Retirement insights from a Colorado PERA perspective

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<h4 class="wp-block-heading"><a href="https://www.coloradopolitics.com/news/colorado-budget-cuts/article_21095d25-b442-45db-b75a-00bd4cd69f2e.html" target="_blank" rel="noreferrer noopener">$43.9 Billion Budget Bill Introduced in Colorado Senate | Colorado Politics</a></h4>



State lawmakers have been working to build out the budget for the next fiscal year while trying to fill a $1.2 billion funding hole, and they released their proposal this week. In total, the budget calls for $43.9 billion in spending with dozens of accompanying bills that cut or transfer funds to fill the budget shortfall.



<h4 class="wp-block-heading"><a href="https://coloradosun.com/2025/04/01/amgen-enbrel-price-cap-lawsuit-dismissed/" target="_blank" rel="noreferrer noopener">Enbrel Maker&#8217;s Effort to Stop Colorado from Capping Drug Price Dismissed | The Colorado Sun</a></h4>



The Legislature created the Colorado Prescription Drug Affordability Board in 2021 with the goal of reviewing the affordability of prescription drugs and capping the prices of medications deemed to be too unaffordable. Drugmaker Amgen filed a lawsuit trying to prevent the Board from capping the price of its autoimmune drug Enbrel, but a judge dismissed the suit.



<h4 class="wp-block-heading"><a href="https://www.npr.org/2025/03/26/nx-s1-5341780/social-security-administration-identity-requirements" target="_blank" rel="noreferrer noopener">Social Security Officials Partially Walk Back Plans for In-Person Verification | NPR</a></h4>



After previously announcing that some Social Security beneficiaries would need to verify their identities in-person at a Social Security office, the Social Security Administration is updating its policy and moving its deadline. The agency now says the in-person requirement will only apply to people who are trying to access retirement, survivor, or auxiliary benefits and who are unable to verify their identity online.



<h4 class="wp-block-heading"><a href="https://www.marketplace.org/shows/marketplace-tech/the-sec-invites-cryptocurrency-supporters-and-skeptics-to-the-table/" target="_blank" rel="noreferrer noopener">The SEC Holds its First Cryptocurrency Roundtable | Marketplace</a></h4>



The Securities and Exchange Commission (SEC), which enforces regulations in financial markets, held its first roundtable meeting on cryptocurrencies last month. The question at the center of the agency’s discussion is whether the SEC should regulate cryptocurrencies the same way it regulates stocks and bonds.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: State Lawmakers Introduce $43.9B Budget Proposal

<h4 class="wp-block-heading"><a href="https://coloradosun.com/2025/03/17/colorado-budget-shortfall-recession-risk-march-forecast/" target="_blank" rel="noreferrer noopener">Recession Risk Grows, Adding Uncertainty to Colorado Budget Crunch | The Colorado Sun</a></h4>



There’s still a lot of uncertainty as the deadline approaches for the Legislature to release its budget plan for the next fiscal year. State economists say that while Colorado’s economy is growing, unemployment is rising and spending and economic growth are slowing. At the same time, lawmakers are trying to find ways to cut over $1 billion from the state budget.



<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2025/03/15/investment-fraud-how-to-protect-yourself.html" target="_blank" rel="noreferrer noopener">Americans Lost $5.7 Billion to Investment Scams in 2024, FTC Says. Here’s How to Protect Yourself | CNBC</a></h4>



Investment scams are on the rise—the latest data from the Federal Trade Commission show Americans lost $5.7 billion to investment scams in 2024, up 24% from the year before. Officials say scamming operations have become more sophisticated, and criminals stole an average of more than $9,000 from victims last year. Here are some tips for spotting and avoiding potential scams.



<h4 class="wp-block-heading"><a href="https://www.cnet.com/personal-finance/taxes/the-irs-has-issued-a-whopping-145-billion-in-tax-refunds-so-far/" target="_blank" rel="noreferrer noopener">The IRS Has Issued a Whopping $145 Billion in Tax Refunds so Far | CNET</a></h4>



Tax season is well underway, and the Internal Revenue Service (IRS) reports its tax return processing is mostly on par with last year, so far. The IRS says it has processed more than 60 million returns since tax season began and issued more than 43 million refunds, with an average refund of more than $3,300.



<h4 class="wp-block-heading"><a href="https://www.npr.org/2025/03/04/g-s1-51748/trump-crypto-reserve-bitcoin-stockpile-ether" target="_blank" rel="noreferrer noopener">What to Know About Trump&#8217;s &#8216;Crypto Strategic Reserve&#8217; Plan | NPR</a></h4>



President Donald Trump announced his intent to create a strategic reserve of cryptocurrency similar to the U.S. stockpile of gold. While there are still many questions about how a cryptocurrency reserve might work, the U.S. government already holds billions of dollars in bitcoin seized from criminal cases.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: Latest Forecasts Add Uncertainty to State Budget

The 2025 legislative session is well underway with more than 400 bills introduced so far.



To hear the latest from the State Capitol, we caught up with PERA Director of Public &amp; Government Affairs Michael Steppat, who meets regularly with lawmakers throughout the legislative process.



<h4 class="wp-block-heading">Let’s start with a quick recap of the PERA-related bills we’ve seen so far and where they stand.</h4>



So far this session, legislators have introduced six bills that affect PERA or our members. <a href="https://leg.colorado.gov/bills/hb25-1052" target="_blank" rel="noreferrer noopener">One of those bills</a>—which reintroduced last year’s bill to create a temporary tax credit for retirees—has already been defeated in committee.



The five bills that remain under consideration touch on a variety of topics. For example, <a href="https://leg.colorado.gov/bills/sb25-136" target="_blank" rel="noreferrer noopener">SB25-136</a> would remove the state income tax deduction limit on pension income, and <a href="https://leg.colorado.gov/bills/hb25-1150" target="_blank" rel="noreferrer noopener">HB25-1150</a> would require a PERA member who’s convicted of a sex crime to forfeit part of their benefits.



Two of the bills—<a href="https://leg.colorado.gov/bills/sb25-028" target="_blank" rel="noreferrer noopener">SB25-028</a> and <a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">SB25-147</a>—propose changes to state law that in many cases codify work PERA and the PERA Board are already doing. That includes things such as financial studies and reporting, video streaming Board meetings and posting meeting materials online. As a mission-driven organization, transparency is important to the work we do, and we appreciate working with the Legislature to ensure all stakeholders have the information they need.



READ MORE: <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>



<h4 class="wp-block-heading">Writing the State’s budget is always an important part of the legislative session; how’s that process going this year?</h4>



Lawmakers began the session with a challenging budget situation—a shortfall of nearly $700 million. There have also been some questions about whether anything in Washington, DC will affect the hundreds of millions of dollars Colorado receives from the federal government. Throughout the budget writing process, lawmakers are keeping a close eye on any potential impacts to the state budget.



The Legislature will release its budget proposal, known as the “long bill,” in March and finalize it in April. While the state budget doesn’t determine PERA’s budget or the payment of benefits, we’ll keep an eye out for anything that might affect PERA or PERA employers down the line.



<h4 class="wp-block-heading">Do any of the changes in the federal government, such as staffing reductions and spending freezes, affect PERA?</h4>



PERA does not receive federal funding and so far, none of the changes in the federal government have any direct impact on PERA. All of our funding comes from employee and employer contributions, investment returns, and an annual $225 million direct distribution from the state. PERA benefits are paid from the PERA trust funds and are not subject to federal funding or programs.



The Colorado General Assembly created PERA and remains in charge of things like benefit provisions and legislative oversight. While the federal government has limited jurisdiction over public retirement plans like PERA, it does oversee other benefits PERA members and retirees may receive, such as Medicare and Social Security.



<h4 class="wp-block-heading">Speaking of Social Security, what’s the latest on the Social Security Fairness Act and the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)?</h4>



Since the Social Security Fairness Act <a href="https://www.copera.org/pera-on-the-issues/president-biden-signs-wep-gpo-repeal-bill-into-law">became law in early January</a>, the Social Security Administration (SSA) has been working to figure out how it will implement all the necessary changes and recalculate retiree benefits. That could take some time under the best of circumstances, since it’s a complicated issue with millions of affected beneficiaries.



The SSA said it’s been under a hiring freeze since November so it’s working with limited staff, and that’s likely to cause a delay in implementing the law. If we see further reductions in the SSA workforce, it’s possible the delay could stretch even further. Only time will tell, and we’re keeping an eye out for any updates or developments from SSA.



READ MORE: <a href="https://www.copera.org/pera-on-the-issues/social-security-fairness-act-rollout-could-take-a-year-or-more" target="_blank" rel="noreferrer noopener">Social Security Fairness Act Rollout Could Take A Year or More</a>



<h4 class="wp-block-heading">What’s the best way to stay up to date throughout the session?</h4>



We post regular updates here on PERA On The Issues, so <a href="https://www.copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener">subscribing to the biweekly newsletter</a> is a great way to receive the latest news in your inbox. The legislative session will run through early May, and we’ll be sure to let everyone know about any new bills that come up between now and then.

Checking in on the 2025 Legislative Session So Far

In Colorado, the 2020 election season is over. PERA-related issues were not on the ballot, but ballot issues can have a downstream effect on PERA. 



