
<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 date is set for this year’s Town Halls with PERA executives—they will take place on Tuesday, July 1.</p>



<p>PERA holds Town Halls each year after the release of the&nbsp;<em>Annual Comprehensive Financial Report</em>&nbsp;(ACFR), which contains details on the Plan’s finances and membership for the previous calendar year. The PERA Board of Trustees will release the 2024&nbsp;<em>ACFR</em>&nbsp;at its June 27 meeting.</p>



<p>There will be two Town Halls on July 1—one for retirees and one for active members—and both will be virtual with the option to participate online, on the phone, or on social media.</p>



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



<p>Date and time: Tuesday, July 1</p>



<ul>
<li>10:00 a.m. MT (retirees)
<ul>
<li><a href="https://www.addevent.com/event/aT25846562" target="_blank" rel="noreferrer noopener">Add to calendar</a></li>
</ul>
</li>



<li>6:00 p.m. MT (active members)
<ul>
<li><a href="https://www.addevent.com/event/ZS25846749" target="_blank" rel="noreferrer noopener">Add to calendar</a></li>
</ul>
</li>
</ul>



<p></p>



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



<ul>
<li><strong>Online:</strong> Visit <a href="https://copera.org/townhall" class="broken_link">copera.org/townhall</a> to connect.</li>



<li><strong>Phone:</strong> Dial&nbsp;<a href="tel:833-380-07134">833-380-0713</a>&nbsp;at the time of the event or <a href="https://copera.org/about/pera-town-hall">register for a phone call</a>.</li>



<li><strong>Social media:</strong> Follow Colorado PERA on&nbsp;<a href="https://www.facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener">Facebook</a>&nbsp;or&nbsp;<a href="https://www.youtube.com/ColoradoPERA" target="_blank" rel="noreferrer noopener">YouTube</a>.</li>
</ul>



<p></p>



<p>Both Town Halls are open to anyone who would like to participate, but the content of each will be tailored to its respective audience.</p>



<p>If you’re unable to attend either event, recordings will be available on our website afterward.</p>



<p>For more information or to register for an optional phone call, visit <a href="https://copera.org/townhall" class="broken_link">copera.org/townhall</a>.</p>


Save the Date: 2025 Town Halls Set for July 1


<p>PERA’s executive team hosted two virtual Town Hall meetings on Wednesday, June 26 to provide updates on PERA and answer questions from members and retirees.</p>



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



<p>We’ve included clips of some of the executives’ answers below, and full recordings of each Town Hall are available at <a href="https://copera.org/about/pera-town-hall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><strong>How did PERA’s investments perform last year and what is PERA’s financial status?</strong></h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2024/07/amy-investments-2024.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/2024/07/amy-investments.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/07/amy-investments-2024.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>McGarrity began by highlighting PERA’s financial results from 2023, as reported in the recently released 2023 <em>Annual Comprehensive Financial Report</em>.</p>



<p>“For the year ended December 31, 2023, PERA’s investment portfolio earned a positive return of 13.4% net-of-fees,” McGarrity said. “The value of the total PERA Defined Benefit Plan was $61.5 billion at the end of the year, and PERA’s funded status was 69.6%.”</p>



<p>PERA remains on track to meet its funding goals, and as such, there will be no automatic adjustments to member and employer contributions or annual benefit increases. Retirees and beneficiaries will receive a 1% Annual Increase in July 2024 and another 1% in 2025.</p>



<p>Explore PERA’s financial results in an interactive format 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">As PERA’s new CEO, do you anticipate making any major changes, such as implementing a larger annual benefit increase for retirees?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2024/07/24-andrew-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/2024/07/andrew-ai.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/07/24-andrew-increase.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>Roth reiterated that staff and the Board understand the challenge inflation has posed in recent years as the <a href="https://www.copera.org/retirees/benefit-basics-for-retirees/annual-benefit-increases" target="_blank" rel="noreferrer noopener">Annual Increase</a>—which is set in statute and can only adjust up or down based on PERA’s funding progress, has not kept pace.</p>



