Retirement insights from a Colorado PERA perspective

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

In November, the PERA Board of Trustees&nbsp;<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.



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.



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.



<h5 class="wp-block-heading">Tell us a little about yourself and the experience you bring to the Board.</h5>



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.



<h5 class="wp-block-heading">How has your career in the justice system informed your work as a Trustee?</h5>



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.



<h5 class="wp-block-heading">What are you most looking forward to as you prepare to take on the role of Vice Chair?</h5>



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.



<h5 class="wp-block-heading">What does effective Board leadership look like to you?</h5>



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.



<h5 class="wp-block-heading">There will be elections for five seats on the Board in 2025. Do you have any advice for someone interested in becoming a Trustee?</h5>



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.

Meet the New Vice Chair of the PERA Board

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.



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.



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.



<h5 class="wp-block-heading">Why don’t you start by telling us a little bit about yourself?</h5>



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.



<h5 class="wp-block-heading">What are some of the things you’re thinking about as you get ready to take on the role of Board Chair?</h5>



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.



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.



<h5 class="wp-block-heading">What does effective Board leadership look like to you?</h5>



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.



<h5 class="wp-block-heading">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?</h5>



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.



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.



<h5 class="wp-block-heading">What’s something you wish more people knew about PERA and/or the Board?</h5>



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.

Meet the New Chair of the PERA Board

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



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.



<h4 class="wp-block-heading">PERA operating budget</h4>



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.



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>.



<h4 class="wp-block-heading">Strategic planning update</h4>



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.



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.



<h4 class="wp-block-heading">Member contribution interest rate</h4>



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.



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.



<h4 class="wp-block-heading">Trustee appointment and Board officer election</h4>



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.



Both McLemore and Freyre will serve two-year terms.



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.



READ MORE: <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>



<h4 class="wp-block-heading">Denver Public Schools “true-up” discussion</h4>



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.



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.



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.



<h4 class="wp-block-heading">Upcoming legislative session</h4>



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.



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



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.



READ MORE: <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>



<h4 class="wp-block-heading">Actuarial experience study</h4>



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.



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.



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.



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.



<h4 class="wp-block-heading">2025 Board election</h4>



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



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.



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.



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

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

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



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



<h4 class="wp-block-heading">New Executive Director</h4>



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



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.



<blockquote class="wp-block-quote">
READ MORE: <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>
</blockquote>



<h4 class="wp-block-heading">Board election update</h4>



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.



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.



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



<h4 class="wp-block-heading">Legislative update</h4>



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.



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



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.



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



<blockquote class="wp-block-quote">
RELATED: <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>
</blockquote>



<h4 class="wp-block-heading">Asset/liability study continues</h4>



The Board also received an update on its <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 asset allocation, or mix of investments.



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.



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.



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



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

Recap of PERA Board’s March 2024 Meeting

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



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



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



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.



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.



<blockquote class="wp-block-quote">
REMINDER: <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>
</blockquote>



<h4 class="wp-block-heading">Executive Director search update</h4>



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.



<h4 class="wp-block-heading">Legislative update</h4>



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:



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



<li>SB24-013: 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>SB24-044: Would create a temporary tax credit for qualifying PERA retirees in tax years 2024 and 2025.</li>
</ul>



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.



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



<h4 class="wp-block-heading">Asset/liability study update</h4>



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.



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.



<h4 class="wp-block-heading">Future meetings</h4>



The Board has four more regular meetings scheduled for 2024:



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



<li>June 21</li>



<li>September 20</li>



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



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.



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>.

Recap of PERA Board’s January 2024 Meeting

Candidacy nomination information is now available to PERA members interested in running for any of the four open seats on the PERA Board of Trustees.



