
<p>Retirement insights from a Colorado PERA perspective</p>



<p></p>


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


<p>The Colorado PERA Board of Trustees met in Denver on Friday, November&nbsp;21 for its final regularly scheduled meeting of the year.&nbsp;</p>



<p>Trustees voted to approve PERA’s 2026 operating budget, set the interest rate for member accounts,&nbsp;discussed the upcoming legislative session, and more.&nbsp;Additional&nbsp;details, including meeting materials and a recording of the livestream,&nbsp;are available on the&nbsp;<a href="https://www.copera.org/about/board-and-leadership/board-meeting-archive" target="_blank" rel="noreferrer noopener">Board Meeting Archive</a>&nbsp;page.&nbsp;&nbsp;</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Investment consultant decision&nbsp;</h2>



<p>Earlier this year, the Board directed staff to&nbsp;request proposals from investment consulting firms as part of its regular review of third-party service providers.&nbsp;The Board’s Investment Committee interviewed three firms and&nbsp;the full Board&nbsp;<a href="https://www.copera.org/news/pera-board-retains-aon-as-investment-consultant" target="_blank" rel="noreferrer noopener">voted to retain&nbsp;Aon</a>,&nbsp;its&nbsp;current investment consultant.&nbsp;</p>



<p>The Board&nbsp;is responsible for&nbsp;overseeing PERA’s investment program and&nbsp;utilizes&nbsp;an investment consultant to provide research, analysis, and advice in areas such as investment strategy, asset allocation, and fund performance. The investment consultant also conducts periodic&nbsp;<a href="https://www.copera.org/pera-on-the-issues/asset-liability-study-a-guide-to-building-a-strategic-portfolio" target="_blank" rel="noreferrer noopener">asset/liability analysis</a>&nbsp;that informs PERA’s strategic asset allocation, performance benchmarks, and assumed rate of return.&nbsp;</p>



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



<p>PERA CEO/Executive Director Andrew Roth and&nbsp;Director of Strategy Annalise Anderson&nbsp;provided an update to the&nbsp;Board on the organization’s three-year strategic plan.&nbsp;As the first year under the plan winds down, Roth and Anderson said they expect to&nbsp;complete 100% of the&nbsp;plan’s&nbsp;measures and targets for 2025.&nbsp;</p>



<p>One of the main goals included in the plan is improving the customer and stakeholder experience, and&nbsp;Roth&nbsp;detailed&nbsp;much of&nbsp;the work he’s done over the past year, including meeting with lawmakers,&nbsp;holding&nbsp;in-person&nbsp;<a href="https://copera.org/about/pera-town-hall" target="_blank" rel="noreferrer noopener">Town Halls</a>&nbsp;to connect with members and retirees&nbsp;in Fort Collins and Pueblo, and increasing outreach to PERA-affiliated employers.&nbsp;</p>



<p>Leaders will&nbsp;begin working on an implementation plan for year&nbsp;two&nbsp;to help guide&nbsp;staff’s work&nbsp;throughout 2026, with regular updates continuing at future Board meetings.&nbsp;</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Upcoming legislative session&nbsp;</h2>



<p>Director of Public and Government Affairs Michael Steppat joined Roth to&nbsp;discuss the 2026 legislative session and some of the issues they expect&nbsp;state&nbsp;lawmakers to tackle.&nbsp;</p>



<p>Similar to&nbsp;the 2025 session, legislators&nbsp;will face the challenging task of cutting&nbsp;hundreds of millions in&nbsp;state&nbsp;spending to pass a balanced budget.&nbsp;While that&nbsp;won’t&nbsp;happen until the spring, Gov. Jared&nbsp;Polis&nbsp;has already&nbsp;submitted&nbsp;his proposed budget. The governor’s proposal&nbsp;calls for privatizing the state’s&nbsp;worker compensation insurance provider, Pinnacol Assurance, and reducing the&nbsp;amortization equalization disbursement (AED), a contribution that employers make to PERA, for employers in the State Division.&nbsp;</p>



