
<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 in Denver on Friday, March 20.</p>



<p>The Board’s agenda included discussions and action items related to Board elections, the 2026 legislative session, PERA funding levels, and more.</p>



<p>Additional&nbsp;details, including meeting materials and a recording of the meeting livestream,&nbsp;are available on the&nbsp;<a href="https://www.copera.org/about/board-and-leadership/board-meeting-archive">Board Meeting Archive</a>&nbsp;page.&nbsp;</p>



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



<p>Elections for open seats on the Board are held each May, and Trustees approved the list of candidates and voted to proceed with elections for two open seats this year:</p>



<ul>
<li><strong>School Division:</strong>&nbsp;one 4-year term to be filled by an active member currently employed in the School Division.&nbsp;&nbsp;</li>



<li><strong>State Division (Higher Education):</strong>&nbsp;one 4-year term, to be filled by an active member currently working for a Higher Education employer in the State Division.</li>
</ul>



<p></p>



<p>Ballots will be mailed in early May to active members in the School and State divisions. Voting will be available by paper ballot, phone, and online via the election website or the Colorado PERA mobile app and member portal.</p>



<p>The Board will announce the results of the election at its June 25 meeting.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 legislative session</h2>



<p>CEO/Executive Director Andrew Roth and Director of Public and Government Affairs Michael Steppat provided the Board with an update on the 2026 legislative session, which began in January and will continue through mid-May.</p>



<p>As of the meeting date, legislators had introduced four PERA-related bills and one resolution. Two of those bills have passed: <a href="https://leg.colorado.gov/bills/HB26-1027" target="_blank" rel="noreferrer noopener">House Bill 1027</a> allows executive directors of boards of cooperative services (BOCES) to return to work after retiring for unlimited amounts of time without facing a reduction in their PERA benefits, and <a href="https://leg.colorado.gov/bills/HB26-1146" target="_blank" rel="noreferrer noopener">House Bill 1146</a> allows approved facility schools—which serve students whose needs aren’t being met in a regular classroom—to apply for affiliation with PERA to provide retirement benefits to their employees.</p>



<p><a href="https://leg.colorado.gov/bills/SJR26-016">Senate Joint Resolution 016</a>, which recognizes the importance of retirement security, encourages workers to seek out financial education to improve their retirement readiness, and highlights the importance of lifetime income options in the PERA Defined Contribution Plan and PERAPlus 401(k)/457 Plans, has also passed.</p>



<p><a href="https://leg.colorado.gov/bills/HB26-1026">House Bill 1026</a> remains under consideration. That bill would allow PERA members to <a href="https://copera.org/purchasing-service-credit/">purchase</a> a limited amount of service credit for periods of unemployment and also require all PERA-affiliated employers to offer the voluntary <a href="https://www.copera.org/retirees/peraplus-401-k-457-plans">PERAPlus 401(k) and 457 plans</a>, in both pre-tax and Roth options, to their employees.</p>



<p><strong>MORE INFO:</strong></p>



<ul>
<li><a href="https://www.copera.org/pera-on-the-issues/checking-in-on-the-2026-legislative-session-so-far">Checking in on the 2026 Legislative Session So Far</a></li>



<li><a href="https://www.copera.org/pera-on-the-issues/2026-proposed-pera-related-legislation-status">2026 Proposed PERA-Related Legislation Status</a></li>
</ul>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Overview of PERA’s unfunded liabilities</h2>



<p>To better understand the context and history of PERA’s unfunded liabilities—i.e., the gap between the amount of money in the division trust funds and the value of current and future benefits owed to PERA members—the Board engaged in discussions with consulting firms Segal, Aon, and Ailman Advisers.</p>



<p>While various factors have contributed to changes in unfunded liabilities over the past two and a half decades, the session centered on factors that have had the largest impacts and included a review of which factors the Board can and cannot control.</p>



<p>Unfunded liabilities pose a challenge to many public pension plans, but PERA is on a path to full funding by 2048. As of Dec. 31, 2024—the date of our most recent <a href="https://www.copera.org/annual-report"><em>Annual Comprehensive Financial Report</em></a>—we remain on track to meet that goal.</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 presented information on financial market performance so far in 2026. Oil and commodities have been strong performers year-to-date while other asset classes, such as global equities, have been largely flat or negative.</p>



<p>McGarrity also discussed the impact of the conflict in Iran, which has disrupted the supply of oil and other resources since the beginning of March. That conflict has affected markets around the world, McGarrity said, introducing significant uncertainty and volatility across various sectors.</p>



