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.

The Colorado PERA Board of Trustees met virtually on Friday, March 15 for its second regularly scheduled meeting of the year.



Below is a summary of key actions and discussions that took place during the meeting.



<h4 class="wp-block-heading">New Executive Director</h4>



At the beginning of the meeting, the Board announced it has selected PERA’s next Executive Director following an eight-month nationwide search.



Andrew Roth will fill that role beginning May 13. He comes to PERA from the Teacher Retirement System of Texas, and previously worked at the California State Teachers’ Retirement System and in various departments within the State of California.



<blockquote class="wp-block-quote">
READ MORE: <a href="https://peraontheissues.com/pera-board-names-andrew-roth-as-new-executive-director/" target="_blank" rel="noreferrer noopener">PERA Board Names Andrew Roth as New Executive D</a><a href="https://content.copera.org/pera-board-names-andrew-roth-as-new-executive-director/" target="_blank" rel="noreferrer noopener">irector</a>
</blockquote>



<h4 class="wp-block-heading">Board election update</h4>



The Board announced in January that four Trustee seats would be up for election in May. At the March meeting, Trustees voted to move forward with elections for three of those seats—one in the School Division and two in the State Division.



The Denver Public School Division seat, currently held by Amy Grant, is uncontested. The Board voted to reappoint Grant to another four-year term beginning in July.



Members in the School and State divisions will receive ballots in May, and the Board will announce election results at its June meeting.



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



State lawmakers are halfway through the 2024 legislative session, and Public and Government Affairs Manager Michael Steppat joined Interim Executive Director/Chief Investment Officer Amy C. McGarrity to provide an update on PERA-related legislation.



So far this session, legislators have introduced more than 500 bills, <a href="https://content.copera.org/2024-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">seven of which pertain to PERA</a>.



Of those seven proposed bills, one—<a href="https://leg.colorado.gov/bills/hb24-1169" target="_blank" rel="noreferrer noopener">HB24-1169</a>, which would have repealed a 2016 law that requires PERA to divest all direct holdings from companies that have economic prohibitions against Israel—has died in committee. The other six remain under consideration at the State Capitol.



Steppat said it’s likely there will be some additional PERA-related legislation before the session is over. PERA On The Issues will continue to <a href="https://content.copera.org/2024-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">track all PERA bills</a> and post updates when they’re available.



<blockquote class="wp-block-quote">
RELATED: <a href="https://content.copera.org/an-update-on-2023-wep-gpo-legislation/" target="_blank" rel="noreferrer noopener">An Update on 2023 WEP/GPO Legislation</a>
</blockquote>



<h4 class="wp-block-heading">Asset/liability study continues</h4>



The Board also received an update on its <a href="https://content.copera.org/asset-liability-study-a-guide-to-building-a-strategic-portfolio/" target="_blank" rel="noreferrer noopener">ongoing asset/liability study</a>. That study, which is an in-depth analysis of PERA’s investment portfolio and strategy, will help the Trustees determine if any changes are needed to PERA’s asset allocation, or mix of investments.



The Board’s consultants, Aon, modeled several different&nbsp;asset allocation—some with more risk than the current portfolio and some with less—across thousands of different economic scenarios to project how each option might affect PERA’s investment returns and progress toward its funding goals.



Overall, PERA’s current portfolio is within a reasonable range, Aon said, but there may be some opportunities to further diversify in a way that increases the potential for higher returns without adding unnecessary risk.



Consultants and PERA staff will continue to work on a recommendation and will present more information at the next Board meeting.



The Board’s next regular meeting, which will also include the release of PERA’s 2023&nbsp;Annual Comprehensive Financial Report&nbsp;and&nbsp;Investment&nbsp;Stewardship&nbsp;Report, is scheduled for June 21.

Recap of PERA Board’s March 2024 Meeting

After an extensive nationwide search, the Colorado PERA Board of Trustees announced it has selected PERA’s next Executive Director.



The Board named Andrew Roth, Deputy Director of the Teacher Retirement System of Texas, as PERA’s eighth Chief Executive Officer/Executive Director. The Board announced Roth’s appointment at&nbsp;<a href="https://peraontheissues.com/recap-of-pera-boards-march-2024-board-meeting/" target="_blank" rel="noreferrer noopener">its March 15 meeting.</a>



“The Board conducted an extremely thorough process with highly qualified candidates from across the country,” said Board Chair Marcus Pennell. “Mr. Roth stood out among these leaders because of his experience managing complex pension organizations, a commitment to PERA’s&nbsp;fiduciary&nbsp;obligations and as someone who has demonstrated a dedication to public service.”