<p>“I, as Executive Director, do not have the power or authority to make changes to the Annual Increase,” Roth said. “We understand and are doing everything we can to address financial security for our retirees, as is central to our mission.”</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Has PERA been planning for the possibility of a recession, and what could that mean for the portfolio?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2024/07/24-amy-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/2024/07/amy-recession.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/07/24-amy-recession.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>McGarrity discussed PERA’s strategic asset allocation—which is set by Board—and its focus on long-term performance. In addition, the Board is currently conducting a study of its investment strategy known as an <a href="https://www.copera.org/pera-on-the-issues/asset-liability-study-a-guide-to-building-a-strategic-portfolio" target="_blank" rel="noreferrer noopener">asset/liability study</a>, and that process includes modeling many different scenarios.</p>



<p>“In that 30-year capital market assumption set, they have a variety of market scenarios, there are recessions, there are bull markets,” McGarrity said. “So as it relates to shorter term or medium term economic events…they’re incorporated into those long-term assumptions.”</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">PERACare premiums have largely held steady over the past few years; will they remain the same next year?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2024/07/24-patrick-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/2024/07/patrick-peracare.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/07/24-patrick-peracare.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“I’ll be very direct and say, ‘No.’ PERACare premiums will be going up for the 2025 plan year,” Lane said. “Our Medicare Advantage participants have been protected from premium increases for the last three years because of the rate we were able to get guaranteed when we renewed three years ago. Unfortunately, that rate guarantee is expiring this plan year.”</p>



<p>Lane added that regulatory changes have also prompted insurance carriers to raise their rates for the coming plan year. PERA is still working out the details with carriers and expects to provide 2025 plan information in the fall.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What is PERA doing about Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2024/07/24-patrick-wep-gpo.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/2024/07/patrick-wep-gpo.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/07/24-patrick-wep-gpo.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>Lane said that since the WEP and GPO are provisions of federal law, any changes would have to come from Congress. And while legislators have introduced various bills related to the issue over the years, lawmakers haven’t come to an agreement on a path forward.</p>



<p>“What would happen if the WEP/GPO were to be repealed, that would mean more money coming out of the Social Security trust fund, and that is really where legislation has failed in the past,” Lane said. “I think there are a lot of members of Congress who are interested in the subject and are open to the conversation, but they have yet to reach an agreement on how to actually fund that additional money that would be coming out of the trust fund.”</p>



<p>We follow this issue closely and will provide any updates on federal WEP/GPO legislation when we can.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Where do you see PERA headed in the future and how can I be sure I will receive my full benefit when I retire?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2024/07/24-andrew-pera-future.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/2024/07/andrew-pera-future.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/07/24-andrew-pera-future.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“We have been delivering benefits for almost a century, and we are focused on doing the exact same thing for the next century; your benefits will be here,” Roth said. “Colorado PERA is here for its members and we look forward to serving you as we move into the future together.”</p>



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


CEO Andrew Roth, Executives Answer Questions in PERA Town Halls


<p>Save the date—this year’s Town Halls with PERA executives are set for June 26.</p>



<p>PERA holds Town Halls each year after the release of the&nbsp;<em>Annual Comprehensive Financial Report</em>&nbsp;(ACFR), which contains details on the Plan’s finances and membership for the previous calendar year. The PERA Board of Trustees will release the 2023&nbsp;<em>ACFR</em>&nbsp;at its June 21 meeting.</p>



<p>This year, participants will have the opportunity to meet PERA’s&nbsp;<a href="https://content.copera.org/qa-with-peras-new-ceo-executive-director-andrew-roth/" target="_blank" rel="noreferrer noopener">new CEO/Executive Director, Andrew Roth</a>. He and the executive team will be taking questions live during two Town Halls.</p>



<p>This year’s Town Halls will once again be virtual, with the option to participate online, via social media, and on the phone.</p>



