
<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>Colorado PERA provides lifetime retirement income to the state’s public employees and that poses a unique challenge: Estimating the cost of member benefits for many years into the future and ensuring the plan has enough money to pay them.</p>



<p>In discussions about how PERA is doing in that regard, the term “unfunded liability” often comes up.</p>



<p>It’s a term that isn’t always well understood, but examining a plan’s unfunded liability and the factors behind it can provide members and other stakeholders with a better sense of the plan’s financial footing and its future.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What is unfunded liability?</h2>



<p>Unfunded actuarial accrued liability (UAAL)—or simply unfunded liability—is a common term used in funding for public pension plans. It refers to the gap between the amount of money a plan has in its trust funds and the value of current and future benefits members have earned to date.</p>



<p>In other words, UAAL is like a debt owed to members. The liability is the money the plan will eventually have to pay, and the portion that isn’t covered by current plan assets is considered “unfunded.”</p>



<p>Unfunded liability can be a helpful tool for measuring a pension plan’s financial health. While many plans carry some level of unfunded liability, UAAL that continues to grow can be a sign of underlying issues that may jeopardize the financial sustainability of the fund, such as inappropriate actuarial assumptions or insufficient contribution levels.</p>



<p>By the end of 2016, PERA’s unfunded liability had grown large enough that it prompted recommendations from the PERA Board of Trustees and responsive action from the Colorado General Assembly. Senate Bill 200, enacted in 2018, included various reforms designed to pay down PERA’s unfunded liability with the goal to fully fund the Defined Benefit Plan within 30 years, and PERA continues to make progress toward that goal.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">The history of PERA&#8217;s unfunded liability</h2>



<figure class="wp-block-image size-large"><a href="https://content.copera.org/wp-content/uploads/2026/04/funded-percentage-history.png"><img decoding="async" loading="lazy" width="1024" height="565" src="https://content.copera.org/wp-content/uploads/2026/04/funded-percentage-history-1024x565.png" alt="Bar chart showing changes in PERA's funded percentage from 2000 (105.2%) to 2024 (69.2%)." class="wp-image-64522" srcset="https://content.copera.org/wp-content/uploads/2026/04/funded-percentage-history-1024x565.png 1024w, https://content.copera.org/wp-content/uploads/2026/04/funded-percentage-history-300x166.png 300w, https://content.copera.org/wp-content/uploads/2026/04/funded-percentage-history-768x424.png 768w, https://content.copera.org/wp-content/uploads/2026/04/funded-percentage-history-1536x848.png 1536w, https://content.copera.org/wp-content/uploads/2026/04/funded-percentage-history-2048x1130.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></a><figcaption class="wp-element-caption">Click or tap to enlarge</figcaption></figure>



<p>At the end of 2000, PERA was over 100% funded. That means the plan’s trust funds—which contain all the money that comes into the plan (including investment earnings) and from which the plan pays benefits—held more than what was needed to pay all earned benefits to date. By the end of 2016, the funded percentage had fallen below 60%, driving the Board’s recommendations and the bipartisan efforts of the General Assembly to pass Senate Bill 200 in 2018. By the end of 2024, PERA had improved its funding level to 69%, while also mitigating risk through the adoption of more appropriate economic and demographic assumptions over this eight-year period.</p>



<p>While various factors have contributed to the increase in PERA’s unfunded liability over the past two and a half decades, three of those factors have had the largest impact:</p>



<ol type="1">
<li><strong>Assumption changes aimed at better reflecting reality:</strong> To ensure PERA’s projections are as accurate as possible, the Board regularly reviews and adjusts its actuarial assumptions—which include things like the expected lifespan of the retiree population and expected salary trends in public employment—through a process known as an <a href="https://copera.org/pera-on-the-issues/actuarial-experience-study-refining-the-financial-view-of-the-future">actuarial experience study</a>. Over the years, adjustments to assumptions resulting from these studies have gone both ways, with some changes reducing liabilities and other changes increasing liabilities. Certain adjustments, such as lowering the portfolio’s assumed rate of return and the adoption of generational mortality, are more impactful than other assumption changes and resulted in a net growth in PERA’s unfunded liability.</li>



<li><strong>Plan experience worse than expected:</strong> Actuarial assumptions help pension plans like PERA make projections about the cost of benefits decades into the future. When reality differs significantly from expectation—for example, shifts in demographics and salaries for public employees—they affect the projections for how much money PERA will need to have on hand to pay retirement benefits.</li>



<li><strong>Investment returns worse than expected:</strong> PERA’s investment portfolio has performed well relative to benchmarks over the long term, but investing in the markets exposes the portfolio to risks; like any investor, PERA is not immune to the effects of major market downturns. For example, the dot-com bubble in the early 2000s and the 2008 financial crisis led to unprecedented losses in financial markets. These major events resulted in negative investment returns far beyond general expectations.</li>
</ol>



<p>When it comes to reducing PERA’s unfunded liability, the largest factor has been changes to plan provisions, such as the reforms included in Senate Bill 1 in 2010 and Senate Bill 200 in 2018. Those reforms include higher contributions from working members and their employers, an annual $225 million direct distribution from the State, lower annual increases for retirees, and increased age and service requirements for a full retirement benefit, all of which have helped put the plan on more solid financial footing.</p>



<p>PERA’s enhanced contribution structure, which better ensures sufficient funding to support current benefit accruals, is a key element to maintaining PERA’s sustainability. Strong investment returns on those contributions also make a difference. When the portfolio achieves a return that’s better than the assumed rate of return, that investment income increases the value of plan assets and reduces the unfunded liability. PERA’s assets have grown faster than liabilities over the past decade, and that trend is expected to continue.</p>



