
<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 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 PERA Board of Trustees gained a new Chair and Vice Chair in June, when then-Chair Taylor McLemore announced he would be leaving the Board. The Hon. Rebecca R. Freyre <a href="https://www.copera.org/pera-on-the-issues/meet-the-new-vice-chair-of-the-pera-board" target="_blank" rel="noreferrer noopener">assumed the role of Chair</a> and Trina Ruhland was elected Vice Chair.&nbsp;&nbsp;</p>



<p>Trina Ruhland joined the Board in 2022 and attended her first meeting as Vice Chair in September. We caught up with Ruhland to learn more about her and the experience she brings to the Board.&nbsp;</p>



<p class="has-medium-font-size"><strong>Tell us a little about yourself and your background.</strong>&nbsp;</p>



<p>My day job is as a deputy county attorney for Boulder County, which is a PERA member. I have a degree in mathematics from the University of Chicago, so I’ve always had a math-minded brain and a personal interest in finance, and I’ve always considered myself a fan of PERA. I first found out about PERA during my first job in law school with the Attorney General’s Office. I remember even then recognizing its value and thinking, “Wow, this is an amazing benefit.” I was excited to join Boulder County, and PERA benefits were a factor in my choosing to work there.&nbsp;&nbsp;</p>



<p class="has-medium-font-size"><strong>How has your career informed your work as a Trustee?</strong>&nbsp;</p>



<p>As an attorney for a local government, I have a direct view into the importance of good governance and public service as well as the impact a board can have on an organization and its stakeholders. I believe in the importance of good governance and careful long-term planning. I teach a class at the University of Colorado Law School every semester for law students interested in government service and am constantly reminded of the importance of government service for our community and society.&nbsp;</p>



<p class="has-medium-font-size"><strong>What are you most looking forward to as you step into a leadership role on the Board?</strong>&nbsp;</p>



<p>When it comes to PERA, the members are always at the forefront of my mind. I really look forward to having the opportunity to make sure every voice on the Board is heard, as well as supporting transparency for our members and other stakeholders.&nbsp;&nbsp;</p>



<p class="has-medium-font-size"><strong>What makes for an effective Trustee, in your eyes?</strong>&nbsp;</p>



<p>I think preparation is key to being a good Trustee. It’s important to have a foundational understanding of how pension funds work, and Trustees are expected to obtain a certain number of hours of education, both on the specifics of PERA and more generally about best practices among public plans like ours. I think effective Trustees are those who understand the Board’s role as an oversight board and understand the governance framework we have put in place. PERA is a long game—we’re not just making decisions for this year but for many years in the future—so we have to be very intentional with each of our decisions to keep the best interests of our members’ retirement security at the forefront.&nbsp;&nbsp;</p>



<p class="has-medium-font-size"><strong>What&#8217;s something you wish more people knew about the Board?</strong>&nbsp;</p>



<p>I want people to know how passionate the Board members are in making sure our members have secure retirements, and that their benefit is really our sole focus. Many of our trustees, myself included, are PERA members themselves. Each Trustee puts in a significant amount of time, work, and mental energy into the work of the Board, and I think that makes the organization stronger in ensuring our members have secure retirements.&nbsp;</p>



<p>To learn more about the PERA Board, visit our <a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">Board and Leadership page</a>.&nbsp;</p>


Meet Trina Ruhland, Vice Chair of the PERA Board


<p>The&nbsp;<a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">Colorado PERA Board of Trustees</a>&nbsp;met in Colorado Springs for its annual September planning session that concluded with a Board meeting on Friday, Sept. 19.</p>



<p>The multi-day planning session is a valuable opportunity for Trustees to engage in more in-depth conversations and planning activities than a typical one-day meeting allows. Below is a summary of some of the highlights and important actions the Board took.</p>



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



<p>A common activity for the Board during its annual planning session is actuarial modeling. System Actuary Koren Holden, Actuary Bill Detweiler, and the Board’s actuarial consultant, Segal, joined the Trustees to discuss theoretical scenarios and how they might affect the funding of the PERA Defined Benefit Plan. For example, if the investment portfolio experienced losses in future years, or state employment dropped significantly, those events could negatively impact the plan’s progress toward reaching full funding.</p>



<p>This process helps the Board assess the financial health of the trust funds and gauge the possibility of falling behind and triggering the Automatic Adjustment Provision, which automatically raises member and employer contributions and lowers retiree benefit increases based on the plan’s funding progress.</p>