<h2 class="wp-block-heading">Event details</h2>



<p><strong>Date and time:</strong>&nbsp;Wednesday, June 26</p>



<ul>
<li><strong>10:00 a.m. MT&nbsp;</strong>(retirees)<br><a href="https://www.addevent.com/event/eK21465061" target="_blank" rel="noreferrer noopener">Add to Calendar</a></li>



<li><strong>6:00 p.m. MT&nbsp;</strong>(active members)<br><a href="https://www.addevent.com/event/Au21465068" target="_blank" rel="noreferrer noopener">Add to Calendar</a></li>
</ul>



<h2 class="wp-block-heading">How to participate</h2>



<p>There are multiple ways to take part in these virtual events:</p>



<ul>
<li><strong>Web:</strong>&nbsp;Visit&nbsp;<a href="https://content.copera.org/about/pera-town-hall/" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>&nbsp;to connect.</li>



<li><strong>Phone:</strong>&nbsp;<a href="https://content.copera.org/2024-pera-town-halls-taking-place-on-june-26/" target="_blank" rel="noreferrer noopener">Sign up for a phone call here</a>.</li>



<li><strong>Social Media:</strong>&nbsp;Connect on&nbsp;<a href="https://www.facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener">Facebook</a>&nbsp;or&nbsp;<a href="https://www.youtube.com/ColoradoPERA" target="_blank" rel="noreferrer noopener">YouTube</a>.</li>
</ul>



<p>Both Town Halls are open to anyone who would like to participate, but the content of each will be tailored to its respective audience.</p>



<p>If you’re unable to attend either event, recordings will be available afterward.</p>



<p>For more information, visit&nbsp;<a href="https://content.copera.org/about/pera-town-hall/" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>


2024 PERA Town Halls Taking Place on June 26


<p>PERA leaders hosted two live Town Halls on Wednesday, July 12 to provide an update on PERA and answer questions from members and retirees.</p>



<p>Interim Executive Director and Chief Investment Officer Amy C. McGarrity was joined by Chief Benefits Officer Patrick Lane and Chief Administrative Officer Jeremy Hill for both meetings.</p>



<p>They answered questions on a number of important topics, including annual benefit increases, Social Security, and PERA’s investment portfolio. Responses to some of those questions are summarized below, and 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 class="wp-block-heading has-medium-font-size">Why was the previous executive director’s employment contract terminated?</h2>



<div class="wp-block-advgb-video advgb-video-block" data-video="https://content.copera.org/wp-content/uploads/2024/04/2023-th-executive-director.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper no-lightbox"><video height="450" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/04/2023-th-executive-director.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“The decision was at the discretion of the PERA Board,” McGarrity said. “To reiterate, there was no criminal wrongdoing and no impact to retiree benefits. We are in the process of selecting an executive director. The first step is to select an executive search firm to assist with the recruitment of that next leader for PERA, and the Board has formed an ad hoc committee. Those ad hoc committee meetings are posted on <a href="https://copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">copera.org</a> and they’re streamed live for anyone who wishes to follow the process.”</p>



<h2 class="wp-block-heading has-medium-font-size">Why aren’t annual benefit increases for retirees keeping up with inflation?</h2>



<div class="wp-block-advgb-video advgb-video-block" data-video="https://content.copera.org/wp-content/uploads/2024/04/2023-th-annual-increase.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper no-lightbox"><video height="450" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/04/2023-th-annual-increase.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“We recognize the challenges that this inflationary environment presents. We feel it as consumers but we know it is particularly important to our retired members,” Lane said. “As you know, the Annual Increase percentage is set in statute and it is not within the purview of the PERA Board or staff to make changes to the Annual Increase…the only way that could change is if the state legislature decided to change the law, which would in effect extend PERA’s 30-year window to full funding.”</p>



<h2 class="wp-block-heading has-medium-font-size">Are PERA benefits in danger due to 2022’s negative investment returns?</h2>



