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 in Denver on Friday, March 20.



The Board’s agenda included discussions and action items related to Board elections, the 2026 legislative session, PERA funding levels, and more.



Additional&nbsp;details, including meeting materials and a recording of the meeting livestream,&nbsp;are available on the&nbsp;<a href="https://www.copera.org/about/board-and-leadership/board-meeting-archive">Board Meeting Archive</a>&nbsp;page.&nbsp;



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



Elections for open seats on the Board are held each May, and Trustees approved the list of candidates and voted to proceed with elections for two open seats this year:



<ul>
<li>School Division:&nbsp;one 4-year term to be filled by an active member currently employed in the School Division.&nbsp;&nbsp;</li>



<li>State Division (Higher Education):&nbsp;one 4-year term, to be filled by an active member currently working for a Higher Education employer in the State Division.</li>
</ul>







Ballots will be mailed in early May to active members in the School and State divisions. Voting will be available by paper ballot, phone, and online via the election website or the Colorado PERA mobile app and member portal.



The Board will announce the results of the election at its June 25 meeting.



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



CEO/Executive Director Andrew Roth and Director of Public and Government Affairs Michael Steppat provided the Board with an update on the 2026 legislative session, which began in January and will continue through mid-May.



As of the meeting date, legislators had introduced four PERA-related bills and one resolution. Two of those bills have passed: <a href="https://leg.colorado.gov/bills/HB26-1027" target="_blank" rel="noreferrer noopener">House Bill 1027</a> allows executive directors of boards of cooperative services (BOCES) to return to work after retiring for unlimited amounts of time without facing a reduction in their PERA benefits, and <a href="https://leg.colorado.gov/bills/HB26-1146" target="_blank" rel="noreferrer noopener">House Bill 1146</a> allows approved facility schools—which serve students whose needs aren’t being met in a regular classroom—to apply for affiliation with PERA to provide retirement benefits to their employees.



<a href="https://leg.colorado.gov/bills/SJR26-016">Senate Joint Resolution 016</a>, which recognizes the importance of retirement security, encourages workers to seek out financial education to improve their retirement readiness, and highlights the importance of lifetime income options in the PERA Defined Contribution Plan and PERAPlus 401(k)/457 Plans, has also passed.



<a href="https://leg.colorado.gov/bills/HB26-1026">House Bill 1026</a> remains under consideration. That bill would allow PERA members to <a href="https://copera.org/purchasing-service-credit/">purchase</a> a limited amount of service credit for periods of unemployment and also require all PERA-affiliated employers to offer the voluntary <a href="https://www.copera.org/retirees/peraplus-401-k-457-plans">PERAPlus 401(k) and 457 plans</a>, in both pre-tax and Roth options, to their employees.



MORE INFO:



<ul>
<li><a href="https://www.copera.org/pera-on-the-issues/checking-in-on-the-2026-legislative-session-so-far">Checking in on the 2026 Legislative Session So Far</a></li>



<li><a href="https://www.copera.org/pera-on-the-issues/2026-proposed-pera-related-legislation-status">2026 Proposed PERA-Related Legislation Status</a></li>
</ul>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Overview of PERA’s unfunded liabilities</h2>



To better understand the context and history of PERA’s unfunded liabilities—i.e., the gap between the amount of money in the division trust funds and the value of current and future benefits owed to PERA members—the Board engaged in discussions with consulting firms Segal, Aon, and Ailman Advisers.



While various factors have contributed to changes in unfunded liabilities over the past two and a half decades, the session centered on factors that have had the largest impacts and included a review of which factors the Board can and cannot control.



Unfunded liabilities pose a challenge to many public pension plans, but PERA is on a path to full funding by 2048. As of Dec. 31, 2024—the date of our most recent <a href="https://www.copera.org/annual-report">Annual Comprehensive Financial Report</a>—we remain on track to meet that goal.