<figure class="wp-block-image size-large"><a href="https://content.copera.org/wp-content/uploads/2026/04/assets-and-liabilities-1.png"><img decoding="async" loading="lazy" width="1024" height="609" src="https://content.copera.org/wp-content/uploads/2026/04/assets-and-liabilities-1-1024x609.png" alt="Chart showing changes in private sector retirement plan participation from 1979 to 2023" class="wp-image-64525" srcset="https://content.copera.org/wp-content/uploads/2026/04/assets-and-liabilities-1-1024x609.png 1024w, https://content.copera.org/wp-content/uploads/2026/04/assets-and-liabilities-1-300x178.png 300w, https://content.copera.org/wp-content/uploads/2026/04/assets-and-liabilities-1-768x457.png 768w, https://content.copera.org/wp-content/uploads/2026/04/assets-and-liabilities-1-1536x913.png 1536w, https://content.copera.org/wp-content/uploads/2026/04/assets-and-liabilities-1-2048x1218.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></a><figcaption class="wp-element-caption">Click or tap to enlarge</figcaption></figure>



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



<p>Unfunded liabilities don’t accrue overnight, and it can take many years to eliminate that debt. PERA’s goal is to reach full funding by 2048, and as of the date of our most recent <a href="https://www.copera.org/annual-report"><em>Annual Comprehensive Financial Report</em></a>, we remain on track to meet that goal.</p>


<div class="wp-block-image">
<figure class="alignright size-medium"><img decoding="async" loading="lazy" width="300" height="274" src="https://content.copera.org/wp-content/uploads/2026/04/aap-meter-300x274.png" alt="A meter demonstrating PERA's progress toward funding, with the needle in the green &quot;on schedule&quot; zone." class="wp-image-64554" srcset="https://content.copera.org/wp-content/uploads/2026/04/aap-meter-300x274.png 300w, https://content.copera.org/wp-content/uploads/2026/04/aap-meter-768x701.png 768w, https://content.copera.org/wp-content/uploads/2026/04/aap-meter.png 874w" sizes="(max-width: 300px) 100vw, 300px" /></figure></div>


<p>The <a href="http://www.copera.org/automatic-adjustment-provision">Automatic Adjustment Provision</a> automatically adjusts, as necessary, member and employer contributions, retiree benefit increases, and the State’s annual $225 million direct distribution to PERA, based on funding progress. This mechanism helps ensure we don’t fall behind on the target of achieving full funding by 2048.</p>



<p>The PERA Board of Trustees also plays an important role. While Trustees can’t control factors such as inflation, public employee salaries, or the number of plan participants, the Board regularly monitors and adjusts the factors in its control, such as actuarial assumptions, the amount of risk in the investment portfolio, and plan costs.</p>



<p>Reducing the unfunded liability is a challenge, but it’s an important one to tackle. Through a combination of sensible policy updates, good plan governance, and fiduciary care, PERA is making progress toward full funding and a more secure future for Colorado’s retired public employees.</p>



<p><strong>FURTHER READING:</strong></p>



<ul>
<li><a href="https://copera.org/pera-on-the-issues/actuarial-experience-study-refining-the-financial-view-of-the-future">Actuarial Experience Study: Refining the Financial View of the Future</a></li>



<li><a href="https://copera.org/pera-on-the-issues/asset-liability-study-a-guide-to-building-a-strategic-portfolio">Asset/Liability Study: A Guide to Building a Strategic Portfolio</a></li>
</ul>


Understanding PERA’s Unfunded Liability


<figure class="wp-block-embed is-type-video is-provider-vimeo wp-block-embed-vimeo wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Investing in Your Future: How PERA Grows Member Benefits" src="https://player.vimeo.com/video/1095939988?&amp;app_id=122963" width="640" height="360" frameborder="0" allow="autoplay; fullscreen; picture-in-picture; clipboard-write; encrypted-media; web-share"></iframe>
</div></figure>



<p>With over $65 billion under management, our investment team plays a critical role in PERA’s long-term stability and our ability to pay members’ earned benefits throughout their retirement.</p>



<p>This highly skilled team manages a diverse portfolio designed to achieve long-term gains through investments that span decades. A thoughtful, strategic approach ensures we can continue to meet member needs for many years to come.</p>



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



<p>The structure of PERA’s investment program is determined by the PERA Board of Trustees. Every four or five years, they complete what’s known as an asset/liability study. This study considers expected market returns for the next 30 years and balances them against PERA’s future liabilities and cashflow needs to create a mix of investments that is expected to produce returns over the long term.</p>



<p>Determining this asset allocation is one of the most important decisions the PERA Board makes, and it is the greatest single factor in PERA’s long-term investment returns. Once the Board determines this strategic asset allocation, it is up to PERA staff to implement it.</p>



<p><strong>READ MORE:</strong> <a href="https://copera.org/pera-on-the-issues/pera-board-adopts-new-strategic-asset-allocation-following-study" target="_blank" rel="noreferrer noopener">PERA Board Adopts New Strategic Asset Allocation Following Study</a></p>



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



<p>It can be helpful to think of the various asset classes as blocks that build upon one another and work together to produce the expected rate of return in the long run. Each block has an important role to play in the portfolio.</p>



<p><a href="https://www.copera.org/pera-on-the-issues/asset-classes-explained-global-equity" target="_blank" rel="noreferrer noopener"><strong>Global Equities</strong></a><strong>:</strong> The Global Equities asset class includes stock holdings in publicly traded companies. It’s the largest piece of the PERA portfolio and the primary driver of returns in the long run; if Global Equities are having a good year, there’s a high likelihood the overall PERA portfolio will have a good year, too.</p>



<p>The global equity portfolio is well-diversified across developed and emerging countries and all sectors and company sizes. It’s a large portfolio that holds over 7,000 individual stocks, including major companies such as Apple, Microsoft, and Amazon.</p>



<p><a href="https://www.copera.org/pera-on-the-issues/asset-classes-explained-fixed-income" target="_blank" rel="noreferrer noopener"><strong>Fixed Income</strong></a><strong>:</strong> The role of Fixed Income, our second-largest asset class, is to provide diversification and liquidity while reducing portfolio volatility. The Fixed Income portfolio includes investment-grade bonds in all the major sectors—Treasuries, mortgage-backed securities, and corporate bonds—as well as some smaller sectors like asset-backed securities, government-related securities, and commercial mortgage-backed securities.</p>



<p>Fixed income assets are generally less volatile than equities and provide a predictable source of income, which can reduce overall risk in the portfolio.</p>