<p>As of December 31, 2024, PERA remains on track to reach full funding, and adjustments are not needed this year or next year.</p>



<p>The Board also discussed the possibility of pursuing legislation that could help reduce the possibility of triggering automatic adjustments in coming years, as outlined in their presentation on a recent study about the Automatic Adjustment Provision and related impacts. We expect to have more information on any proposed bills closer to the start of the next legislative session in January.</p>



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



<p>Chief Executive Officer/Executive Director Andrew Roth and Director of Strategy Annalise Yahne provided an update on staff progress toward implementing PERA’s <a href="https://content.copera.org/wp-content/uploads/2024/05/strategic-plan.pdf" target="_blank" rel="noreferrer noopener">three-year strategic plan</a>. The plan is a roadmap to strengthen the organization through stronger relationships with members and stakeholders, continued focus on funding, and modernizing technology.</p>



<p>Roth and Yahne walked through what the organization has accomplished so far this year, including building a dashboard to track progress, meeting with various member groups and other stakeholders, and completing a significant amount of groundwork for PERA’s long-term modernization project.</p>



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



<p>The PERA Board receives a report every year from CEM Benchmarking that scores PERA on the quality and cost of services we provide to members and compares those factors to other public pension plans.</p>



<p>PERA earned a service score of 87 for 2024, compared to the peer median score of 81. CEM calculated PERA’s total administrative cost per member at $63, below the peer average of $71. Overall, the CEM report finds PERA provides a higher level of service at lower cost than the average pension plan.</p>



<p>CEM gave PERA particularly high scores in areas such as the accessibility of online services, speed of processing retirements, communications to members approaching retirement, and call wait times.</p>



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



<p>Chief Benefits Officer Patrick Lane and Director of Insurance Jessica Linart discussed the PERACare health benefits program and the state of the health care market. The conversation covered legislative and regulatory changes at the federal level and other challenges that have affected plan premiums over the past decade.</p>



<p>PERACare staff review plan offerings every few years and plan to solicit bids from insurance companies for plan year 2027. Staff sent retirees a survey earlier this year, and the responses from that survey will help inform the selection process.</p>



<p>For more information on 2026 PERACare open enrollment, visit <a href="http://copera.org/peracare-open-enrollment-2026" target="_blank" rel="noreferrer noopener" class="broken_link">copera.org/peracare-open-enrollment-2026.</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 provided an update on conditions in the financial markets and the overall economy. McGarrity said while it’s been a strong year for public financial markets, there’s still a good deal of uncertainty due to factors such as volatility in the technology sector and the growth of artificial intelligence, geopolitical uncertainties, inflation, and tariffs and trade policy.</p>



<p>On interest rates, McGarrity said there is growing consensus it’s likely the Federal Reserve will cut rates again this year after a slight decrease earlier in September.</p>



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



<p>Lane again joined the Board to provide an update on business operations such as retirement processing and customer service interactions. He shared the following statistics, which provide a window into the volume of transactions PERA staff have processed so far in 2025:</p>



<ul>
<li>5,419 new retirements across all five PERA divisions</li>



<li>2,404 individual counseling sessions with members nearing retirement</li>



<li>1,501 service credit purchases</li>



<li>135,300 phone calls to the Customer Service team</li>



<li>6:53 average call time</li>



<li>21,495 secure email interactions with members</li>
</ul>



<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 last regularly scheduled meeting of 2025 is Friday, November 21.</p>



<p>The Board also approved its meeting schedule for 2026:</p>



<ul>
<li>January 23</li>



<li>March 20</li>



<li>June 18</li>



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



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



<p></p>



<p>Details on upcoming Board meetings and materials from past meetings <a href="https://copera.org/about/board-and-leadership/board-meetings" target="_blank" rel="noreferrer noopener">are available online</a>.</p>


Recapping the PERA Board’s 2025 Planning Session


<p>In June, PERA released its <a href="https://copera.org/annual-report" target="_blank" rel="noreferrer noopener"><em>2024 Annual Comprehensive Financial Report</em> (ACFR)</a>, which contains detailed information on PERA’s finances, investment performance, and funded status for the year ended December 31, 2024.</p>



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



<p>A <a href="https://www.copera.org/2023-popular-annual-financial-report" target="_blank" rel="noreferrer noopener">summary version of the <em>ACFR</em></a> is also available and you can explore highlights in an interactive format 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">Plan Assets and Funding</h2>