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



Chief Investment Officer/Chief Operating Officer Amy C. McGarrity presented information on financial market performance so far in 2026. Oil and commodities have been strong performers year-to-date while other asset classes, such as global equities, have been largely flat or negative.



McGarrity also discussed the impact of the conflict in Iran, which has disrupted the supply of oil and other resources since the beginning of March. That conflict has affected markets around the world, McGarrity said, introducing significant uncertainty and volatility across various sectors.



The PERA Board determines PERA’s strategic asset allocation, which is the most significant factor influencing long-term investment performance and asset volatility. Maintaining a disciplined approach helps ensure PERA can meet its obligations throughout market cycles.



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



The PERA Board plans to hold three more regularly scheduled meetings in 2026. Those dates are:



<ul>
<li>June 25</li>



<li>September 23 to 25 (planning session and meeting)</li>



<li>November 20</li>
</ul>







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

PERA Board Discusses Legislation, Funding at March 2026 Meeting

The PERA Board of Trustees met on Friday, January 23 for the first regularly scheduled meeting of 2026.



Topics of discussion included PERA’s strategic plan and implementation progress, ongoing modernization efforts, and the 2026 legislative session and PERA-related bills.



Additional&nbsp;details, including meeting materials and a recording of the livestream,&nbsp;are available on the&nbsp;<a href="https://www.copera.org/about/board-and-leadership/board-meeting-archive">Board Meeting Archive</a>&nbsp;page.&nbsp;



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



CEO/Executive Director Andrew Roth and Director of Strategy Annalise Anderson briefed Trustees on PERA’s progress toward implementing the organization’s <a href="https://content.copera.org/wp-content/uploads/2024/05/strategic-plan.pdf">three-year strategic plan</a>.



2025 was the first year of work under the current plan, and staff accomplished 100% of all measures and targets that were included in the implementation plan for year one, Roth said.



For 2026, implementation will focus on building on the foundation put in place during 2025. That will include goals such as advancing data-driven decision making, continuing with modernization efforts, and building workforce resilience through staff development and succession planning.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Pension administration system modernization</h2>



Work continues on a long-term project to upgrade and replace many of the technology systems that enable the daily work of administering PERA benefits. That includes software and hardware related to managing member data, processing contributions, and paying benefits, among other functions.



Members of PERA’s leadership team, including Deputy Executive Director Sarah Wager, Chief Benefits Officer Patrick Lane, Chief Administrative Officer Jeremy Hill, and Chief Technology Officer Ryan Ericson updated Trustees on work completed so far and what’s ahead.



The project is still in an early phase, with much of the work focusing on assessing the current state of systems and data and establishing a roadmap and goals for the complicated, large-scale initiative. PERA has hired additional staff, including a Director of Modernization, to help with the project.



The modernization effort is expected to take many years to complete, and staff will continue to provide regular updates.



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



CEO/Executive Director Roth and Director of Public and Government Affairs Michael Steppat provided an update on the 2026 legislative session, which kicked off earlier this month.



At the time of the Board meeting, lawmakers had so far introduced three PERA-related bills: House Bill 1026 would make changes to PERA provisions related to purchasing service credit and increase access to PERAPlus plans, House Bill 1027 would allow executive directors of boards of cooperative services (BOCES) to return to work after retiring without a reduction in their PERA benefit, and House Bill 1062 would remove limits on state tax deductions for pension or annuity income.



Visit our <a href="https://www.copera.org/pera-on-the-issues/2026-proposed-pera-related-legislation-status">legislation tracking article</a> for the most recent information on these and any other PERA-related bills.