PERA’s Public and Government Relations Manager, Michael Steppat, joined PERA On The Issues to talk about the election&#8217;s outcomes.



Welcome back, Michael. This was a busy election season, and Colorado voters had many issues to consider. What stood out to you?



It was a rollercoaster ride and I’m glad it is over. But seriously, I think something that “stood out” would be Coloradans’ desire to be engaged in the political process. Voter turnout in Colorado was <a href="https://coloradosun.com/2020/11/06/colorado-voter-turnout-record-2020-election/">h</a><a href="https://coloradosun.com/2020/11/06/colorado-voter-turnout-record-2020-election/" target="_blank" rel="noreferrer noopener">i</a><a href="https://coloradosun.com/2020/11/06/colorado-voter-turnout-record-2020-election/">gher</a> than any previous election in the state’s history.



Many of the ballot issues Coloradans voted on will determine fiscal policy in the years ahead. Collectively, what implications will these changes have on the state budget?



Well, there’s obviously a lot of moving parts here, but the impacts to the state budget are huge.



The approval of Amendment B to repeal the Gallagher Amendment is a big deal in terms of how the state manages fiscal policy moving forward, but also prevents budget cuts that would have gone through in the next fiscal year had it not passed.



The voters also approved a <a href="https://www.thedenverchannel.com/news/election-2020/colorado-voters-pass-proposition-116-which-cuts-the-state-income-tax-rate" target="_blank" rel="noreferrer noopener">tax cut</a>, but the repeal of <a href="https://www.cpr.org/2020/11/03/colorado-election-results-repeal-gallagher-amendment-b/" target="_blank" rel="noreferrer noopener">Gallagher</a> and a <a href="https://leg.colorado.gov/agencies/legislative-council-staff/cigarette-tax" target="_blank" rel="noreferrer noopener">tobacco tax increase</a> are expected to bring in enough revenue to more than offset the income tax rate cut.



At the federal level, talks for another fiscal stimulus bill have been stalled for months. Now that the election is over, will negotiations quicken, or shouldn’t we expect so see anything materialize until 2021?



TBD. It’s difficult to predict what happens in Congress even under normal circumstances. Hopefully there will be some movement in the lame duck session to pass another stimulus bill, because it is desperately needed across the country.&nbsp;



Using federal stimulus dollars for state and local budgets has been one of the biggest issues of disagreements thus far. How would these dollars be used? If they were included in a future stimulus act, would they increase the likelihood that PERA receives a direct distribution in 2021?



That is the million-dollar question. Would these dollars come with strings attached or will state/local governments have some flexibility? Most will again be focused on the state’s budget situation entering the next legislative session.



We hope to meet up with you again in early January when we publish our annual legislative preview. Until then, what will you be watching as next year’s legislation session begins to take shape?



Lawmakers will again be focused on policy responses to COVID-19. However, the extent to which other priorities can be addressed will largely depend on what happens these next few months from a public health standpoint.

What Election Results Mean for PERA Members

Gov. Jared Polis included PERA&#8217;s direct distribution in his 2021 state budget proposal.



The state legislature passed a bill in 2020 suspending the $225 million payment for one year due to historic revenue shortfalls and consequential budget cuts. PERA On The Issues has covered the 2020 suspension in depth in <a href="https://peraontheissues.com/legislative-update-an-uncertain-path-ahead/" target="_blank" rel="noreferrer noopener">previous</a> <a href="https://content.copera.org/polis-budget-plan-includes-pera-direct-distribution/" target="_blank" rel="noreferrer noopener">articles</a>.



It&#8217;s up to the state legislature to ultimately create and pass a budget, but the governor&#8217;s budget proposal helps get the budget conversation underway.



Direct Distribution – a Summary



The landmark SB 18-200 included a number of changes that work in concert to bring PERA to full funding. The <a href="https://peraontheissues.com/direct-distribution-of-225-million-helps-return-pera-to-full-funding/" target="_blank" rel="noreferrer noopener">direct distribution</a> was one of these changes. In short, it is a $225 million annual payment from the state. Every dollar goes toward paying off PERA’s unfunded liability.



This payment was more than a commitment of budget writers in 2018. The direct distribution was written into statute, to occur every year until all unfunded actuarial accrued liabilities from all divisions of PERA are eliminated.



2020 Crisis



The global pandemic led to a precipitous drop in state revenue. Billions of dollars of expected income vanished. The Joint Budget Committee (JBC), the bipartisan group of senators and representatives who write the state budget, faced an unenviable task: reducing or eliminating a <a href="https://peraontheissues.com/legislative-update-an-uncertain-path-ahead/" target="_blank" rel="noreferrer noopener">large number</a> of previously budgeted items in order to balance the budget. The direct distribution was one of many emergency cuts.