Prior to his role at the Teacher Retirement System of Texas, Roth served in high-level positions at the California State Teachers’ Retirement System and in various departments within the State of California.



“PERA is one of the nation’s premier pension funds and it is an honor to serve the members and retirees who have dedicated their careers to public service in the great state of Colorado,” Roth said. “PERA has contributed to a secure retirement for Colorado’s public workforce for nearly 100 years, and I appreciate the Board’s confidence in me to carry this vital mission into the future. I look forward to working closely with the Board, our employees, and every member to ensure PERA remains steadfastly focused on meeting the retirement needs of hundreds of thousands of Coloradans.”



Roth will begin his new role as Chief Executive Officer/Executive Director on May 13.

PERA Board Names Andrew Roth as New Executive Director

Gov. Jared Polis appointed Taylor McLemore to the PERA Board of Trustees in 2021, and in January McLemore was elected by his Trustee colleagues to fill the Vice Chair seat vacated by Suzanne Kubec.



We recently sat down with McLemore to talk about his background and his new role on the Board.



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



<h5 class="wp-block-heading">Tell us about yourself and the experience you bring to the Board.</h5>



I am an entrepreneur, and my career has spanned across a variety of industries and sectors, everything from starting in the investment banking and capital markets world, to founding companies, to helping grow and scale companies, and now I’m a venture capital investor. I’ve also spent time in the nonprofit world, founding and building nonprofits focused on education and economic mobility.



I believe every organization, for-profit business or nonprofit has the opportunity to truly influence their community. I approach the Board’s work from that ecosystem perspective, and I hope that’s something that makes me a productive and contributing Board member. PERA exists to serve its members, but PERA also has a critical relationship with the broader State of Colorado, our Legislature, the partners that we invest in and so on. My varied experience provides me with open-mindedness to be listening and be thoughtful as we balance input from lots of parties to figure out how we achieve the most important thing—a stable PERA that serves its members.



<h5 class="wp-block-heading">The term “fiduciary” comes up a lot in Board discussions. How do you view that duty with regard to the Board’s work?</h5>



Our role as fiduciaries is very clear. It’s articulated in both state and federal law what that means and how we need to prioritize the interests of the organization above all other interests. It’s our duty of loyalty and a duty of care, putting PERA’s priorities first and managing any conflicts of interest. It is important that the Board do the work within the mandate of our charter by the State of Colorado and the laws established by our state Legislature. The Board focuses on governance and policy for PERA as an organization. The Executive Director is responsible to the Board to lead PERA and drive outcomes aligned with PERA’s strategic plan. PERA’s management team leads and runs PERA. It is critical that the Board operate from its clearly defined role. Additionally, we, the Board, utilize a set of highly skilled and intelligent consultants and service providers to serve the Board. It is our responsibility that PERA has a competent and aligned Executive Director, and for the Board consultants that we have the professional and capable firms and consultants supporting all of the functions of the Board.



<h5 class="wp-block-heading">You’ve been leading the Board’s Ad Hoc Committee that’s searching for PERA’s next Executive Director. How has that experience prepared you for a larger leadership role on the Board?</h5>



PERA is a large organization with a fair amount of complexity, so it takes some time to really understand the organization well enough to be able to support from a governance perspective the executive team that’s operating and leading PERA. In addition to serving on the Board for three years, chairing the Ad Hoc Committee for the Executive Director Search has been a great additional layer of experience because our committee had to ask some really specific questions about what skills, competencies, and lived experience PERA’s future leader needs to have. That profile that we have developed to guide the Executive Director search process is a reflection of what we have learned as a Board and the critical areas of focus going into the future. This embodies my approach to leadership on the Board. We have a valuable diversity of experience and knowledge across the Trustees, and we need to operate in a manner that leverages our collective wisdom, channeling it into action and then outcomes.



<h5 class="wp-block-heading">Do you have any updates on the Executive Director search?</h5>



Our search firm has contacted over 400 people in the search process, which is one of the things we really prioritized—casting a broad net. We know there are some candidates already in the public pension space who are probably highly qualified candidates, but we really saw value in seeking out a diversity of candidates, with diversity defined a lot of different ways, including lived experience and professional experience. We received over 200 applications and have narrowed those candidates down to a smaller pool that the Ad Hoc Committee will be interviewing. We’ll then recommend an even smaller subset of candidates to the full Board, which will select and hire the next Executive Director.