<p>The PERA Board determines PERA’s strategic asset allocation, which is the most significant factor influencing long-term investment performance and asset volatility. Maintaining a disciplined approach helps ensure PERA can meet its obligations throughout market cycles.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 meeting dates</h2>



<p>The PERA Board plans to hold three more regularly scheduled meetings in 2026. Those dates are:</p>



<ul>
<li>June 25</li>



<li>September 23 to 25 (planning session and meeting)</li>



<li>November 20</li>
</ul>



<p></p>



<p>For more information on Board meetings, including recordings and meeting materials, visit&nbsp;the&nbsp;<a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">Board and Leadership</a>&nbsp;page.&nbsp;</p>


PERA Board Discusses Legislation, Funding at March 2026 Meeting


<p>The PERA Board of Trustees met on Friday, January 23 for the first regularly scheduled meeting of 2026.</p>



<p>Topics of discussion included PERA’s strategic plan and implementation progress, ongoing modernization efforts, and the 2026 legislative session and PERA-related bills.</p>



<p>Additional&nbsp;details, including meeting materials and a recording of the livestream,&nbsp;are available on the&nbsp;<a href="https://www.copera.org/about/board-and-leadership/board-meeting-archive">Board Meeting Archive</a>&nbsp;page.&nbsp;</p>



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



<p>CEO/Executive Director Andrew Roth and Director of Strategy Annalise Anderson briefed Trustees on PERA’s progress toward implementing the organization’s <a href="https://content.copera.org/wp-content/uploads/2024/05/strategic-plan.pdf">three-year strategic plan</a>.</p>



<p>2025 was the first year of work under the current plan, and staff accomplished 100% of all measures and targets that were included in the implementation plan for year one, Roth said.</p>



<p>For 2026, implementation will focus on building on the foundation put in place during 2025. That will include goals such as advancing data-driven decision making, continuing with modernization efforts, and building workforce resilience through staff development and succession planning.</p>



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



<p>Work continues on a long-term project to upgrade and replace many of the technology systems that enable the daily work of administering PERA benefits. That includes software and hardware related to managing member data, processing contributions, and paying benefits, among other functions.</p>



<p>Members of PERA’s leadership team, including Deputy Executive Director Sarah Wager, Chief Benefits Officer Patrick Lane, Chief Administrative Officer Jeremy Hill, and Chief Technology Officer Ryan Ericson updated Trustees on work completed so far and what’s ahead.</p>



<p>The project is still in an early phase, with much of the work focusing on assessing the current state of systems and data and establishing a roadmap and goals for the complicated, large-scale initiative. PERA has hired additional staff, including a Director of Modernization, to help with the project.</p>



<p>The modernization effort is expected to take many years to complete, and staff will continue to provide regular updates.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 legislative session</h2>



<p>CEO/Executive Director Roth and Director of Public and Government Affairs Michael Steppat provided an update on the 2026 legislative session, which kicked off earlier this month.</p>



<p>At the time of the Board meeting, lawmakers had so far introduced three PERA-related bills: House Bill 1026 would make changes to PERA provisions related to purchasing service credit and increase access to PERAPlus plans, House Bill 1027 would allow executive directors of boards of cooperative services (BOCES) to return to work after retiring without a reduction in their PERA benefit, and House Bill 1062 would remove limits on state tax deductions for pension or annuity income.</p>



<p>Visit our <a href="https://www.copera.org/pera-on-the-issues/2026-proposed-pera-related-legislation-status">legislation tracking article</a> for the most recent information on these and any other PERA-related bills.</p>



<p>Steppat also briefed Trustees on other legislative proposals that may come up this session, including two options meant to reduce the likelihood of triggering the&nbsp;<a href="https://www.copera.org/automatic-adjustment-provision" target="_blank" rel="noreferrer noopener">Automatic Adjustment Provision</a>&nbsp;(AAP) that took effect with Senate Bill 200 in 2018.&nbsp;</p>



<p>Those proposals include providing PERA flexibility to&nbsp;allocate&nbsp;the&nbsp;State’s annual $225 million direct distribution&nbsp;to whichever division trust funds&nbsp;would help minimize the likelihood of&nbsp;triggering automatic&nbsp;adjustments and&nbsp;redirecting a&nbsp;portion&nbsp;of employers’ health care trust fund contributions to instead help pay off&nbsp;pension&nbsp;liabilities.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/pera-on-the-issues/what-to-expect-from-colorados-2026-legislative-session">What to Expect from Colorado’s 2026 Legislative Session</a></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 presented an overview of how financial markets fared in 2025. It was a positive year for stocks and fixed income investments, with global equities—particularly European and emerging markets equities—showing the strongest performance, McGarrity said.</p>