<div class="wp-block-advgb-video advgb-video-block" data-video="https://content.copera.org/wp-content/uploads/2024/04/2023-th-investment-losses.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper no-lightbox"><video height="450" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/04/2023-th-investment-losses.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>No, PERA benefits are not in danger. The investment portfolio is well-diversified and contains a wide array of assets so the portfolio can withstand different market environments, McGarrity said. While we were subject to the market downturn in 2022, we are also subject to positive market swings and have been able to take advantage of those markets in prior years and so far in 2023, McGarrity said.</p>



<p>In 2022, PERA paid $5.2 billion in retirement benefits to retirees and benefit recipients, so you can continue to count on PERA to provide retirement income throughout your life.</p>



<h2 class="wp-block-heading has-medium-font-size">What is PERA doing about Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)?</h2>



<div class="wp-block-advgb-video advgb-video-block" data-video="https://content.copera.org/wp-content/uploads/2024/04/2023-th-wep-gpo.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper no-lightbox"><video height="450" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/04/2023-th-wep-gpo.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“Social Security’s WEP and GPO are provisions within federal law and are therefore outside the scope of the PERA Board and staff to influence,” Lane said. “We encourage you to contact your members of the U.S. House and Senate to be heard on this issue.”</p>



<p>Bills to modify or repeal WEP and GPO are frequently introduced in Congress, and <em>PERA On The Issues </em>monitors and reports on those activities throughout the year. Visit <a href="https://www.copera.org/pera-on-the-issues"><em>PERA On the Issues</em></a> our latest article on WEP/GPO reform efforts.</p>



<h2 class="wp-block-heading has-medium-font-size">What is PERA doing to improve wait times to talk to Customer Service on the phone?</h2>



<div class="wp-block-advgb-video advgb-video-block" data-video="https://content.copera.org/wp-content/uploads/2024/04/2023-th-customer-service.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper no-lightbox"><video height="450" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/04/2023-th-customer-service.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“We have made a number of recent changes that have cut down on wait times in the call center,” Lane said. “We implemented a new caller verification process that makes the security process faster and shortens the length of calls. And we just migrated to a new phone system just within the last few weeks that allows us to better forecast call volumes throughout the day, throughout the month and throughout the year.”</p>



<p>He added: “We have seen service levels increase in recent months and we look forward to providing better service going forward.”</p>



<h2 class="wp-block-heading has-medium-font-size">Does PERA inform its investments by accounting for social goals, such as diversity, equity and inclusion? If so, what does that look like?</h2>



<div class="wp-block-advgb-video advgb-video-block" data-video="https://content.copera.org/wp-content/uploads/2024/04/2023-th-esg.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper no-lightbox"><video height="450" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/04/2023-th-esg.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>McGarrity explained that PERA’s primary goal is achieving the best risk-adjusted returns for PERA members and therefore PERA does not have any mandates related to environmental, social, or governance (ESG) or diversity, equity, and inclusion (DEI) outcomes. However, PERA staff will consider any financially relevant factors when making investment decisions.</p>



<p>“To the extent that a company’s long-term expected return may be influenced somehow by one of those factors in a financially material way, certainly we will consider it in our underlying due diligence of that investment and/or underwriting of that investment,” McGarrity said. “However, unless they are financially material factors or drivers of the expectations for long-term returns, they are not rising to the top of our considerations. So we are really focused on the factors that have an influence on long-term shareholder returns.”</p>



<h2 class="wp-block-heading has-medium-font-size">How can members be sure PERA will be there for them when they retire?</h2>



<div class="wp-block-advgb-video advgb-video-block" data-video="https://content.copera.org/wp-content/uploads/2024/04/2023-th-will-pera-be-there.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper no-lightbox"><video height="450" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/04/2023-th-will-pera-be-there.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“I think the legislature has shown its commitment through the years to keeping PERA strong and enacting reforms several times in the past decade to ensure we are on a financially sustainable path. Most recently, Senate Bill 200 (enacted in 2018) puts us on a path to full funding by 2048,” McGarrity said. “The reforms are working and we’re committed to providing reliable income in retirement that our members cannot outlive.”</p>