<h5 class="wp-block-heading">Do you have any advice for PERA members interested in running for one of the <a href="https://peraontheissues.com/four-seats-on-pera-board-up-for-election-in-2024/">four open seats on the Board</a>? </h5>



I think serving on the PERA Board of Trustees is a really meaningful form of service. I really think of PERA as a critical set of community members in Colorado. There’s nothing more important than people who are teaching our children, the state troopers keeping us safe, the people in the judicial branch that are administering justice, and that’s just a subset of our membership. This state doesn’t run without the people of PERA, and even when they’re retired, we know that PERA members continue to be amazing leaders in their communities. And so if someone is running for election, it’s probably because they’re already a meaningful public servant in how they are pursuing their career, and running to join as a PERA Trustee is a great way to extend that service and impact.

Q&A With the PERA Board’s New Vice Chair, Taylor McLemore

The Colorado PERA Board of Trustees met on Friday, January 19 for its first regular meeting of 2024.



The agenda included important topics of discussion and various action items. Some of the Board’s major actions at the meeting are summarized below.



<h4 class="wp-block-heading">Board appointment and Vice Chair election</h4>



Current Board Vice Chair Suzanne Kubec is retiring, and therefore vacating her seat on the PERA Board. In accordance with Board policy, Chair Marcus Pennell moved to fill that seat with the candidate from the State Division’s previous Board election who received the second-highest number of votes. As a result, Ashley M. Smith, who served on the Board from 2021 to 2022, was appointed to fill that seat until the next election in 2025.



Additionally, the Board held an election to replace Kubec as Vice Chair, and the Trustees elected Taylor McLemore to fill that role. McLemore has been on the Board since 2021 and currently serves as chair of the Ad Hoc Committee overseeing the search for PERA’s next Executive Director.



<blockquote class="wp-block-quote">
REMINDER: <a href="https://peraontheissues.com/four-seats-on-pera-board-up-for-election-in-2024/" target="_blank" rel="noreferrer noopener">Four Seats on PERA Board Up For Election in 2024</a>
</blockquote>



<h4 class="wp-block-heading">Executive Director search update</h4>



McLemore provided an update on the Ad Hoc Committee’s Executive Director search, stating that more than 200 people have applied for the job. The committee is working with an outside search firm to screen applicants and identify candidates of high interest who will receive in-person interviews in February. The committee will then provide a list of top candidates to the full Board, which will be responsible for selecting a finalist.



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



The 2024 legislative session is underway, and lawmakers have so far introduced <a href="https://peraontheissues.com/2024-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">three PERA-related bills</a>. Interim Executive Director/Chief Investment Officer Amy C. McGarrity and Public and Government Affairs Manager Michael Steppat updated the Trustees on the bills:



<ul>
<li>HB24-1044: Would expand the number of PERA retirees who can work for school districts without reductions in their benefits.</li>



<li>SB24-013: Would increase district attorney and assistant district attorney pay&nbsp;and allow county boards to require assistant DAs to become a member of the PERA Defined Benefit Plan.</li>



<li>SB24-044: Would create a temporary tax credit for qualifying PERA retirees in tax years 2024 and 2025.</li>
</ul>



The Board generally takes a position on a bill if it has a financial impact on PERA, and Trustees voted to take an “amend” position on HB24-1044. That means the Board is looking for lawmakers to amend the bill to include a way to offset potential negative impacts on PERA’s funding.



<blockquote class="wp-block-quote">
READ MORE: <a href="https://peraontheissues.com/2024-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">2024 Proposed Legislation Status</a>
</blockquote>



<h4 class="wp-block-heading">Asset/liability study update</h4>



In September, the Board began the process of examining PERA’s strategic asset allocation through what’s known as an <a href="https://peraontheissues.com/asset-liability-study-a-guide-to-building-a-strategic-portfolio/" target="_blank" rel="noreferrer noopener">asset/liability study</a>. The Board’s consultants, Aon, discussed the work that’s been completed so far, including meeting with PERA’s investment staff and modeling future funding scenarios based on the existing asset makeup.



That work will continue over the next several months, with more analysis and modeling to determine if different asset allocations or levels of diversification would better help PERA meet its goals.