<p>While inflation remains slightly higher than the Federal Reserve’s target range, McGarrity said experts expect inflation to continue to normalize throughout 2026<strong>.</strong></p>



<p>PERA does not yet have finalized investment performance data for the Defined Benefit Plan portfolio; that information will be available with the release of the 2025 <a href="https://www.copera.org/annual-report" target="_blank" rel="noreferrer noopener"><em>Annual Comprehensive Financial Report</em></a> in June.</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’s regularly scheduled meetings for the rest of 2026 are:</p>



<ul>
<li>March 20</li>



<li>June 25</li>



<li>September 23-25 (planning session and meeting)</li>



<li>November 20</li>
</ul>



<p></p>



<p>For more information on Board meetings, including recordings and meeting materials, visit&nbsp;the&nbsp;<a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">Board and Leadership</a>&nbsp;page.&nbsp;</p>


Recap of PERA Board’s January 2026 Meeting


<p>Elections will be held to fill two seats on the PERA Board of Trustees in 2026.</p>



<p>Candidacy information is now available for the following seats:</p>



<ul>
<li><strong>School Division:</strong>&nbsp;one 4-year term to be filled by an active member currently employed in the School Division.&nbsp;&nbsp;</li>



<li><strong>State Division (Higher Education):</strong> one 4-year term, to be filled by an active member currently working for a Higher Education employer in the State Division.</li>
</ul>



<p></p>



<p>Note that both seats are open only to active members of those divisions; there are no retiree seats up for election this year.</p>



<p>Anyone interested in running for a seat on PERA’s Board must complete the&nbsp;<a href="https://www.copera.org/board-election-2026">online candidacy packet request</a>. Candidacy packet requests can be made through February 27, 2026.</p>



<p>The PERA Board meets at least five times per year and is responsible for adopting the rules and policies for the administration of PERA. The Board comprises 16 Trustees, and PERA members and retirees directly elect 12 of them. The governor appoints three (with approval by the Senate), and the State Treasurer serves as an ex officio member. Elected Board members serve without pay, but are reimbursed for necessary expenses.</p>



<p>Ballots will be mailed in early May to active members in the School and State divisions.</p>



<p>The Board will announce the results of the election in June, and elected Trustees will begin their terms July 1.</p>



<p>Visit the <a href="https://www.copera.org/board-election-2026">Board election page</a> for more information or to request a candidacy packet.</p>


School, State Higher Education Seats on PERA Board Up For Election in 2026


<p>The Colorado PERA Board of Trustees met in Denver on Friday, November&nbsp;21 for its final regularly scheduled meeting of the year.&nbsp;</p>



<p>Trustees voted to approve PERA’s 2026 operating budget, set the interest rate for member accounts,&nbsp;discussed the upcoming legislative session, and more.&nbsp;Additional&nbsp;details, including meeting materials and a recording of the livestream,&nbsp;are available on the&nbsp;<a href="https://www.copera.org/about/board-and-leadership/board-meeting-archive" target="_blank" rel="noreferrer noopener">Board Meeting Archive</a>&nbsp;page.&nbsp;&nbsp;</p>



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



<p>Earlier this year, the Board directed staff to&nbsp;request proposals from investment consulting firms as part of its regular review of third-party service providers.&nbsp;The Board’s Investment Committee interviewed three firms and&nbsp;the full Board&nbsp;<a href="https://www.copera.org/news/pera-board-retains-aon-as-investment-consultant" target="_blank" rel="noreferrer noopener">voted to retain&nbsp;Aon</a>,&nbsp;its&nbsp;current investment consultant.&nbsp;</p>



<p>The Board&nbsp;is responsible for&nbsp;overseeing PERA’s investment program and&nbsp;utilizes&nbsp;an investment consultant to provide research, analysis, and advice in areas such as investment strategy, asset allocation, and fund performance. The investment consultant also conducts periodic&nbsp;<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 analysis</a>&nbsp;that informs PERA’s strategic asset allocation, performance benchmarks, and assumed rate of return.&nbsp;</p>



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



<p>PERA CEO/Executive Director Andrew Roth and&nbsp;Director of Strategy Annalise Anderson&nbsp;provided an update to the&nbsp;Board on the organization’s three-year strategic plan.&nbsp;As the first year under the plan winds down, Roth and Anderson said they expect to&nbsp;complete 100% of the&nbsp;plan’s&nbsp;measures and targets for 2025.&nbsp;</p>