<div class="wp-block-image">
<figure class="alignright size-large is-resized"><a href="https://content.copera.org/wp-content/uploads/2025/07/bythenumbers2024-acc.jpg"><img decoding="async" loading="lazy" src="https://content.copera.org/wp-content/uploads/2025/07/bythenumbers2024-acc-791x1024.jpg" alt="2024 in review: $66.7 billion investment portfolio, 10.8% net rate of return, 219,204 active members, 412 employers, 57,232 PERACare participants, 69.2% funded status, 141,438 retirees and benefit recipients, $5.4 billion in annual benefit payments, $768.4 million invested in Colorado, 8.4% 30-year return." class="wp-image-59265" width="396" height="512" srcset="https://content.copera.org/wp-content/uploads/2025/07/bythenumbers2024-acc-791x1024.jpg 791w, https://content.copera.org/wp-content/uploads/2025/07/bythenumbers2024-acc-232x300.jpg 232w, https://content.copera.org/wp-content/uploads/2025/07/bythenumbers2024-acc-768x994.jpg 768w, https://content.copera.org/wp-content/uploads/2025/07/bythenumbers2024-acc-1187x1536.jpg 1187w, https://content.copera.org/wp-content/uploads/2025/07/bythenumbers2024-acc-1583x2048.jpg 1583w, https://content.copera.org/wp-content/uploads/2025/07/bythenumbers2024-acc.jpg 1978w" sizes="(max-width: 396px) 100vw, 396px" /></a><figcaption class="wp-element-caption">Click or tap to enlarge</figcaption></figure></div>


<p>As of the end of 2024, PERA manages an investment portfolio of $66.7 billion for the defined benefit plans and $6.7 billion for the defined contribution plans. The defined benefit assets are split between five division trust funds from which PERA pays benefits: State, Local Government, School, Denver Public Schools, and Judicial.</p>



<p>The defined benefit trust funds saw a total of $12.4 billion in additions and $6.4 billion in deductions during 2024.</p>



<p>Across all five divisions, 219,204 members and 412 employers were actively contributing to PERA accounts. Member and employer contributions to PERA totaled more than $4.4 billion. Other additions included the State’s annual $225 million direct distribution and more than $96 million in <a href="https://www.copera.org/welcome-pera-members/benefit-basics/purchasing-service-credit" target="_blank" rel="noreferrer noopener">service credit purchases</a>.</p>



<p>Sixty-one percent of PERA’s investment assets are managed in-house by PERA staff, at an annual savings of $70 million compared to external management. Net investment income totaled more than $7.5 billion for the year.</p>



<p>PERA’s funded status at the end of the year – or the percentage of money PERA currently has on hand to pay all benefits earned to date &#8211; was 69.2%. While that represents a slight drop from the year before, PERA remains on track to meet its funding goals.</p>



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



<p>PERA paid a total of $5.4 billion in pension benefits to 141,438 retirees and benefit recipients, for an average monthly benefit of $3,264. The average age at retirement was 59.3 with 22.3 years of service credit.&nbsp; The remaining $1 billion in deductions included health care benefits and insurance premiums, member account refunds, and administrative expenses.</p>



<p>PERA provides benefits to nearly 1 out of every 10 Coloradans who are current and former teachers, State Troopers, snowplow drivers, correction officers, and other public employees who provide valuable services to all of Colorado. Of that $5.4 billion paid last year, approximately $4.6 billion went to more than 115,000 PERA retirees living in Colorado. That steady stream of income flows to every county in the state, providing stability to state, regional, and local economies.</p>



<p>Visit <a href="https://secure.copera.org/staticcontent/digitalsnapshot/acfr-2024/" target="_blank" rel="noreferrer noopener">copera.org/snapshot</a> for more details, including a county-by-county breakdown of benefits paid.</p>



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



<ul>
<li><a href="https://secure.copera.org/staticcontent/digitalsnapshot/acfr-2024/" target="_blank" rel="noreferrer noopener">Digital Snapshot</a></li>



<li><a href="https://content.copera.org/wp-content/uploads/2025/06/Annual-Comprehensive-Financial-Report.pdf" target="_blank" rel="noreferrer noopener">2024 <em>Annual Comprehensive Financial Report</em> (PDF)</a></li>



<li><a href="https://content.copera.org/wp-content/uploads/2025/06/2024-Popular-Annual-Financial-Report.pdf" target="_blank" rel="noreferrer noopener">2024 <em>Popular Annual Financial Report</em> (PDF)</a></li>



<li><a href="https://content.copera.org/wp-content/uploads/2025/06/2024-Division-Trust-Funds-Funding-Valuation.pdf" target="_blank" rel="noreferrer noopener">2024 Actuarial Valuation (PDF)</a></li>
</ul>


A Closer Look at PERA’s 2024 Annual Report


<p>The PERA Board of Trustees met at PERA’s offices in Denver on Friday, March 14 for its second regular meeting of the year.</p>



<p>The Trustees took action and received updates on several important topics, including strategic planning, legislation, and the upcoming Board election.</p>



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



<p>PERA’s internal audit team presented an update on this year’s <a href="https://copera.org/board-election-2025" target="_blank" rel="noreferrer noopener">Board election</a>. There are five seats up for election and 21 candidates will be vying for those seats, staff said.</p>



<p>PERA members and retirees who are eligible to vote will receive ballots in early May. New this year, voting will be available through the <a href="https://copera.org/pera-mobile-app" target="_blank" rel="noreferrer noopener">Colorado PERA mobile app</a> and secure online portal in addition to mail and phone voting.</p>



<p>The Board will announce election results at its June 27 meeting.</p>



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



<p>CEO/Executive Director Andrew Roth and Director of Public &amp; Government Affairs Michael Steppat provided an update on the 2025 legislative session so far.</p>



<p>Of the six PERA-related bills introduced so far, two remain under consideration: <a href="https://leg.colorado.gov/bills/hb25-1105" target="_blank" rel="noreferrer noopener">House Bill 1105</a>, which would reduce the employer contribution rate for the Denver Public Schools Division, and <a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">Senate Bill 147</a>, which would modify a number of provisions under current law related to the PERA Board. Two bills that would have provided tax relief to retirees, <a href="https://leg.colorado.gov/bills/hb25-1052" target="_blank" rel="noreferrer noopener">House Bill 1052</a> and <a href="https://leg.colorado.gov/bills/sb25-136" target="_blank" rel="noreferrer noopener">Senate Bill 136</a>, have failed.</p>



<p>In addition, lawmakers passed a bill that will suspend interim legislative activity in an effort to reduce costs and free up funds for the state budget. That means the Pension Review Commission and Pension Review Subcommittee, which usually meet every year in between legislative sessions, will not meet this year.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/pera-on-the-issues/2025-proposed-pera-related-legislation-status" target="_blank" rel="noreferrer noopener">2025 Proposed PERA-Related Legislation Status</a></p>



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



<p>Following many months of work, the Board took the important step of adopting PERA’s next strategic plan, which will guide organizational priorities and aspirations over the next three years. The plan defines PERA’s long-term direction and provides a high-level roadmap for achieving its priorities, ensuring alignment between the Board and staff.</p>



<p>The plan focuses on three main strategic goals:</p>



<ul>
<li><strong>Financial stability:</strong> Strengthen PERA’s long-term financial health</li>



<li><strong>Customer/stakeholder experience:</strong> Be a trusted partner in service to members</li>



<li><strong>Organizational excellence and modernization:</strong> Create value through exceptional performance</li>
</ul>



<p></p>



<p>With the Board’s adoption of the plan, it’s now up to staff to implement it. Yearly implementation plans will provide concrete steps toward achieving the plan’s goals and objectives over the next three years.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/news/pera-board-adopts-new-three-year-strategic-plan" target="_blank" rel="noreferrer noopener">PERA Board Adopts New Three-Year Strategic Plan</a></p>



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



<p>PERA is in the early stages of a multi-year project to modernize the core technology systems used to administer benefits, and staff have been providing the Board with regular updates as the project progresses.</p>



<p>Chief Technology Officer Ryan Ericson, Chief Administrative Officer Jeremy Hill, and Chief Benefits Officer Patrick Lane highlighted some of the preparatory work staff have been doing, such as data cleanup, business process mapping and improvement, and staff onboarding.</p>



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



<p>Board meetings commonly include an update from PERA’s CEO/Executive Director, Andrew Roth. Roth detailed some of the work he and staff have been doing to engage with stakeholders and enhance transparency.</p>



<p>Since he joined PERA last year, Roth has been meeting with many stakeholder groups, such as legislators and business leaders as well as educator groups like the Colorado Education Association and coalitions like Secure PERA.</p>