<h4 class="wp-block-heading">Future meetings</h4>



The Board has four more regular meetings scheduled for 2024:



<ul>
<li>March 15</li>



<li>June 21</li>



<li>September 20</li>



<li>November 15</li>
</ul>



In addition, the Ad Hoc Committee will be meeting to interview Executive Director candidates in February. All meetings are streamed live and include time for public comment.



For more information, visit <a href="https://www.copera.org/board-of-trustees" target="_blank" rel="noreferrer noopener" class="broken_link">copera.org/board-of-trustees</a>.

Recap of PERA Board’s January 2024 Meeting

Candidacy nomination information is now available to PERA members interested in running for any of the four open seats on the PERA Board of Trustees.



The following seats are up for election in 2024:



<ul>
<li>State Division—4-year term&nbsp;(to be filled by an active member, currently employed with a non-Higher Education employer in the State Division)</li>



<li>State Division—2-year term&nbsp;(to be filled by an active member, currently employed at an Institution of Higher Education)</li>



<li>School Division—4-year term&nbsp;(to be filled by an active member, currently employed in the School Division)</li>



<li>DPS Division—4-year term&nbsp;(to be filled by a member or retiree, currently employed in or retired from the DPS Division)</li>
</ul>



If you’re interested in running for a seat on PERA’s Board, you can submit an&nbsp;<a href="https://www.copera.org/recap-of-pera-boards-january-2023-meeting" target="_blank" rel="noreferrer noopener">online candidacy packet request</a> through Feb. 29, 2024.



The PERA Board meets at least five times per year and is responsible for adopting the rules and policies for the administration of PERA. The Board comprises 16 Trustees, and PERA members and retirees directly elect 12 of them. The governor appoints three (with approval by the Senate), and the State Treasurer serves as an ex officio member. Elected Board members serve without pay, but are reimbursed for necessary expenses.



Ballots will be mailed in early May to active members in the State, School and DPS Divisions, and to retired members from the DPS Division.



The Board will announce the results of the election in June, and elected Trustees will begin their terms July 1.



For more information, visit <a href="https://copera.org/about/board-and-leadership">copera.org/board-of-trustees</a>.

Four Seats on PERA Board Up For Election in 2024

The PERA Board of Trustees met on Friday, Nov. 17 for its final regular meeting of 2023.



Below are highlights of some of the major topics of discussion and important actions the Board took during the meeting.



<h4 class="wp-block-heading">2024 Board election</h4>



The Board approved the calendar for the <a href="https://www.copera.org/four-seats-on-pera-board-up-for-election-in-2024" target="_blank" rel="noreferrer noopener">2024 Board election</a>, during which four seats will be up for election: Two in the State Division, one in the School Division, and one in the Denver Public Schools Division.



Candidacy information will be available to members of those divisions in early January, and the election will take place in May.



<h4 class="wp-block-heading">Member contribution interest rate</h4>



Every PERA Defined Benefit Plan account accrues interest, compounded annually. If a PERA member leaves PERA-covered employment 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.



The Board is responsible for setting the interest rate every year; it currently stands at 3 percent. The Board’s policy, <a href="https://content.copera.org/recap-of-the-pera-boards-november-2022-meeting-2/" target="_blank" rel="noreferrer noopener">updated in 2020</a>, 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 2024.



<h4 class="wp-block-heading">Asset/liability study update</h4>



In September, the Board kicked off an important analysis of PERA’s investment portfolio and asset allocation strategy known as an asset/liability study. The project will help the Board determine if it needs to make any changes to PERA’s mix of investments. PERA’s strategic asset allocation is the primary driver of investment returns, and the Board adopted its current allocation following the last asset/liability study in 2019.



The Board’s investment consultant, Aon, said in the meeting that it continues to work with PERA’s investment staff to gather and analyze information. That process will continue over the next few months, with additional discussion in January.



<blockquote class="wp-block-quote">
READ MORE: <a href="https://peraontheissues.com/asset-liability-study-a-guide-to-building-a-strategic-portfolio/" target="_blank" rel="noreferrer noopener">Asset/Liability Study: A Guide to Building a Strategic Portfolio</a>
</blockquote>



<h4 class="wp-block-heading">PERA-related legislation</h4>



With the 2024 General Assembly around the corner, the Trustees discussed the upcoming session and potential PERA-related legislation. The conversation included two bills that lawmakers on the Pension Review Commission expect to introduce: One that aims to expand the number of PERA retirees who can work for school districts without reductions in their benefits, and one that proposes a $700 tax credit for qualifying retirees in tax years 2024 and 2025.