<p>One of the main goals included in the plan is improving the customer and stakeholder experience, and&nbsp;Roth&nbsp;detailed&nbsp;much of&nbsp;the work he’s done over the past year, including meeting with lawmakers,&nbsp;holding&nbsp;in-person&nbsp;<a href="https://copera.org/about/pera-town-hall" target="_blank" rel="noreferrer noopener">Town Halls</a>&nbsp;to connect with members and retirees&nbsp;in Fort Collins and Pueblo, and increasing outreach to PERA-affiliated employers.&nbsp;</p>



<p>Leaders will&nbsp;begin working on an implementation plan for year&nbsp;two&nbsp;to help guide&nbsp;staff’s work&nbsp;throughout 2026, with regular updates continuing at future Board meetings.&nbsp;</p>



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



<p>Director of Public and Government Affairs Michael Steppat joined Roth to&nbsp;discuss the 2026 legislative session and some of the issues they expect&nbsp;state&nbsp;lawmakers to tackle.&nbsp;</p>



<p>Similar to&nbsp;the 2025 session, legislators&nbsp;will face the challenging task of cutting&nbsp;hundreds of millions in&nbsp;state&nbsp;spending to pass a balanced budget.&nbsp;While that&nbsp;won’t&nbsp;happen until the spring, Gov. Jared&nbsp;Polis&nbsp;has already&nbsp;submitted&nbsp;his proposed budget. The governor’s proposal&nbsp;calls for privatizing the state’s&nbsp;worker compensation insurance provider, Pinnacol Assurance, and reducing the&nbsp;amortization equalization disbursement (AED), a contribution that employers make to PERA, for employers in the State Division.&nbsp;</p>



<p>If Pinnacol were to become a private entity, it would have to disaffiliate from PERA and&nbsp;pay its&nbsp;portion&nbsp;of DB Plan liabilities, which are estimated to be&nbsp;approximately $300 million.&nbsp;&nbsp;</p>



<p>The proposed 1% reduction in the&nbsp;AED is estimated to reduce contributions to PERA by about $40 million over the next two years, adding up to about $180 million by the time PERA reaches full funding in 2048.&nbsp;</p>



<p>Steppat and Roth also discussed two legislative proposals that, if introduced and passed, could help&nbsp;reduce the likelihood of triggering automatic adjustments to PERA contributions and retiree annual increases in future years under the&nbsp;<a href="https://www.copera.org/automatic-adjustment-provision" target="_blank" rel="noreferrer noopener">Automatic Adjustment Provision</a>.&nbsp;Those proposals include providing PERA flexibility to&nbsp;allocate&nbsp;the&nbsp;State’s annual $225 million direct distribution&nbsp;to whichever division trust funds&nbsp;would help minimize the likelihood of&nbsp;triggering automatic&nbsp;adjustments and&nbsp;reallocating a&nbsp;portion&nbsp;of employers’ health care trust fund contributions to help pay off&nbsp;pension&nbsp;liabilities.&nbsp;</p>



<p>The 2026 legislative session begins&nbsp;on January 14, and&nbsp;<em>PERA On&nbsp;The&nbsp;Issues</em>&nbsp;will be closely tracking all PERA-related bills throughout the session.&nbsp;</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 Board election&nbsp;</h2>



<p>Two seats on the Board will be up for election in 2026: A School Division seat and a State Division seat to be filled by an employee of an institution of higher education.&nbsp;</p>



<p>Candidacy for the two open seats will open in early January, and active members in the School and State divisions will receive ballots in May.&nbsp;</p>



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



<p>Each November, the Board&nbsp;is responsible for&nbsp;setting&nbsp;the interest rate that applies to PERA DB Plan accounts for the upcoming year.&nbsp;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&nbsp;DB Plan&nbsp;account, they receive their contributions, the interest earned on that balance&nbsp;(compounded annually), and any applicable employer match. If that member keeps their account with PERA, the balance will continue to&nbsp;accrue&nbsp;interest&nbsp;and the member has multiple options upon reaching retirement eligibility, including choosing a lifetime monthly benefit.&nbsp;</p>



<p>The Board’s policy evaluates the interest rate as a&nbsp;component&nbsp;of members’ overall retirement benefit. After discussing the issue, Trustees voted to keep the interest rate at 3 percent for 2026.&nbsp;</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 actuarial audit&nbsp;</h2>



