Retirement insights from a Colorado PERA perspective

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

Colorado PERA once again received a clean audit at its annual hearing with the Legislative Audit Committee.



<h4 class="wp-block-heading">Results of outside audit</h4>



Every year, the State hires an independent auditor to examine PERA’s financial reports, compliance, and internal controls. Since 2015, the State has enlisted CliftonLarsonAllen, a nationally recognized financial services firm, to conduct that work. CliftonLarsonAllen presented the results of this year’s audit at the Legislative Audit Committee’s Aug. 5 meeting.



As in years past, the audit did not find any issues with PERA’s recently released 2023 Annual Comprehensive Financial Report and did not find any deficiencies or weaknesses in PERA’s internal controls.



RELATED: <a href="https://www.copera.org/pera-on-the-issues/pera-board-releases-2023-annual-report" target="_blank" rel="noreferrer noopener">PERA Board Releases 2023 Annual Report</a>



<h4 class="wp-block-heading">Additional interim committee activity</h4>



In addition to the Legislative Audit Committee, PERA staff and consultants meet with other legislative panels throughout the summer, including the Pension Review Subcommittee and Pension Review Commission. The Pension Review Subcommittee is tasked with making recommendations to the PERA Board and the Pension Review Commission. The Commission may then draft legislation that lawmakers may introduce in the next legislative session in January.



We’ll be monitoring the ongoing legislative activity at the State Capitol throughout the interim period and will post updates here on PERA On The Issues when we have them.

PERA Receives Results of 2023 Financial Audit

The State of Colorado released its annual audit of Colorado PERA’s financial reporting and internal controls, finding no issues that needed attention.



The State presented those findings at a meeting of the Legislative Audit Committee on Monday, Aug. 7. The hearing included presentations from the Office of the State Auditor, the state’s outside auditor, Colorado PERA, and PERA’s actuarial consultants.



<h4 class="wp-block-heading">Results of outside audit</h4>



The State of Colorado hires an outside auditor to conduct the audit of PERA each year. Since 2015, CliftonLarsonAllen has done that work, examining PERA’s financial statements — including the Annual Comprehensive Financial Report — for the year ended Dec. 31, 2022, as well as PERA’s compliance and internal controls.



The auditors gave PERA’s annual report a clean audit with no significant issues or recommendations. In addition, the auditors found no outstanding recommendations from the <a href="https://peraontheissues.com/pera-receives-clean-audit-at-legislative-audit-committee-hearing/" target="_blank" rel="noreferrer noopener">previous year’s audit</a>.



The audit report is <a href="https://leg.colorado.gov/audits/colorado-public-employees-retirement-association-fiscal-year-ended-december-31-2022">available online here</a>.



<blockquote class="wp-block-quote">
RELATED: <a href="https://peraontheissues.com/pera-board-releases-2022-annual-report/" target="_blank" rel="noreferrer noopener">PERA Board Releases 2022 Annual Report</a>
</blockquote>



PERA’s actuarial consultant, The Segal Group, also presented highlights from the annual Signal Light report, which is an analysis intended to help assess the plan’s funding progress and provide a format for communicating this information using a color-coding system similar to a traffic signal. That report is <a href="https://content.copera.org/pera-receives-results-of-2022-financial-audit/" target="_blank" rel="noreferrer noopener">available online here</a>.



PERA will continue to meet with various legislative oversight committees throughout the summer and fall. <a href="https://peraontheissues.com/pera-oversight-underway-at-state-capitol-between-legislative-sessions/" target="_blank" rel="noreferrer noopener">Click here</a> for more on what’s ahead at the Capitol.

PERA Receives Results of 2022 Financial Audit

While Colorado’s 2022 legislative ended in May, PERA executives, staff, and consultants continue to meet with lawmakers and various legislative oversight committees in the interim.



The meetings are part of the regular review and oversight of PERA that takes place every year.