<blockquote class="wp-block-quote">
READ MORE: <a href="https://peraontheissues.com/pension-review-commission-eyes-two-bills-for-2024-legislative-session/" target="_blank" rel="noreferrer noopener">Pension Review Commission Eyes Two Bills for 2024 Legislative Session</a>
</blockquote>



The Board’s first meeting of 2024 will take place on Jan. 19.

Recap of PERA Board’s November 2023 Meeting

At its <a href="https://copera.org/pera-on-the-issues/recap-of-pera-boards-september-planning-session-meeting-2/">September meeting</a>, the PERA Board of Trustees kicked off an important analysis of PERA’s investment portfolio and strategy. Known as an asset/liability study, the project will help Trustees determine whether changes are needed to PERA’s mix of investments.



<h4 class="wp-block-heading">The importance of asset allocation</h4>



PERA’s strategic asset allocation—the mix of stocks, bonds, and other investments that make up the portfolio—is the most important factor that drives the fund’s investment performance. PERA needs to be able to pay monthly benefits to current and future retirees for decades to come, so it’s important we have a portfolio that supports that mission.



Each category of assets serves a distinct purpose, with the result being a diversified portfolio that’s meant to withstand ups and downs in the market and produce returns over the course of decades. Read more about the role each asset class plays in our series, <a href="https://peraontheissues.com/asset-classes-explained-global-equity/" target="_blank" rel="noreferrer noopener">Asset Classes Explained</a>.



The Board is responsible for determining the asset allocation, which staff then implement. The PERA Board typically conducts an asset/liability every four or five years and adopted PERA’s current asset allocation following the last study in 2019. That study resulted in the following targets:



<figure class="wp-block-table"><table><tbody><tr><td>Asset class</td><td>Long-term target</td><td>Permissible range</td></tr><tr><td>Global Equity</td><td>54.0%</td><td>48% to 60%</td></tr><tr><td>Fixed Income</td><td>23.0%</td><td>18% to 28%</td></tr><tr><td>Private Equity</td><td>8.5%</td><td>4% to 13%</td></tr><tr><td>Real Estate</td><td>8.5%</td><td>4% to 13%</td></tr><tr><td>Alternatives</td><td>6.0%</td><td>0% to 12%</td></tr><tr><td>Cash</td><td>0.0%</td><td>0% to 3%</td></tr></tbody></table></figure>



The actual percentages in each asset class can vary based on market fluctuations, but must fall within the allowable range set by the Board. This ensures PERA’s portfolio is in line with the Board’s goals and strategy.



Through the process of regular asset/liability studies, the Board has made incremental adjustments to PERA’s asset allocation over time to achieve an annualized return of 8.3% over the past 30 years.



<h4 class="wp-block-heading">What is an asset/liability study?</h4>



Over the next several months, PERA’s investment consultants will work with staff and the Board to conduct the asset/liability study. It’s an in-depth analysis that looks at various factors, including:



<ul>
<li>The relationship between assets (investments) and liabilities (benefits owed): The study will involve modeling various scenarios over time to see how different investment decisions could impact the plan’s funding long-term. Are there any asset mixes that are more likely to help PERA reach its funding goals?</li>



<li>The fund’s risk tolerance: How much risk can the fund take on appropriately? Should the portfolio include more potentially volatile investments like stocks, or more lower-risk investments like bonds? Increasing the amount of risk can bring the potential for higher returns while lowering risk can protect the fund from losses in down markets.</li>



<li>Market conditions: Since PERA is a long-term investor, it’s important to look at what the future might hold. While the Board doesn’t have a crystal ball, it will work with experts to forecast market conditions for the various asset classes to understand the potential returns over the next several decades.</li>
</ul>



The study will help the Board determine if the current mix of investments is appropriate to help PERA reach its funding goals, or if changes are needed to adjust the level of risk in the portfolio. If the Board decides to make changes to the strategic asset allocation, staff will work to modify the portfolio accordingly.



The Board expects to dive deeper into the details at its November meeting, with the possibility of finalizing the study as soon as the spring.