<p>In 2026, the Board will&nbsp;hire an outside firm to conduct its periodic actuarial audit.&nbsp;Such audits have been part of the Board’s governance practices since the 1980s, with audits taking place every four or five years. With the passage of Senate&nbsp;Bill 28 in 2025, the Board is now required by law to conduct actuarial audits every four years. The last audit took place in 2022.&nbsp;</p>



<p>The&nbsp;goal&nbsp;of the actuarial audit is to&nbsp;receive an independent assessment of PERA’s actuarial methods and assumptions&nbsp;and&nbsp;attempt&nbsp;to&nbsp;replicate the&nbsp;calculations of the Board’s&nbsp;actuarial&nbsp;consultant, Segal.&nbsp;&nbsp;&nbsp;</p>



<p>Staff will conduct a search for a third-party&nbsp;firm to conduct the audit in early 2026, with results expected by the Board’s November 2026 meeting.&nbsp;</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 meeting dates&nbsp;</h2>



<p>The Board concluded its business with a look at&nbsp;2026’s meeting calendar. The following Board meetings are scheduled for the year:&nbsp;</p>



<ul>
<li>January 23&nbsp;</li>
</ul>



<ul>
<li>March 20&nbsp;</li>
</ul>



<ul>
<li>June 25&nbsp;</li>
</ul>



<ul>
<li>September 23-26 (planning session and meeting)&nbsp;</li>
</ul>



<ul>
<li>November 20&nbsp;</li>
</ul>



<p></p>



<p>For more information on Board meetings, including recordings and meeting materials, visit&nbsp;the&nbsp;<a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">Board and Leadership</a>&nbsp;page.&nbsp;</p>


PERA Board Approves Interest Rate, Discusses Upcoming Legislative Session at November 2025 Meeting


<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><em>Editor&#8217;s note: The Hon. Rebecca R. Freyre assumed the role of Board Chair following Taylor McLemore&#8217;s departure from the Board in June 2025.</em></p>



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



<p>In November, the PERA Board of Trustees <a href="https://www.copera.org/pera-on-the-issues/pera-board-approves-budget-member-interest-rate-and-more-at-november-2024-meeting" target="_blank" rel="noreferrer noopener">voted to elect new officers</a>. Taylor McLemore was elected to serve as Chair and the Hon. Rebecca R. Freyre was elected Vice Chair. They’ll begin two-year terms in January.</p>



<p>Freyre is a judge with the Colorado Court of Appeals, and she has been on the PERA Board since 2019. Freyre has been Chair of the Board’s Investment Committee since 2021.</p>



<p>We recently connected with Freyre to learn more about her experience and perspective as she prepares to take on a new role on the Board.</p>



<h2 style="color:#00793a;" class="wp-block-heading has-dartmouth-green-color has-text-color has-medium-font-size">Tell us a little about yourself and the experience you bring to the Board.</h2>



<p>I grew up in Kansas but had family in Colorado and knew this was where I wanted to live. I moved here in 1982 and worked in the financial services industry for the next six years. Finding corporate work unfulfilling, I attended law school in the evenings and decided to devote my career to public service. I was a public defender for 25 years and have served as a judicial officer for the last nine years.</p>



<h2 style="color:#00793a;" class="wp-block-heading has-dartmouth-green-color has-text-color has-medium-font-size">How has your career in the justice system informed your work as a Trustee?</h2>



<p>My work as a Trustee is a natural extension of my public service work in the justice system, where I must remain focused on following the law in a fair and impartial manner. PERA is subject to statute, so implementing the legislature’s fiduciary mandate of all Trustees feels very familiar. As a judicial officer, I can’t please everyone—every case has a winner and a loser. Similarly, Trustees must make decisions as fiduciaries that ensure PERA’s long-term stability and viability, and those decisions rarely make everyone happy.</p>



<h2 style="color:#00793a;" class="wp-block-heading has-dartmouth-green-color has-text-color has-medium-font-size">What are you most looking forward to as you prepare to take on the role of Vice Chair?</h2>



<p>I most look forward to working with my amazing fellow Trustees and assisting the new Board Chair in supporting PERA’s movement toward full funding. PERA has a thoughtful group of highly qualified Trustees, and I am confident that this team can fulfill its fiduciary duty to PERA’s members in a transparent manner as PERA faces the challenges that lie ahead.</p>



<h2 style="color:#00793a;" class="wp-block-heading has-dartmouth-green-color has-text-color has-medium-font-size">What does effective Board leadership look like to you?</h2>



