
<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.


<h4 class="wp-block-heading"><a href="https://www.investopedia.com/fidelity-americans-increase-retirement-savings-7504228" target="_blank" rel="noreferrer noopener"><strong>Americans’ Retirement Savings Rise for Second Straight Quarter | Investopedia</strong></a></h4>



<p>There’s some good news in the retirement savings world: workers’ 401(k), 403(b), and IRA balances are on the rise, and it’s not just because of market performance. An analysis by Fidelity found that employer contributions to retirement accounts hit a record high of 4.8% earlier this year. In case you weren’t aware, PERA offers optional <a href="https://www.copera.org/peraplus-401-k-457-plans" target="_blank" rel="noreferrer noopener">PERAPlus 401(k) and 457 Plans</a> to members who want to save additional money for retirement.</p>



<h4 class="wp-block-heading"><a href="https://www.federaltimes.com/management/career/2023/05/22/social-security-proposes-making-virtual-benefit-hearings-permanent/" target="_blank" rel="noreferrer noopener"><strong>Social Security Proposes Making Virtual Benefit Hearings Permanent | Federal Times</strong></a></h4>



<p>The Social Security Administration found success with remote hearings during the COVID-19 pandemic, so the agency is looking to make phone and video appearances a permanent option. The SSA says that in addition to being more convenient for claimants, allowing remote hearings going forward will save money and allow the agency to be more efficient as it works through a large backlog of cases.</p>



<h4 class="wp-block-heading"><a href="https://www.coloradopolitics.com/governor/polis-signs-bills-colorado/article_d4a700b4-ff30-11ed-97d7-eb51c53bd992.html" target="_blank" rel="noreferrer noopener"><strong>Colorado Gov. Jared Polis Signs 68 New Bills Into Law | Colorado Politics</strong></a></h4>



<p>Gov. Jared Polis has signed dozens of bills into law following the conclusion of the 2023 legislative session, including SB23-056, which aims to recompense PERA for the cancellation of the previously scheduled July 2020 direct distribution of $225 million.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/retirement/your-most-valuable-retirement-asset-could-be-your-home" target="_blank" rel="noreferrer noopener"><strong>Your Most Valuable Retirement Asset Could Be Your Home | Kiplinger</strong></a></h4>



<p>If you own your home, you could be sitting on an important chunk of retirement income. Recent research found that about 80% of older Americans own a home, which accounts for a significant portion of their net worth. While many people focus on their retirement plan(s) and savings for retirement income, that home equity can be an important part of the picture.</p>



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


News You Should Know: Retirement Savings on the Rise


<h4 class="wp-block-heading"><a href="https://www.investopedia.com/fed-squeezes-inflation-and-economy-harder-with-a-tenth-possibly-final-rate-hike-7488377?hid=a526fec8f4710d579c898e2c1bdd1b7d2a8953bb&amp;did=9039691-20230503&amp;utm_campaign=market-sum_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=050323" target="_blank" rel="noreferrer noopener"><strong>Fed Squeezes Inflation and Economy Harder With a Tenth—Possibly Final—Rate Hike | Investopedia</strong></a></h4>



<p>The Federal Reserve once again raised its key interest rate as it tries to fight inflation, bringing the rate to its highest point since 2007. Officials say rate hikes appear to be working and inflation is slowing, suggesting the Fed is taking more of a wait-and-see approach on interest rates going forward.</p>



<h4 class="wp-block-heading"><a href="https://content.copera.org/news-you-should-know-fed-raises-rates-again-but-may-pause-going-forward/" target="_blank" rel="noreferrer noopener"><strong>State-Run Retirement Programs Spurring More Private-Sector Plans | Pensions &amp; Investments</strong></a></h4>



<p>A growing number of states — including Colorado — are now offering government-run IRA-style retirement plans for private-sector workers whose employers don’t offer a 401(k) or other plan. Rather than discouraging uptake of employer-based retirement plans, recent research finds the state-run plans seem to be encouraging more businesses to offer retirement plans of their own.</p>



<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2023/04/26/medicare-will-cover-alzheimers-treatment-leqembi-after-fda-approves.html" target="_blank" rel="noreferrer noopener"><strong>Medicare Will Cover Alzheimer&#8217;s Treatment Leqembi After FDA Approves | CNBC</strong></a></h4>



<p>Medicare has faced scrutiny over its decisions to cover or not cover certain new Alzheimer’s drugs. In a recent hearing before Congress, the administrator of the Centers for Medicare and Medicaid Services said Medicare will cover the new drug Leqembi for eligible patients if it’s granted full approval by the FDA this summer.</p>



<h4 class="wp-block-heading"><a href="https://coloradosun.com/2023/05/09/2023-colorado-legislature-bills/" target="_blank" rel="noreferrer noopener"><strong>101 Bills Debated in the Colorado Legislature in 2023 That You Should Know About | Colorado Sun</strong></a></h4>