Asset/Liability Study: A Guide to Building a Strategic Portfolio

The&nbsp;<a href="https://www.copera.org/board-of-trustees" target="_blank" rel="noreferrer noopener" class="broken_link">Colorado PERA Board of Trustees</a>&nbsp;convened for three days in Colorado Springs for its annual September planning session. The planning session concluded with the Board meeting on Friday, Sept. 22.



Over the course of the three days, Trustees engaged in a number of discussions, education sessions, and planning meetings. Below is a summary of some of the highlights and important actions the Board took.



<h4 class="wp-block-heading">Executive Director search</h4>



The Board committee tasked with overseeing the search for PERA’s next Executive Director announced to the full Board that it has selected an outside firm to assist in that search. Hudepohl &amp; Associates, a firm with experience in executive searches for public pension plans, will conduct a nationwide search over the coming months.



READ MORE:&nbsp;<a href="https://peraontheissues.com/pera-board-selects-firm-to-conduct-executive-director-search" target="_blank" rel="noreferrer noopener">PERA Board Selects Firm to Conduct Executive Director Search</a>



<h4 class="wp-block-heading">CEM&nbsp;Benchmarking&nbsp;Report</h4>



Each year, CEM&nbsp;Benchmarking&nbsp;releases a report comparing PERA to other public pension plans on factors such as plan administration costs and the quality of services provided to members. The most recent report, which CEM presented at the planning session, shows PERA continues to provide a high level of service at low cost to its members relative to its peers.



According to CEM, PERA’s administrative cost was $55 per member in 2022, below the peer average of $63. PERA’s service score of 83 was the 10th&nbsp;highest of the 61 pension systems around the world that were included in the report. Among its peers of similarly sized U.S. plans, PERA ranked fourth.



Notably, the report showed that most plans are seeing an increase in wait times and call lengths on their customer service phone lines in recent years, and PERA is no exception. Staff have been taking steps to improve service levels, including upgrading phone systems and better forecasting staffing needs to meet members’ expectations.



<h4 class="wp-block-heading">Asset/liability study</h4>



An important action the Board undertakes every few years is conducting what’s called an asset/liability study. The last study&nbsp;<a href="https://peraontheissues.com/board-directed-asset-liability-study-informs-peras-investment-strategy/" target="_blank" rel="noreferrer noopener">was completed in 2019</a>.



The asset/liability study is what ultimately informs PERA’s strategic&nbsp;asset allocation&nbsp;— or the mix of stocks, bonds, and other investments that make up PERA’s portfolio.



Over the next several months, PERA’s investment consultants will work with staff and the Board to discuss PERA’s long-term investment goals, risk tolerance, expectations of future performance and other factors to determine if PERA should adjust its&nbsp;asset allocation&nbsp;. A notable change that resulted from the last study was allocating slightly more of the portfolio to&nbsp;<a href="https://peraontheissues.com/asset-classes-explained-global-equity/" target="_blank" rel="noreferrer noopener">global equity</a>.



The Board will discuss the asset/liability study further at its November meeting, with the possibility of finalizing the study as soon as next spring.



The Board will hold its final meeting of 2023 on Nov. 17.

Recap of PERA Board’s September Planning Session, Meeting

The PERA Board is making progress in its search for PERA’s next Executive Director. It formed an ad hoc executive search committee to oversee the process. The committee selected Hudepohl &amp; Associates, a Florida-based firm with expertise in executive searches for public pension plans like PERA, to conduct a nationwide search.



The former Executive Director’s position has been vacant since June 1. Chief Investment Officer/Chief Operating Officer Amy C. McGarrity is serving as Interim Executive Director.



On Tuesday, the committee met to discuss its search timeline and objectives. The committee expects to meet again in early-to-mid October, and the entire process is expected to take several months to complete.



Taylor McLemore, chair of the ad hoc committee, said the committee will consider a wide variety of candidates, both internal and external, to find PERA’s next leader.



&#8220;Our mandate is to find the best person for the job,&#8221; McLemore said. &#8220;This is a significant organization that&#8217;s critical to our members, to our employees, and to this state, so we need to find the person who is going to take PERA forward on its mission and make it successful for all of our members and the employees they&#8217;re leading.&#8221;



Meetings of the ad hoc committee are open to the public and are streamed live on <a href="https://www.copera.org/board-of-trustees" class="broken_link">copera.org</a>. PERA members and others are invited to listen in to those meetings, and each includes time for public comment.



For more information, visit <a href="https://www.copera.org/board-of-trustees" class="broken_link">copera.org</a>.