<p>If Pinnacol were to become a private entity, it would have to disaffiliate from PERA and&nbsp;pay its&nbsp;portion&nbsp;of DB Plan liabilities, which are estimated to be&nbsp;approximately $300 million.&nbsp;&nbsp;</p>



<p>The proposed 1% reduction in the&nbsp;AED is estimated to reduce contributions to PERA by about $40 million over the next two years, adding up to about $180 million by the time PERA reaches full funding in 2048.&nbsp;</p>



<p>Steppat and Roth also discussed two legislative proposals that, if introduced and passed, could help&nbsp;reduce the likelihood of triggering automatic adjustments to PERA contributions and retiree annual increases in future years under the&nbsp;<a href="https://www.copera.org/automatic-adjustment-provision" target="_blank" rel="noreferrer noopener">Automatic Adjustment Provision</a>.&nbsp;Those proposals include providing PERA flexibility to&nbsp;allocate&nbsp;the&nbsp;State’s annual $225 million direct distribution&nbsp;to whichever division trust funds&nbsp;would help minimize the likelihood of&nbsp;triggering automatic&nbsp;adjustments and&nbsp;reallocating a&nbsp;portion&nbsp;of employers’ health care trust fund contributions to help pay off&nbsp;pension&nbsp;liabilities.&nbsp;</p>



<p>The 2026 legislative session begins&nbsp;on January 14, and&nbsp;<em>PERA On&nbsp;The&nbsp;Issues</em>&nbsp;will be closely tracking all PERA-related bills throughout the session.&nbsp;</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 Board election&nbsp;</h2>



<p>Two seats on the Board will be up for election in 2026: A School Division seat and a State Division seat to be filled by an employee of an institution of higher education.&nbsp;</p>



<p>Candidacy for the two open seats will open in early January, and active members in the School and State divisions will receive ballots in May.&nbsp;</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Member contribution interest rate&nbsp;</h2>



<p>Each November, the Board&nbsp;is responsible for&nbsp;setting&nbsp;the interest rate that applies to PERA DB Plan accounts for the upcoming year.&nbsp;If a PERA member <a href="https://copera.org/welcome-pera-members/life-and-job-changes/leaving-employment" target="_blank" rel="noreferrer noopener">leaves PERA-covered employment</a> and requests a refund of their&nbsp;DB Plan&nbsp;account, they receive their contributions, the interest earned on that balance&nbsp;(compounded annually), and any applicable employer match. If that member keeps their account with PERA, the balance will continue to&nbsp;accrue&nbsp;interest&nbsp;and the member has multiple options upon reaching retirement eligibility, including choosing a lifetime monthly benefit.&nbsp;</p>



<p>The Board’s policy evaluates the interest rate as a&nbsp;component&nbsp;of members’ overall retirement benefit. After discussing the issue, Trustees voted to keep the interest rate at 3 percent for 2026.&nbsp;</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 actuarial audit&nbsp;</h2>



<p>In 2026, the Board will&nbsp;hire an outside firm to conduct its periodic actuarial audit.&nbsp;Such audits have been part of the Board’s governance practices since the 1980s, with audits taking place every four or five years. With the passage of Senate&nbsp;Bill 28 in 2025, the Board is now required by law to conduct actuarial audits every four years. The last audit took place in 2022.&nbsp;</p>



<p>The&nbsp;goal&nbsp;of the actuarial audit is to&nbsp;receive an independent assessment of PERA’s actuarial methods and assumptions&nbsp;and&nbsp;attempt&nbsp;to&nbsp;replicate the&nbsp;calculations of the Board’s&nbsp;actuarial&nbsp;consultant, Segal.&nbsp;&nbsp;&nbsp;</p>



<p>Staff will conduct a search for a third-party&nbsp;firm to conduct the audit in early 2026, with results expected by the Board’s November 2026 meeting.&nbsp;</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 meeting dates&nbsp;</h2>



<p>The Board concluded its business with a look at&nbsp;2026’s meeting calendar. The following Board meetings are scheduled for the year:&nbsp;</p>