<p>On transparency, Roth discussed PERA’s efforts to make information about the Board and <a href="https://copera.org/about/board-and-leadership/board-meetings" target="_blank" rel="noreferrer noopener">Board meetings</a> more readily available. That includes posting three years’ worth of meeting materials, livestream recordings of past meetings, and ensuring materials for upcoming meetings are posted online ahead of time.</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 provided the Trustees with an update on recent economic and market conditions. McGarrity explained that U.S. stocks—particularly tech stocks—have seen volatility so far this year and there’s uncertainty in the markets. And while inflation is down, concerns remain that higher prices will persist in coming years.</p>



<p>McGarrity also explained that while PERA sometimes receives questions or criticisms about its investment program and active asset management, the Board’s strategic asset allocation, with its focus on diversification, has proven itself over the long term.</p>



<p>“Certainly in any short-term period we may experience volatility and even underperform the markets, but long-term we’ve done really well,” McGarrity said. As of Dec. 31, 2024, PERA’s total portfolio has earned an annualized return of 8.3% over the past 30 years.</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 concluded by reviewing meeting dates for the remainder of the year. They are:</p>



<ul>
<li>June 27</li>



<li>September 17-19 (offsite planning session and meeting)</li>



<li>November 21</li>
</ul>



<p></p>



<p>For more information on upcoming Board meetings or to view materials from past meetings, visit <a href="https://copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">copera.org/about/board-and-leadership</a>.</p>


PERA Board Adopts New Strategic Plan at March 2025 Meeting


<p>The Colorado PERA Board of Trustees voted to support <a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">SB25-147</a>, a bill that proposes changes to statute regarding Board operations and transparency. The Trustees held a special meeting on Friday, February 28 to discuss the bill and take a position.</p>



<p>The bill from sponsors Sen. Byron Pelton, Sen. Chris Kolker, Rep. Lori Garcia Sander, and Rep. Meghan Lukens would modify state law to impose term limits on Trustees; define the PERA Board as a local public body instead of a state public body as it applies to the Colorado Open Meetings Law; and require that PERA post certain financial information online, including staff compensation and various other administrative expenses.</p>



<p>In addition to the above changes, the bill sets out in state law some current Board and staff practices, including:</p>



<ul>
<li>Posting Board meeting materials and recordings on PERA’s website: PERA currently streams every Board meeting on <a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">copera.org</a> and <a href="https://www.youtube.com/@ColoradoPERA" target="_blank" rel="noreferrer noopener">YouTube</a>, and recordings are available afterward. Agendas for Board meetings are posted in advance and materials from past meetings are also available online.</li>



<li>Providing instructions for members of the public to participate in Board meetings: PERA currently provides multiple ways to communicate with the Board, including public comment (in person and over the phone) at every regular meeting and a Board-specific email address on the <a href="https://www.copera.org/contact-us" target="_blank" rel="noreferrer noopener">Contact Us page</a>.</li>



<li>Posting audited financial statements online: PERA’s <a href="https://copera.org/annual-report" target="_blank" rel="noreferrer noopener"><em>Annual Comprehensive Financial Report</em></a> (ACFR) contains detailed information about PERA’s finances, membership, and operations. The <em>ACFR</em> and all other annual financial reports are <a href="https://www.copera.org/forms-resources/financial-reports-and-studies" target="_blank" rel="noreferrer noopener">available online</a>.</li>
</ul>



<p></p>



<p>In their conversation about the bill and its proposed changes, Trustees discussed the importance of transparency in maintaining trust with stakeholders. The Board’s vote to support the bill demonstrates its commitment to making PERA more open and accountable.</p>



<p>“Strong governance and clear communication with our members and the public are vital to a mission-driven organization like Colorado PERA, and we believe Senate Bill 147 helps affirm our commitment to transparency,” said CEO/Executive Director Andrew Roth. “I want to thank the sponsors for bringing this bill before the Legislature, and we look forward to further engagement with policymakers as it makes its way through the General Assembly.”</p>



<p>On February 25, the Senate Finance Committee voted unanimously to refer the amended bill to Appropriations, where it remains under consideration.</p>



<p>Learn more and read the full text of the bill on the <a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">General Assembly’s website</a>.</p>


PERA Board Supports Bill That Codifies Board Practices, Enhances Transparency


<p>The Colorado PERA Board of Trustees has wrapped up work on an important periodic study that helps ensure better accuracy of PERA’s financial calculations.</p>



