for-annual-report/" target="_blank" rel="noreferrer noopener">for excellence in financial reporting</a> for the <em>ACFR</em>.</p>



<h2 class="wp-block-heading">Financial highlights</h2>



<p>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.</p>



<p>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%.</p>



<p>“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.”</p>



<p>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%.</p>



<p>Explore highlights from the <em>ACFR</em> in an <a href="https://www.copera.org/pera-by-the-numbers-a-closer-look-at-the-2022-annual-report" target="_blank" rel="noreferrer noopener" class="broken_link">interactive online format here</a>.</p>



<h2 class="wp-block-heading">Automatic Adjustment Provision</h2>



<p>The <a href="https://www.copera.org/pera-board-releases-2022-annual-report" target="_blank" rel="noreferrer noopener" class="broken_link">Automatic Adjustment Provision</a> (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.</p>



<p>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.</p>



<p><strong>More information:</strong></p>



<ul>
<li><a href="https://www.copera.org/pera-by-the-numbers-a-closer-look-at-the-2022-annual-report" target="_blank" rel="noreferrer noopener" class="broken_link">Digital Snapshot</a></li>



<li><a href="https://www.copera.org/pera-on-the-issues/pera-by-the-numbers-a-closer-look-at-the-2022-annual-report" target="_blank" rel="noreferrer noopener">2022 <em>Annual Comprehensive Financial Report</em> (PDF)</a></li>



<li><a href="https://copera.org/2022-popular-annual-financial-report" target="_blank" rel="noreferrer noopener">2022 <em>Popular Annual Financial Report</em> (PDF)</a></li>



<li><a href="https://content.copera.org/pera-board-releases-2022-annual-report/" target="_blank" rel="noreferrer noopener">2022 Actuarial Valuation (PDF)</a></li>
</ul>


PERA Board Releases 2022 Annual Report


<p>For more than three decades running, PERA has received recognition every year for excellence in annual financial reporting.</p>



<p>Most recently, the Government Finance Officers Association of the United States and Canada (GFOA) awarded PERA with the Certificate of Achievement for Excellence in Financial Reporting for its <a href="https://content.copera.org/pera-earns-certificate-of-excellence-for-annual-report/" target="_blank" rel="noreferrer noopener">2021 <em>Annual Comprehensive Financial Report</em> <em>(ACFR)</em></a><em>.</em> This is the 37<sup>th</sup> year in a row PERA has received the award.</p>



<p>The <em>ACFR</em> contains detailed information about PERA’s finances, funding progress, membership, and benefits. The PERA Board releases the report every summer to keep members, retirees, lawmakers and other stakeholders informed about the state of the Defined Benefit Plan trust funds, health care trust fund, Defined Contribution Plan assets, and other aspects of PERA’s financial health.</p>



<p>The Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting. To receive the award, a plan must publish an easily readable and efficiently organized <em>ACFR</em>. The report must adhere to generally accepted accounting principles as well as meet certain legal requirements.</p>



<p>The GFOA also presented PERA with an Award for Outstanding Achievement for its <a href="https://copera.org/2021-popular-annual-financial-report" target="_blank" rel="noreferrer noopener">2021 <em>Popular Annual Financial Report (PAFR)</em></a><em>,</em> which is a summary of the information in the <em>ACFR</em>. It’s the 20<sup>th</sup> consecutive year PERA has received that award.</p>



<p>The Award for Outstanding Achievement represents a significant achievement by the plan, according to GFOA. To receive the award, a report must be reviewed by judges who evaluate the report on reader appeal, understandability, distribution methods, creativity, and other elements.</p>



<p>“It is an honor to be recognized as meeting the program’s high standards,” said Catherine Maninger, PERA’s Director of Accounting. “Communicating important financial information clearly and transparently to our stakeholders is a top priority for PERA.”</p>



<p>PERA staff are in the process of preparing the <em>ACFR</em> and <em>PAFR</em> for the year ended Dec. 31, 2022. Both reports will be released at the PERA Board’s June 16 meeting.</p>



<p>Read more information on <a href="https://www.copera.org/forms-resources/financial-reports-and-studies" target="_blank" rel="noreferrer noopener">PERA’s financial reports</a>.</p>


Tag Archives:

PERA Board Releases Annual Report, Announces Election Results at June 2025 Meeting

PERA Executives Give Updates, Take Questions at 2025 Town Halls

PERA Board Releases 2022 Annual Report

PERA Earns Certificate of Excellence for Annual Report

Subscribe to PERA On The Issues