<p>The Colorado Sun combed through the 600-plus bills introduced at the Capitol this year to find the ones that will affect — or would have affected — your life. Spoiler: while several different tax credits were deliberated and some passed, HB23-1016 (Temp Tax Credit For Public Service Retirees) did not make it out of the House.</p>



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


News You Should Know: Fed Raises Rates Again But May Pause Going Forward


<p>The PERA Board of Trustees met in Denver on Jan. 20 for its first meeting of 2023.</p>



<p>Trustees discussed the 2023 PERA-related legislative landscape, continued work on the Board’s strategic vision for the future, and heard updates from PERA staff.</p>



<h4 class="wp-block-heading"><strong>Legislative update</strong></h4>



<p>The 2023 legislative session kicked off earlier this month, and the Board’s agenda included discussing recently introduced legislation pertaining to PERA.</p>



<p>One such bill, <a href="https://leg.colorado.gov/bills/sb23-056" target="_blank" rel="noreferrer noopener">SB23-056</a>, would require the state to make an additional payment of $35,050,000 to PERA. That amount, in addition to the amount included in <a href="https://peraontheissues.com/colorado-lawmakers-pass-bill-making-up-225m-payment-to-pera/" target="_blank" rel="noreferrer noopener">HB22-1029</a> from last year, is meant to fully recompense PERA for the state’s <a href="https://www.copera.org/recap-of-pera-boards-january-2023-meeting" target="_blank" rel="noreferrer noopener" class="broken_link">direct distribution payment of $225 million</a>, missed in 2020. The Trustees support efforts to increase funding to PERA.</p>



<p>Two other bills concern PERA’s investments: <a href="https://leg.colorado.gov/bills/sb23-016" target="_blank" rel="noreferrer noopener">SB23-016</a> would require the PERA Board to adopt a proxy voting policy that ensures any voting decisions align with the state’s greenhouse gas emission reduction goals, as well as require PERA to include in its annual <a href="https://www.copera.org/investment-stewardship" target="_blank" rel="noreferrer noopener"><em>Investment Stewardship Report</em></a> a description of climate-related investment risks, impacts and strategies. <a href="https://leg.colorado.gov/bills/hb23-1092" target="_blank" rel="noreferrer noopener">HB23-1092</a> would require PERA staff to make investment decisions solely on financial factors and would prohibit consideration of social, political, or ideological interests. The PERA Board opposes efforts to restrict PERA’s investment options or compel PERA to invest in a way that prioritizes a policy outcome over fiduciary duties.</p>



<p><a href="https://peraontheissues.com/2023-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">Click here</a> for a regularly updated list of PERA-related bills and their status.</p>



<h4 class="wp-block-heading"><strong>Strategic planning</strong></h4>



<p>The Board continued its yearlong process of developing a new strategic plan that will guide the work of the PERA Board and staff for the next half-decade. The plan’s goals will build on PERA’s mission and vision statements: To provide retirement security for our members while ensuring the sustainability of the fund, and to innovate and build on a tradition of service by being a trusted partner in order to meet the changing needs of our diverse membership.</p>



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



<h4 class="wp-block-heading"><strong>Market and portfolio update</strong></h4>



<p>Chief Investment Officer/ Chief Operating Officer Amy C. McGarrity provided the Board with a market and portfolio update, in which she presented details on economic conditions and PERA’s investments.</p>



<p>While McGarrity did not have final details on PERA’s investment performance in 2022, she noted that markets had a rough year in 2022, ending the year with broadly negative returns.</p>



<p>As an investor in most markets, PERA can expect it is not immune from market downturns. As a long-term, perpetual investor, PERA remains strategically invested in the markets with the goal of earning a return over decades, McGarrity said. In fact, PERA’s most recent 30-year rate of return (through Dec. 31, 2021), which reflects many market ups and downs, is 9.0% (annualized, gross-of-fees).</p>



<blockquote class="wp-block-quote">
<p><strong>RELATED:</strong> <a href="https://peraontheissues.com/staying-the-course-peras-approach-to-market-volatility/" target="_blank" rel="noreferrer noopener">Staying the Course: PERA’s Approach to Market Volatility</a></p>
</blockquote>



<p>Full audited details on PERA’s investment performance for the year will be available with PERA’s <em>Annual Comprehensive Financial Report, </em>released in June.</p>



<h4 class="wp-block-heading"><strong>Chair/vice chair election</strong></h4>



<p>The Board concluded its meeting by voting on Board officers. &nbsp;Current Chair <a href="https://peraontheissues.com/meet-the-new-chair-of-peras-board/" target="_blank" rel="noreferrer noopener">Marcus Pennell</a> and Vice Chair <a href="https://peraontheissues.com/meet-the-new-vice-chair-of-peras-board-2/" target="_blank" rel="noreferrer noopener">Suzanne Kubec</a> were both re-elected to new two-year terms.</p>