<p>Known as an actuarial experience study, the analysis gives retirement plans like PERA a periodic refinement or more accurate picture of their financial health and future obligations.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Planning for the future</h2>



<p>PERA is in the business of providing retirement benefits for as long as a person lives, and that presents a unique challenge: Making sure we have an accurate sense of how much it will cost to pay those benefits over several decades and beyond.</p>



<p>Because a retiree’s benefit in the PERA Defined Benefit Plan is based on their age, years of service, and salary history, we need to be able to predict how certain factors will change over time, such as:</p>



<ul>
<li>Expected lifespan of the retiree population</li>



<li>Expected pay increase patterns over the career of active members</li>



<li>Typical ages at which active members retire</li>



<li>Expected annual investment return, in the long-term</li>



<li>Expected change in the value of a dollar (rate of inflation)</li>
</ul>



<p></p>



<p>Those factors are referred to as actuarial assumptions, and they’re grouped into either economic assumptions (inflation and investment returns) or demographic assumptions (rates of mortality and retirement). Together, the assumptions play a key role in the calculations PERA conducts every year as reported in its actuarial valuations and <a href="https://copera.org/annual-report" target="_blank" rel="noreferrer noopener"><em>Annual Comprehensive Financial Report</em></a>.</p>



<p><strong>RELATED:</strong> <a href="https://www.copera.org/pera-on-the-issues/explaining-the-role-of-actuaries-in-retirement-plans-like-pera" target="_blank" rel="noreferrer noopener">Explaining the Role of Actuaries in Retirement Plans Like PERA</a></p>



<p>The process of reviewing and refining actuarial assumptions is known as an experience study, so called because it involves comparing the assumptions with what actually happened over a set period of time. For example, if wage growth is much different than expected during the period of study, some adjustments to that assumption are likely needed going forward.</p>



<p>PERA typically conducts an actuarial experience study every four years. This year’s experience study offered additional challenges because the period studied, from January 1, 2020, to December 31, 2023, encompassed effects of the COVID-19 pandemic. Special consideration was needed to ensure the higher mortality and greater number of unreduced retirements were not inappropriately reflected within the revised assumptions.</p>



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



<p>The PERA Board’s actuarial consultant, Segal, conducted the experience study and provided the Board with recommendations for adjustments to various assumptions as a result.</p>



<p>Segal recommended the following adjustments to demographic assumptions:</p>



<ul>
<li>Salary scale assumptions were altered to better reflect actual recent experience.</li>



<li>Assumed rates of termination, retirement, and disability were revised to more closely reflect actual experience.</li>



<li>Mortality base tables were retained with revised adjustments for credibility and gender, where applicable, and the applied generational projection scale was updated for all groups.</li>



<li>Administrative expense load was increased from 0.40% to 0.45%, as a percentage of covered payroll.</li>



<li>Assumed annual membership growth (for projection purposes only) was decreased for the School, Local Government, and DPS Divisions.</li>



<li>Assumed rates of PERACare participation for both Health Care Trust Funds were reduced to better reflect actual recent experience.</li>
</ul>



<p></p>



<p>Segal recommended retention of the current economic assumptions, including the long-term expected rate of return (7.25%), price inflation (2.3%), and wage inflation (3.0%).</p>



<p>The Board voted unanimously to adopt all recommendations for the five Division Trust Funds and the two Health Care Trust Funds.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What the changes mean</h2>



<p>First and foremost, changes in PERA’s actuarial assumptions do not affect the payment of retirement benefits. If you’re a PERA retiree, you’ll continue to receive your monthly benefit payments as expected, and working members can count on PERA providing benefits when they retire.</p>



<p>The main impact of the experience study is on PERA’s current and projected liabilities—which help determine how much money PERA will need to have on hand to pay benefits for its members.</p>



<p>The recent experience review noted over the period studied, that certain assumptions resulted in liability gains while others resulted in liability losses. However, the net result was an actuarial loss overall—meaning, the revised assumptions will likely result in a negative effect on PERA’s funding status.</p>



<p>The exact impact of the updated assumptions won’t be clear until the release of the <em>Annual Comprehensive Financial Report </em>(ACFR), as that will be the first time the revised assumptions are incorporated into PERA’s annual valuation process—assessing plan liabilities and other important actuarial metrics.</p>



<p>The 2024 <em>ACFR</em> will be available following the PERA Board’s June 27, 2025, meeting.</p>


Actuarial Experience Study: Refining the Financial View of the Future


<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>


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