Steppat also briefed Trustees on other legislative proposals that may come up this session, including two options meant to reduce the likelihood of triggering the&nbsp;<a href="https://www.copera.org/automatic-adjustment-provision" target="_blank" rel="noreferrer noopener">Automatic Adjustment Provision</a>&nbsp;(AAP) that took effect with Senate Bill 200 in 2018.&nbsp;



Those proposals include providing PERA flexibility to&nbsp;allocate&nbsp;the&nbsp;State’s annual $225 million direct distribution&nbsp;to whichever division trust funds&nbsp;would help minimize the likelihood of&nbsp;triggering automatic&nbsp;adjustments and&nbsp;redirecting a&nbsp;portion&nbsp;of employers’ health care trust fund contributions to instead help pay off&nbsp;pension&nbsp;liabilities.



READ MORE: <a href="https://www.copera.org/pera-on-the-issues/what-to-expect-from-colorados-2026-legislative-session">What to Expect from Colorado’s 2026 Legislative Session</a>



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



Chief Investment Officer/Chief Operating Officer Amy C. McGarrity presented an overview of how financial markets fared in 2025. It was a positive year for stocks and fixed income investments, with global equities—particularly European and emerging markets equities—showing the strongest performance, McGarrity said.



While inflation remains slightly higher than the Federal Reserve’s target range, McGarrity said experts expect inflation to continue to normalize throughout 2026.



PERA does not yet have finalized investment performance data for the Defined Benefit Plan portfolio; that information will be available with the release of the 2025 <a href="https://www.copera.org/annual-report" target="_blank" rel="noreferrer noopener">Annual Comprehensive Financial Report</a> in June.



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



The Board’s regularly scheduled meetings for the rest of 2026 are:



<ul>
<li>March 20</li>



<li>June 25</li>



<li>September 23-25 (planning session and meeting)</li>



<li>November 20</li>
</ul>







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

Recap of PERA Board’s January 2026 Meeting

Elections will be held to fill two seats on the PERA Board of Trustees in 2026.



Candidacy information is now available for the following seats:



<ul>
<li>School Division:&nbsp;one 4-year term to be filled by an active member currently employed in the School Division.&nbsp;&nbsp;</li>



<li>State Division (Higher Education): one 4-year term, to be filled by an active member currently working for a Higher Education employer in the State Division.</li>
</ul>







Note that both seats are open only to active members of those divisions; there are no retiree seats up for election this year.



Anyone interested in running for a seat on PERA’s Board must complete the&nbsp;<a href="https://www.copera.org/board-election-2026">online candidacy packet request</a>. Candidacy packet requests can be made through February 27, 2026.



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 School and State divisions.



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



Visit the <a href="https://www.copera.org/board-election-2026">Board election page</a> for more information or to request a candidacy packet.

School, State Higher Education Seats on PERA Board Up For Election in 2026

The PERA Board of Trustees gained a new Chair and Vice Chair in June, when then-Chair Taylor McLemore announced he would be leaving the Board. The Hon. Rebecca R. Freyre <a href="https://www.copera.org/pera-on-the-issues/meet-the-new-vice-chair-of-the-pera-board" target="_blank" rel="noreferrer noopener">assumed the role of Chair</a> and Trina Ruhland was elected Vice Chair.&nbsp;&nbsp;



Trina Ruhland joined the Board in 2022 and attended her first meeting as Vice Chair in September. We caught up with Ruhland to learn more about her and the experience she brings to the Board.&nbsp;



<h2 class="wp-block-heading has-medium-font-size text-black">Tell us a little about yourself and your background. </h2>



My day job is as a deputy county attorney for Boulder County, which is a PERA member. I have a degree in mathematics from the University of Chicago, so I’ve always had a math-minded brain and a personal interest in finance, and I’ve always considered myself a fan of PERA. I first found out about PERA during my first job in law school with the Attorney General’s Office. I remember even then recognizing its value and thinking, “Wow, this is an amazing benefit.” I was excited to join Boulder County, and PERA benefits were a factor in my choosing to work there.&nbsp;&nbsp;



<h2 class="wp-block-heading has-medium-font-size text-black">How has your career informed your work as a Trustee? </h2>