<p>Four positions on the Board <a href="https://peraontheissues.com/candidacy-open-for-four-pera-board-seats-in-2023/" target="_blank" rel="noreferrer noopener">are up for election this year</a>, and candidacy is now open for those seats.</p>



<p>The next scheduled meeting of the Board of Trustees will take place on March 24, 2023.</p>


Recap of PERA Board’s January 2023 Meeting


<p>In late December, Congress passed a <a href="https://www.congress.gov/117/bills/hr2617/BILLS-117hr2617enr.pdf" target="_blank" rel="noreferrer noopener">$1.7 trillion spending bill</a> to keep the government funded through September. Included in that bill, now signed into law by President Biden, was a package of retirement-related reforms collectively known as the SECURE 2.0 Act.</p>



<p>SECURE 2.0 builds on the original SECURE Act from 2019, which aimed to improve access to retirement savings for all Americans.</p>



<p>There are nearly 100 provisions in SECURE 2.0. While most of them aren’t particular to public defined benefit plans like Colorado PERA, many of them could affect public sector workers and retirees who have money saved in a defined contribution account like a 401(k) or 457 plan.</p>



<p>Here are some of the major provisions included in the legislation and what they mean.</p>



<h4 class="wp-block-heading"><strong>Automatic enrollment in 401(k) plans</strong></h4>



<p>One of the biggest changes resulting from SECURE 2.0 will be automatically enrolling workers in their employer’s 401(k) plan starting in 2025. Unless they opt out, eligible employees will automatically contribute at least 3 percent of each paycheck to their retirement account, and that amount will increase by 1 percent each year until it reaches at least 10 percent (but not more than 15 percent). The mandatory 401(k) auto-enrollment provision will not apply to government plans like Colorado PERA.</p>



<h4 class="wp-block-heading"><strong>Student loan matching on retirement accounts</strong></h4>



<p>This provision is aimed at people who aren’t saving for retirement because they’re paying off student loans and can’t afford both. Beginning in 2024, employers will be allowed to match a worker’s student loan payments and deposit that money into their 401(k) or 457 plan account.</p>



<h4 class="wp-block-heading"><strong>Emergency savings accounts</strong></h4>



<p>Many Americans lack a dedicated savings account for emergency expenses and often end up tapping into their retirement savings to pay for unexpected costs. Under this provision, employers will be able (but not required) to automatically enroll workers in an emergency savings plan, with employees contributing no more than 3 percent of their salary on a Roth basis. The first four withdrawals from the account each year will be exempt from any fees or charges solely on the basis of such withdrawals.</p>



<h4 class="wp-block-heading"><strong>Changes to required minimum distributions (RMDs)</strong></h4>



<p>Under current law, retirees are required to start taking withdrawals (required minimum distributions, or RMDs) from retirement accounts like 401(k)s when they reach a certain age. The previous SECURE Act raised that age to 72 in 2019. SECURE 2.0 raises the age to 73 as of Jan. 1, 2023 (retirees who turned 72 in 2022 and already began taking RMDs will need to continue taking their RMDs). The RMD age will then rise to 75 in 2033. SECURE 2.0 also reduces the penalty for failing to take RMDs from 50 percent to 25 percent.</p>



<h4 class="wp-block-heading"><strong>New allowable distributions</strong></h4>



<p>Several provisions of SECURE 2.0 lay out new circumstances under which a person can withdraw money from their retirement account(s) before they’re retired without facing a penalty. The new rules allow for penalty-free withdrawals for personal or family emergencies (one distribution up to $1,000 per year), in domestic abuse cases (the lesser of $10,000, indexed for inflation, or 50 percent of the participant’s account), to pay for long-term care insurance (up to $2,500 per year) and for terminally ill patients.</p>



<h4 class="wp-block-heading"><strong>Retirement account lost-and-found</strong></h4>



<p>For workers who have held multiple jobs throughout their careers and left behind retirement accounts, it can be a challenge to find and claim those old accounts. It can be similarly difficult for plan administrators to find account holders who may have moved or changed names. This provision creates a nationwide database of retirement plans under the Department of Labor, allowing account holders to more easily find the contact information for plan administrators and claim their old accounts.</p>



<p><a href="https://www.help.senate.gov/imo/media/doc/secure_20sectionbysection.pdf" target="_blank" rel="noreferrer noopener">Click here</a> for a more detailed section-by-section explanation of each of the provisions in SECURE 2.0.</p>


What’s in SECURE 2.0?