An important part of that oversight process is the Legislative Audit Committee, which met on August 9. At that meeting, PERA executives joined representatives from PERA’s actuarial consultant, Segal, and an outside auditor to discuss PERA’s financial status and answer questions from committee members.



An audio recording of the meeting is <a href="https://sg001-harmony.sliq.net/00327/Harmony/en/PowerBrowser/PowerBrowserV2/20220809/-1/13557#info_" target="_blank" rel="noreferrer noopener">available online here</a>.



<h4 class="wp-block-heading">Results of outside audit</h4>



Every year, the state hires an independent auditor to audit PERA’s financial data and internal controls. CliftonLarsonAllen, which has been auditing PERA’s financial reports since 2015, presented its audit of the 2021 Annual Comprehensive Financial Report. The auditors gave the report a clean audit with no significant issues.



A summary of the 2021 Annual Comprehensive Financial Report is <a href="https://peraontheissues.com/pera-board-releases-2021-annual-report-at-june-meeting/" target="_blank" rel="noreferrer noopener">available here</a>.



<h4 class="wp-block-heading">Ongoing oversight at the Capitol</h4>



In recent weeks, PERA has also appeared before the Pension Review Subcommittee and Pension Review Commission, which are responsible for overseeing PERA operations and recommending legislation that affects PERA.



The Pension Review Subcommittee and Pension Review Commission will continue to meet throughout the summer and fall, and PERA On The Issues will keep track of any potential new legislation that arises from those meetings.



PERA also reports to the Joint Budget Committee and the Joint Finance Committee.



These regular meetings allow policymakers to learn more about PERA’s financial footing and ask questions of PERA management, ensuring robust oversight and transparency.

PERA Receives Clean Audit at Legislative Audit Committee Hearing

The Colorado General Assembly wrapped up the 2021 legislative session in June, but legislative work has continued in the ensuing months at the Capitol. Some of that work over the summer and fall involved committees that conduct routine oversight into Colorado PERA and its operations.



PERA and its Board of Trustees appreciate the value of rigorous review and transparency, so staff regularly engage with these legislative panels to provide updates on PERA’s finances, answer questions and listen to feedback from lawmakers and others. Summaries of those activities are included below.



<h4 class="wp-block-heading">Legislative Audit Committee</h4>



The <a href="http://leg.colorado.gov/committees/legislative-audit-committee/2021-regular-session" target="_blank" rel="noreferrer noopener">Legislative Audit Committee</a> met in August to hear an update on PERA’s financial status and receive the results of an independent audit of PERA’s <a href="https://www.copera.org/colorado-pera-board-releases-2020-annual-report" target="_blank" rel="noreferrer noopener">Comprehensive Annual Financial Report</a>. The Committee heard from PERA Executive Director Ron Baker, Chief Investment Officer Amy C. McGarrity, external auditors, and actuarial consultants.



The auditors gave PERA’s annual report a clean audit with no significant issues or outstanding recommendations.



Read more <a href="https://content.copera.org/pera-oversight-continues-between-legislative-sessions/" target="_blank" rel="noreferrer noopener">here</a>.



<h4 class="wp-block-heading">Pension Review Commission and Pension Review Subcommittee</h4>



The legislature’s <a href="http://leg.colorado.gov/committees/pension-review-subcommittee/2021-regular-session" target="_blank" rel="noreferrer noopener">Pension Review Subcommittee</a>, which was established as part of the PERA reforms of Senate Bill 200 in 2018, consists of legislators and members of the public with expertise in topics such as accounting, economics and investment management.



At its Sept. 10 meeting, the Subcommittee voted to draft a bill for the 2022 legislative session that would make up the legislature’s missed $225 million direct distribution payment to PERA from July 2020. The Subcommittee forwarded that bill to the <a href="http://leg.colorado.gov/committees/pension-review-commission/2021-regular-session" target="_blank" rel="noreferrer noopener">Pension Review Commission</a>, which then forwarded the draft to <a href="http://leg.colorado.gov/committees/pension-review-commission/2021-regular-session" target="_blank" rel="noreferrer noopener">Legislative Council</a> for review. In November, the Legislative Council voted to approve the bill, clearing the way for it to be introduced in the upcoming legislative session, which begins in January.



Read more about that bill <a href="https://peraontheissues.com/legislative-committee-seeks-to-make-up-missed-225m-payment-to-pera/" target="_blank" rel="noreferrer noopener">here</a>.



The Pension Review Subcommittee also conducted an independent review of the actuarial assumptions PERA uses in its financial calculations and reporting. Based on that review, the Subcommittee made three recommendations to the PERA Board regarding PERA’s funding policy and Signal Light methodology and reporting.



At its November meeting, the Board discussed the recommendations in detail and heard from PERA staff as well as PERA’s actuarial consultants. Following the discussion, the Board decided to draft a letter to the Pension Review Subcommittee responding to the recommendations. In the letter, the Board stated it agrees with the Subcommittee that there’s a need for clearer communication in the Signal Light report and the Board will consider implementing changes in future versions of the report. The Board also said it will consider making changes to <a href="https://www.copera.org/despite-changes-in-accounting-standards-pera-remains-on-track" target="_blank" rel="noreferrer noopener">PERA’s funding policy</a> when it undertakes its planned review of the policy in 2023.



Read the Board’s letter <a href="http://leg.colorado.gov/sites/default/files/images/colorado_pera_board_responses_to_pension_review_subcommittee_recommendations_-_11.29.21.pdf" target="_blank" rel="noreferrer noopener">here</a>.



<h4 class="wp-block-heading">Joint Budget Committee</h4>



On Dec. 9, PERA Executive Director Ron Baker and Chief Investment Officer Amy C. McGarrity appeared before the <a href="http://leg.colorado.gov/committees/joint-budget-committee/2021-regular-session" target="_blank" rel="noreferrer noopener">Joint Budget Committee</a> for that panel’s annual hearing on PERA. Baker and McGarrity provided the Committee with updates on a number of topics — including PERA’s finances and membership, results of <a href="https://peraontheissues.com/2020-experience-study-preparing-for-a-secure-future/" target="_blank" rel="noreferrer noopener">2020’s actuarial experience study</a>, and market performance in 2021 — and answered questions from committee members.



<h4 class="wp-block-heading">What’s ahead in 2022</h4>



The Colorado General Assembly will convene to kick off the 2022 legislative session on Jan. 12. PERA On The Issues will keep track of any proposed legislation that pertains to Colorado PERA, including the draft bill to make up the state’s missed 2020 payment of $225 million, and provide updates throughout the session. If you haven’t already subscribed to our newsletter, <a href="https://www.copera.org/pera-oversight-continues-between-legislative-sessions" target="_blank" rel="noreferrer noopener">you can do so here</a>.

PERA Oversight Continues Between Legislative Sessions

In this story:



<ul>
<li>Committee members heard from PERA leaders, external auditors and actuarial consultants</li>



<li>External auditors gave PERA’s 2020 annual report a clean audit with no issues</li>



<li>PERA gets a “green light” on its funding progress</li>
</ul>



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



PERA leaders and actuarial consultants appeared before the Colorado General Assembly’s Legislative Audit Committee on Aug. 18. The purpose of the hearing was to review PERA’s <a href="https://content.copera.org/how-its-made-peras-financial-report/" target="_blank" rel="noreferrer noopener">2020 Comprehensive Annual Financial Report</a>, released earlier this summer, and to review the findings of an external audit of the report. Committee members also heard an update from PERA’s actuarial consultants on PERA’s funded status and had the opportunity to ask questions.



Below is a summary of information presented at the hearing. To listen to an audio recording of the full hearing, <a href="https://sg001-harmony.sliq.net/00327/Harmony/en/PowerBrowser/PowerBrowserV2/20210824/67/12036#info_" target="_blank" rel="noreferrer noopener">click here</a>.



<h4 class="wp-block-heading">Results of PERA’s annual audit</h4>



Every year, the Office of the State Auditor hires an independent auditor to review PERA’s financial status and fiscal controls. CliftonLarsonAllen LLP has been auditing PERA’s annual statements since 2015.



For the year that ended Dec. 31, 2020, the auditors gave the annual report a clean audit, with no significant issues or outstanding recommendations.



<a href="https://leg.colorado.gov/sites/default/files/documents/audits/copera_legislative_audit_report_dec_2020.pdf" target="_blank" rel="noreferrer noopener">Click here</a> to read the full audit report.



<h4 class="wp-block-heading">PERA gets a ‘green light’</h4>



As part of its annual financial reporting, PERA enlists actuarial consulting firm Segal to issue an assessment of PERA’s funding progress called Signal Light Reporting. The report uses a simple color-coded system similar to a traffic signal — shades of green, yellow and red — to give a clear representation of whether PERA is on track to eliminate its unfunded liability.



Segal simulates thousands of possible scenarios to test the effects of different variables — like investment returns and public employer payroll changes, for example — on the likelihood of PERA reaching its target of full funding by 2048. The projected results range from dark green (fully funded ahead of schedule) to dark red (insolvent within 20 years). As of Dec. 31, 2020, all five division trust funds were in “green” or “dark green” status, meaning they are expected to be fully funded by 2048.



<figure class="wp-block-image size-large"><img decoding="async" src="https://content.copera.org/pera-receives-clean-audit-positive-funding-assessment-at-committee-hearing/"" class="wp-image-4626"/></figure>



<a href="https://content.copera.org/pera-receives-clean-audit-positive-funding-assessment-at-committee-hearing/" target="_blank" rel="noreferrer noopener">Click here</a> to read the full Signal Light report.



The Legislative Audit Committee is one of several legislative committees and subcommittees that PERA reports to regularly. Others include the Joint Budget Committee, Joint Finance Committee, Pension Review Subcommittee, and Pension Review Commission. These regular meetings with lawmakers allow for robust oversight and transparency into the state’s largest public employee retirement system.

PERA Receives Clean Audit, Positive Funding Assessment at Committee Hearing

PERA presented to the Legislative Audit Committee on July 27. The primary agenda was a review of PERA’s financial returns. PERA staff and outside analysts were on hand to present and answer questions from committee members.



Financial Audit



Every year, an independent auditor hired by the Office of the State Auditor conducts a review of PERA’s financial status and fiscal controls. CliftonLarsonAllen LLP, which has been auditing PERA’s annual statements since 2015, audited the 2019 Comprehensive Annual Financial Report. The auditors gave the 2019 CAFR a clean audit, and committee members heard an overview of results from the annual report. You can read a summary of the 2019 CAFR <a aria-label="undefined (opens in a new tab)" href="https://peraontheissues.com/pera-releases-2019-financial-returns/" target="_blank" rel="noreferrer noopener">here</a>.



Signal Light Reporting



In 2014, the Legislative Audit Committee directed the Office of the State Auditor to contract with an actuarial firm to develop a methodology to simplify the understanding of PERA’s financial status. The result was the development of a tool called Signal Light Reporting, which PERA submits annually to the committee. This report summarizes the funded status of each PERA Division by using a color scale. The scale resembles a stop light, from green, indicating that PERA is projected to be on track to fully funded status, all the way to red. PERA submitted and shared the latest <a label="undefined (opens in a new tab)" href="https://content.copera.org/pera-presents-at-legislative-audit-committee-hearing/" target="_blank" rel="noreferrer noopener">report</a>, which shows that all divisions are on track to reach fully funded status by 2048 (green).



Ongoing Oversight at the Capitol



PERA reports to numerous committees at the State Capitol, including the Legislative Audit Committee, Joint Budget Committee, Joint Finance Committee, Pension Review Subcommittee, and Pension Review Commission. These regular check-ins provide lawmakers the chance to learn more about PERA and ask questions to PERA management. They also provide additional forums in which PERA members can learn more about how PERA works. For those not able to listen to the live broadcast, a recording can be found <a aria-label="undefined (opens in a new tab)" href="https://coloradoga.granicus.com/MediaPlayer.php?view_id=29&amp;clip_id=15519" target="_blank" rel="noreferrer noopener">here</a>.

PERA Presents at Legislative Audit Committee Hearing

New legislative oversight body added
under SB 200 provides additional avenue for PERA transparency



The Pension Review Subcommittee, established by Senate Bill
18-200, met for the first time on Friday, July 12. The Subcommittee was formed
to expand the Police Officers’ and Firefighters’ Pension Review Commission and
create a subcommittee within the commission to oversee PERA.



<a href="https://www.copera.org/contributions-to-colorado-pensions-lower-than-average">SB 18-200</a> directed the <a href="https://leg.colorado.gov/committees/pension-review-commission/2019-regular-session">commission</a> to study, review, and propose legislation related to the funding of police offers’ and firefighters’ pensions in the state and benefit designs of such pension plans and must also study and may develop proposed legislation relating to PERA. The commission is comprised of 10 members: five Senators and five Representatives.



<figure class="wp-block-image"><img decoding="async" src="https://content.copera.org/legislative-subcommittee-meets-to-review-pera/"Pension Review Commission" class="wp-image-2532"/></figure>



As covered previously in <a href="https://content.copera.org/legislative-subcommittee-meets-to-review-pera/">PERAon the Issues</a>, four different legislative committees have oversight
responsibility of PERA. These reporting committees include the Legislative
Audit Committee, Joint Finance Committee, Joint Budget Committee, and Pension
Review Commission.



The <a href="https://leg.colorado.gov/committees/pension-review-subcommittee/2019-regular-session">Pension
Review Subcommittee</a> was tasked specifically with making recommendations to
the Commission regarding PERA. The July 12 meeting began with an overview of
the <a href="https://leg.colorado.gov/sites/default/files/images/committees/2017/r19-739_charge_memo_for_pension_review_commission_and_subcommittee_1.pdf">Subcommittee’s
responsibilities and charge from legislative staff</a>. PERA staff then <a href="https://leg.colorado.gov/sites/default/files/images/pension_review_subcommittee_7.12.19.pdf">presented
to the subcommittee members on a number of topics, with particular focus on the
2018 financials</a>. Questions from the Subcommittee covered a range of topics
including the rate of return assumption, asset allocation, and the progress of
the Board’s current Asset Liability Study. Board Chairman Timothy M. O’Brien
and Treasurer Dave Young joined the panel as well to respond to questions from
Subcommittee members. 



This newly-formed oversight subcommittee is comprised of four legislators and 10 appointed members of the public. Requirements for serving as an appointed member include experience or knowledge of investment management, corporate or public finance, compensation and benefit systems, economics, accounting, pension administration, or actuarial analysis. 



<figure class="wp-block-image"><img decoding="async" src="https://content.copera.org/legislative-subcommittee-meets-to-review-pera/"pension review commission" class="wp-image-2539"/></figure>



In addition, each subcommittee member is required to attend
certain meetings each year, as follows:



<ul>
<li>At least one <a href="https://www.copera.org/legislative-subcommittee-meets-to-review-pera">PERA Board meeting</a>;</li>



<li>The Legislative Audit Committee meeting review
of PERA’s <a href="https://www.copera.org/legislative-subcommittee-meets-to-review-pera">annualactuarial valuation</a>; and</li>



<li>The State Measurement for Accountable,
Responsive, and Transparent (SMART) Government Act hearing of the Joint Finance
Committee when it reviews PERA. </li>
</ul>



The Pension Review Subcommittee’s next scheduled meeting is
Monday, August 12 and the Pension Review Commission will meet for the first
time during the 2019 interim session on Monday, September 9. 



PERA staff will continue to work with legislative staff and
members of all reporting committees to provide education regarding the
importance of ensuring retirement security for PERA’s membership.

Legislative Subcommittee Meets to Review PERA

PERA staff are committed to providing regular, transparent updates to state legislators about the status of the PERA trust funds and the economic impact of the public employee retirement plan across Colorado.



Currently, four different legislative committees have oversight responsibility of PERA. Each committee held hearings this fall where PERA staff provided <a href="http://coga.prod.acquia-sites.com/sites/default/files/html-attachments/i_pensionrevew_2018a_20180815t100058z1__hearing_summary/Attachment%20B%20-%20PERA%20Presentation.pdf" target="_blank" rel="noreferrer noopener">general updates</a> as well as specific information tailored to the needs of the different committees. Recent presentations to reporting committees in 2018 included:



<ul>
<li><a href="http://leg.colorado.gov/sites/default/files/images/lac_agenda_august_13-14_2018_.pdf" target="_blank" rel="noreferrer noopener">Legislative Audit Committee</a>, held on August 14</li>



<li><a href="http://leg.colorado.gov/content/ipensionrevew2018a2018-08-15t100058z1-hearing-summary" target="_blank" rel="noreferrer noopener">Pension Review Commission</a>, held on August 15</li>



<li><a href="http://leg.colorado.gov/sites/default/files/images/joint_finance_smart_act_agenda_1.pdf" target="_blank" rel="noreferrer noopener">Joint Finance Committee</a> (SMART Act hearings), held on November 26</li>



<li><a href="https://leg.colorado.gov/sites/default/files/fy2019-20_perahrg.pdf" target="_blank" rel="noreferrer noopener">Joint Budget Committee</a>, held on December 4</li>
</ul>



Led by Colorado PERA Executive Director Ron Baker, PERA staff presented information about PERA’s status and impact as well as major developments in 2018.



PERA continues to have significant economic impact around the state. Contributions to the Colorado economy come from $4.1 billion in total Colorado distributions, creating $6.5 billion in economic output. PERA provides retirement and other programs to one in every 10 Coloradans, paying benefits in every Colorado county, including over 25 percent of payroll in some of the state’s most rural counties.



The investment program continues to meet benchmarks through a diverse asset allocation and a long-term investment time horizon, while maintaining low costs by managing more than half of its portfolio internally, saving approximately $40 million annually in investment fees.



Senate Bill 200 (SB 200) significantly improved PERA’s funded status and every division is expected to reach full funding within the next 30 years. Major provisions of the <a href="https://content.copera.org/pera-staff-keep-legislators-prepared-for-2019-legislative-session/" target="_blank" rel="noreferrer noopener">legislation</a>, approved during the 2018 legislative session, include increased contributions, modified benefits, and an <a href="https://www.copera.org/pera-staff-keep-legislators-prepared-for-2019-legislative-session" target="_blank" rel="noreferrer noopener">automatic adjustment provision</a>.



The automatic adjustment provision in SB 200 is designed to keep each division on schedule to full funding by 2048, with three components that include employer contributions, employee contributions, and the annual increase that can be adjusted over time if PERA falls behind or moves ahead of schedule to reach full funding. The direct distribution from the State’s budget could also be adjusted but cannot exceed the current funding level of $225 million. The first eligible year for any needed adjustments would be on or after July 1, 2020.



No legislative agenda items have been identified by the PERA Board for the upcoming 2019 legislative session.



In addition to the general overview, PERA staff offered more specific information for the various committees. For example, a PERA audit response plan for the Legislative Audit Committee detailed a process of examining current procedures in place for the review of actuarial reports and a review of controls over financial reporting. For the Joint Budget Committee, staff responded to several questions, such as looking for more detail about the automatic adjustment provision of SB 200 and how funded status might trigger an adjustment in the future.



At each hearing, PERA staff reminded legislators of their willingness to serve as a resource during the 2019 session as retirement security and the financial stability of Colorado’s largest public employee retirement plan continue to be priorities.



Stay up-to-date by following <a href="https://www.copera.org/pera-on-the-issues" target="_blank" rel="noreferrer noopener">PERA on the Issues</a> and <a href="https://www.copera.org/pera-staff-keep-legislators-prepared-for-2019-legislative-session" target="_blank" rel="noreferrer noopener">subscribing to our newsletter</a> for insights throughout the First Regular Session of Colorado’s Seventy-second General Assembly, convening on January 4, 2019.

PERA staff keep legislators prepared for 2019 legislative session

The <a href="https://www.copera.org/recap-of-pera-boards-june-2021-meeting" target="_blank" rel="noreferrer noopener">Colorado PERA Board of Trustees</a> is constantly monitoring the performance of the PERA fund and the long-term health and sustainability of each of PERA’s divisions (State, School, Local Government, Judicial, and DPS).



On August 14, 2018, PERA’s actuarial firm reported to the Colorado General Assembly’s Legislative Audit Committee that PERA’s divisions, after the effects of SB 200 are taken into account, now have green or dark green signal light indicators, meaning that all divisions are projected to be 100 percent funded by 2048.



One of the key aspects of performance that the Board considers is the risk profile for each division trust, essentially the likelihood that something negative could happen that would threaten any division’s sustainability and PERA’s ability to pay benefits over the long term.



To better communicate the fund’s risk profile in a straightforward way, the Colorado General Assembly’s <a href="https://leg.colorado.gov/committees/legislative-audit-committee/2018-regular-session" target="_blank" rel="noreferrer noopener">Legislative Audit Committee</a> in 2014 directed the Office of the State Auditor to contract with an actuarial firm to develop a methodology to simplify the understanding of PERA’s financial status. The result of this study was the creation of a signal light color framework to report on PERA’s financial status.



Using a signal light color framework, the tool indicates how long it will take each PERA division to reach full funding, where dark green status means that a division would be funded by 2041 (30 years from 2011) and dark red status means that a division would run out of money within 20 years, with additional categories in between to indicate a spectrum of risk.



<a href="https://content.copera.org/peras-signal-light-is-now-green-what-does-that-mean/" target="_blank" rel="noreferrer noopener">Last year</a>, most PERA divisions were in the orange category, meaning that the PERA Board should develop a corrective action plan to reduce the amount of time it will take PERA to be fully funded. The result was the <a href="https://www.copera.org/2018-pera-on-the-issues-legislative-preview" target="_blank" rel="noreferrer noopener">Board’s recommendation</a> to the Colorado General Assembly that ultimately became <a href="https://www.copera.org/peras-signal-light-is-now-green-what-does-that-mean" target="_blank" rel="noreferrer noopener">Senate Bill 18-200</a> (SB 200).



The two largest of PERA’s member divisions, State and School, are in the green category which means that these trusts are projected to be 100 percent funded by 2048 (30 years from 2018). The Local Government, Denver Public Schools, and Judicial Divisions are in the dark green signal light category and are projected to be fully funded by 2041 (less than 30 years from 2018).



<figure class="wp-block-image"><a href=""><img decoding="async" src="https://content.copera.org/peras-signal-light-is-now-green-what-does-that-mean/"signal light" class="wp-image-2033"/></a></figure>



Read the full <a href="https://peraontheissues.com/wp-content/uploads/2018/08/08-01-18-Colorado-PERA-Signal-Light-Reporting-2018_Final.pdf" target="_blank" rel="noreferrer noopener">Hybrid Defined Benefit Plan Signal Light Reporting Report</a>&nbsp;as presented to the Legislative Audit Committee on August 14, 2018.

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