
<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>As 2024 comes to a close, we’re taking a look back at the articles that resonated most with <em>PERA On The Issues </em>readers. Here are our most-read articles of the year.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/2024-proposed-legislation-status"><strong>2024 Proposed Legislation Status</strong></a></h4>



<p>Legislation is always a popular topic on <em>PERA On The Issues</em>, and 2024 was no exception—our article tracking PERA-related bills throughout the session was our most-visited page of the year. State lawmakers introduced nine PERA-related bills during the legislative session, ultimately passing six of them, though one was amended to remove the provision related to PERA.</p>



<p>Continue reading to find out what we expect to see in the 2025 legislative session.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/what-to-expect-for-medicare-advantage-in-2025-blog"><strong>What to Expect for Medicare Advantage in 2025</strong></a></h4>



<p>The open enrollment period for PERACare—PERA’s health benefits program—happens every fall for coverage beginning the following January. While premiums for PERACare’s Medicare Advantage plans had been stable for three years, that rate freeze expired and various regulatory changes led to carriers announcing this fall that Medicare Advantage premiums would be higher for plan year 2025.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/updated-tax-brackets-contribution-limits-and-more-to-know-for-2025"><strong>Updated Tax Brackets, Contribution Limits and More to Know for 2025</strong></a></h4>



<p>If you’re already thinking about your tax situation for 2025, you’re not alone. Our roundup of various tax-related inflation adjustments was one of our most-read articles of the year. The article includes details on updated retirement plan contribution limits, HSA/FSA contribution limits, new marginal tax brackets, and more.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/u-s-house-passes-wep-gpo-repeal-bill-heads-to-senate" target="_blank" rel="noreferrer noopener"><strong>U.S. House Passes WEP/GPO Bill, Heads to Senate</strong></a></h4>



<p>We frequently hear from PERA members who are frustrated with the way the Windfall Elimination Provision (WEP) and/or Government Pension Offset (GPO) reduce their Social Security benefit, so it was no surprise to see a high level of interest in the topic again this year.</p>



<p>Lawmakers have been introducing bills to modify or repeal WEP and/or GPO for years, and in 2024 the House of Representatives brought one such bill, the Social Security Fairness Act, up for a vote and passed it. With the bill awaiting action in the Senate, PERA and the Fire &amp; Police Pension Association of Colorado teamed up to <a href="https://content.copera.org/wp-content/uploads/2024/12/COPERA-and-FPPA_Please-Support-Repeal-of-Provisions-in-Social-Security-WEP-and-GPO_12.13.24.pdf">send a letter to Colorado’s senators</a> encouraging them to support the bill.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/state-lawmakers-pursuing-two-pera-related-bills-in-2025" target="_blank" rel="noreferrer noopener"><strong>State Lawmakers Pursuing Two PERA-Related Bills in 2025</strong></a></h4>



<p>Back here in Colorado, state lawmakers are getting ready for the start of another legislative session in January. We expect to see some PERA-related legislation introduced in the new session, including two bills that lawmakers on the Pension Review Commission drafted during this year’s interim period between sessions.</p>



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<p>We want to thank everyone who subscribes and reads <em>PERA On The Issues</em>. We appreciate your readership and we look forward to helping you stay informed in the new year.</p>



<p>Make sure you’re <a href="https://www.copera.org/pera-on-the-issues/subscribe">subscribed to our biweekly newsletter</a> to stay up-to-date on all the latest news, and join the conversation on <a href="https://www.facebook.com/ColoradoPERA/" class="broken_link">Facebook</a> and <a href="https://www.linkedin.com/company/colorado-pera">LinkedIn</a>.</p>


Year in Review: Our Top Articles of 2024


<h4 class="wp-block-heading"><a href="https://thehill.com/homenews/5013493-social-security-bill-senate/" target="_blank" rel="noreferrer noopener" class="broken_link"><strong>Social Security Reform Bill Awaits Senate Vote Amid Uncertainty | The Hill</strong></a></h4>



<p>The Social Security Fairness Act, a federal bill that would repeal Social Security’s Windfall Elimination Provision and Government Pension Offset, passed the U.S. House in November. The bill is now awaiting action in the Senate, where its fate is increasingly uncertain with just days left for lawmakers to pass legislation before a new Congress begins.</p>



<h4 class="wp-block-heading"><a href="https://www.investopedia.com/lost-track-of-your-old-401-k-accounts-a-new-service-could-help-recover-the-money-8749171" target="_blank" rel="noreferrer noopener"><strong>Lost Track Of Your Old 401(k) Accounts? A New Service Could Help Recover The Money | Investopedia</strong></a></h4>



<p>The U.S. Department of Labor is getting ready to launch a database to help workers find old retirement accounts. The so-called retirement savings lost and found aims to make sure workers can find and access their 401(k) savings when they switch jobs rather than leaving that money behind. The database should be up and running by the end of the year.</p>



<h4 class="wp-block-heading"><a href="https://www.fastcompany.com/91236800/retirement-saving-spending-psychology" target="_blank" rel="noreferrer noopener" class="broken_link"><strong>Retirement Saving and Spending Can Be Complicated. Here&#8217;s What Psychology Says | Fast Company</strong></a></h4>



<p>When making the transition from regular, full-time work into retirement, many people find themselves struggling to move from a saving mindset to a spending mindset. While every person’s situation is different, principles of psychology can help explain why that transition can be so difficult.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/personal-finance/ways-to-maximize-your-end-of-year-philanthropy" target="_blank" rel="noreferrer noopener"><strong>Five Ways to Maximize Your End-of-Year Philanthropy | Kiplinger</strong></a></h4>



<p>The end of the year is a popular time to give money to various causes. If you’re thinking of giving this holiday season, here are some things to keep in mind to ensure your donation makes an impact.</p>



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


News You Should Know: WEP/GPO Bill’s Fate Uncertain in Final Days of Congress


<p><em>Editor&#8217;s Note: In December 2024, Colorado PERA and the Fire &amp; Police Pension Association of Colorado sent a joint letter to Sens. Michael Bennet and John Hickenlooper, encouraging them to support the Social Security Fairness Act in the Senate. <a href="https://content.copera.org/wp-content/uploads/2024/12/COPERA-and-FPPA_Please-Support-Repeal-of-Provisions-in-Social-Security-WEP-and-GPO_12.13.24.pdf" target="_blank" rel="noreferrer noopener">Read the letter</a>.</em></p>



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<p>In a historic first, the U.S. House of Representatives voted to pass a bill that aims to repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which can reduce Social Security benefits for Colorado PERA members and other public employees.</p>



<p>The bill, <a href="https://www.congress.gov/bill/118th-congress/house-bill/82" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 82</a>—also known as the Social Security Fairness Act—was introduced in early January 2023 and eventually gained the support of over 300 cosponsors on both sides of the aisle. Lawmakers didn’t take any significant action on the bill until September 2024, when sponsors Reps. Abigail Spanberger (D-VA) and Garret Graves (R-LA) filed what’s known as a discharge petition, seeking to move the bill out of committee and force a floor vote.</p>



<p>Despite an Election Day maneuver seeking to table the bill, House leadership put H.R. 82 to a vote on Tuesday, November 12. It passed by a vote of 327 to 75.</p>



<p>The bill&#8217;s fate now lies with the Senate as lawmakers have just days to pass legislation before the current Congress ends. Senate Majority Leader Chuck Schumer has said he intends to bring the bill up for a vote.</p>



<p>Some lawmakers have expressed concern about the bill’s cost; a recent <a href="https://www.cbo.gov/system/files/2024-09/hr82.pdf" target="_blank" rel="noreferrer noopener">estimate from the Congressional Budget Office</a> found it would require nearly $200 billion in additional spending over the next decade to provide larger Social Security benefits to those affected.</p>



<div class="wp-block-advgb-accordions advgb-accordions-b92c7005-29f3-41c5-8ad2-2a98b034c717 advgb-accordion-wrapper">
<div class="wp-block-advgb-accordion-item advgb-accordion-item" style="margin-bottom:15px"><div class="advgb-accordion-header" style="background-color:#000;color:#eee;border-style:solid;border-width:1px;border-radius:2px"><span class="advgb-accordion-header-icon"><svg fill="#fff" xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24"><path fill="none" d="M0,0h24v24H0V0z"></path><path d="M12,5.83L15.17,9l1.41-1.41L12,3L7.41,7.59L8.83,9L12,5.83z M12,18.17L8.83,15l-1.41,1.41L12,21l4.59-4.59L15.17,15 L12,18.17z"></path></svg></span><h4 class="advgb-accordion-header-title" style="color:inherit">What are WEP and GPO?</h4></div><div class="advgb-accordion-body" style="border-style:solid !important;border-width:1px !important;border-color:undefined !important;border-top:none !important;border-radius:2px !important">
<p>Social Security benefits are designed to replace only some of a worker’s pre-retirement earnings, and lower-paid workers receive a larger replacement percentage than higher-paid workers. Prior to the WEP being enacted in 1983, non-Social Security government workers like PERA members would receive a larger-than-intended Social Security benefit because of those years in their earning record when they weren’t contributing to Social Security. The WEP was meant to remove that advantage.</p>



<p>The GPO applies to PERA retirees who also receive a Social Security spousal or widow(er) benefit and reduces the Social Security benefit by two-thirds of the PERA benefit. That’s because spousal and widow(er) benefits are considered “dependent” benefits and were meant to help spouses who stayed at home and depended on their working partner for financial support. According to the Social Security Administration, now that it is common for both spouses to work, the GPO requires the “dependent” benefit to be offset by the dollar amount of their own retirement benefit.</p>



<p>It’s important to note that a retiree’s PERA benefit will never be reduced to Social Security or other benefits. Learn more about&nbsp;<a href="https://www.copera.org/retirees/benefit-basics-for-retirees/pera-and-social-security" target="_blank" rel="noreferrer noopener">PERA and Social Security</a>.</p>
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<p>Federal lawmakers also voted on another WEP-related bill, <a href="https://www.congress.gov/bill/118th-congress/house-bill/5342" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 5342</a>, which would have introduced a new formula for calculating Social Security benefit reductions rather than a full repeal. That bill failed on a vote of 175 to 225.</p>



<p><em>PERA On The Issues</em> will continue to monitor legislation on this issue and we’ll post updates when available. Be sure to <a href="https://copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener">subscribe to our biweekly newsletter</a> to stay informed.</p>


U.S. House Passes WEP/GPO Repeal Bill, Heads to Senate


<h4 class="wp-block-heading"><a href="https://www.nerdwallet.com/article/finance/when-the-fed-cuts-rates" target="_blank" rel="noreferrer noopener"><strong>What Happens Now That the Fed Finally Cut Rates? | NerdWallet</strong></a></h4>



<p>Federal Reserve Chair Jerome Powell recently announced the central bank would lower its key interest rate for the first time since 2020. While a rate cut was expected, some were surprised by the Fed’s decision to slash the rate by 0.5% instead of a more incremental 0.25%. Here’s what lower interest rates could mean for your finances and the economy as a whole.</p>



<h4 class="wp-block-heading"><a href="https://www.govexec.com/pay-benefits/2024/09/lawmakers-successfully-force-vote-eliminating-windfall-elimination-provision/399759/" target="_blank" rel="noreferrer noopener"><strong>Lawmakers Successfully Force a Vote on Eliminating the Windfall Elimination Provision | Government Executive</strong></a></h4>



<p>The federal lawmakers leading the charge on H.R. 82—aka the Social Security Fairness Act, which would repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)—have succeeded in their efforts to force a floor vote on the issue. Reps. Abigail Spanberger (D-VA) and Garret Graves (R-LA) used a rare tactic called a discharge petition, which reached the necessary threshold of 218 signatures to bypass Congressional leadership and get a vote on the floor of the House of Representatives. A vote likely won’t happen until at least November, and the bill would still have to pass the Senate before the conclusion of this Congress in January.</p>



<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2024/09/24/september-consumer-confidence-falls-the-most-in-three-years.html" target="_blank" rel="noreferrer noopener"><strong>September Consumer Confidence Falls the Most in Three Years | CNBC</strong></a></h4>



<p>The latest survey data show American consumers are increasingly pessimistic about the current and future state of the economy. According to the monthly Conference Board report, its consumer confidence index dropped to 98.7 in August, marking the biggest single-month decline since 2021. Survey respondents largely cited the weakening job market and the effects of inflation as their main concerns.</p>



<h4 class="wp-block-heading"><strong><a href="https://www.ecu.edu.au/newsroom/articles/research/travel-could-be-the-best-defence-against-ageing" target="_blank" rel="noreferrer noopener">Travel Could Be the Best Defense Against Aging | Edith Cowan University</a></strong></h4>



<p>If your retirement plans include travel, you could be doing yourself the favor of improving your health and slowing down the aging process. According to new research from Edith Cowan University in Australia, the pleasure we derive from travel activities—such as unplugging from daily life, getting more exercise, and having new experiences—can help alleviate stress and boost our overall functioning, which can help slow down the clock in terms of aging.</p>



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


News You Should Know: What Lower Interest Rates Mean For Your Finances


<h4 class="wp-block-heading"><a href="https://spanberger.house.gov/posts/spanberger-graves-file-discharge-petition-for-social-security-fairness-act-push-to-force-u-s-house-vote-on-bipartisan-bill-to-eliminate-wep-gpo" target="_blank" rel="noreferrer noopener"><strong>Spanberger, Graves File Discharge Petition for Social Security Fairness Act, Push to Force U.S. House Vote on Bipartisan Bill to Eliminate WEP &amp; GPO | Rep. Abigail Spanberger</strong></a></h4>



<p>Congress is back from recess, and the two main sponsors of a bill that would repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) say they’re going to attempt to force a floor vote on the bill. Representatives Abigail Spanberger (D-VA) and Garret Graves (R-LA) filed a discharge petition, which will need 218 signatures to force a vote. The bill, The Social Security Fairness Act, has received the support of more than 300 members of Congress but has stalled since it was introduced in early 2023.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/retirement/employee-retirement-income-security-act-erisa-turns-50" target="_blank" rel="noreferrer noopener"><strong>Employee Retirement Income Security Act Turns 50: Protecting Your Plans | Kiplinger</strong></a></h4>



<p>It’s been 50 years since the Employee Retirement Income Security Act of 1974 (ERISA) was enacted into law, adding new protections for workers and changing the way many people save for retirement. While ERISA doesn’t govern public pension plans like Colorado PERA, it’s been a consequential piece of legislation in the private sector and paved the way for today’s employer-based retirement plans like 401(k)s.</p>



<h4 class="wp-block-heading"><a href="https://chhs.source.colostate.edu/new-drug-may-improve-memory-in-older-adults-treat-alzheimers/" target="_blank" rel="noreferrer noopener"><strong>New Drug May Improve Memory in Older Adults, Treat Alzheimer’s | Colorado State University</strong></a></h4>



<p>Researchers at Colorado State University say they’ve been testing a drug that shows promise in treating memory loss associated with aging and neurological conditions like Alzheimer&#8217;s disease. The researchers teamed up with a local biotech company to test the drug, which targets two specific proteins in the brain. The team hopes to get approval for human trials soon.</p>



<h4 class="wp-block-heading"><a href="https://coloradosun.com/2024/09/10/colorado-taxes-pilot-program/" target="_blank" rel="noreferrer noopener"><strong>Colorado Department of Revenue to Help 100,000 Residents File Their Taxes | The Colorado Sun</strong></a></h4>



<p>State officials are working to implement a new law that will help many Coloradans claim tax credits they may know they qualify for. Under the law, the Colorado Department of Revenue will help up to 100,000 households file or amend their tax returns to claim state and/or federal earned income tax credits and child tax credits, which could help many lower income families in the state.</p>



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


News You Should Know: Lawmakers Push for Floor Vote on WEP/GPO Bill


<p><em>Update: In November 2024, the House passed H.R. 82, the Social Security Fairness Act. Please <a href="https://www.copera.org/pera-on-the-issues/u-s-house-passes-wep-gpo-repeal-bill-heads-to-senate">visit this page</a> for the latest.</em></p>



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<p>We often hear from Colorado PERA members who want to know if legislators have made any progress in their efforts to change two provisions of federal law that can reduce retirees’ Social Security benefits.</p>



<p>Because most PERA members do not participate in Social Security while working for a PERA employer, any Social Security benefit they earned from private-sector work may be affected by the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO).</p>



<p>Those provisions have been part of federal law since the 1980s, but lawmakers in recent years have repeatedly sought to modify or repeal them without success.</p>



<div class="wp-block-advgb-accordions advgb-accordions-505a0fe6-41e1-4105-b85d-38166d97884b advgb-accordion-wrapper">
<div class="wp-block-advgb-accordion-item advgb-accordion-item" style="margin-bottom:15px"><div class="advgb-accordion-header" style="background-color:#000;color:#eee;border-style:solid;border-width:1px;border-radius:2px"><span class="advgb-accordion-header-icon"><svg fill="#fff" xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24"><path fill="none" d="M0,0h24v24H0V0z"></path><path d="M12,5.83L15.17,9l1.41-1.41L12,3L7.41,7.59L8.83,9L12,5.83z M12,18.17L8.83,15l-1.41,1.41L12,21l4.59-4.59L15.17,15 L12,18.17z"></path></svg></span><h4 class="advgb-accordion-header-title" style="color:inherit">Why WEP and GPO exist</h4></div><div class="advgb-accordion-body" style="border-style:solid !important;border-width:1px !important;border-color:undefined !important;border-top:none !important;border-radius:2px !important">
<p>Social Security benefits are designed to replace only some of a worker’s pre-retirement earnings, and lower-paid workers receive a larger replacement percentage than higher-paid workers. Prior to the WEP being enacted in 1983, non-Social Security government workers like PERA members would receive a larger-than-intended Social Security benefit because of those years in their earning record when they weren’t contributing to Social Security. The WEP was meant to remove that advantage.</p>



<p>The GPO applies to PERA retirees who also receive a Social Security spousal or widow(er) benefit and reduces the Social Security benefit by two-thirds of the PERA benefit. That’s because spousal and widow(er) benefits are considered “dependent” benefits and were meant to help spouses who stayed at home and depended on their working partner for financial support. According to the Social Security Administration, now that it is common for both spouses to work, the GPO requires the “dependent” benefit to be offset by the dollar amount of their own retirement benefit.</p>



<p>It’s important to note that a retiree’s PERA benefit will never be reduced to Social Security or other benefits. Learn more about <a href="https://www.copera.org/retirees/benefit-basics-for-retirees/pera-and-social-security" target="_blank" rel="noreferrer noopener">PERA and Social Security</a>.</p>
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<h4 class="wp-block-heading"><strong>Where things stand</strong></h4>



<p>While federal lawmakers have introduced about a half-dozen bills this Congress that touch on the WEP and GPO issue, the one that has received the most attention and support is <a href="https://www.congress.gov/bill/118th-congress/house-bill/82" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 82</a>, the Social Security Fairness Act of 2023. Its counterpart in the Senate is <a href="https://www.congress.gov/bill/118th-congress/senate-bill/597" target="_blank" rel="noreferrer noopener" class="broken_link">S. 597</a>. Both bills were introduced in early 2023.</p>



<p>Other bills that seek to modify or repeal WEP and/or GPO include <a href="https://www.congress.gov/bill/118th-congress/house-bill/4583" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 4583</a> and <a href="https://www.congress.gov/bill/118th-congress/senate-bill/2280" target="_blank" rel="noreferrer noopener" class="broken_link">S. 2280</a>—both known as the Social Security 2100 Act—which propose a number of changes to Social Security, including temporarily eliminating WEP and GPO. Those bills were introduced in July 2023.</p>



<p>In April 2024, the House Ways and Means Committee convened for <a href="https://www.ncpers.org/blog_home.asp?display=350" target="_blank" rel="noreferrer noopener">an informational hearing on the topic of WEP and GPO</a>. The meeting didn’t result in any action on the above bills, but lawmakers heard from a panel of experts on the effects the two provisions have on retired public employees and the potential impacts of any changes to Social Security. Testimony largely centered around the fact that the Social Security Administration now has better worker data and WEP/GPO formulas could potentially be updated, but the cost to make any changes would amount to billions of dollars over the next decade.</p>



<p>Neither Social Security Fairness Act bill has made forward progress in Congress, but they continue to gather support—H.R. 82 in particular has gained more than 300 cosponsors in the House. And in May, the bipartisan Problem Solvers Caucus threw its support behind the Social Security Fairness Act with its 62 members <a href="https://problemsolverscaucus.house.gov/media/press-releases/problem-solvers-back-legislation-to-guarantee-full-social-security-benefits-for-police-officers-firefighters-and-public-servants" target="_blank" rel="noreferrer noopener">endorsing the legislation</a>.</p>



<p>In September, bill sponsors Reps. Abigail Spanberger (D-VA) and Garret Graves (R-LA) filed what&#8217;s known as a discharge petition, seeking to move H.R. 82 out of committee and force a floor vote. That petition reached the required threshold of 218 signatures, allowing the sponsors to request a vote in the House of Representatives. With Congress in recess for the month of October, a vote could happen as soon as November, but even if it passes the House, the bill faces an uncertain future in Senate.</p>



<h4 class="wp-block-heading"><strong>What’s next?</strong></h4>



<p>We can expect congressional lawmakers to continue discussing this issue. Even if none of the above bills see any meaningful action before the current Congress ends, legislators are likely to introduce new bills in the next Congress.</p>



<p>As we’ve seen repeatedly over the years, bills that seek to modify or repeal WEP and/or GPO face a steep uphill battle, with lawmakers often citing the cost of increased Social Security benefits as a significant hurdle to overcome. That’s especially true in the face of pessimistic forecasts of Social Security’s finances.</p>



<p>While the most recent projections are somewhat better than expected, Social Security’s cash reserves are still <a href="https://www.cnbc.com/2024/05/06/social-security-expected-to-run-short-on-funds-in-2035-government-says.html" target="_blank" rel="noreferrer noopener">expected to be depleted in about a decade</a>. If that happens and Congress hasn’t taken any action, Social Security will be forced to begin reducing benefits, but experts expect lawmakers will take action to shore up the system’s finances before any benefit reductions are necessary. It’s possible that a package of reforms for Social Security could also include some changes to the WEP and GPO, but only time will tell.</p>



<p>One of the most effective forms of advocacy is for PERA members and retirees to&nbsp;<a href="https://www.usa.gov/elected-officials" target="_blank" rel="noreferrer noopener">contact their senators and representatives</a>&nbsp;in Congress to let them know how the WEP and GPO affect them, as this issue is will be decided at the federal level.</p>



<p>We’ll continue to monitor this issue and post any updates on <em>PERA On The Issues </em>when we can. To stay in the loop, be sure to <a href="https://www.copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener">subscribe</a> to our biweekly newsletter.</p>


The Latest on Federal WEP/GPO Legislation


<p>With 2023 winding down and a new year approaching, we’re taking a look back at the topics and articles that resonated with <em>PERA On The Issues </em>readers over the past 12 months. Legislation — at both the state and federal levels — was by far the most popular topic this year.</p>



<p>Here are the articles that caught your interest in 2023.</p>



<h4 class="wp-block-heading"><a href="https://peraontheissues.com/an-update-on-2023-wep-gpo-legislation/" target="_blank" rel="noreferrer noopener"><strong>An Update on 2023 WEP/GPO Legislation</strong></a></h4>



<p>Every Congress, lawmakers introduce bills to modify and/or repeal Social Security’s Windfall Elimination Provision and Government Pension Offset, which can reduce Social Security benefits for retirees receiving pension income. This year was no different, with efforts in the House and Senate receiving hundreds of cosponsors. So far, none of those bills have moved any further through Congress.</p>



<h4 class="wp-block-heading"><a href="https://peraontheissues.com/2023-proposed-legislation-status/" target="_blank" rel="noreferrer noopener"><strong>2023 Proposed Legislation Status</strong></a></h4>



<p>The Colorado General Assembly is always a popular topic on <em>PERA On The Issues</em>, and 2023 was no exception. Our article tracking the status of PERA-related legislation was one of the most-read articles of the year. Out of seven proposed bills, lawmakers ultimately passed three of them.</p>



<h4 class="wp-block-heading"><a href="https://peraontheissues.com/colorado-legislators-pass-three-pera-related-bills-during-2023-legislative-session/" target="_blank" rel="noreferrer noopener"><strong>Colorado Legislators Pass Three PERA-Related Bills During 2023 Legislative Session</strong></a></h4>



<p>Gov. Jared Polis signed all three PERA-related bills into law. One bill requires a description of climate-related investment risks, impacts, and strategies to be included in PERA’s annual <em>Investment Stewardship Report</em>, one allocated additional money to make up the state’s 2020 direct distribution of $225 million to PERA, and the third modified the definition of “State Trooper” to include certain Colorado Parks and Wildlife officers for the purpose of PERA benefits.</p>



<h4 class="wp-block-heading"><a href="https://peraontheissues.com/news-you-should-know-larger-tabor-refund-checks-coming-in-2024/" target="_blank" rel="noreferrer noopener"><strong>News You Should Know: Larger TABOR Refund Checks Coming in 2024</strong></a></h4>



<p>In June, state officials announced that TABOR refund checks owed to Coloradans next year would be higher than initially expected. Since then, lawmakers <a href="https://coloradosun.com/2023/11/20/colorado-special-session-bills-passed-2023/">passed a bill</a> that sets the refund payments at $800 for single tax filers and $1,600 for joint filers.</p>



<h4 class="wp-block-heading"><a href="https://peraontheissues.com/test-your-knowledge-of-pera-benefits/" target="_blank" rel="noreferrer noopener"><strong>Test Your Knowledge of PERA Benefits</strong></a></h4>



<p>In March, we published this quiz about PERA benefits, testing our readers’ knowledge on topics such as the PERA Board of Trustees, retirement benefit calculations, and purchasing service credit. So far, more than 3,400 people have taken the quiz and boosted their knowledge of PERA in the process.</p>



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<p>Thank you to everyone who read <em>PERA On The Issues</em> and subscribed to our newsletter in 2023. We look forward to sharing more with you next year, beginning with the start of the 2024 legislative session in early January. We’ll see you then!</p>



<p><a href="https://peraontheissues.com/subscribe/">Click here</a> to subscribe to the biweekly <em>PERA On The Issues</em> email newsletter.</p>


Year in Review: Top Articles of 2023


<p>PERA leaders hosted two live Town Halls on Wednesday, July 12 to provide an update on PERA and answer questions from members and retirees.</p>



<p>Interim Executive Director and Chief Investment Officer Amy C. McGarrity was joined by Chief Benefits Officer Patrick Lane and Chief Administrative Officer Jeremy Hill for both meetings.</p>



<p>They answered questions on a number of important topics, including annual benefit increases, Social Security, and PERA’s investment portfolio. Responses to some of those questions are summarized below, and full recordings of each Town Hall are available at <a href="https://copera.org/townhall" target="_blank" rel="noreferrer noopener" class="broken_link">copera.org/townhall</a>.</p>



<h4 class="wp-block-heading"><strong>Why was the previous executive director’s employment contract terminated?</strong></h4>



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<p>“The decision was at the discretion of the PERA Board,” McGarrity said. “To reiterate, there was no criminal wrongdoing and no impact to retiree benefits. We are in the process of selecting an executive director. The first step is to select an executive search firm to assist with the recruitment of that next leader for PERA, and the Board has formed an ad hoc committee. Those ad hoc committee meetings are posted on <a href="https://copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">copera.org</a> and they’re streamed live for anyone who wishes to follow the process.”</p>



<h4 class="wp-block-heading"><strong>Why aren’t annual benefit increases for retirees keeping up with inflation?</strong></h4>



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<p>“We recognize the challenges that this inflationary environment presents. We feel it as consumers but we know it is particularly important to our retired members,” Lane said. “As you know, the Annual Increase percentage is set in statute and it is not within the purview of the PERA Board or staff to make changes to the Annual Increase…the only way that could change is if the state legislature decided to change the law, which would in effect extend PERA’s 30-year window to full funding.”</p>



<h4 class="wp-block-heading"><strong>Are PERA benefits in danger due to 2022’s negative investment returns?</strong></h4>



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<p>No, PERA benefits are not in danger. The investment portfolio is well-diversified and contains a wide array of assets so the portfolio can withstand different market environments, McGarrity said. While we were subject to the market downturn in 2022, we are also subject to positive market swings and have been able to take advantage of those markets in prior years and so far in 2023, McGarrity said.</p>



<p>In 2022, PERA paid $5.2 billion in retirement benefits to retirees and benefit recipients, so you can continue to count on PERA to provide retirement income throughout your life.</p>



<h4 class="wp-block-heading"><strong>What is PERA doing about Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)?</strong></h4>



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<p>“Social Security’s WEP and GPO are provisions within federal law and are therefore outside the scope of the PERA Board and staff to influence,” Lane said. “We encourage you to contact your members of the U.S. House and Senate to be heard on this issue.”</p>



<p>Bills to modify or repeal WEP and GPO are frequently introduced in Congress, and <em>PERA On The Issues </em>monitors and reports on those activities throughout the year. <a href="https://peraontheissues.com/an-update-on-2023-wep-gpo-legislation/" target="_blank" rel="noreferrer noopener">Click here</a> for our latest article on WEP/GPO reform efforts.</p>



<h4 class="wp-block-heading"><strong>What is PERA doing to improve wait times to talk to Customer Service on the phone?</strong></h4>



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<p>“We have made a number of recent changes that have cut down on wait times in the call center,” Lane said. “We implemented a new caller verification process that makes the security process faster and shortens the length of calls. And we just migrated to a new phone system just within the last few weeks that allows us to better forecast call volumes throughout the day, throughout the month and throughout the year.”</p>



<p>He added: “We have seen service levels increase in recent months and we look forward to providing better service going forward.”</p>



<h4 class="wp-block-heading"><strong>Does PERA inform its investments by accounting for social goals, such as diversity, equity and inclusion? If so, what does that look like?</strong></h4>



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<p>McGarrity explained that PERA’s primary goal is achieving the best risk-adjusted returns for PERA members and therefore PERA does not have any mandates related to environmental, social, or governance (ESG) or diversity, equity, and inclusion (DEI) outcomes. However, PERA staff will consider any financially relevant factors when making investment decisions.</p>



<p>“To the extent that a company’s long-term expected return may be influenced somehow by one of those factors in a financially material way, certainly we will consider it in our underlying due diligence of that investment and/or underwriting of that investment,” McGarrity said. “However, unless they are financially material factors or drivers of the expectations for long-term returns, they are not rising to the top of our considerations. So we are really focused on the factors that have an influence on long-term shareholder returns.”</p>



<h4 class="wp-block-heading"><strong>How can members be sure PERA will be there for them when they retire?</strong></h4>



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<p>“I think the legislature has shown its commitment through the years to keeping PERA strong and enacting reforms several times in the past decade to ensure we are on a financially sustainable path. Most recently, Senate Bill 200 (enacted in 2018) puts us on a path to full funding by 2048,” McGarrity said. “The reforms are working and we’re committed to providing reliable income in retirement that our members cannot outlive.”</p>



<h4 class="wp-block-heading"><strong>PERA mobile app</strong></h4>



<p>Hill also mentioned <a href="https://content.copera.org/pera-leaders-answer-member-questions-at-2023-town-halls/" target="_blank" rel="noreferrer noopener">PERA’s new mobile app</a>, which is now available in the App Store for iOS devices and Google Play Store for Android devices. The app is part of PERA’s long-term goal of modernizing and improving the way it serves its membership, and it makes it easy for members and retirees to access and manage their accounts wherever they are.</p>



<p>These annual town halls are an important opportunity to speak directly with Colorado’s current and former public employees and we’re grateful to all who participated.</p>



<p>To watch full recordings of each Town Hall, visit <a href="https://copera.org/townhall" target="_blank" rel="noreferrer noopener" class="broken_link">copera.org/townhall</a>.</p>


PERA Leaders Answer Member Questions at 2023 Town Halls


<h4 class="wp-block-heading"><a href="https://www.asppa.org/news/neal-reintroduces-proposal-fix-wep" target="_blank" rel="noreferrer noopener"><strong>Neal Reintroduces Proposal to Fix WEP | American Society of Pension Professionals &amp; Actuaries</strong></a></h4>



<p>Rep. Richard Neal (D-MA) is among the members of Congress who are renewing efforts to modify or repeal Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). Neal’s bill, the Public Servants Protection and Fairness Act of 2023, would update the WEP to create a new, proportional formula for calculating a pensioner’s Social Security benefit.</p>



<h4 class="wp-block-heading"><a href="https://apnews.com/article/alzheimers-drug-fda-approval-medicare-leqembi-a9c8b770aa1868a59889143c3bc9d127" target="_blank" rel="noreferrer noopener"><strong>Alzheimer&#8217;s Drug Leqembi Has Full FDA Approval Now and That Means Medicare Will Pay For It | The Associated Press</strong></a></h4>



<p>The U.S. Food and Drug Administration gave its full approval to the new Alzheimer’s drug Leqembi, meaning the agency believes the medication is safe and effective. Full approval means Medicare will cover the drug, despite earlier concerns about its cost and the effects on Medicare’s finances.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/retirement/great-wealth-transfer-gen-x-should-prepare" target="_blank" rel="noreferrer noopener"><strong>Gen X Should Prepare Now for the Great Wealth Transfer | Kiplinger</strong></a></h4>



<p>An event known as the Great Wealth Transfer — when Baby Boomers will hand down an estimated $84 trillion to their children and others — is expected to take place over the next several decades. Many of the beneficiaries of that transfer are members of Generation X, and they may find themselves with newfound money or other assets they’re not sure how to manage.</p>



<h4 class="wp-block-heading"><a href="https://www.nextavenue.org/understanding-caregiver-burnout/" target="_blank" rel="noreferrer noopener"><strong>Understanding Caregiver Burnout | Next Avenue</strong></a></h4>



<p>When a loved one suddenly falls ill or otherwise loses the ability to care for themselves, a spouse or relative often ends up in the role of caretaker. It’s a role that brings its own share of challenges, and it’s important to make sure the caregiver is also getting the care they need.</p>



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


News You Should Know: Lawmaker Proposes New WEP Formula


<p><em>Editor’s note: This article has been updated to include details on new bills that have been introduced since it was originally published.</em></p>



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<p>As the 118<sup>th</sup>&nbsp;session of Congress continues, lawmakers in both chambers have introduced bills to address two provisions of federal law that can reduce Social Security payments to retirees who receive a pension like Colorado PERA.</p>



<p>The&nbsp;Windfall Elimination Provision&nbsp;(WEP) and&nbsp;Government Pension Offset&nbsp;(GPO) both affect Social Security benefits, but in slightly different ways. The WEP can reduce Social Security benefit payments to retirees who receive a pension based on work during which they did not contribute to Social Security (though it does not apply to workers with 30 or more years of substantial SS earnings). The GPO reduces Social Security dependent benefit payments to spouses, widows, and widowers who receive a government pension.</p>



<p>It’s important to note that a person’s PERA benefit is never reduced due to Social Security or other benefits. Read more about PERA and Social Security&nbsp;<a href="https://www.copera.org/pera-and-social-security" target="_blank" rel="noreferrer noopener">here</a>.</p>



<blockquote class="wp-block-quote">
<blockquote class="wp-block-quote">
<p class="has-text-align-left"><strong>Did you know?</strong><br><em>The PERA Defined Benefit Plan predates and serves as a replacement for Social Security in Colorado, so PERA members do not pay Social Security taxes like most private-sector workers. Because Social Security pays a larger benefit to lower-income workers, the years during which a worker didn’t contribute to Social Security can lead to the worker earning a higher benefit than they would otherwise be entitled to. The WEP and GPO were enacted to counteract that effect.</em></p>
</blockquote>
</blockquote>



<p>In January, members of the House of Representatives reintroduced <a href="https://www.congress.gov/bill/118th-congress/house-bill/82" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 82</a>, the Social Security Fairness Act, which would fully repeal both the WEP and GPO. The bill gained wide bipartisan support in 2022 but never made it to a floor vote.</p>



<p>The reintroduced bill has since gained the support of more than 250 members of the House of Representatives, including five from Colorado: Reps. Diana DeGette (D-CO-1), Joe Neguse (D-CO-2), Jason Crow (D-CO-6), Brittany Pettersen (D-CO-7), and Yadira Caraveo (D-CO-8).</p>



<p>Since&nbsp;we last covered this issue, lawmakers in Congress have introduced additional bills that aim to either repeal or modify WEP and/or GPO.</p>



<p>Sen. Sherrod Brown (D-OH) introduced <a href="https://www.congress.gov/bill/118th-congress/senate-bill/597" target="_blank" rel="noreferrer noopener" class="broken_link">S. 597</a>, the Senate’s version of the Social Security Fairness Act, in March. Like the House version of the bill, S. 597 aims to fully repeal both the WEP and GPO. Sens. John Hickenlooper (D) and Michael Bennet (D) have both signed on as cosponsors.</p>



<p>In addition to the repeal bills, other bills propose changing the WEP formula to lessen its impact on public workers.</p>



<p>In June, Rep. Richard Neal (D-MA-1) introduced <a href="https://www.congress.gov/bill/118th-congress/house-bill/4260" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 4260</a>, the Public Servants Protection and Fairness Act. Under that bill, retirees would receive a Social Security benefit based on whichever formula provides the higher amount—the current WEP formula or the new proportional formula.</p>



<p>In September, Rep. Jodey Arrington (R-TX-19) introduced <a href="https://www.congress.gov/bill/118th-congress/house-bill/5342" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 5342</a>, the Equal Treatment of Public Servants Act. Like Rep. Neal’s bill, H.R. 5342 proposes an updated WEP formula to calculate retirees’ Social Security benefits, but only the new formula would apply to those who become eligible for benefits in 2068 or later.</p>



<p>As in previous years, these bills face a tough road ahead. Lawmakers have introduced bills to modify or repeal the WEP and GPO every session in recent years, but the efforts never make it very far in the legislative process despite gaining many cosponsors from both parties. Lawmakers usually cite the cost associated with the bills — with Social Security facing insolvency&nbsp;<a href="https://www.cnbc.com/2023/03/31/social-security-trust-funds-depletion-date-moves-up-to-2034.html" target="_blank" rel="noreferrer noopener">in about a decade</a>, many consider it a tough sell at the moment, but expect it will stand a greater chance of success if included as part of broader reforms to the program which Congress may need to consider in the next few years.</p>



<p><em>PERA On The Issues</em>&nbsp;will continue to track these bills and other Social Security-related legislation and provide updates when available.</p>



<p>Remember to&nbsp;<a href="https://peraontheissues.com/subscribe/">subscribe to our</a><a href="https://peraontheissues.com/subscribe/" target="_blank" rel="noreferrer noopener">&nbsp;</a><a href="https://peraontheissues.com/subscribe/">biweekly newsletter</a>&nbsp;to stay in the know.</p>


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