<p>Effective Board leadership starts at the top, and <a href="https://www.copera.org/pera-on-the-issues/meet-the-new-chair-of-the-pera-board" target="_blank" rel="noreferrer noopener">our new Board chair</a> demonstrated that leadership when he chaired our ad hoc hiring committee that selected PERA’s new CEO. Effective leadership is professional, transparent, and focused on the Board’s governance and fiduciary mandate. It must also be collaborative with PERA staff to serve the needs of all PERA members.</p>



<h2 style="color:#00793a;" class="wp-block-heading has-dartmouth-green-color has-text-color has-medium-font-size">There will be elections for five seats on the Board in 2025. Do you have any advice for someone interested in becoming a Trustee?</h2>



<p>First, decide where your passion lies and whether being a fiduciary is right for you—it isn’t right for everyone. Being a fiduciary requires Trustees to remove their “division” hats and to make decisions that are in the best interests of all PERA members, not just those who elect you. It also requires the ability to view decisions in the long-term and to resist short-term reactions. Being a Trustee is exceptionally fulfilling, but it is also hard work and requires making tough decisions. If your passion is to advocate specifically for your division, then you may wish to become involved in organizations that directly interact with the legislature.</p>


Meet the New Vice Chair of the PERA Board


<p>In November, the PERA Board of Trustees <a href="https://www.copera.org/pera-on-the-issues/pera-board-approves-budget-member-interest-rate-and-more-at-november-2024-meeting" target="_blank" rel="noreferrer noopener">voted to elect new officers</a>. Taylor McLemore was elected to serve as Chair and the Hon. Rebecca R. Freyre was elected Vice Chair. They’ll begin two-year terms in January.</p>



<p>McLemore is a Governor-appointed Trustee and <a href="https://www.copera.org/board-members/taylor-mclemore" target="_blank" rel="noreferrer noopener">has been on the Board since 2021</a>. Prior to his election as Chair, McLemore served as Chair of the Board’s Ad Hoc Executive Director Search Committee and Vice Chair of the Governance and Executive Committees.</p>



<p>We recently connected with McLemore to learn more about his experience and perspective as he prepares to take on a new role on the Board.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Why don’t you start by telling us a little bit about yourself?</h2>



<p>I grew up in Colorado and I care deeply about this state as a community. I have been an entrepreneur, technology executive, and community builder across my career. I was enthusiastic about the opportunity to support and serve PERA—the mission is near and dear to my heart because of all the people who work so hard to make our state a great state, and what PERA is committed to providing them in terms of their retirement stability and other benefits.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What are some of the things you’re thinking about as you get ready to take on the role of Board Chair?</h2>



<p>I&#8217;m excited to lead the Board of Trustees to support the next stage of PERA&#8217;s journey toward stability and full funding. I believe we have a very thoughtful group of Trustees who bring diverse&nbsp;perspectives. Together, we can solve any challenges that lie ahead.</p>



<p>My role as Chair is mostly focused on how we tap into the intelligence, lived experience and diversity of those Trustees to be a well-functioning governance body. Specifically, in my role as Chair, I care a lot about our ability to be transparent&nbsp;to our stakeholders while fulfilling our fiduciary&nbsp;duty. And I think that we have started to make meaningful progress on transparency and want to continue that pathway to do even more.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What does effective Board leadership look like to you?</h2>



<p>First, I believe in always focusing on our governance and fiduciary&nbsp;mandates. Second, creating a productive environment for intellectually honest debate where we can understand the challenges that PERA faces. The Board has to work on solutions in collaboration with PERA executives and staff, and I think we should be creative in thinking about how we build a PERA that is stable and productive for our members into the&nbsp;very&nbsp;far&nbsp;future.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">The Board is getting closer to finalizing its next multi-year strategic plan. Can you talk about some of the priorities that are informing that work?</h2>



<p>The strategic plan is working hard to balance what we need in the near, medium, and long terms. This touches everything, including our current level of funding and what the implications of that are for our members, employers and our state legislative stakeholders. What we are looking at specifically, is how our investing and operational strategies will achieve those goals.</p>



<p>On the operational side, we are very focused on our technology infrastructure. Our pension administration technology is some of the oldest that is currently being used in the pension space. This creates risk for our ability to maintain it and ensure that it is performing for our members. All of this leads us to the conclusion that we need to invest significantly to have modern technology that will be stable long-term to support our operations and what our members appropriately expect from us.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What’s something you wish more people knew about PERA and/or the Board?</h2>



<p>I wish more people knew about the diversity and impressive lived experience and expertise across the Board. Our Board has elected representatives from our membership and Governor-appointed members who include teachers, state employees, HR leaders, business leaders, and much more. We combine all of this experience to work on our understanding of the challenges and opportunities ahead of PERA.</p>


Meet the New Chair of the PERA Board


<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" class="broken_link">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>


PERA Board Approves Budget, Member Interest Rate and More at November 2024 Meeting


<p>The Colorado PERA Board of Trustees met virtually on Friday, March 15 for its second regularly scheduled meeting of the year.</p>



<p>Below is a summary of key actions and discussions that took place during the meeting.</p>



<h2 class="wp-block-heading" style="font-size:28px">New Executive Director</h2>



<p>At the beginning of the meeting, the Board announced it has selected PERA’s next Executive Director following an eight-month nationwide search.</p>



<p>Andrew Roth will fill that role beginning May 13. He comes to PERA from the Teacher Retirement System of Texas, and previously worked at the California State Teachers’ Retirement System and in various departments within the State of California.</p>



<blockquote class="wp-block-quote">
<p><strong>READ MORE:</strong>&nbsp;<a href="https://peraontheissues.com/pera-board-names-andrew-roth-as-new-executive-director/" target="_blank" rel="noreferrer noopener">PERA Board Names Andrew Roth as New Executive D</a><a href="https://content.copera.org/pera-board-names-andrew-roth-as-new-executive-director/" target="_blank" rel="noreferrer noopener">irector</a></p>
</blockquote>



<h2 class="wp-block-heading" style="font-size:28px">Board election update</h2>



<p>The Board announced in January that four Trustee seats would be up for election in May. At the March meeting, Trustees voted to move forward with elections for three of those seats—one in the School Division and two in the State Division.</p>



<p>The Denver Public School Division seat, currently held by Amy Grant, is uncontested. The Board voted to reappoint Grant to another four-year term beginning in July.</p>



<p>Members in the School and State divisions will receive ballots in May, and the Board will announce election results at its June meeting.</p>



<h2 class="wp-block-heading" style="font-size:28px">Legislative update</h2>



<p>State lawmakers are halfway through the 2024 legislative session, and Public and Government Affairs Manager Michael Steppat joined Interim Executive Director/Chief Investment Officer Amy C. McGarrity to provide an update on PERA-related legislation.</p>



<p>So far this session, legislators have introduced more than 500 bills,&nbsp;<a href="https://content.copera.org/2024-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">seven of which pertain to PERA</a>.</p>



<p>Of those seven proposed bills, one—<a href="https://leg.colorado.gov/bills/hb24-1169" target="_blank" rel="noreferrer noopener">HB24-1169</a>, which would have repealed a 2016 law that requires PERA to divest all direct holdings from companies that have economic prohibitions against Israel—has died in committee. The other six remain under consideration at the State Capitol.</p>



<p>Steppat said it’s likely there will be some additional PERA-related legislation before the session is over.&nbsp;<em>PERA On The Issues</em>&nbsp;will continue to&nbsp;<a href="https://content.copera.org/2024-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">track all PERA bills</a>&nbsp;and post updates when they’re available.</p>



<blockquote class="wp-block-quote">
<p><strong>RELATED:&nbsp;</strong><a href="https://content.copera.org/an-update-on-2023-wep-gpo-legislation/" target="_blank" rel="noreferrer noopener">An Update on 2023 WEP/GPO Legislation</a></p>
</blockquote>



<h2 class="wp-block-heading" style="font-size:28px">Asset/liability study continues</h2>



<p>The Board also received an update on its&nbsp;<a href="https://content.copera.org/asset-liability-study-a-guide-to-building-a-strategic-portfolio/" target="_blank" rel="noreferrer noopener">ongoing asset/liability study</a>. That study, which is an in-depth analysis of PERA’s investment portfolio and strategy, will help the Trustees determine if any changes are needed to PERA’s&nbsp;asset allocation, or mix of investments.</p>



<p>The Board’s consultants, Aon, modeled several different&nbsp;asset allocation—some with more risk than the current portfolio and some with less—across thousands of different economic scenarios to project how each option might affect PERA’s investment returns and progress toward its funding goals.</p>



<p>Overall, PERA’s current portfolio is within a reasonable range, Aon said, but there may be some opportunities to further diversify in a way that increases the potential for higher returns without adding unnecessary risk.</p>



<p>Consultants and PERA staff will continue to work on a recommendation and will present more information at the next Board meeting.</p>