The following seats are up for election in 2024:



<ul>
<li>State Division—4-year term&nbsp;(to be filled by an active member, currently employed with a non-Higher Education employer in the State Division)</li>



<li>State Division—2-year term&nbsp;(to be filled by an active member, currently employed at an Institution of Higher Education)</li>



<li>School Division—4-year term&nbsp;(to be filled by an active member, currently employed in the School Division)</li>



<li>DPS Division—4-year term&nbsp;(to be filled by a member or retiree, currently employed in or retired from the DPS Division)</li>
</ul>



If you’re interested in running for a seat on PERA’s Board, you can submit an&nbsp;<a href="https://www.copera.org/recap-of-pera-boards-january-2023-meeting" target="_blank" rel="noreferrer noopener" class="broken_link">online candidacy packet request</a> through Feb. 29, 2024.



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.



Ballots will be mailed in early May to active members in the State, School and DPS Divisions, and to retired members from the DPS Division.



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



For more information, visit <a href="https://copera.org/about/board-and-leadership">copera.org/board-of-trustees</a>.

Four Seats on PERA Board Up For Election in 2024

The PERA Board of Trustees met on Friday, Nov. 17 for its final regular meeting of 2023.



Below are highlights of some of the major topics of discussion and important actions the Board took during the meeting.



<h4 class="wp-block-heading">2024 Board election</h4>



The Board approved the calendar for the <a href="https://www.copera.org/four-seats-on-pera-board-up-for-election-in-2024" target="_blank" rel="noreferrer noopener" class="broken_link">2024 Board election</a>, during which four seats will be up for election: Two in the State Division, one in the School Division, and one in the Denver Public Schools Division.



Candidacy information will be available to members of those divisions in early January, and the election will take place in May.



<h4 class="wp-block-heading">Member contribution interest rate</h4>



Every PERA Defined Benefit Plan account accrues interest, compounded annually. If a PERA member leaves PERA-covered employment 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.



The Board is responsible for setting the interest rate every year; it currently stands at 3 percent. The Board’s policy, <a href="https://content.copera.org/recap-of-the-pera-boards-november-2022-meeting-2/" target="_blank" rel="noreferrer noopener">updated in 2020</a>, 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 2024.



<h4 class="wp-block-heading">Asset/liability study update</h4>



In September, the Board kicked off an important analysis of PERA’s investment portfolio and asset allocation strategy known as an asset/liability study. The project will help the Board determine if it needs to make any changes to PERA’s mix of investments. PERA’s strategic asset allocation is the primary driver of investment returns, and the Board adopted its current allocation following the last asset/liability study in 2019.



The Board’s investment consultant, Aon, said in the meeting that it continues to work with PERA’s investment staff to gather and analyze information. That process will continue over the next few months, with additional discussion in January.



<blockquote class="wp-block-quote">
READ MORE: <a href="https://peraontheissues.com/asset-liability-study-a-guide-to-building-a-strategic-portfolio/" target="_blank" rel="noreferrer noopener">Asset/Liability Study: A Guide to Building a Strategic Portfolio</a>
</blockquote>



<h4 class="wp-block-heading">PERA-related legislation</h4>



With the 2024 General Assembly around the corner, the Trustees discussed the upcoming session and potential PERA-related legislation. The conversation included two bills that lawmakers on the Pension Review Commission expect to introduce: One that aims to expand the number of PERA retirees who can work for school districts without reductions in their benefits, and one that proposes a $700 tax credit for qualifying retirees in tax years 2024 and 2025.



<blockquote class="wp-block-quote">
READ MORE: <a href="https://peraontheissues.com/pension-review-commission-eyes-two-bills-for-2024-legislative-session/" target="_blank" rel="noreferrer noopener">Pension Review Commission Eyes Two Bills for 2024 Legislative Session</a>
</blockquote>



The Board’s first meeting of 2024 will take place on Jan. 19.

Recap of PERA Board’s November 2023 Meeting

The PERA Board of Trustees met on Friday, June 16 to take action on a number of important items, including releasing PERA’s 2022 Annual Report and announcing results of the recent Board election.



<h4 class="wp-block-heading">Board election</h4>



The Board held elections for three open seats this year. One new Trustee was elected to the Board, two Trustees were reelected, and one Trustee was reappointed:



<ul>
<li>Eunice Botchway was elected by School Division members</li>



<li>Trina Ruhland was reelected by Local Government Division members</li>



<li>Timothy M. O’Brien was reelected by retired members of the State, Local Government, and Judicial Divisions</li>



<li>Judge Rebecca R. Freyre was reappointed to the Judicial Division seat</li>
</ul>



Botchway, a special education teacher at Aurora Public Schools, fills a seat currently held by JB Phillips, who was appointed to the Board in 2022. Botchway was elected to a two-year term.