<ul>
<li>January 23&nbsp;</li>
</ul>



<ul>
<li>March 20&nbsp;</li>
</ul>



<ul>
<li>June 25&nbsp;</li>
</ul>



<ul>
<li>September 23-26 (planning session and meeting)&nbsp;</li>
</ul>



<ul>
<li>November 20&nbsp;</li>
</ul>



<p></p>



<p>For more information on Board meetings, including recordings and meeting materials, visit&nbsp;the&nbsp;<a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">Board and Leadership</a>&nbsp;page.&nbsp;</p>


PERA Board Approves Interest Rate, Discusses Upcoming Legislative Session at November 2025 Meeting


<h2 class="wp-block-heading has-medium-font-size h5"><a href="https://coloradosun.com/2025/07/30/colorado-big-beautiful-bill-state-budget-effects/" target="_blank" rel="noreferrer noopener"><strong>Colorado Lawmakers Must Cut $1 Billion from State’s Current Budget Because of GOP Federal Tax and Spending Bill | The Colorado Sun</strong></a></h2>



<p>The State of Colorado is once again facing the prospect of having to cut about $1 billion from the state budget. Lawmakers had to make a number of spending cuts during the annual budget-setting process, and now they’re looking at additional cuts due to reductions in federal spending. Gov. Jared Polis has called a special legislative session beginning Aug. 21 to tackle the issue.</p>



<h2 class="wp-block-heading has-medium-font-size h5"><a href="https://www.foxbusiness.com/economy/federal-reserve-interest-rate-decision-july-2025" target="_blank" rel="noreferrer noopener"><strong>Federal Reserve Leaves Key Interest Rate Unchanged for Fifth Straight Meeting | Fox Business</strong></a></h2>



<p>The Federal Reserve has again opted to keep interest rates steady for now. Despite pressure from President Trump to lower rates, the central bank said the economy remains on solid footing and therefore changes in its key rate are not necessary at this time. The Fed’s next meeting to discuss interest rates will be in September.</p>



<h2 class="wp-block-heading has-medium-font-size h5"><a href="https://www.cnn.com/2025/07/27/business/new-rules-charitable-deductions" target="_blank" rel="noreferrer noopener"><strong>New Rules for How Much You Can Deduct in Charitable Contributions | CNN Business</strong></a></h2>



<p>Taxpayers who take the standard deduction were allowed to deduct a portion of charitable donations from their taxes during a temporary pandemic-era policy that has since expired. That deduction is returning in 2026, with taxpayers being allowed to deduct up to $1,000 ($2,000 for joint filers) in cash donations.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<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: Colorado Facing Additional $1B in Budget Cuts


<h2 class="wp-block-heading has-medium-font-size h5"><a href="https://apnews.com/article/social-security-medicare-trust-fund-trump-74e13292f510739724a555d7ded7c1a3" target="_blank" rel="noreferrer noopener"><strong>Medicare and Social Security Go-Broke Dates Pushed Up | AP News</strong></a></h2>



<p>This year’s annual assessment of the Social Security and Medicare trust funds found the programs could be forced to begin cutting benefits even sooner than previously expected, if the government doesn’t take action. Social Security is expected to deplete its trust funds one year sooner than last year’s estimate, while Medicare’s hospital insurance fund is expected to run out of cash three years earlier.</p>



<h2 class="wp-block-heading has-medium-font-size h5"><a href="https://www.reuters.com/business/fed-set-hold-rates-steady-middle-east-crisis-tariffs-cloud-outlook-2025-06-18/" target="_blank" rel="noreferrer noopener"><strong>Fed Keeps Rates Steady but Pencils in Two Cuts by End of 2025 | Reuters</strong></a></h2>



<p>The Federal Reserve is cautiously keeping its key interest rate unchanged for the time being due to concerns over inflation ratcheting back up. Chair Jerome Powell said that while inflation has been low in recent months, it’s possible prices will rise as the full effects of tariffs are realized. However, experts say rate cuts later this year are still possible.</p>