<p><em>The 2023 Colorado General Assembly commenced January 9 and will continue for 120 days.</em></p>



<p><em>Below you’ll find summaries of proposed legislation affecting Colorado PERA. The status of each bill will be updated regularly.</em></p>



<p class="has-text-align-right">Last updated: June 7, 2023</p>



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<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb23-056" target="_blank" rel="noreferrer noopener">SB23-056</a></h2>



<h3 class="wp-block-heading">Compensatory Direct Distribution To PERA</h3>



<p><strong>Summary:</strong> Requires the state to make an additional payment to PERA in an amount equal to $35,050,000 that, along with the payment required under <a href="https://peraontheissues.com/colorado-lawmakers-pass-bill-making-up-225m-payment-to-pera/" target="_blank" rel="noreferrer noopener">HB22-1029</a>, is meant to fully recompense PERA for the cancellation of a previously scheduled July 1, 2020, direct distribution of $225 million. The source of funds identified for this payment is the balance of the <a href="https://peraontheissues.com/2021-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">PERA payment cash fund</a>, with any remaining amount coming from the state&#8217;s general fund.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/chris-kolker" target="_blank" rel="noreferrer noopener">Sen. Chris Kolker</a>, <a href="https://leg.colorado.gov/legislators/shannon-bird" target="_blank" rel="noreferrer noopener">Rep. Shannon Bird</a></p>



<p><strong>Status: </strong>Passed; Gov. Jared Polis signed into law on June 2.</p>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb23-016" target="_blank" rel="noreferrer noopener">SB23-016</a></h2>



<h3 class="wp-block-heading">Greenhouse Gas Emission Reduction Measures</h3>



<p><strong>Summary:</strong> Would require the PERA Board to adopt a proxy voting policy that ensures any voting decisions align with the state’s greenhouse gas emission reduction goals, as well as require PERA to include in its annual <a href="https://www.copera.org/investment-stewardship"><em>Investment Stewardship Report</em></a> a description of climate-related investment risks, impacts and strategies. </p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/chris-hansen" target="_blank" rel="noreferrer noopener">Sen. Chris Hansen</a>, <a href="https://leg.colorado.gov/legislators/karen-mccormick" target="_blank" rel="noreferrer noopener">Rep. Karen McCormick</a>, <a href="https://leg.colorado.gov/legislators/emily-sirota" target="_blank" rel="noreferrer noopener">Rep. Emily Sirota</a></p>



<p><strong>Status:</strong> The Senate Finance Committee amended the bill Feb. 21 to remove the section pertaining to PERA&#8217;s proxy voting policy. Gov. Jared Polis signed the bill into law on May 11.</p>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb23-1092" target="_blank" rel="noreferrer noopener">HB23-1092</a></h2>



<h3 class="wp-block-heading">Limitating Use of State Money</h3>



<p><strong>Summary:</strong> Would require PERA staff to make investment decisions solely on financial factors and would prohibit consideration of social, political, or ideological interests. The PERA Board opposes efforts to restrict PERA’s investment options or compel PERA to invest in a way that prioritizes a policy outcome over fiduciary duties.</p>



<p><strong>Sponsor:</strong> <a href="https://leg.colorado.gov/legislators/rod-bockenfeld" target="_blank" rel="noreferrer noopener">Rep. Rod Bockenfeld</a></p>



<p><strong>Status:</strong> Postponed indefinitely</p>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb23-104" target="_blank" rel="noreferrer noopener">SB23-104</a></h2>



<h3 class="wp-block-heading">Denver Public Schools Division Employer Contribution Reduction</h3>



<p><strong>Summary:</strong> Would reduce the employer contribution rate of the Denver Public Schools Division of PERA from 10.4% to 7.15% of salary. The PERA Board opposes reductions in contributions while PERA has unfunded liabilities.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/james-coleman" target="_blank" rel="noreferrer noopener">Sen. James Coleman</a>, <a href="https://leg.colorado.gov/legislators/chris-hansen" target="_blank" rel="noreferrer noopener">Sen. Chris Hansen</a>, <a href="https://leg.colorado.gov/legislators/jennifer-bacon" target="_blank" rel="noreferrer noopener">Rep. Jennifer Bacon</a></p>



<p><strong>Status:</strong> Postponed indefinitely</p>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb23-1144" target="_blank" rel="noreferrer noopener">HB23-1144</a></h2>



<h3 class="wp-block-heading">Public Employees&#8217; Retirement Association Defined Benefit Plan Payments To Ex-Spouse</h3>



<p><strong>Summary: </strong>This bill seeks to make changes in state law regarding the division of PERA Defined Benefit Plan benefits in legal separation or dissolution of marriage or civil union actions. Parties to these actions in Colorado may enter into an agreement allocating a portion of the PERA Defined Benefit Plan benefits to the retiree’s former spouse.&nbsp; The bill would terminate benefits to the former spouse of a PERA retiree if the former spouse remarries.</p>