As an attorney for a local government, I have a direct view into the importance of good governance and public service as well as the impact a board can have on an organization and its stakeholders. I believe in the importance of good governance and careful long-term planning. I teach a class at the University of Colorado Law School every semester for law students interested in government service and am constantly reminded of the importance of government service for our community and society.&nbsp;



<h2 class="wp-block-heading has-medium-font-size text-black">What are you most looking forward to as you step into a leadership role on the Board? </h2>



When it comes to PERA, the members are always at the forefront of my mind. I really look forward to having the opportunity to make sure every voice on the Board is heard, as well as supporting transparency for our members and other stakeholders.&nbsp;&nbsp;



<h2 class="wp-block-heading has-medium-font-size text-black">What makes for an effective Trustee, in your eyes? </h2>



I think preparation is key to being a good Trustee. It’s important to have a foundational understanding of how pension funds work, and Trustees are expected to obtain a certain number of hours of education, both on the specifics of PERA and more generally about best practices among public plans like ours. I think effective Trustees are those who understand the Board’s role as an oversight board and understand the governance framework we have put in place. PERA is a long game—we’re not just making decisions for this year but for many years in the future—so we have to be very intentional with each of our decisions to keep the best interests of our members’ retirement security at the forefront.&nbsp;&nbsp;



<h2 class="wp-block-heading has-medium-font-size text-black">What&#8217;s something you wish more people knew about the Board? </h2>



I want people to know how passionate the Board members are in making sure our members have secure retirements, and that their benefit is really our sole focus. Many of our trustees, myself included, are PERA members themselves. Each Trustee puts in a significant amount of time, work, and mental energy into the work of the Board, and I think that makes the organization stronger in ensuring our members have secure retirements.&nbsp;



To learn more about the PERA Board, visit our <a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">Board and Leadership page</a>.&nbsp;

Meet Trina Ruhland, Vice Chair of the PERA Board

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.



<h2 class="wp-block-heading" style="font-size:28px">New Executive Director</h2>



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:&nbsp;<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>



<h2 class="wp-block-heading" style="font-size:28px">Board election update</h2>



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.



<h2 class="wp-block-heading" style="font-size:28px">Legislative update</h2>



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,&nbsp;<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.&nbsp;PERA On The Issues&nbsp;will continue to&nbsp;<a href="https://content.copera.org/2024-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">track all PERA bills</a>&nbsp;and post updates when they’re available.



<blockquote class="wp-block-quote">
RELATED:&nbsp;<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>



<h2 class="wp-block-heading" style="font-size:28px">Asset/liability study continues</h2>



The Board also received an update on its&nbsp;<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&nbsp;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"/>



<h2 class="wp-block-heading has-medium-font-size">Tell us about yourself and the experience you bring to the Board.</h2>



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.



<h2 class="wp-block-heading has-medium-font-size">The term “fiduciary” comes up a lot in Board discussions. How do you view that duty with regard to the Board’s work?</h2>



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.



<h2 class="wp-block-heading has-medium-font-size">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?</h2>



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.



<h2 class="wp-block-heading has-medium-font-size">Do you have any updates on the Executive Director search?</h2>



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.



<h2 class="wp-block-heading has-medium-font-size">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>? </h2>



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.



<h2 class="wp-block-heading h4 text-black">Board appointment and Vice Chair election</h2>



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>



<h2 class="wp-block-heading h4 text-black">Executive Director search update</h2>



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.



<h2 class="wp-block-heading h4 text-black">Legislative update</h2>



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>



<h2 class="wp-block-heading h4 text-black">Asset/liability study update</h2>



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.



<h2 class="wp-block-heading h4 text-black">Future meetings</h2>



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/about/board-and-leadership" target="_blank" rel="noreferrer noopener">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" class="broken_link">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&nbsp;<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.



<h2 class="wp-block-heading">2024 Board election</h2>



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.



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



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.



<h2 class="wp-block-heading">Asset/liability study update</h2>



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>



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



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.

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