<h2 class="wp-block-heading has-medium-font-size h5"><a href="https://www.planadviser.com/workers-dont-expect-succeed-saving-retirement/" target="_blank" rel="noreferrer noopener" class="broken_link"><strong>Workers Don’t Expect to Succeed in Saving for Retirement | PLANADVISER</strong></a></h2>



<p>If you ask people if their generation has it harder than their parents’ generation, 8 times out of 10 they’ll say “yes,” according to a recent report by the Transamerica Center for Retirement Studies. The survey found that across generations, Americans say they’re struggling to meet their financial needs and save for retirement. The good news is employer-based retirement plans are a vital part of retirement success and more than three-quarters of Generation Z say they’re saving for retirement.</p>



<h2 class="wp-block-heading has-medium-font-size h5"><a href="https://coloradosun.com/2025/06/16/aging-in-colorado-housing-crisis/" target="_blank" rel="noreferrer noopener"><strong>As Colorado Ages, Seniors are Colliding with the Housing Crisis | The Colorado Sun</strong></a></h2>



<p>The Colorado Sun continues its series on aging in Colorado with an article that explores how the state’s seniors—the fastest-growing demographic group—are finding themselves dealing with the housing affordability crisis as they search for homes that meet their needs.</p>



<p></p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<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: Social Security, Medicare Finances Worsen


<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.cpr.org/2025/02/12/financial-literacy-high-school-graduation-requirement-bill/" target="_blank" rel="noreferrer noopener" class="broken_link">Bill Would Require Colorado Students Take One Semester of Financial Literacy to Graduate | Colorado Public Radio</a></h2>



<p>State lawmakers are considering a bill that would require financial education for high school students. Currently, only about a quarter of the state’s school districts require personal finance education. This bill would expand that to all districts in the state, with students being required to complete one semester of financial literacy in order to graduate.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.newsweek.com/republican-pressures-trump-official-fast-track-social-security-payments-2030309" target="_blank" rel="noreferrer noopener">Lawmaker Pressures Officials to Fast Track Social Security Payments | Newsweek</a></h2>



<p>After the Social Security Administration (SSA) said it could take a year or more to implement the Social Security Fairness Act, at least one member of Congress is urging officials to find ways to speed up the process. Rep. Clay Higgins (R-LA) sent a letter to the acting SSA commissioner calling the current timeline “unacceptable.” The agency says it is dealing with a shortage of staff and funding as it works to implement the new law.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.denverpost.com/2025/02/18/colorado-tax-returns-filing-department-revenue-delay/" target="_blank" rel="noreferrer noopener">Colorado Tax Return Delay: State to Begin Processing Individual Returns | The Denver Post</a></h2>



<p>The Colorado Department of Revenue says it will begin processing tax returns this week following a delay. A spokesperson said the department had to delay accepting returns in order to implement a number of significant changes to tax law.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.cnbc.com/2025/02/11/fed-chair-powell-says-central-bank-doesnt-need-to-be-in-a-hurry-to-lower-interest-rates-further.html" target="_blank" rel="noreferrer noopener">Fed Chair Powell Says Central Bank Doesn&#8217;t &#8216;Need to be in a Hurry&#8217; to Lower Interest Rates Further | CNBC</a></h2>



<p>In testimony before the Senate Banking Committee, Federal Reserve Chair Jerome Powell told lawmakers the economy and job market are doing well and inflation remains above the Fed’s target of 2%. Because of those factors, he said he’s not in any hurry to lower interest rates further, as doing so too quickly could send inflation rising again.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<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: Bill Would Require Financial Literacy Course for Colorado Students


<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.pbs.org/newshour/economy/how-the-stock-market-defied-expectations-in-2024-by-the-numbers" target="_blank" rel="noreferrer noopener">How the Stock Market Defied Expectations in 2024, by the Numbers | PBS News</a></h2>