<p><strong>Sponsor:</strong> <a href="https://leg.colorado.gov/legislators/regina-english" target="_blank" rel="noreferrer noopener">Rep. Regina English</a></p>



<p><strong>Status:</strong> Postponed indefinitely</p>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/hb23-1176" target="_blank" rel="noreferrer noopener">HB23-1176</a></h2>



<h3 class="wp-block-heading">PERA Defined Contribution Plan School Personnel</h3>



<p><strong>Summary:</strong> Would create a new &#8220;flexible defined contribution plan&#8221; for new members of PERA&#8217;s School and Denver Public Schools divisions. The plan would be separate from the existing PERA Defined Contribution (DC) Plan, which is available to State and Local Government division employees, and would offer members the ability to elect their contribution rates. The PERA Board opposes the bill as introduced because of the costs associated with the proposal and the inability for PERA to administer such a plan as written due to its failure to meet federal rules for governmental plans.</p>



<p><strong>Sponsor:</strong> <a href="https://leg.colorado.gov/legislators/don-wilson" target="_blank" rel="noreferrer noopener">Rep. Don Wilson</a></p>



<p><strong>Status:</strong> Postponed indefinitely</p>



<h2 class="wp-block-heading"><a href="https://leg.colorado.gov/bills/sb23-163" target="_blank" rel="noreferrer noopener">SB23-163</a></h2>



<h3 class="wp-block-heading">Colorado Parks and Wildlife Officers Classified As State Troopers</h3>



<p><strong>Summary:</strong> Would reclassify wildlife officers and parks and recreation officers employed by Colorado Parks and Wildlife as safety officers for the purpose of determining their PERA benefits.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/perry-will" target="_blank" rel="noreferrer noopener">Sen. Perry Will</a>, <a href="https://leg.colorado.gov/legislators/iman-jodeh" target="_blank" rel="noreferrer noopener">Rep. Iman Jodeh</a>, <a href="https://leg.colorado.gov/legislators/mike-lynch" target="_blank" rel="noreferrer noopener">Rep. Mike Lynch</a></p>



<p><strong>Status:</strong> Passed; Gov. Jared Polis signed into law on June 6.</p>


2023 Proposed Legislation Status


<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/retirement/bipartisan-retirement-savings-package-in-massive-budget-bill" target="_blank" rel="noreferrer noopener"><strong>SECURE 2.0 Act Changes 401(k), IRA, Roth, Other Retirement Plan Rules | Kiplinger</strong></a></h4>



<p>The package of retirement-related legislation known as SECURE 2.0 was included in the budget bill that President Biden signed into law in late December. The legislation includes dozens of new provisions, including raising the age for Required Minimum Distributions (RMDs), automatically enrolling employees in their workplace retirement plans, and allowing employers to make matching contributions to an employee’s retirement plan based on the employee’s student loan payments.</p>



<h4 class="wp-block-heading"><strong><a href="https://www.9news.com/article/news/local/new-colorado-laws/73-9cc1291b-e36e-44e9-8e7b-a52d41f17e32" target="_blank" rel="noreferrer noopener">4 New Colorado Laws and What They Mean for Your Wallet | 9News</a></strong></h4>



<p>The new year brings with it some new state laws now in effect, including some that could affect your finances. Changes from the new laws include a higher minimum wage in Colorado and the beginning of payroll deductions for the state’s new Family and Medical Leave Insurance (FAMLI) program.</p>



<h4 class="wp-block-heading"><a href="https://www.cbsnews.com/news/tax-refund-2023-irs-backlog-gao-report/" target="_blank" rel="noreferrer noopener"><strong>With Growing Backlog at the IRS, Millions of Americans Still Waiting for Their Tax Refunds | CBS News</strong></a></h4>



<p>Something to be aware of as we head into another tax season — the IRS is still struggling to work through a backlog of millions of tax returns from prior years. While the agency has ramped up hiring to tackle the backlog, the IRS is warning taxpayers not to plan on or expect any 2022 tax year refund by any particular date.</p>



<h4 class="wp-block-heading"><a href="https://www.reviewed.com/money/features/9-ways-solo-agers-can-prepare-retirement" target="_blank" rel="noreferrer noopener"><strong>9 Retirement Tips for Solo Agers | Reviewed</strong></a></h4>



<p>Planning for one’s retirement can be a challenge, especially for those who don’t have a partner or family they can rely on for help. If you’re facing the prospect of retiring alone, or think you might, here are some factors to consider and tips from financial planners.</p>