2021 Budget Process



We won’t know what next year’s budget will look like for a while. Typically, the JBC releases their budget in late March or early April. However the process of creating the budget takes months.



The governor’s budget plan is one of the first waypoints of this process. While the governor does not write the budget, he can signal priorities via this plan. Restoring the direct distribution is a key part of <a href="https://www.colorado.gov/governor/news/3376-governor-polis-releases-state-budget-proposal" target="_blank" rel="noreferrer noopener">his proposal</a>, which he released on November 2. Next Steps



The status of the direct distribution won’t be official until the state legislature passes a budget next year. However, learning about the priorities of everyone involved in the budget process, like the governor, can bring some focus to an otherwise hazy picture.



Another opportunity to gain clarity is when the state releases its revenue forecasts periodically. Revenue forecasts supply JBC members with crucial information about how much money they can expect to work with. 



Remember, these forecasts are estimates and can change over time. But they are important in setting expectations as the JBC does their work.



“The September revenue forecast painted a slightly less grim picture of the state’s revenue situation as the economy continues to rebound,” said Michael Steppat, PERA’s Public and Government Relations Manager. “But all eyes will be on the upcoming December forecast as state and local leaders ponder the best response to currently surging COVID cases across the state.”



PERA On The Issues will continue following the budgeting process and post updates as they occur.







Editor&#8217;s note: this story was updated on 11/11 for clarity.

Polis Budget Plan Includes PERA Direct Distribution

A digest of news from publications around the nation about finance, investing, and retirement.



<a rel="noreferrer noopener" href="https://www.cpr.org/2020/04/07/colorados-government-braces-for-up-to-3-years-of-cuts/" target="_blank">Colorado’s Government Braces For Up To 3 Years Of Cuts</a> | <a rel="noreferrer noopener" href="http://www.cpr.org" target="_blank">CPR</a>



Colorado may face three years of reduced revenue in a worst-case-scenario projection. In response, state government offices have been asked to trim millions from their 2020 budgets. Departments have been asked to review all spending decisions, suspend hiring for all non-critical positions, and delay new contracts and programs, if possible.



<a href="https://www.forbes.com/sites/advisor/2020/03/22/your-money-and-coronavirus-a-financial-protection-guide/#463fe051306a" target="_blank" rel="noreferrer noopener">Your Money And Coronavirus: A Financial Protection Guide</a> | <a href="http://www.forbes.com" target="_blank" rel="noreferrer noopener">Forbes</a>



Student loan repayment help, stimulus checks, mortgage relief, aid for small businesses: The array of financial challenges and remedies you’ve been hearing lately about can be tough to keep straight. Forbes has created a helpful page that organizes this glut of information, so you can find what you need quickly.



<a href="https://squaredawayblog.bc.edu/squared-away/money-shame-surfaces-in-tough-times/" target="_blank" rel="noreferrer noopener">Money Shame Surfaces in Tough Times</a> | <a href="https://crr.bc.edu/" target="_blank" rel="noreferrer noopener">Squared Away Blog</a>



Money is an emotional topic, and many people are reluctant to talk about it. At a time when financial uncertainties are a source of anxiety for millions of people, experts recommend talking openly about it. You don’t need to share every detail of your financial life in order to discover that your concerns are shared by many others. The sense that you are not alone can be a powerful antidote to the feelings of shame and anxiety that money-related worries can bring.



<a href="https://www.vox.com/2020/4/3/21206931/what-we-know-about-congress-fourth-coronavirus-bill" target="_blank" rel="noreferrer noopener">What we know about the fourth coronavirus relief bill</a> | <a href="http://www.vox.com" target="_blank" rel="noreferrer noopener">Vox</a>



The CARES Act is barely a few weeks old, yet legislators are already talking about a fourth major piece of legislation to address the health and economic implications of COVID-19. The details of previous bills evolved as the rapid-pace negotiations progressed. Subsequent legislation is likely to take a similar path. This article suggests that a fourth bill is likely to be similar to the third, with primary components consisting of: expanded unemployment insurance, hazard pay for essential workers, expanded health care access, and additional direct payments to Americans.

Tag Archives:

News You Should Know: State Lawmakers Introduce $43.9B Budget Proposal

News You Should Know: Latest Forecasts Add Uncertainty to State Budget

Checking in on the 2025 Legislative Session So Far

What Election Results Mean for PERA Members

Polis Budget Plan Includes PERA Direct Distribution

Retirement Roundup: Colorado Faces Years of Budget Cuts

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