<p><a href="https://www.copera.org/pera-on-the-issues/asset-classes-explained-private-equity" target="_blank" rel="noreferrer noopener"><strong>Private Equity</strong></a><strong>:</strong> Private Equity involves investing in companies that are typically not listed on a public stock exchange and are therefore not available to smaller individual investors. That can include venture capital (funding early-stage companies like startups), growth capital (funding businesses that are at or near profitability), and buyouts (larger transactions involving more mature and proven businesses to fund a change in ownership, promote growth, and provide money for acquisitions).</p>



<p>PERA has been investing in Private Equity since the early 1980s and was one of the first state pension funds to invest in this asset class. Over the decades, PERA has invested in a variety of companies that members use every day, including social media and entertainment companies, software and technology companies, wineries, restaurants, and clothing companies.</p>



<p>Because of private equity’s illiquid and opaque nature and higher management fees, the role of Private Equity in the PERA portfolio is to earn returns above that of Global Equities.</p>



<p><a href="https://www.copera.org/pera-on-the-issues/asset-classes-explained-real-estate" target="_blank" rel="noreferrer noopener"><strong>Real Estate</strong></a><strong>:</strong> The Real Estate portfolio invests in a wide range of commercial real estate, which can include data centers or distribution warehouses, apartments, office space, retail space, or hotels. It invests primarily in the United States but does have some holdings throughout the world.</p>



<p>The role of real estate is to be a source of alternative income, such as monthly rental payments, in addition to steadily growing in value over time and reducing the impact of potential losses in other asset classes.</p>



<p><a href="https://www.copera.org/pera-on-the-issues/asset-classes-explained-alternatives" target="_blank" rel="noreferrer noopener"><strong>Alternatives</strong></a><strong>:</strong> The alternatives asset class is where we put attractive investments that don’t fit into other traditional asset classes. Those can include assets like timberland, river barges, music royalties, renewable energy, toll roads, and lending to privately owned companies. Because alternatives don’t move in tandem with traditional stocks and bonds, these investments help reduce overall volatility in the portfolio.</p>



<p><strong>Cash:</strong> PERA does not have a strategic asset allocation to cash, but because we pay over $350 million a month in benefits, it’s important to make sure we have the cash on hand to make those payments and also fund investments.</p>



<p><strong>MORE:</strong> <a href="https://copera.org/investments/defined-benefit-db-plan-assets" target="_blank" rel="noreferrer noopener">Defined Benefit Plan Assets</a></p>



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



<p>PERA’s investments are managed by a staff of over 50 in-house investment experts. We’ve been managing assets internally since the 1970s and currently manage around 75% of the Global Equity asset class internally and 100% of the Fixed Income class. Not only does this give us significant control over these assets, but it also saves PERA members a great deal of money: Over the past five years, PERA saved at least $300 million using our in-house investment experts compared to having those assets externally managed.</p>



<p>We’re proud to be one of the most cost-effective public plans in the United States.</p>



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



<p>Regardless of internal or external management, all portfolios and asset classes are held to the same high standards. Those standards have served us well over the long term, as our 30-year annualized return is over 8% net-of-fees, and our 10-year net-of-fees return consistently ranks in the top 10% of our peer group universe.</p>



<p>Thanks to our Board and investment team’s strategic approach to asset allocation, Colorado PERA is well-positioned for long-term success, and our returns over our nearly 100-year history reflect that.</p>



<p><strong>More info:</strong></p>



<ul>
<li><a href="https://copera.org/investments/investment-stewardship" target="_blank" rel="noreferrer noopener">Investment Stewardship</a></li>



<li><a href="https://copera.org/annual-report" target="_blank" rel="noreferrer noopener"><em>Annual Comprehensive Financial Report </em>(ACFR)</a></li>
</ul>



<ul>
<li><a href="http://copera.org/2023-popular-annual-financial-report" target="_blank" rel="noreferrer noopener"><em>Popular Annual Financial Report</em> (PAFR</a><a href="http://copera.org/2023-popular-annual-financial-report">)</a></li>
</ul>


How Colorado PERA Invests for Long-Term Retirement Security


<p>If you pay attention to what’s happening on Wall Street, you know 2025 is off to a bumpy start in the global financial markets.</p>



<p>Concerns over tariffs and a potential trade war, coupled with investor anxiety about inflation and a possible recession, have led to significant swings in major indexes like the S&amp;P 500.</p>



<p>While uncertainty and volatility can be disconcerting, the PERA Board and staff take a very careful, thoughtful approach to investing that balances risks and potential returns.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What does volatility mean for Colorado PERA?</h2>



<p>For institutional investors like Colorado PERA, ups and downs in the markets are expected. Rather than try to make decisions based on what happens day-to-day, PERA’s approach involves staying the course during times of volatility.</p>



<p>The PERA Board of Trustees has taken considerable care to develop an <a href="https://content.copera.org/wp-content/uploads/2024/07/statement-of-investment-policy.pdf" target="_blank" rel="noreferrer noopener">investment policy</a> and <a href="https://copera.org/asset-allocation" target="_blank" rel="noreferrer noopener">strategic asset allocation</a> that focus on diversification and long-term performance to ensure the sustainability of the fund and meet pension obligations for our current and future retirees.</p>



<p>This disciplined approach means PERA remains secure and retirees can count on receiving monthly benefits they cannot outlive.</p>



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



<p>PERA’s investment staff, led by Chief Investment Officer/Chief Operating Officer Amy C. McGarrity, manages more than $61 billion in assets for the Defined Benefit Plan. The portfolio includes a diverse mix of assets across a broad range of public and private markets, including public equities, fixed income, commercial real estate, private equity, and alternative assets. This diversification helps limit the potential negative impact of any one type of investment experiencing losses.</p>



<p>“Strategic asset allocation is the single largest driver of investment returns, and our portfolio includes a wide variety of assets meant to perform over multiple decades,” McGarrity said. “We believe in remaining invested in the markets so we can continue to generate returns for our members and benefit recipients for many years to come.”</p>



<p>The portfolio also undergoes regular review. Every four or five years, the Board conducts what is known as an asset/liability study to examine the portfolio and ensure the asset allocation aligns with PERA’s funding goals. The most recent study, completed in 2024, led the Board to adopt new asset allocation targets that reduced the amount allocated to Global Equity and increased the amount allocated to Private Equity and Real Estate.</p>