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


News You Should Know: SECURE 2.0 Passes in Year-End Budget Legislation


<h4 class="wp-block-heading"><strong><a href="https://coloradosun.com/2022/12/06/colorado-import-prescription-drugs-canada/" target="_blank" rel="noreferrer noopener">Colorado Just Released the List of Prescription Drugs It Wants to Import From Canada | The Colorado Sun</a></strong></h4>



<p>The State of Colorado is seeking to save residents money on prescription drugs by importing more than 100 medications from Canada. The state submitted a formal application to the federal government that lists 112 drugs with an average cost savings of 64 percent over the U.S. retail price. If approved, that could result in savings of $53 million to $88 million per year.</p>



<h4 class="wp-block-heading"><strong><a href="https://www.napa-net.org/news-info/daily-news/bicameral-bipartisan-retirement-bill-introduced" target="_blank" rel="noreferrer noopener">Bicameral, Bipartisan Retirement Bill Introduced | National Association of Plan Advisors</a></strong></h4>



<p>While the fate of the major retirement legislation package known as SECURE Act 2.0 remains uncertain, lawmakers continue to introduce new retirement-related bills. U.S. Sen. John Hickenlooper of Colorado is one the legislators behind the recently introduced Retirement Savings for Americans Act, which aims to increase access to retirement savings accounts for those who don’t currently have them.</p>



<h4 class="wp-block-heading"><strong><a href="https://www.kiplinger.com/personal-finance/7-financial-steps-to-take-at-the-end-of-the-year" target="_blank" rel="noreferrer noopener">7 Financial Steps to Take at the End of the Year | Kiplinger</a></strong></h4>



<p>With the year winding down, it’s a good time to do a financial checkup and make sure all your accounts are in order. Here are some helpful steps to consider, from taxes and investments to retirement planning and emergency savings.</p>



<h4 class="wp-block-heading"><strong><a href="https://smartasset.com/estate-planning/estate-planning-trends" target="_blank" rel="noreferrer noopener">Middle-Aged Americans Aren’t Planning Their Estates. Here’s How to Fix That. | SmartAsset</a></strong></h4>



<p>While you’re doing a year-end financial check-up, you may consider doing some estate planning, if you haven’t already. A recent survey found the number of middle-aged adults with a will dropped to an all-time low in 2021. While estate planning can be daunting, there are a few common documents that will be a big help to your loved ones.</p>



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


News You Should Know: Colorado Lists Drugs It Aims to Import From Canada


<h4 class="wp-block-heading"><a href="https://www.thedenverchannel.com/news/politics/colorado-taxpayers-could-get-more-in-tabor-refunds-recession-risk-marginal-forecasts-say" target="_blank" rel="noreferrer noopener"><strong>Colorado Taxpayers Could Get More in TABOR Refunds, Forecasts Say</strong></a><strong> | Denver7</strong></h4>



<p>State economists say tax rebate checks going out to every Colorado taxpayer this year will be higher than expected — $750 for single filers and $1,500 for joint filers. The increase is due to new forecasts that showed roughly $1 billion in additional state revenue.</p>



<h4 class="wp-block-heading"><a href="https://www.napa-net.org/news-info/daily-news/cooking-gas-senate-finance-committee-rolls-out-massive-secure-20-counterpart" target="_blank" rel="noreferrer noopener"><strong>Cooking With Gas: Senate Finance Committee Rolls Out Massive SECURE 2.0 Counterpart</strong></a><strong> | National Association of Plan Advisors</strong></h4>



<p>The Senate Finance Committee introduced new legislation, dubbed the Enhancing American Retirement Now (EARN) Act, as a counterpart to the House’s SECURE Act 2.0. The bill includes a large number of provisions, including improving access to 401(k) plans, increasing catch-up contributions and increasing the age for starting required minimum distributions (RMDs).</p>



<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2022/06/13/lifetime-income-illustrations-are-a-wake-up-call-for-401k-savers.html" target="_blank" rel="noreferrer noopener"><strong>401(k) Savers Will See a ‘Wake-Up Call’ in Their Next Statement, Says Law Professor. Here’s What to Look For</strong></a><strong> | CNBC</strong></h4>



<p>Beginning this summer, administrators of 401(k) plans will be required to include “lifetime income illustrations” in account statements in addition to account balances. The illustrations will provide estimates of how much retirement income account holders can expect if they purchase an annuity with their balance.</p>



<h4 class="wp-block-heading"><a href="https://www.forbes.com/sites/davidrae/2022/06/14/3-financial-planning-moves-to-make-when-you-turn-50/?sh=c31ac93713c9" target="_blank" rel="noreferrer noopener"><strong>3 Financial Planning Moves to Make When You Turn 50</strong></a><strong> | Forbes</strong></h4>



<p>Turning 50 can sometimes bring a moment of recognition that retirement is coming up, and it’s time to get serious about planning. Here are some tips from a retirement planner on the important steps to take when getting things in order.</p>