<h2 class="wp-block-heading has-medium-font-size">PERA mobile app</h2>



<p>Hill also mentioned <a href="https://content.copera.org/pera-leaders-answer-member-questions-at-2023-town-halls/" target="_blank" rel="noreferrer noopener">PERA’s new mobile app</a>, which is now available in the App Store for iOS devices and Google Play Store for Android devices. The app is part of PERA’s long-term goal of modernizing and improving the way it serves its membership, and it makes it easy for members and retirees to access and manage their accounts wherever they are.</p>



<p>These annual town halls are an important opportunity to speak directly with Colorado’s current and former public employees and we’re grateful to all who participated.</p>



<p>To watch full recordings of each Town Hall, visit <a href="https://copera.org/townhall" target="_blank" rel="noreferrer noopener" class="broken_link">copera.org/townhall</a>.</p>


PERA Leaders Answer Member Questions at 2023 Town Halls


<p>In June, PERA released its <a href="https://peraontheissues.com/pera-board-releases-2022-annual-report/" target="_blank" rel="noreferrer noopener">2022 <em>Annual Comprehensive Financial</em> Report (ACFR)</a>, which contains detailed information on PERA’s finances, investment performance, and funded status for the year ended Dec. 31, 2022.</p>



<p>The <em>ACFR</em> is a lengthy report with a large amount of information. To make it easier to digest, we’re highlighting some key facts and figures from the report to help those who want to know more about PERA’s finances.</p>



<p>This information is also available in an interactive format at <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">copera.org/snapshot</a>.</p>



<h2 class="wp-block-heading">Plan assets and funding</h2>



<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. The defined benefit assets are split between the five division trust funds from which PERA pays benefits: State, Local Government, School, Denver Public Schools, and Judicial.</p>



<p>Last year, 206,646 members across 410 employers were actively contributing to their PERA accounts. Member and employer contributions to PERA totaled approximately $3.4 billion.</p>



<p>Fifty-nine percent of PERA’s investment assets are managed in-house by PERA staff, at an annual savings of $60 million compared to external management. Those assets are spread across six asset classes: Global Equity, Fixed Income, Real Estate, Private Equity, Alternatives, and Cash.</p>



<p><strong>RELATED:</strong> <a href="https://peraontheissues.com/asset-classes-explained" target="_blank" rel="noreferrer noopener">Asset Classes Explained</a></p>



<p>PERA’s funded status at the end of the year was 69.9%, up from 67.8% at the end of 2021. According to state law, PERA must reach 100% funded by 2048.</p>



<h2 class="wp-block-heading">Benefits paid</h2>



<p>PERA paid a total of $5.2 billion in pension benefits to 135,485 retirees and beneficiaries in 2022, for an average monthly benefit of $3,238. The average age at retirement was 59.1 with 22.6 years of service credit.</p>



<p>PERA provides benefits to nearly 1 out of every 10 Coloradans who are current and former teachers, state troopers, snowplow drivers, corrections officers, and other public employees who provide valuable services to all of Colorado. Of the $5.2 billion paid last year, $4.5 billion went to 112,509 PERA retirees living in Colorado. That steady stream of income flows to every county in the state, providing stability to state, regional, and local economies.</p>



<p>Visit <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">copera.org/snapshot</a> for more details, including a county-by-county breakdown of benefits paid.</p>



<p><strong>RELATED:</strong> <a href="https://peraontheissues.com/pera-benefits-contribute-billions-of-dollars-to-state-economy-support-thousands-of-jobs/" target="_blank" rel="noreferrer noopener">PERA Benefits Contribute Billions of Dollars to State Economy, Support Thousands of Jobs</a></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&nbsp;<em>Annual Comprehensive Financial Report</em>&nbsp;(PDF)</a></li>



<li><a href="https://copera.org/2022-popular-annual-financial-report" target="_blank" rel="noreferrer noopener">2022&nbsp;<em>Popular Annual Financial Report</em>&nbsp;(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 By The Numbers: A Closer Look at the 2022 Annual Report


<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>


PERA Earns Certificate of Excellence for Annual Report


<p>The Colorado PERA Board of Trustees met on Friday, June 17 for its third meeting of 2022.</p>



<p>The Board took action on a number of important items, including approving the release of PERA’s 2021 <em>Annual Comprehensive Financial Report</em>, and announcing results of the recent Board election.</p>



<h2 class="wp-block-heading">2021 annual report released</h2>



<p>Every June, PERA releases its annual report for the previous year. The 2021 <a href="https://www.copera.org/2021-annual-report" target="_blank" rel="noreferrer noopener"><em>Annual Comprehensive Financial Report</em></a> (ACFR) is a detailed summary of PERA’s investment performance, funded status and membership information for the 2021 calendar year.</p>



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



<p>For the year that ended Dec. 31, 2021, PERA’s investment portfolio earned a return of 16.1% net of fees, surpassing its benchmark of 13.7%. Over the past 10 years, the fund has earned an annualized return of 10.9% versus its benchmark of 10.1%.</p>



<p>The value of the total fund increased to $65.6 billion in 2021, up from $58.3 billion at the end of 2020. PERA’s funded status at the end of the year was 67.8%.</p>



<p>“While 2021 was a strong year financially for PERA, investment performance is just one factor among many that determine how much progress we’re making toward our goal of full funding,” said PERA Executive Director Ron Baker. “It’s important that we keep our focus on that long-term goal, monitoring and reacting to any changes to keep PERA on track.”</p>



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



<p>When the Colorado General Assembly passed the package of PERA reforms known as Senate Bill 200 in 2018, the Legislature mandated that PERA reach full funding within 30 years — by the end of 2047. Included in those reforms was the Automatic Adjustment Provision (AAP), which automatically adjusts member and employer contributions as well as the Annual Increase (AI) paid to eligible benefit recipients if PERA is off-track to meet that target.</p>



<p>The AAP calculation is made on an annual basis, to take effect the following year. Based on 2021’s financial results, adjustments will not be necessary in 2023.</p>



<p>For more information, read the full <a href="https://www.copera.org/financial-reports-and-studies" target="_blank" rel="noreferrer noopener">ACFR</a> or visit <a href="https://www.copera.org/snapshot" target="_blank" rel="noreferrer noopener">copera.org/snapshot</a> to explore the report’s highlights in an interactive format.</p>



<h2 class="wp-block-heading" id="board-election">Board election results</h2>



<p>The Board held an election for open seats in the School and State divisions in May and announced the final results at its June meeting.</p>



<p>Members of the School Division elected Scott Smith to represent them on the Board. Smith, chief financial and operating officer at Cherry Creek School District 5, fills a seat currently held by Guillermo Barriga, who did not seek re-election.</p>



<p>The State Division elected Tracy Marie Rushing. Rushing, a supervisor in the Division of Vocational Rehabilitation at the Colorado Department of Labor and Employment, fills a seat currently held by Ashley Smith, who was appointed to the Board in 2021.</p>



<p>In addition to the above results, the Board appointed two new Trustees. The Board appointed Catherine “Trina” Ruhland to represent the Local Government Division. Ruhland is a deputy county attorney with the Boulder County Attorney’s Office. Ruhland fills a seat vacated by Cheryl Pattelli, who left the Board in November 2021.</p>



<p>The Board appointed JB Phillips to represent the School Division. Phillips is a middle school science teacher in Fruita and fills a seat vacated by Tina Mueh, who retired at the beginning of June.</p>



<p>Ruhland and Phillips, as appointees, will serve seats until the next Board election in 2023.</p>



<p>View more information on the <a href="https://www.copera.org/financial-reports-and-studies" target="_blank" rel="noreferrer noopener">Colorado PERA Board of Trustees</a>.</p>


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