<p>The updated strategic asset allocation is expected to provide incrementally greater diversification in the portfolio with the goal to slightly lower risk and add potential for higher returns over time.</p>



<p><strong>READ MORE:</strong> <a href="https://copera.org/pera-on-the-issues/pera-board-adopts-new-strategic-asset-allocation-following-study" target="_blank" rel="noreferrer noopener">PERA Board Adopts New Strategic Asset Allocation Following Study</a></p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Focusing on long-term performance</h2>



<p>PERA’s assumed rate of return—one of the key numbers we use to forecast how much money the fund will have on hand to pay benefits in the future—is 7.25 percent. While the actual return in a given year may be higher or lower than 7.25 percent, the goal is to meet the assumed rate of return over a period of 30 or more years. Our annualized return over the past 30 years is 8.3 percent, gross of fees.</p>



<p>By maintaining a well-diversified portfolio and focusing on long-term returns, we’re making sure the trust funds that provide retirement and other benefits to Colorado’s public workforce are well-positioned to weather market volatility.</p>


The Value of a Long-Term Strategy in Uncertain Markets


<p>At Colorado PERA, we invest for one purpose: To provide retirement benefits to PERA members for generations to come.</p>



<p>It’s not just our mission, it’s our passion. And it’s the reason we prioritize financial value—not personal or political values—in our investment decisions.</p>



<h2 class="wp-block-heading"><strong>Fiduciary duty</strong></h2>



<figure class="wp-block-embed is-type-video is-provider-vimeo wp-block-embed-vimeo wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Prioritizing Financial Value Over Personal or Political Values" src="https://player.vimeo.com/video/863343330?&amp;app_id=122963" width="640" height="360" frameborder="0" allow="autoplay; fullscreen; picture-in-picture; clipboard-write"></iframe>
</div></figure>



<p>PERA serves nearly 700,000 current and former public employees who have worked hard to make our Colorado communities better places to live. Each of those members counts on PERA to provide a retirement benefit they cannot outlive.</p>



<p>The PERA Board and staff have a fiduciary duty to those members. That means we’re required by law to act solely in the interest of members and benefit recipients, and we must manage the trust funds only for their financial benefit. We make every investment decision with that duty in mind.</p>



<p>Each PERA member is unique, with their own personal values that guide them. It would be impossible to invest based on personal or political values of our individual members or stakeholders. Our fiduciary duty demands that we do what’s right for the membership as a whole, and that means focusing on financial value.</p>



<h2 class="wp-block-heading"><strong>Prioritizing financial value</strong></h2>



<p>Our sole investment goal is to pursue the best risk-adjusted returns for our members. That means when we’re researching a possible investment opportunity or assessing an asset we already hold, our focus is on that investment’s ability to earn money over the long term.</p>



<p>We sometimes hear from stakeholders and others who want us to invest in some segments of the market or divest—sell our investments—from others based on their individual preferences or political beliefs.</p>



<p>That would be contrary to our mission and our fiduciary duty. Our approach involves finding companies, properties and investment funds that we believe will be competitive over time, allowing them to be profitable and generate returns to the portfolio.</p>



<p>Investing based on the financial interest of the whole PERA membership is our fiduciary duty, and we take it seriously because our hard-working members depend on us for their financial future.</p>



<p><strong>Learn more about Investment Stewardship:</strong></p>



<ul>
<li><a href="https://copera.org/investment-stewardship-report" target="_blank" rel="noreferrer noopener">Investment Stewardship Report</a></li>



<li><a href="https://copera.org/stewardship-snapshot" target="_blank" rel="noreferrer noopener">Digital Snapshot</a></li>



<li><a href="https://www.copera.org/stewardship-videos" target="_blank" rel="noreferrer noopener">Video Library: Investment Stewardship</a></li>



<li><a href="https://www.copera.org/pera-on-the-issues/asset-classes-explained-global-equity" target="_blank" rel="noreferrer noopener">Asset Classes Explained</a></li>
</ul>


How PERA Prioritizes Financial Value Over Personal or Political Values


<p>In our recent quiz about PERA benefits, there was one question that seemed to trip a lot of people up, and it had to do with the PERA Board of Trustees:</p>



<p>Which of the following is the PERA Board of Trustees responsible for setting?</p>



<ul>
<li>A: Employee and employer contribution rates</li>



<li>B: Annual benefit increase amounts</li>



<li>C: Benefit eligibility requirements</li>



<li>D: All of the above</li>



<li><strong>E: None of the above</strong></li>
</ul>



<p></p>



<p>The correct answer is E: None of the above. While the Board is tasked with overseeing PERA operations, it isn’t directly responsible for setting many of the benefits that members receive.</p>



<p>PERA governance and operations are split between three main entities: The state legislature, the PERA Board, and PERA staff.</p>



<h2 class="wp-block-heading">The legislature and state law</h2>



<p>The state legislature established PERA as an instrumentality of the state in 1931. PERA and its benefits continue to be governed under Title 24, Article 51 of the Colorado Revised Statutes, also known as <a href="https://copera.org/pera-law-2024" target="_blank" rel="noreferrer noopener">PERA Law</a>.</p>



<p>State statute lays out in detail the various provisions that determine who receives PERA benefits, when, and how much they receive, including:</p>



<ul>
<li>Contribution amounts</li>



<li>How service credit can be accrued and purchased</li>



<li>Benefit options and eligibility</li>



<li>Annual benefit increases</li>
</ul>



<p></p>



<p>Because the legislature is responsible for setting benefits, any changes to PERA benefits must also happen at the State Capitol. Change happens when lawmakers bring forth a bill, which then makes its way through the <a href="https://www.youtube.com/watch?v=WLOeY1h1TFo" target="_blank" rel="noreferrer noopener">legislative process</a> with a majority vote in the House and Senate, along with the governor’s signature. Neither the Board nor PERA staff have the power to change any of the provisions set in statute.</p>



<p>The legislature also conducts routine oversight of PERA. Various legislative panels meet regularly with PERA leadership and staff, including the Legislative Audit Committee, the House and Senate Finance Committees, the Joint Budget Committee, the Pension Review Commission and the Pension Review Subcommittee.</p>



<h2 class="wp-block-heading">The PERA Board of Trustees</h2>



<p>The <a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">PERA Board</a> is made up of 16 members: three Trustees appointed by the Governor and confirmed by the Senate; four members from the School Division; three members from the State Division; one member from the Local Government Division; one Judicial Division member; two PERA retirees; a non-voting representative from the DPS Division; and the State Treasurer as an ex officio, voting member. As fiduciaries, the Board has a responsibility to act in the best interests of PERA members.</p>



<p>While the legislature sets benefits and other important plan provisions, the PERA Board is responsible for administering those benefits and overseeing PERA operations and management. The Board’s <a href="https://www.copera.org/about/board-of-trustees" target="_blank" rel="noreferrer noopener">Governance Manual</a>, which adheres to best practices in public pension governance, defines these responsibilities. They include:</p>



<ul>
<li>Setting rules and policy for PERA administration</li>



<li>Establishing organizational priorities and strategies</li>



<li>Overseeing PERA’s investment program</li>
</ul>



<p></p>



<p>The Board also reviews and releases various important reports each year. That includes the <em><a href="https://copera.org/annual-report" target="_blank" rel="noreferrer noopener">Annual Comprehensive Financial Report</a> </em>(ACFR), which provides details about PERA’s financial status, funded status and membership statistics. The ACFR will be available following the Board’s June meeting.</p>



<h2 class="wp-block-heading">PERA staff</h2>



<p>While the legislature and Board establish policy and rules, PERA staff are responsible for administering plan benefits and managing day-to-day operations. PERA currently employs more than 300 people who work every day to meet the goals set out in the Board’s <a href="https://content.copera.org/wp-content/uploads/2024/05/strategic-plan.pdf" target="_blank" rel="noreferrer noopener">strategic plan</a>. Some of those duties include:</p>



<ul>
<li>Processing employee and employer contributions</li>



<li>Managing PERA’s investments</li>



<li>Distributing retirement payments and other benefits</li>



<li>Member communications and education</li>
</ul>



<p></p>



<p>Providing retirement and other benefits to more than 700,000 members is a big job, and it’s one we take seriously. The state legislature, PERA Board, and PERA staff all play important roles in making sure Colorado’s public employees will be able to receive reliable retirement income today and for generations to come.</p>


What Roles Do the General Assembly and Board Play at PERA?


<p>The PERA Board of Trustees met for its last meeting of 2022 on Nov. 18. The Board heard updates from PERA staff and consultants, and considered several important issues, including the next Board election, the member contribution interest rate, the results of the actuarial audit, and the Board’s strategic planning process.</p>



<h2 class="wp-block-heading">2023 Board election</h2>



<p>The Board approved the calendar for the 2023 Board election, where four seats will be up for election:</p>



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



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



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



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



<p>Candidacy application will begin January 3 and the election will be held in May</p>



<h2 class="wp-block-heading">Member contribution interest rate</h2>



<p>By statute, the PERA Board is required to set the interest rate paid on PERA Defined Benefit (DB) Plan accounts. In 2020, the Board <a href="https://content.copera.org/recap-of-the-pera-boards-november-2022-meeting-2/" target="_blank" rel="noreferrer noopener">updated their policy</a> regarding the setting of the interest rate. The policy reflects the Board’s principles and evaluates the interest rate as a component of members’ overall retirement benefit. Based on the guidance provided in the policy, the Board voted to keep the current rate of 3% (compounded annually) for 2023.</p>



<p>If a PERA member leaves PERA-covered employment and requests a refund of their DB account, they receive their contributions, the interest earned on that balance, and any applicable employer match. If that member keeps their account with PERA, however, their balance will continue to accrue interest and the member will be eligible for a lifetime monthly benefit when reaching retirement eligibility.</p>



<h2 class="wp-block-heading">Results of actuarial audit</h2>



<p>The Board heard the results of <a href="https://content.copera.org/recap-of-the-pera-boards-november-2022-meeting-2/" target="_blank" rel="noreferrer noopener">an independent audit</a> of the work of PERA’s actuarial consultants, The Segal Group, Inc. The audit, by consulting firm Buck Global, LLC, found that Segal’s actuarial assumptions and methods are sound and in compliance with actuarial standards of practice.</p>



<blockquote class="wp-block-quote">
<p><strong>Related:</strong> <a href="https://peraontheissues.com/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>
</blockquote>



<h2 class="wp-block-heading">Strategic plan update</h2>



<p>Executive Director Ron Baker spoke about how the Board is continuing with its yearlong process to develop a new strategic plan to guide the organization and emphasized the current plan’s four key goals: (1) To fortify PERA’s financial resilience and adaptability, (2) to elevate PERA’s identity among stakeholders to that of a partner, (3) to strengthen organizational health and performance, and (4) to improve retirement security through “best fit” products, services, and education.</p>



<p>The Board will continue working on a draft plan throughout 2023, with the goal of adopting a new strategic plan for 2024 – 2029 by the end of the year. The strategic plan will guide the efforts of PERA staff.</p>


Recap of the PERA Board’s November 2022 Meeting


<p>If you follow the stock market and investing news, you may have noticed a term that’s been gaining in popularity in recent years: ESG.</p>



<p>ESG is an acronym for environmental, social, and governance factors. It’s a widely used caption for labeling non-traditional aspects of a business that may have a financial impact on a company and its investors.</p>



<p>The term “ESG” is sometimes used to describe business or investment strategies perceived to have a global sustainability focus. However, that may be a misnomer. &nbsp;</p>



<h2 class="wp-block-heading">Evaluating business practices through an ESG lens</h2>


<div class="wp-block-image">
<figure class="alignright size-large is-resized"><a href="https://content.copera.org/wp-content/uploads/2022/10/ABCDESG-graphic.png"><img decoding="async" loading="lazy" src="https://content.copera.org/wp-content/uploads/2022/10/ABCDESG-graphic.png" alt="An infographic illustrating PERA's approach to ESG." class="wp-image-44041" width="306" height="396" srcset="https://content.copera.org/wp-content/uploads/2022/10/ABCDESG-graphic.png 612w, https://content.copera.org/wp-content/uploads/2022/10/ABCDESG-graphic-232x300.png 232w" sizes="(max-width: 306px) 100vw, 306px" /></a><figcaption class="wp-element-caption">Click to view infographic</figcaption></figure></div>


<p>Rather than being a one-size-fits-all way to describe a company or investor, ESG is intended to be a way to describe nuanced inputs, outputs, and operations that can affect the environment, society, and/or business governance. These factors may or may not be financially relevant to a company and its investors.</p>



<p>Take a soda company for example. The company’s usage of water, an important ingredient in soda and other drinks, makes it neither an ESG nor non-ESG company. Instead, water could be considered a financially relevant input with implications for business that can be labeled through an ESG lens. Water is a natural resource, and it therefore can be considered an environmental factor. How the company accesses and uses that water in relation to the local community can be considered a social factor, and how the company adapts its strategy to changing supply, demand, regulation, and technology could be considered a governance factor.</p>



<p>How the company approaches these and many other elements of its business can affect its ability to remain competitive in its industry. Competitiveness and profitability are important to companies and their investors, and ESG is just one way to label various factors that may influence long-term financial outcomes.</p>



<p>As investors managing the retirement funds for nearly 700,000 members and retirees, it’s important for PERA to consider financially relevant factors when managing the portfolio, regardless of how they are labeled, or whether they may also have non-financial impacts.</p>



<h2 class="wp-block-heading">PERA’s investment approach</h2>



<p>PERA invests with one objective: to provide present and future benefits for our members and their beneficiaries. To that end, our approach to <a href="https://www.copera.org/investment-stewardship" target="_blank" rel="noreferrer noopener">Investment Stewardship</a> is to seek out investments that are expected to provide the best risk-adjusted returns. PERA values financial sustainability first and foremost, and we do not invest to suit the personal beliefs of any one person or entity.</p>



<figure class="wp-block-embed is-type-video is-provider-vimeo wp-block-embed-vimeo"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Risks and Opportunities" src="https://player.vimeo.com/video/756477551?&amp;app_id=122963" width="640" height="366" frameborder="0" allow="autoplay; fullscreen; picture-in-picture; clipboard-write; encrypted-media; web-share"></iframe>
</div></figure>



<p>PERA staff consider a wide variety of financially relevant factors when deciding what to include in the portfolio, including some that can be labeled as environmental, social, or governance-related. As of Dec. 31, 2023, PERA staff managed approximately 60 percent of the Fund in-house with most of those assets in actively managed portfolios using this integrative approach. PERA does not have any ESG-centric investment requirements and does not screen investments based on any specific ESG criteria.</p>



<p>“As ESG terminology becomes more prominent, it’s important that our members know PERA’s priority is maximizing long-term, risk-adjusted returns so we can continue paying benefits for decades to come,” said PERA Director of Investment Stewardship Tara Stacy. “By focusing on financial sustainability in our investment decisions, we uphold the fiduciary duty we owe to PERA members and their beneficiaries.”</p>



<p>For PERA members in the Defined Contribution Plan or a PERAPlus 401(k) or 457 plan who want to invest their own savings in companies that are screened on ESG criteria, PERA offers the <a href="https://www.copera.org/pera-on-the-issues/peradvantage-sri-fund-a-sustainable-investing-option-for-401k-457-and-dc-plan-participants" target="_blank" rel="noreferrer noopener">PERAdvantage Socially Responsible Investment Fund</a>. The SRI Fund is designed for long-term performance through investment in companies that have demonstrated leadership in ESG-related practices — that is, companies that have shown an ability to manage risks and take advantage of opportunities associated with environmental, social and governance issues. Participants may also choose from a large variety of investments within the self-directed brokerage option.</p>



<p>To learn more about how PERA integrates various financially material factors into its investment decisions, read the <a href="https://www.copera.org/investment-stewardship" target="_blank" rel="noreferrer noopener">Investment Stewardship Report</a>.</p>


ESG: Making Sense of Alphabet Soup


<p>October is National Retirement Security Month — a time to examine one’s financial situation, assess progress toward retirement savings goals, make plans to get on track, or make a goal and get started.</p>



<p>Retirement security is at the core of everything we do and everything we offer at PERA. This commitment is reflected in our mission statement: To provide retirement security for our members while ensuring the sustainability of the fund.</p>



<p>In 2021, PERA paid $4.35 billion in retirement benefits to more than 110,000 Colorado retirees. Each of those retirees can rely on receiving regular income from PERA’s Defined Benefit Plan for as long as they live.</p>



<p>Some PERA employers offer a choice between the Defined Benefit (DB) Plan and the Defined Contribution (DC) Plan, and PERA members also have access to optional PERAPlus 401(k) and 457 plans to save more for retirement. Knowing what combination of plans to choose can be challenging.</p>



<p>To help members further bolster their retirement knowledge and security, PERA launched an online <a href="https://www.copera.org/financial-wellness-library?utm_source=POTI&amp;utm_medium=email&amp;utm_campaign=10-12-22" target="_blank" rel="noreferrer noopener">Financial Wellness Library</a> with a regularly updated collection of articles on retirement planning. These articles put into perspective the many factors that can impact saving for retirement, while providing suggestions that make the planning a little easier.</p>



<h2 class="wp-block-heading">Financial Wellness Library</h2>



<p>The educational content in PERA’s Financial Wellness Library is split into numerous sections, including: creating a budget, investing basics, preparing for life events, protecting your assets, saving and planning, getting ready to retire, and activities in retirement as well as links to PERA benefits and tools to help you achieve your financial goals.</p>



<p>There’s also a link to additional financial wellness content from <a href="https://www.empower.com/learning_center/#/">Empower Retirement</a>, PERA’s partner in administering the PERAPlus 401(k), 457 and DC plans.</p>



<p>In addition to general financial literacy information, the library includes articles to help you get more familiar with your PERA benefits and how they can help you meet your goals:</p>



<ul>
<li><strong>Get the Most Out of PERA: View Your Member Dashboard:</strong> Learn about the features available when you log into your member account on copera.org, including checking your account balance, seeing your estimated monthly retirement benefit, submitting forms and more.</li>



<li><strong>PERA is With You Every Step of the Way Throughout Your Career: </strong>Whether you’re new to PERA or getting ready to retire, we have resources available to help you make the most of your benefits.</li>



<li><strong>The Benefits of PERA Membership Start Well Before You Retire:</strong> PERA is more than just a retirement plan; we also offer survivor and disability benefits, voluntary savings plans and more.</li>



<li><strong>Four Things New Members Should Do:</strong> If you’re new to PERA, this is a great place to start on your path to retirement security.</li>
</ul>



<p>Visit <a href="https://www.copera.org/financial-wellness-library?utm_source=POTI&amp;utm_medium=email&amp;utm_campaign=10-12-22" target="_blank" rel="noreferrer noopener">copera.org/financial-wellness-library</a> to learn more.</p>



<p><strong>Additional reading:</strong></p>



<ul>
<li><a href="https://peraontheissues.com/what-retirement-security-means-to-pera-members/" target="_blank" rel="noreferrer noopener">What ‘Retirement Security’ Means to PERA Members</a></li>



<li><a href="https://peraontheissues.com/survey-millennials-gen-x-especially-pessimistic-about-retirement-prospects/" target="_blank" rel="noreferrer noopener">Survey: Millennials, Gen X Especially Pessimistic about Retirement Prospects</a></li>



<li><a href="https://peraontheissues.com/how-retirement-systems-like-pera-plan-for-the-biggest-financial-risks-retirees-face/" target="_blank" rel="noreferrer noopener">How Retirement Systems Like PERA Plan for the Biggest Financial Risks Retirees Face</a></li>



<li><a href="https://peraontheissues.com/pera-offering-new-lifetime-income-options-to-dc-plan-participants/" target="_blank" rel="noreferrer noopener">PERA Offering New Lifetime Income Options to DC Plan Participants</a></li>
</ul>


Financial Education Resources for National Retirement Security Month


<p>This year, as part of its regular review process, the Colorado PERA Board of Trustees will enlist an outside firm to conduct an audit of the methods and assumptions PERA’s actuaries use in their calculations.</p>



<p>But what is an actuary and what do they do?</p>



<p>Actuaries are highly skilled mathematicians who help pension plans, insurance companies, and other financial organizations plan for the future based on historical and anticipated demographic, trend, and financial data. In short, actuaries aim to predict the future as accurately as possible.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What does an actuary do for a retirement system like PERA?</h2>



<p>A retirement system could not function without actuaries. At Colorado PERA, Senior Actuary Koren Holden works with third party actuaries to make sure the Board and PERA leadership have an accurate understanding of PERA’s financial health.</p>



<p>“I act as a liaison between the PERA Board and Executive Team and the Board’s external actuarial service provider,” Holden said. “I am responsible for completion and timely delivery of all the requested actuarial work (i.e., actuarial valuations, special calculations, periodic actuarial studies, etc.) and also responsible for the initial review of all actuarial work to ensure completeness and reasonability.”</p>



<p>In order to pay benefits to retirees for decades to come, retirement plans like PERA need to make predictions about various factors that will determine how much money the plan needs to have on hand to pay those benefits. Actuaries develop those predictions — called actuarial assumptions — and calculate the effects they may have on the plan’s finances.</p>



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



<p>Pension plan assumptions fall into two categories: demographic and economic assumptions. Demographic assumptions attempt to accurately anticipate events that occur over the lifetime of plan participants, which can influence the amount and timing of benefits. They include:</p>



<ul>
<li>Life expectancy (how long will plan participants live?)</li>



<li>Rates of retirement (when will plan participants retire?)</li>



<li>Mortality trends (how many participants will die before/after receiving a benefit?)</li>



<li>Salary growth (how quickly and by how much will salaries change for different groups of employees?)</li>
</ul>



<p></p>



<p>Economic assumptions attempt to anticipate financial factors that can impact the cost of future benefits and the rate at which they are funded, such as:</p>



<ul>
<li>Inflation (what will be the rate of consumer inflation in the future?)</li>



<li>Investment rate of return (how much investment income will the fund earn?)</li>
</ul>



<p></p>



<p>Per Colorado statute, all actuarial assumptions recommended by the actuary are subject to approval by the PERA Board. Actuaries make recommendations to the Board, and the Board adopts them or requests further analysis and revised recommendations to be considered later.</p>



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



<p>Actuaries conduct comprehensive studies known as annual actuarial valuations to evaluate funding progress and the impact of year-to-year changes on a pension plan’s finances. A valuation provides a summary of the plan’s funded status, funding period and recommended contribution rates, and often includes accounting information as required under the Governmental Accounting Standards Board (GASB) statements for public pension plans. In order to perform the valuation and provide this information, the actuary takes into consideration contributions, investment returns, demographic changes, retirements, withdrawals, economic factors, deaths, hires, and other system data.</p>



<p>The annual actuarial valuation is the backbone of the <em>Annual Comprehensive Financial Report</em>, a pension plan’s required public report of financial health.</p>



<p>Read the latest Colorado PERA actuarial valuation and Annual Comprehensive <a href="https://www.copera.org/forms-resources/financial-reports-and-studies" target="_blank" rel="noreferrer noopener">Financial Report</a>.</p>



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



<p>An experience study compares the actual experience of the plan to the predictions made by the actuarial assumptions, including rates of death, retirement, separation from service, disability and salary increases. The comparison of actual results to predicted results demonstrates to actuaries which assumptions need to be revised to more accurately reflect true demographic and economic conditions. The experience analysis is the foundation for the annual actuarial valuation in that it determines the appropriate assumptions to be applied within the annual actuarial valuation.</p>



<p>PERA <a href="https://peraontheissues.com/2020-experience-study-preparing-for-a-secure-future/" target="_blank" rel="noreferrer noopener">last conducted an experience study</a> in 2020, and the Board adopted several new assumptions as a result. This process will take place again in 2024.</p>



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



<p>In addition to the pension plan’s annual actuarial valuation and periodic experience analyses, an actuary also performs special studies as needed and/or required by law. For instance, if <a href="https://peraontheissues.com/2022-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">proposed state legislation</a> will be making changes to benefit provisions, an actuarial analysis of the proposed change would be necessary to determine the financial effect of the change.</p>