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


News You Should Know: Colorado Tax Rebates Increase to $750 Per Filer


<h4 class="wp-block-heading" id="bipartisan-bill-to-modernize-59-year-old-older-coloradans-act-emerges-in-legislature-state-of-reform"><a href="https://stateofreform.com/featured/2022/02/bipartisan-bill-to-modernize-59-year-old-older-coloradans-act-emerges-in-legislature/" target="_blank" rel="noreferrer noopener"><strong>Bipartisan Bill to Modernize 59-Year-Old Older Coloradans Act Emerges in Legislature</strong></a><strong> | State of Reform</strong></h4>



<p>Lawmakers have introduced a bill that aims to update and modernize the Older Coloradans Act. The bill would expand and reorganize the Colorado Commission on Aging and appoint someone from the Colorado Department of Human Services to represent the Commission to the state. The bill would also create a “Lifelong Colorado” initiative to coordinate planning and implementation.</p>



<h4 class="wp-block-heading" id="over-the-counter-covid-tests-will-soon-be-free-for-medicare-recipients-npr"><a href="https://www.npr.org/2022/02/03/1078088301/over-the-counter-covid-tests-will-soon-be-free-for-medicare-recipients" target="_blank" rel="noreferrer noopener"><strong>Over-the-Counter COVID Tests Will Soon Be Free for Medicare Recipients</strong></a><strong> | NPR</strong></h4>



<p>When the Biden administration announced insurance companies would be required to cover the cost of at-home rapid COVID tests, Medicare was excluded from the requirement. The government has since announced retirees on original Medicare or a Medicare Advantage plan will be able to get over-the-counter tests at no cost starting in the spring.</p>



<h4 class="wp-block-heading" id="explainer-the-u-s-yield-curve-has-been-flattening-why-you-should-care-reuters"><a href="https://www.reuters.com/business/finance/us-yield-curve-has-been-flattening-why-you-should-care-2022-02-03/" target="_blank" rel="noreferrer noopener"><strong>Explainer: The U.S. Yield Curve Has Been Flattening — Why You Should Care</strong></a><strong> | Reuters</strong></h4>



<p>You may have heard talk of the “yield curve” lately and how it’s been flattening in recent months. But why is that and what does it mean? Here’s an explanation of what the yield curve represents, how it’s predicted recessions in the past and what it might signal for 2022.</p>



<h4 class="wp-block-heading" id="67-of-retirees-have-credit-card-debt-here-are-3-ways-to-pay-it-off-on-a-fixed-income-usa-today"><a href="https://www.usatoday.com/story/money/personalfinance/retirement/2022/02/05/67-of-retirees-have-credit-card-debt-3-steps-to-pay-it-off-on-a-fixed-income/49758385/" target="_blank" rel="noreferrer noopener"><strong>67% of Retirees Have Credit Card Debt. Here are 3 Ways to Pay It Off on a Fixed Income</strong></a><strong> | USA Today</strong></h4>



<p>A recent survey found about two-thirds of retired Americans have credit card debt. Paying off that debt can be especially challenging for people living on fixed and limited income. Here are a few tactics to consider when deciding to tackle that debt.</p>



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


News You Should Know: Bill Aims to Better Support Aging Coloradans


<p><em>Below you’ll find summaries of proposed legislation affecting Colorado PERA. The status of each bill will be updated regularly.</em></p>



<p></p>



<p class="has-text-align-right">Last updated: June 8, 2022</p>



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<h2 class="wp-block-heading" id="hb22-1029"><a href="https://leg.colorado.gov/bills/hb22-1029" target="_blank" rel="noreferrer noopener">HB22-1029</a></h2>



<h3 class="wp-block-heading" id="compensatory-direct-distribution-to-public-employees-retirement-association">Compensatory Direct Distribution to Public Employees&#8217; Retirement Association</h3>



<p><strong>Bill summary:</strong> Lawmakers&nbsp;<a rel="noreferrer noopener" href="https://peraontheissues.com/pera-related-legislation-sent-to-governor/" target="_blank">enacted legislation</a>&nbsp;in 2020 to forego the annual $225 million payment to PERA during the height of the COVID-19 pandemic, when the General Assembly cut billions of dollars from the state budget. The state resumed payments in July 2021 but did not make up 2020’s payment. HB22-1029 calls for the state to make a payment of $380 million, which includes the $225 million plus prepayment of future direct distributions to PERA.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/shannon-bird" target="_blank" rel="noreferrer noopener">Rep. Shannon Bird</a>, <a href="https://leg.colorado.gov/legislators/shane-sandridge" target="_blank" rel="noreferrer noopener">Rep. Shane Sandridge</a>, <a href="https://leg.colorado.gov/legislators/chris-kolker" target="_blank" rel="noreferrer noopener">Sen. Chris Kolker</a>, <a href="https://leg.colorado.gov/legislators/kevin-priola" target="_blank" rel="noreferrer noopener">Sen. Kevin Priola</a></p>