PERA Board Selects Firm to Conduct Executive Director Search

The PERA Board of Trustees met on Friday, June 16 to take action on a number of important items, including releasing PERA’s 2022 Annual Report and announcing results of the recent Board election.



<h4 class="wp-block-heading">Board election</h4>



The Board held elections for three open seats this year. One new Trustee was elected to the Board, two Trustees were reelected, and one Trustee was reappointed:



<ul>
<li>Eunice Botchway was elected by School Division members</li>



<li>Trina Ruhland was reelected by Local Government Division members</li>



<li>Timothy M. O’Brien was reelected by retired members of the State, Local Government, and Judicial Divisions</li>



<li>Judge Rebecca R. Freyre was reappointed to the Judicial Division seat</li>
</ul>



Botchway, a special education teacher at Aurora Public Schools, fills a seat currently held by JB Phillips, who was appointed to the Board in 2022. Botchway was elected to a two-year term.



Ruhland, a deputy county attorney with the Boulder County Attorney’s Office, was elected to the seat to which she was appointed in 2022.



O’Brien, the auditor for the City and County of Denver, has served on the PERA Board since 2011.



In addition to the election results, Judge Rebecca R. Freyre was the sole candidate for the Judicial Division seat and was reappointed to the Board in March.



Ruhland, O’Brien, and Freyre will serve four-year terms beginning July 1, 2023.



Learn more about the PERA Board of Trustees at <a href="https://www.copera.org/board-of-trustees" target="_blank" rel="noreferrer noopener" class="broken_link">copera.org</a>.



<h4 class="wp-block-heading">Financial results and Annual Report release</h4>



A key action the Board takes every year at its June meeting is receiving the results of its annual actuarial valuations and approving the release of PERA’s <a href="https://www.copera.org/pera-on-the-issues/pera-by-the-numbers-a-closer-look-at-the-2022-annual-report" target="_blank" rel="noreferrer noopener">Annual Comprehensive Financial Report</a> (ACFR). The 2022 ACFR contains detailed information about PERA’s finances, investment performance, and funded status for the year ended Dec. 31, 2022.



FULL ARTICLE: <a href="https://peraontheissues.com/pera-board-releases-2022-annual-report/" target="_blank" rel="noreferrer noopener">PERA Board Releases 2022 Annual Report</a>



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



The Board also received an update on the <a href="https://content.copera.org/pera-board-announces-election-results-at-june-meeting/" target="_blank" rel="noreferrer noopener">recently concluded 2023 legislative session</a>. Legislators passed three bills this year that affect PERA, and Gov. Jared Polis has signed all three into law.



One of the bills allocates additional funding to recompense PERA for the state&#8217;s missed 2020 direct distribution. Another requires PERA to include a description of climate-related investment risks, impacts and strategies in its annual <a href="https://copera.org/investment-stewardship" target="_blank" rel="noreferrer noopener">Investment Stewardship Report</a>, and the third bill reclassifies wildlife officers and parks and recreation officers with Colorado Parks and Wildlife as safety officers for determining their PERA benefits.



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



The Board also received an update on legislative activity PERA staff will be involved in over the coming months before the next session begins in January. That includes regularly scheduled hearings before the Pension Review Commission, Pension Review Subcommittee, and Legislative Audit Committee this summer, the Joint Budget Committee in the fall, and the Joint Finance Committee in the winter.



In addition, the Board discussed the history of 2018’s Senate Bill 200. That bill, which is now part of state statute, included a number of major reforms that improved PERA’s financial status and established guardrails to ensure PERA is on a path to full funding by the end of 2047. <a href="https://www.copera.org/pera-board-announces-election-results-at-june-meeting" target="_blank" rel="noreferrer noopener">Click here</a> for details.



<h4 class="wp-block-heading">Executive director search</h4>



The Board has begun the process of searching for PERA’s next executive director and is actively seeking an executive search firm to assist in that process. <a href="https://content.copera.org/pera-board-announces-election-results-at-june-meeting/" target="_blank" rel="noreferrer noopener">Click here</a> for more information on the Board’s Request for Information from qualified firms.



Throughout this year, the Board has been working to develop its next five-year strategic plan. Since Trustees would like PERA’s next executive director to be involved in that process, the Board decided to extend the existing strategic plan through the end of 2024.



The Board’s next regularly scheduled meeting is the September planning session from Sept. 20 to Sept. 22.

Tag Archives: