Retirement insights from a Colorado PERA perspective

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Colorado PERA received a clean audit at its annual hearing with the Legislative Audit Committee on August 11.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Results of annual audit</h2>



Every year, the State hires an independent auditor to examine PERA’s financial reports, compliance, and internal controls. Since 2015, the State has enlisted CliftonLarsonAllen, a nationally recognized financial services firm, to conduct that work.



As in years past, the audit did not find any issues with PERA’s recently released 2024 Annual Comprehensive Financial Report (ACFR) and did not find any deficiencies or weaknesses in PERA’s internal controls.



Ensuring robust and accurate financial reporting and internal controls is a vital part of providing retirement security to Colorado’s public workforce. To that end, the ACFR is prepared to conform with generally accepted accounting principles, including requirements of the Governmental Accounting Standards Board and Actuarial Standards of Practice. PERA’s internal audit team routinely reviews internal controls and operations, and the Chief Audit Executive regularly reports to the Board of Trustees’ Audit Committee, which includes independent experts. 



RELATED: <a href="https://www.copera.org/pera-on-the-issues/a-closer-look-at-peras-2024-annual-report" target="_blank" rel="noreferrer noopener">A Closer Look at PERA’s 2024 Annual Report</a>



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



In addition to the outside audit, the hearing included the Office of the State Auditor presenting the results of an independent study that compared the cost and benefits of the PERA Defined Benefit Plan to other plan designs.



That study found PERA continues to be a valuable tool for recruiting and retaining public employees by providing cost-effective retirement benefits. 



READ MORE: <a href="https://www.copera.org/pera-on-the-issues/study-confirms-pera-a-valuable-tool-for-recruiting-retaining-public-workers" target="_blank" rel="noreferrer noopener">Study Confirms PERA a Valuable Tool for Recruiting, Retaining Public Workers</a>



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



While PERA staff and consultants typically meet with various other legislative panels throughout the summer, those hearings are paused this year <a href="https://leg.colorado.gov/bills/sb25-199" target="_blank" rel="noreferrer noopener">due to budget constraints</a>. The suspension of interim activities applies to both the Pension Review Commission, which typically begins working on bills for the next legislative session, and the Pension Review Subcommittee.



PERA’s next hearing at the State Capitol will be with the Joint Budget Committee in the fall.

PERA Receives Clean Audit at 2025 Legislative Audit Committee Hearing

Colorado PERA once again received a clean audit at its annual hearing with the Legislative Audit Committee.



<h2 class="wp-block-heading">Results of outside audit</h2>



Every year, the State hires an independent auditor to examine PERA’s financial reports, compliance, and internal controls. Since 2015, the State has enlisted CliftonLarsonAllen, a nationally recognized financial services firm, to conduct that work. CliftonLarsonAllen presented the results of this year’s audit at the Legislative Audit Committee’s Aug. 5 meeting.



As in years past, the audit did not find any issues with PERA’s recently released 2023 Annual Comprehensive Financial Report and did not find any deficiencies or weaknesses in PERA’s internal controls.



RELATED: <a href="https://www.copera.org/pera-on-the-issues/pera-board-releases-2023-annual-report" target="_blank" rel="noreferrer noopener">PERA Board Releases 2023 Annual Report</a>



<h2 class="wp-block-heading">Additional interim committee activity</h2>



In addition to the Legislative Audit Committee, PERA staff and consultants meet with other legislative panels throughout the summer, including the Pension Review Subcommittee and Pension Review Commission. The Pension Review Subcommittee is tasked with making recommendations to the PERA Board and the Pension Review Commission. The Commission may then draft legislation that lawmakers may introduce in the next legislative session in January.



We’ll be monitoring the ongoing legislative activity at the State Capitol throughout the interim period and will post updates here on PERA On The Issues when we have them.

PERA Receives Results of 2023 Financial Audit

In this story:



<ul>
<li>Committee members heard from PERA leaders, external auditors and actuarial consultants</li>



<li>External auditors gave PERA’s 2020 annual report a clean audit with no issues</li>



<li>PERA gets a “green light” on its funding progress</li>
</ul>



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PERA leaders and actuarial consultants appeared before the Colorado General Assembly’s Legislative Audit Committee on Aug. 18. The purpose of the hearing was to review PERA’s <a href="https://content.copera.org/how-its-made-peras-financial-report/" target="_blank" rel="noreferrer noopener">2020 Comprehensive Annual Financial Report</a>, released earlier this summer, and to review the findings of an external audit of the report. Committee members also heard an update from PERA’s actuarial consultants on PERA’s funded status and had the opportunity to ask questions.



Below is a summary of information presented at the hearing. Listen to an <a href="https://sg001-harmony.sliq.net/00327/Harmony/en/PowerBrowser/PowerBrowserV2/20210824/67/12036#info_" target="_blank" rel="noreferrer noopener">audio recording</a> of the full hearing.



<h2 class="wp-block-heading">Results of PERA’s annual audit</h2>



Every year, the Office of the State Auditor hires an independent auditor to review PERA’s financial status and fiscal controls. CliftonLarsonAllen LLP has been auditing PERA’s annual statements since 2015.



For the year that ended Dec. 31, 2020, the auditors gave the annual report a clean audit, with no significant issues or outstanding recommendations.



<a href="https://leg.colorado.gov/sites/default/files/documents/audits/copera_legislative_audit_report_dec_2020.pdf" target="_blank" rel="noreferrer noopener">Click here</a> to read the full audit report.



<h2 class="wp-block-heading">PERA gets a ‘green light’</h2>



As part of its annual financial reporting, PERA enlists actuarial consulting firm Segal to issue an assessment of PERA’s funding progress called Signal Light Reporting. The report uses a simple color-coded system similar to a traffic signal — shades of green, yellow and red — to give a clear representation of whether PERA is on track to eliminate its unfunded liability.



Segal simulates thousands of possible scenarios to test the effects of different variables — like investment returns and public employer payroll changes, for example — on the likelihood of PERA reaching its target of full funding by 2048. The projected results range from dark green (fully funded ahead of schedule) to dark red (insolvent within 20 years). As of Dec. 31, 2020, all five division trust funds were in “green” or “dark green” status, meaning they are expected to be fully funded by 2048.



The Legislative Audit Committee is one of several legislative committees and subcommittees that PERA reports to regularly. Others include the Joint Budget Committee, Joint Finance Committee, Pension Review Subcommittee, and Pension Review Commission. These regular meetings with lawmakers allow for robust oversight and transparency into the state’s largest public employee retirement system.

PERA Receives Clean Audit, Positive Funding Assessment at Committee Hearing

The Colorado Public Employees’ Retirement Association Board of Trustees requests applications for an outside member of its Audit Committee. The Committee meets at least three times per year and assists the Board in fulfilling its fiduciary responsibilities as they relate to accounting policies and financial reporting, the system of internal controls, PERA’s Standards of Professional and Ethical Conduct, the internal audit process, and the practices of the Internal Audit Director. The successful candidate must meet PERA’s guidelines for independence. The deadline for application is August 20, 2021.



To learn more about the position and to apply please go to “<a href="https://content.copera.org/p4581/" target="_blank" rel="noreferrer noopener">Colorado PERA Seeks an Outside Member for its Audit Committee</a>”.



Colorado PERA provides retirement and other benefits to more than 630,000 current and former teachers, State Troopers, corrections officers, snow plow drivers, and other public employees who provide valuable service to all of Colorado. PERA is a vital and stable contributor to Colorado’s economy, distributing more than $4.2 billion in 2020 to more than 107,000 retirees who live in Colorado.

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PERA Receives Clean Audit at 2025 Legislative Audit Committee Hearing

PERA Receives Results of 2023 Financial Audit

PERA Receives Clean Audit, Positive Funding Assessment at Committee Hearing

Colorado PERA Seeks an Outside Member for its Audit Committee

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