<p><strong>Bill status:</strong> Signed into law.</p>



<p><strong>Position:</strong> As fiduciaries, the PERA Board supports restoring the missed direct distribution.</p>



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<h2 class="wp-block-heading" id="hb22-1057"><a href="https://leg.colorado.gov/bills/hb22-1057" target="_blank" rel="noreferrer noopener">HB22-1057</a></h2>



<h3 class="wp-block-heading" id="public-employees-retirement-association-employment-after-teacher-retirement">Public Employees&#8217; Retirement Association Employment After Teacher Retirement</h3>



<p><strong>Bill summary:</strong> Under current law, PERA retirees are limited in how many days they can work after retirement without reducing their benefit. This bill would temporarily waive those limits for qualified service retirees working as substitute teachers in any school district while there are critical substitute teacher shortages.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/mary-bradfield" target="_blank" rel="noreferrer noopener">Rep. Mary Bradfield</a>, <a href="https://leg.colorado.gov/legislators/barbara-mclachlan">Rep. Barbara McLachlan</a>, <a href="https://leg.colorado.gov/legislators/rob-woodward">Sen. Rob Woodward</a></p>



<p><strong>Bill status:</strong> Signed into law.</p>



<p><strong>Position:</strong> Expanding working after retirement provisions to allow retirees to work without a reduction will increase PERA’s liabilities. As fiduciaries, pursuant to its funding policy, the PERA Board opposes legislation that increases liabilities or reduces contributions until PERA is fully funded.</p>



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<h2 class="wp-block-heading" id="hb22-1087"><a href="https://leg.colorado.gov/bills/hb22-1087" target="_blank" rel="noreferrer noopener">HB22-1087</a></h2>



<h3 class="wp-block-heading" id="special-district-director-retirement-benefits">Special District Director Retirement Benefits</h3>



<p><strong>Bill summary:</strong> Special district board members are considered employees of the special district, and under current law their compensation is subject to PERA contributions as PERA members (if the special district is an employer affiliated with PERA). This bill would exclude special district board members who begin their service on or after July 1, 2022 from being eligible for membership in PERA for the service as directors.</p>



<p><strong>Sponsor:</strong> <a href="https://leg.colorado.gov/legislators/edie-hooton" target="_blank" rel="noreferrer noopener">Rep. Edie Hooton</a>, <a href="https://leg.colorado.gov/legislators/andres-pico" target="_blank" rel="noreferrer noopener">Rep. Andres Pico</a></p>



<p><strong>Bill status:</strong> Signed into law.</p>



<p><strong>Position: </strong>The PERA Board does not have a position on this bill as it has no actuarial impact on the fund.</p>



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<h2 class="wp-block-heading" id="hb22-1101"><a href="https://leg.colorado.gov/bills/hb22-1101" target="_blank" rel="noreferrer noopener">HB22-1101</a></h2>



<h3 class="wp-block-heading" id="public-employees-retirement-association-service-retiree-employment-in-rural-schools">Public Employees’ Retirement Association Service Retiree Employment in Rural Schools</h3>



<p><strong>Bill summary:</strong> This bill would expand provisions, currently scheduled to repeal on July 1, 2023, that allow PERA service retirees to work full-time as a teacher, school bus driver, or school food services cook, without a reduction in benefits, for a rural school district that has determined there is a critical shortage of qualified individuals for these positions. The bill eliminates the scheduled repeal date and adds school nurses and paraprofessionals to the list of eligible employees.</p>



<p><strong>Sponsors:</strong> <a href="https://leg.colorado.gov/legislators/barbara-mclachlan" target="_blank" rel="noreferrer noopener">Rep. Barbara MacLachlan</a>, <a href="https://leg.colorado.gov/legislators/marc-catlin" target="_blank" rel="noreferrer noopener">Rep. Marc Catlin</a>, <a href="https://leg.colorado.gov/legislators/jerry-sonnenberg" target="_blank" rel="noreferrer noopener">Sen. Jerry Sonnenberg</a>, <a href="https://leg.colorado.gov/legislators/rachel-zenzinger" target="_blank" rel="noreferrer noopener">Sen. Rachel Zenzinger</a></p>



<p><strong>Bill status:</strong> Signed into law.</p>



<p><strong>Position:</strong> Expanding working after retirement provisions to allow retirees to work without a reduction will increase PERA’s liabilities. As fiduciaries, pursuant to its funding policy, the PERA Board opposes legislation that increases liabilities or reduces contributions until PERA is fully funded.</p>


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