<p>The Board’s next regular meeting, which will also include the release of PERA’s 2023&nbsp;<em>Annual Comprehensive Financial Report&nbsp;</em>and&nbsp;<em>Investment&nbsp;Stewardship&nbsp;Report</em>, is scheduled for June 21.</p>


Recap of PERA Board’s March 2024 Meeting


<p>The Colorado PERA Board of Trustees met on Friday, January 19 for its first regular meeting of 2024.</p>



<p>The agenda included important topics of discussion and various action items. Some of the Board’s major actions at the meeting are summarized below.</p>



<h2 class="wp-block-heading h4 text-black"><strong>Board appointment and Vice Chair election</strong></h2>



<p>Current Board Vice Chair Suzanne Kubec is retiring, and therefore vacating her seat on the PERA Board. In accordance with Board policy, Chair Marcus Pennell moved to fill that seat with the candidate from the State Division’s previous Board election who received the second-highest number of votes. As a result, Ashley M. Smith, who served on the Board from 2021 to 2022, was appointed to fill that seat until the next election in 2025.</p>



<p>Additionally, the Board held an election to replace Kubec as Vice Chair, and the Trustees elected Taylor McLemore to fill that role. McLemore has been on the Board since 2021 and currently serves as chair of the Ad Hoc Committee overseeing the search for PERA’s next Executive Director.</p>



<blockquote class="wp-block-quote">
<p><strong>REMINDER:</strong> <a href="https://peraontheissues.com/four-seats-on-pera-board-up-for-election-in-2024/" target="_blank" rel="noreferrer noopener">Four Seats on PERA Board Up For Election in 2024</a></p>
</blockquote>



<h2 class="wp-block-heading h4 text-black"><strong>Executive Director search update</strong></h2>



<p>McLemore provided an update on the Ad Hoc Committee’s Executive Director search, stating that more than 200 people have applied for the job. The committee is working with an outside search firm to screen applicants and identify candidates of high interest who will receive in-person interviews in February. The committee will then provide a list of top candidates to the full Board, which will be responsible for selecting a finalist.</p>



<h2 class="wp-block-heading h4 text-black"><strong>Legislative update</strong></h2>



<p>The 2024 legislative session is underway, and lawmakers have so far introduced <a href="https://peraontheissues.com/2024-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">three PERA-related bills</a>. Interim Executive Director/Chief Investment Officer Amy C. McGarrity and Public and Government Affairs Manager Michael Steppat updated the Trustees on the bills:</p>



<ul>
<li><strong>HB24-1044:</strong> Would expand the number of PERA retirees who can work for school districts without reductions in their benefits.</li>



<li><strong>SB24-013:</strong> Would increase district attorney and assistant district attorney pay&nbsp;and allow county boards to require assistant DAs to become a member of the PERA Defined Benefit Plan.</li>



<li><strong>SB24-044:</strong> Would create a temporary tax credit for qualifying PERA retirees in tax years 2024 and 2025.</li>
</ul>



<p>The Board generally takes a position on a bill if it has a financial impact on PERA, and Trustees voted to take an “amend” position on HB24-1044. That means the Board is looking for lawmakers to amend the bill to include a way to offset potential negative impacts on PERA’s funding.</p>



<blockquote class="wp-block-quote">
<p><strong>READ MORE:</strong> <a href="https://peraontheissues.com/2024-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">2024 Proposed Legislation Status</a></p>
</blockquote>



<h2 class="wp-block-heading h4 text-black"><strong>Asset/liability study update</strong></h2>



<p>In September, the Board began the process of examining PERA’s strategic asset allocation through what’s known as an <a href="https://peraontheissues.com/asset-liability-study-a-guide-to-building-a-strategic-portfolio/" target="_blank" rel="noreferrer noopener">asset/liability study</a>. The Board’s consultants, Aon, discussed the work that’s been completed so far, including meeting with PERA’s investment staff and modeling future funding scenarios based on the existing asset makeup.</p>



<p>That work will continue over the next several months, with more analysis and modeling to determine if different asset allocations or levels of diversification would better help PERA meet its goals.</p>



<h2 class="wp-block-heading h4 text-black"><strong>Future meetings</strong></h2>



<p>The Board has four more regular meetings scheduled for 2024:</p>



<ul>
<li>March 15</li>



<li>June 21</li>



<li>September 20</li>



<li>November 15</li>
</ul>



<p>In addition, the Ad Hoc Committee will be meeting to interview Executive Director candidates in February. All meetings are streamed live and include time for public comment.</p>



<p>For more information, visit <a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">copera.org/board-of-trustees</a>.</p>



<p></p>


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