<p>2024 was a great year for the stock market. The S&amp;P 500, for example, notched dozens of all-time records as stocks soared throughout the year. Here are more notable numbers from the market’s performance. Note that PERA’s 2024 investment performance data won’t be available until the <em>Annual Comprehensive Financial Report</em> is released in June.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://finance.yahoo.com/personal-finance/banking/article/do-we-want-high-or-low-interest-rates-223031516.html" target="_blank" rel="noreferrer noopener">Understanding the Fed&#8217;s Rate Decisions: Do We Want High or Low Interest Rates​? | Yahoo Finance</a></h2>



<p>The past several years have been notable for the Federal Reserve’s interest rate moves—the Fed began raising its key interest rate in 2022 and it remained high through much of 2024 before the Fed began lowering the rate in September. It’s not always easy to understand the implications of these decisions, so here are some pros and cons of high and low interest rates for various financial situations.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.cnbc.com/2025/01/05/how-to-maximize-your-401k-for-2025.html" target="_blank" rel="noreferrer noopener">Here&#8217;s How to Maximize Your 401(k) Plan for 2025 with Higher Limits, Bigger Catch-Up Contributions | CNBC</a></h2>



<p>If you’re saving additional money for retirement in a PERAPlus 401(k) or 457 Plan, you have the opportunity to boost your savings even more this year. The amount of money you can contribute to those plans is going up in 2025, and there’s also a new, higher catch-up contribution limit for workers who are getting closer to retirement.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.investopedia.com/how-to-make-financial-resolutions-you-can-stick-to-in-2025-8762615" target="_blank" rel="noreferrer noopener" class="broken_link">How To Make Financial Resolutions You Can Actually Stick To In 2025 | Investopedia</a></h2>



<p>It’s that time of year when many of us are setting intentions and resolutions for the new year. If you’re making money goals, here are some tips for making sure they’re realistic and achievable so you’re set up for success.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<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: The 2024 Stock Market by the Numbers


<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://finance.yahoo.com/news/fed-schmid-says-uncertain-far-183000678.html" target="_blank" rel="noreferrer noopener" class="broken_link">Fed Officials Fret Over How Far They Can Lower Interest Rates | Bloomberg via Yahoo! Finance</a></h2>



<p>What will the Federal Reserve do next? It appears even Fed officials aren’t sure, given their comments at a recent conference. While it’s likely we’ll see additional interest rate cuts in the future, it’s unclear how low they’ll go, as officials have suggested the rate needed to keep inflation in check may be higher than in the pre-pandemic years.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.planadviser.com/retirement-benefits-valued-workers-last-year/" target="_blank" rel="noreferrer noopener" class="broken_link">Retirement Benefits Valued by More Workers Than Last Year | PlanAdviser</a></h2>



<p>Retirement benefits have grown in importance to workers, according to a recent survey. That survey found 62% of respondents said retirement plans contributed most to their financial security, up from 56% the year before. Other priorities included health insurance and paid time off.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.cnbc.com/2024/11/11/credit-card-debt-among-retirees-jumps-significantly.html" target="_blank" rel="noreferrer noopener">Credit Card Debt Among Retirees Jumps | CNBC</a></h2>



<p>New poll data shows just how much retirees’ credit card debt has grown in recent years. According to the Employee Benefit Research Institute, 68% of retirees had outstanding credit card debt in 2024, up from 40% just two years ago. In general, EBRI says retirees and those approaching retirement today are much more likely to have debt—and more of it—than in the past.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.nextavenue.org/guide-model-for-dementia-caregivers/" target="_blank" rel="noreferrer noopener">GUIDE Model Offers Hope, Support for Dementia Caregivers | Next Avenue</a></h2>



<p>The Centers for Medicare and Medicaid Services is rolling out a major initiative known as Guiding an Improved Dementia Experience (GUIDE). The new framework aims to fill existing gaps in dementia care and support for caregivers—including training and education, financial assistance for caregiver breaks, and better access to around-the-clock virtual care.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<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: Fed Charting Uncertain Course with Interest Rates


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



<p>Below are summaries of some of the key actions the Board took during the meeting. You may also view a <a href="https://www.youtube.com/live/PEsqqE25_w0?feature=share" target="_blank" rel="noreferrer noopener">recorded livestream</a> of the meeting.</p>