<p>Actuaries provide invaluable expertise to retirement systems like Colorado PERA, ensuring the Board and stakeholders have an accurate picture of the organization’s financial health and the road ahead.</p>



<p>“I love numbers, but my main passion for the work I perform here at PERA is being part of a dedicated team that serves my community as well as the entire state of Colorado,” Holden said. “I like the feeling that all of us at PERA are helping ensure a stable and dignified retirement for the teachers and many other public servants by promoting, promulgating, and defending a strong defined benefit retirement program (not to mention health care access), as the best means to deliver this vision.”</p>


Explaining the Role of Actuaries in Retirement Plans like PERA


<p>The Colorado PERA Board of Trustees resumed meeting in person for its March meeting, convening at PERA’s headquarters in Denver on Friday, March 18.</p>



<p>The Trustees discussed a number of important topics, including the upcoming Board election, PERA-related legislative activity, and PERA’s investments.</p>



<h2 class="wp-block-heading">Board election</h2>



<p>Four seats on the Board are up for election this year, and members interested in serving as a PERA trustee were able to submit their candidate packets in January and February. At this month’s meeting, the Board received an update on candidates for the four open seats and voted to move forward with elections for the School Division and State Division seats.</p>



<p>Current trustee Ramon Alvarado is running uncontested for the Higher Education seat in the State division, so the Board voted to appoint him to another term and forego an election for that seat. In the Local Government division, the Board will form an <em>ad hoc</em> committee to identify possible candidates for appointment to that seat, since there are no candidates running for the position.</p>



<p>Ballots will be mailed in early May and members of the School and State divisions will be able to vote for their respective Board seats.</p>



<h2 class="wp-block-heading">Legislative update</h2>



<p>PERA Executive Director Ron Baker and Public and Government Affairs Manager Michael Steppat provided the Board with an update on several pieces of PERA-related legislation that have been making their way through the Colorado General Assembly this session.</p>



<p>Lawmakers passed two bills that will expand the ability for PERA retirees to work after retirement without a reduction in benefits — <a href="https://leg.colorado.gov/bills/hb22-1057" target="_blank" rel="noreferrer noopener">HB22-1057</a> and <a href="https://leg.colorado.gov/bills/hb22-1101" target="_blank" rel="noreferrer noopener">HB22-1101</a> — and Gov. Polis signed them into law.</p>



<p><a href="https://leg.colorado.gov/bills/hb22-1029" target="_blank" rel="noreferrer noopener">HB22-1029</a>, which would make up the state’s annual $225 million payment to PERA that was foregone in 2020 due to pandemic-related budget cuts, has been introduced in the House but it’s not yet scheduled for a hearing. Steppat said he expects to see lawmakers take action on that bill in the coming weeks.&nbsp;</p>



<h2 class="wp-block-heading">Actuarial audit</h2>



<p>This year, the Board will hire an outside firm to conduct an audit of PERA’s actuarial methods and assumptions — which PERA uses for calculations such as projecting liabilities — as part of its regular review process. The Board reviewed four firms that submitted proposals and voted to select Buck, which has extensive experience with public plans and previously performed an audit for PERA in 2009.</p>



<p>Buck will perform the audit throughout the spring and summer, and then present the results to the PERA Board at its November meeting.</p>



<h2 class="wp-block-heading">Fiduciary counsel review</h2>



<p>The Board is also undertaking a review of the outside legal consultant who serves as fiduciary counsel to the Board, providing annual fiduciary training and giving advice as needed. The Board reviewed multiple finalists and voted to select Suzanne Dugan of Cohen Milstein Sellers &amp; Toll, PLLC as fiduciary counsel going forward.</p>



<h2 class="wp-block-heading">Market and investments update</h2>



<p>PERA Chief Investment Officer Amy C. McGarrity provided the Board with an update on economic conditions and <a href="https://peraontheissues.com/staying-the-course-peras-approach-to-market-volatility/" target="_blank" rel="noreferrer noopener">market volatility</a> so far this year, as well as other topics involving PERA’s investments, including Russia-based assets.</p>



<p>On Feb. 24, Colorado Gov. Jared Polis made a request to the PERA Board that is consistent with what has been included in the federal mandates pertaining to sanctions on Russian-owned assets. U.S. sanctions remain fluid and include a combination of freezing assets, divesting of assets and not investing additional funds in Russian assets. PERA is reviewing and preparing to implement the federal mandates within the required time specifications. As of Feb. 24, PERA had $8 million in total invested in Sberbank, OGK-2, Gazprom, Mosenergo, and Rosneft Oil. As of Mar. 18, PERA’s portfolio (preliminary and unaudited) is $60,992,000,000.</p>



<p>McGarrity also provided an update on PERA’s implementation of <a href="https://leg.colorado.gov/bills/hb16-1284" target="_blank" rel="noreferrer noopener">HB16-1284 (Divest From Companies With Prohibitions Against Israel)</a>.</p>



<p>In 2021, Ben &amp; Jerry’s <a href="https://www.benjerry.com/about-us/media-center/opt-statement" target="_blank" rel="noreferrer noopener">issued a statement</a> that it would withdraw its products from the Israeli-occupied West Bank because the occupation was inconsistent with company values. To comply with HB16-1284, PERA will be assessing its investments in Unilever (as the parent company of Ben &amp; Jerry’s) and engaging further with the company.</p>



<p>As of Feb. 28, 2022, PERA has $42 million invested in Unilever equities and bonds.</p>



<p>The <a href="https://content.copera.org/pera-board-discusses-election-investments-at-march-meeting/" target="_blank" rel="noreferrer noopener">PERA Board voted unanimously</a> to add Unilever to its <a href="https://content.copera.org/pera-board-discusses-election-investments-at-march-meeting/" target="_blank" rel="noreferrer noopener">Restricted Companies List</a>. PERA will begin a 180-day process to engage with Unilever in accordance with the Board’s decision. Upon completion of the engagement, and as applicable, PERA will divest of its Unilever holdings within 12 months if not satisfied with the responses to the assessment.</p>



<p></p>


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