Ruhland, a deputy county attorney with the Boulder County Attorney’s Office, was elected to the seat to which she was appointed in 2022.



O’Brien, the auditor for the City and County of Denver, has served on the PERA Board since 2011.



In addition to the election results, Judge Rebecca R. Freyre was the sole candidate for the Judicial Division seat and was reappointed to the Board in March.



Ruhland, O’Brien, and Freyre will serve four-year terms beginning July 1, 2023.



Learn more about the PERA Board of Trustees at <a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">copera.org</a>.



<h4 class="wp-block-heading">Financial results and Annual Report release</h4>



A key action the Board takes every year at its June meeting is receiving the results of its annual actuarial valuations and approving the release of PERA’s <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">Annual Comprehensive Financial Report</a> (ACFR). The 2022 ACFR contains detailed information about PERA’s finances, investment performance, and funded status for the year ended Dec. 31, 2022.



FULL ARTICLE: <a href="https://peraontheissues.com/pera-board-releases-2022-annual-report/" target="_blank" rel="noreferrer noopener">PERA Board Releases 2022 Annual Report</a>



<h4 class="wp-block-heading">Legislative update</h4>



The Board also received an update on the <a href="https://content.copera.org/pera-board-announces-election-results-at-june-meeting/" target="_blank" rel="noreferrer noopener">recently concluded 2023 legislative session</a>. Legislators passed three bills this year that affect PERA, and Gov. Jared Polis has signed all three into law.



One of the bills allocates additional funding to recompense PERA for the state&#8217;s missed 2020 direct distribution. Another requires PERA to include a description of climate-related investment risks, impacts and strategies in its annual <a href="https://copera.org/investment-stewardship" target="_blank" rel="noreferrer noopener">Investment Stewardship Report</a>, and the third bill reclassifies wildlife officers and parks and recreation officers with Colorado Parks and Wildlife as safety officers for determining their PERA benefits.



READ MORE: <a href="https://peraontheissues.com/colorado-legislators-pass-three-pera-related-bills-during-2023-legislative-session/" target="_blank" rel="noreferrer noopener">Colorado Legislators Pass Three PERA-Related Bills During 2023 Legislative Session</a>



The Board also received an update on legislative activity PERA staff will be involved in over the coming months before the next session begins in January. That includes regularly scheduled hearings before the Pension Review Commission, Pension Review Subcommittee, and Legislative Audit Committee this summer, the Joint Budget Committee in the fall, and the Joint Finance Committee in the winter.



In addition, the Board discussed the history of 2018’s Senate Bill 200. That bill, which is now part of state statute, included a number of major reforms that improved PERA’s financial status and established guardrails to ensure PERA is on a path to full funding by the end of 2047. <a href="https://www.copera.org/pera-board-announces-election-results-at-june-meeting" target="_blank" rel="noreferrer noopener" class="broken_link">Click here</a> for details.



<h4 class="wp-block-heading">Executive director search</h4>



The Board has begun the process of searching for PERA’s next executive director and is actively seeking an executive search firm to assist in that process. <a href="https://content.copera.org/pera-board-announces-election-results-at-june-meeting/" target="_blank" rel="noreferrer noopener">Click here</a> for more information on the Board’s Request for Information from qualified firms.



Throughout this year, the Board has been working to develop its next five-year strategic plan. Since Trustees would like PERA’s next executive director to be involved in that process, the Board decided to extend the existing strategic plan through the end of 2024.



The Board’s next regularly scheduled meeting is the September planning session from Sept. 20 to Sept. 22.

PERA Board Announces Election Results at June Meeting

The PERA Board of Trustees met on Friday, March 24 for its second regular meeting of 2023.



The meeting began with public comment and Board committee reports from the day before, followed by an update on the upcoming Board election and reports from PERA staff.