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



<p>Following a budget workshop during which PERA executives briefed the Board on the need for a larger budget to cover important technology upgrades, the Board approved PERA’s 2025 operating budget of $132 million. The 19.6% increase over 2024’s budget includes costs associated with a multi-year project to modernize the core technology systems necessary to administer benefits as well as other critical needs.</p>



<p>Read more about <a href="https://www.copera.org/news/colorado-pera-board-approves-increase-in-operating-budget-to-fund-technology-upgrades" target="_blank" rel="noreferrer noopener">PERA’s 2025 budget</a>.</p>



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



<p>For months now, the Board, PERA staff, and consultants have been working together to develop PERA’s next three-year strategic plan. That process has involved stakeholder research, identifying areas of strength and opportunity, and solidifying long-term priorities and goals for the organization.</p>



<p>From here, work will continue on crafting the plan, with a draft expected to be ready for Board review in January. Once approved, it will be up to staff to begin implementing the plan and fulfilling its strategic vision.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Member contribution interest rate</h2>



<p>Every PERA Defined Benefit Plan account accrues interest, compounded annually. If a PERA member <a href="https://copera.org/welcome-pera-members/life-and-job-changes/leaving-employment" target="_blank" rel="noreferrer noopener">leaves PERA-covered employment</a> and requests a refund of their account, they receive their contributions, the interest earned on that balance, and any applicable employer match. If that member keeps their account with PERA, the balance will continue to accrue interest and the member has multiple options upon reaching retirement eligibility, including choosing a lifetime monthly benefit.</p>



<p>The Board is responsible for setting the interest rate every year; it currently stands at 3 percent. The Board’s policy evaluates the interest rate as a component of members’ overall retirement benefit. After discussing the issue, Trustees voted to keep the interest rate at 3 percent for 2025.</p>



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



<p>The Board held elections to name a new Chair and Vice Chair, as terms for current Chair Marcus Pennell and Vice Chair Taylor McLemore are set to expire. Current Vice Chair Taylor McLemore was elected Chair, and the Hon. Rebecca R. Freyre was elected Vice Chair. Outgoing Chair Marcus Pennell served the limit of two terms as Chair and was ineligible for reelection.</p>



<p>Both McLemore and Freyre will serve two-year terms.</p>



<p>In addition to electing new officers, the Board appointed Dr. Louis Fletcher to fill a School Division seat vacated by Trustee Scott Smith in September. Fletcher had the second-highest number of votes in the 2024 election for that seat, and will serve until the next election in 2025.</p>



<p><strong>READ MORE:</strong> <a href="https://www.copera.org/news/pera-board-elects-new-chair-vice-chair" target="_blank" rel="noreferrer noopener">PERA Board Elects New Chair, Vice Chair</a></p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Denver Public Schools “true-up” discussion</h2>



<p>When legislation was passed to merge Denver Public Schools Retirement System into Colorado PERA in 2010, it included a provision that aims to equalize the ratio of unfunded actuarial accrued liability over payroll of the DPS Division and the School Division in 30 years. Every five years, PERA conducts an analysis of those ratios and whether adjustments to the DPS Division employer contribution rate would be needed to stay on track.</p>



<p>The results show that a reduction in the DPS Division’s employer contribution rate would be necessary to equalize this ratio in 2039, but the PERA Board has previously taken a formal stance in opposition to the defunding provisions—such as the 5-year “true-up”—that were included in the merger legislation, and more recently has opposed any legislation seeking to reduce contributions pursuant to the Board&#8217;s funding policy.</p>



<p>Additionally, a reduction in employer contributions from the DPS Division could increase the possibility of triggering the Automatic Adjustment Provision in future years, which could increase contributions in other divisions and further decrease the Annual Increase retirees receive on their retirement benefit.</p>



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



<p>Director of Public &amp; Government Affairs Michael Steppat and Chief Executive Officer/Executive Director Andrew Roth provided the Trustees with an update on interim legislative activity and PERA-related bills that could be introduced in the upcoming 2025 legislative session.</p>



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



<p>The first, known as Bill A, is similar to a bill from last session that would provide a temporary tax credit for PERA retirees to reduce the impact of inflation. The second draft, Bill B, pertains to PERA studies and reporting and aims to lay out in statute some of the work the PERA Board already does on a regular basis and modify the cadence of those reports.</p>



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



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



<p>In order to accurately estimate PERA’s financial status and how much money is needed to provide benefits now and into the future, we use a set of predictions, known as actuarial assumptions, that undergo regular review and updates as needed. Those assumptions include economic factors like inflation, investment returns and payroll growth, as well as demographic assumptions such as when people retire and how long they’ll live.</p>



<p>The process of reviewing those assumptions is known as an actuarial experience study, so called because the study involves comparing PERA’s assumptions with the actual experience over a set time period. The last experience study <a href="https://www.copera.org/pera-on-the-issues/2020-experience-study-preparing-for-a-secure-future" target="_blank" rel="noreferrer noopener">took place in 2020</a>. While nobody can predict the future perfectly, regularly performing experience studies ensures our estimates of current and future benefit obligations are as accurate as possible.</p>



<p>The current experience study will look at the period between January 1, 2020 and December 31, 2023. This is an important period because it will show the effects of the COVID-19 pandemic, such as higher mortality and earlier retirements.</p>



<p>Over the coming months, PERA staff will continue working with actuarial consultants to conduct the study, after which the consultants may recommend changes to some assumptions. If the Board adopts any recommended changes, we’ll be sure to provide an update on what that might mean for PERA’s finances.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2025 Board election</h2>



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



<p>There will be five seats up for election in 2025: Three active member seats in the School Division, one active member seat in the State Division (excluding higher-education employers), and one retiree seat (School, Local Government, and Judicial Divisions only). Candidacy will open in early January, with the election taking place in May.</p>



<p>New in 2025, members and retirees will have the added option of being able to cast their votes via the Colorado PERA <a href="https://www.copera.org/pera-mobile-app" target="_blank" rel="noreferrer noopener">mobile app</a> or on copera.org, in addition to the option to vote by mail.</p>



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


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


<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.nerdwallet.com/article/finance/when-the-fed-cuts-rates" target="_blank" rel="noreferrer noopener" class="broken_link">What Happens Now That the Fed Finally Cut Rates? | NerdWallet</a></h2>



<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>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.govexec.com/pay-benefits/2024/09/lawmakers-successfully-force-vote-eliminating-windfall-elimination-provision/399759/" target="_blank" rel="noreferrer noopener">Lawmakers Successfully Force a Vote on Eliminating the Windfall Elimination Provision | Government Executive</a></h2>



<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>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.cnbc.com/2024/09/24/september-consumer-confidence-falls-the-most-in-three-years.html" target="_blank" rel="noreferrer noopener">September Consumer Confidence Falls the Most in Three Years | CNBC</a></h2>



<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>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.ecu.edu.au/newsroom/articles/research/travel-could-be-the-best-defence-against-ageing" target="_blank" rel="noreferrer noopener" class="broken_link">Travel Could Be the Best Defense Against Aging | Edith Cowan University</a></h2>



<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>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<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


<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.ncpers.org/costs-of-pension-reforms-income-inequality" target="_blank" rel="noreferrer noopener">The Hidden Costs of Pension Reforms: Rising Income Inequality, Lagging Economic Growth | National Conference on Public Employee Retirement Systems</a></h2>



<p>Changes to the defined benefit pension landscape—including the shift from pensions to defined contribution plans like 401(k)s in the private sector—have contributed to worsening income equality among retirees over the years, according to new research. The study, from the National Conference on Public Employee Retirement Systems, also concluded that income inequality has an overall negative effect on the economy by limiting growth.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://apnews.com/article/interest-rates-prices-inflation-federal-reserve-economy-2cd182eb34a7d6772ff573bec0bcf64d" target="_blank" rel="noreferrer noopener">Jerome Powell Says Fed to Soon Begin Reducing Interest Rates | AP News</a></h2>



<p>Federal Reserve Chairman Jerome Powell confirmed he’s ready to start lowering interest rates. At the Fed’s annual conference in Wyoming, Powell said it’s time for policy to adjust as inflation has eased and the job market has cooled. Though Powell didn’t specify when the central bank will start to lower rates, many experts expect the first cut to come when the Federal Open Market Committee meets in September.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.cpr.org/2024/08/25/colorado-talk-about-dementia-campaign/" target="_blank" rel="noreferrer noopener" class="broken_link">Colorado Hopes to Raise Awareness of Dementia, Start Conversations, With New Campaign | Colorado Public Radio</a></h2>



<p>The Colorado Department of Public Health and Environment is launching a new campaign called “Talk About Dementia.” The campaign aims to raise awareness about dementia, including Alzheimer’s disease, which can often go undiagnosed. Since early detection can be important for treatment, officials hope the campaign can help lessen dementia’s impact in the state.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.thinkadvisor.com/2024/08/15/long-term-care-costs-emerge-as-a-top-issue-for-older-americans/" target="_blank" rel="noreferrer noopener">Long-Term Care Costs Emerge as a Top Issue for Older Americans | ThinkAdvisor</a></h2>



<p>Paying for health care is one of the top concerns for retirees and those who are preparing for retirement. A new survey of Americans aged 50 and older found people are especially concerned about the cost of home care, assisted living, and nursing home care. The cost of acute medical care was the second-highest concern, followed by the cost of prescription medications.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<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: Income Inequality Rises with Decrease in Pension Access, Study Finds


<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.npr.org/sections/shots-health-news/2024/08/15/nx-s1-5075659/medicare-negotiated-drug-prices-for-the-first-time-heres-what-it-got" target="_blank" rel="noreferrer noopener">Medicare Negotiated Drug Prices for the First Time. Here’s What It Got. | NPR</a></h2>



<p>Medicare has revealed the results of its first-ever negotiated drug prices. Officials have been negotiating with pharmaceutical companies for months, and that process just wrapped up, resulting in discounts on popular drugs for diabetes, cancer, arthritis, and other ailments. The new lower prices for the first batch of 10 prescription medications will take effect in 2026.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://coloradosun.com/2024/08/15/colorado-special-session-property-taxes-election-2024/" target="_blank" rel="noreferrer noopener">Colorado Governor Calls Special Session on Property Taxes to Avoid Ballot Measure Fight in November</a></h2>



<p>Gov. Jared Polis called for a special legislative session to tackle the issue of property taxes in Colorado. Various advocacy groups had been calling on the legislature to take action and pass a bill to lower taxes rather than allow two tax-related initiatives to appear on the November ballot.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.reuters.com/markets/rates-bonds/size-looming-fed-rate-cuts-may-hinge-job-market-2024-08-02/" target="_blank" rel="noreferrer noopener">Fed Rate Cuts Loom Large as US Job Market Slows Sharply | Reuters</a></h2>



<p>Prior to early August’s monthly jobs report, many analysts said the Federal Reserve would be likely to start lowering interest rates in September. That jobs report showed a noticeable increase in unemployment, signaling a weakening job market and all but guaranteeing a rate cut in the very near future.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.plansponsor.com/milliman-reveals-health-care-costs-for-65-year-olds-retiring-in-2024/" target="_blank" rel="noreferrer noopener" class="broken_link">Milliman Reveals Health Care Costs for 65-Year-Olds Retiring in 2024 | PLANSPONSOR</a></h2>



<p>A new report highlights the rising cost of retiree health care. According to the Milliman Retiree Health Cost Index, the amount of savings needed to cover health care costs for a couple retiring in 2024 has increased by $7,000 in the past year if that couple is enrolled in original Medicare with supplemental coverage. On the other hand, retirees with Medicare Advantage plans need less money saved up in order to pay for care.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



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


Tag Archives:

PERA Board Approves Interest Rate, Discusses Upcoming Legislative Session at November 2025 Meeting