<h4 class="wp-block-heading">Board election</h4>



Four seats on the Board are up for election this year, and members interested in serving as a PERA trustee were able to submit their candidate packets in January and February.



Of those four seats, three received enough qualified candidates to hold an election in May: Seats in the School and Local Government divisions, and a retiree seat. As the sole candidate for the Judicial division seat, the Trustees appointed Hon. Rebecca R. Freyre to another four-year term in that seat.



Ballots will go out to active members in the School and Local Government divisions, as well as retirees in the State, Local Government, and Judicial divisions in early May, and the Board will announce election results at its June 16 meeting.



<h4 class="wp-block-heading">Legislative update</h4>



PERA Public and Government Affairs Manager Michael Steppat and Chief Investment Officer and Chief Operating Officer Amy C. McGarrity provided the Board with an update on legislative activity at the State Capitol. The Colorado General Assembly got underway in early January, and so far, lawmakers have introduced more than 450 bills.



There are three bills pertaining to PERA that are still under consideration in the legislature:&nbsp;<a href="https://leg.colorado.gov/bills/sb23-056" target="_blank" rel="noreferrer noopener">SB23-056</a> aims to fully recompense PERA for the state’s missed 2020 payment of $225 million to PERA;&nbsp;<a href="https://leg.colorado.gov/bills/sb23-016" target="_blank" rel="noreferrer noopener">SB23-016</a> would require PERA to include in its annual&nbsp;<a href="https://www.copera.org/investment-stewardship" target="_blank" rel="noreferrer noopener">Investment Stewardship Report</a>&nbsp;a description of climate-related investment risks, impacts and strategies; and <a href="https://leg.colorado.gov/bills/sb23-163" target="_blank" rel="noreferrer noopener">SB23-163</a> would reclassify wildlife officers and parks and recreation officers employed by Colorado Parks and Wildlife as safety officers for the purpose of determining their PERA benefits.



The Board also discussed <a href="https://leg.colorado.gov/bills/hb23-1016" target="_blank" rel="noreferrer noopener">HB23-1016</a>, which would provide a temporary tax credit of $700 for public service retirees in Colorado. That bill was introduced in January as is currently awaiting consideration by the House Appropriations Committee. 



Four other PERA-related bills have been postponed indefinitely.



<blockquote class="wp-block-quote">
READ MORE: <a href="https://peraontheissues.com/2023-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">2023 Proposed Legislation Status</a>
</blockquote>



The current legislative session will wrap up by May 8.



<h4 class="wp-block-heading">Strategic planning</h4>



The Board continued its work developing a new strategic plan that will guide the PERA Board and staff into the future. As part of that process, Trustees reviewed a SWOT (strengths, weaknesses, opportunities, and threats to the organization) analysis and discussed the results of that process. The SWOT analysis will help inform the Board’s work of identifying goals to pursue over the next half-decade and beyond.



The Board will continue working on a draft plan throughout the year.



The Board’s next scheduled meeting is June 16.

PERA Board Discusses Board Election, Legislation at March Meeting

Four seats on the Colorado PERA Board of Trustees are up for election this year, and candidacy packets are now available to those interested in running.



The Board of Trustees plays a vital role in PERA’s operations, overseeing the administration of all benefits and programs at 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.



The four seats up for election this year are:



<ul>
<li>School Division – currently held by JB Phillips</li>



<li>Local Government Division – currently held by Trina Ruhland</li>



<li>Judicial Division – currently held by Hon. Rebecca R. Freyre</li>



<li>Retiree – currently held by Timothy M. O’Brien</li>
</ul>



Any person interested in running for an open seat in their division can request a candidacy packet between now and Feb. 28. In this election, the retiree seat is open only to retirees from the State, Local Government, and Judicial divisions. Candidates must then gather the required signatures from members in their divisions and submit by March 1.



In early May, every PERA member whose division has an open seat will receive a ballot in the mail. If only a single candidate runs in a division, no election is held if approved by the Board, and no ballots will be mailed.



The Board will announce election results in June.



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

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