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



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


<h4 class="wp-block-heading"><a href="https://www.ncpers.org/research-pension-expenditures-education" target="_blank" rel="noreferrer noopener"><strong>Do Pension Expenditures Impact Education Spending? | NCPERS</strong></a></h4>



<p>Critics of defined benefit pension plans like what Colorado PERA offers often claim that the costs associated with providing the benefit drive up public spending on things like education. But research from the National Conference on Public Employee Retirement Systems finds that isn’t true — education costs have been rising at a far quicker pace than pension contributions.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/news-you-should-know-pension-costs-dont-affect-education-spending-study-finds" target="_blank" rel="noreferrer noopener" class="broken_link"><strong>U.S. Workers Want Government to Require Employers to Offer Retirement Plans | Pensions &amp; Investments</strong></a></h4>



<p>While not all private sector employers offer retirement plans to their workers, it’s clear there’s an appetite for them to do so. A recent survey found that more than three-quarters of American workers think employers should be required to offer retirement savings plans. Workers also strongly support requiring employers to make matching contributions to employees’ accounts.</p>



<h4 class="wp-block-heading"><a href="https://www.reuters.com/business/healthcare-pharmaceuticals/july-goal-set-final-us-medicare-drug-negotiation-guidance-2023-04-12/" target="_blank" rel="noreferrer noopener"><strong>July Goal Set for Final US Medicare Drug Negotiation Guidance | Reuters</strong></a></h4>



<p>The Centers for Medicare and Medicaid are getting closer to finalizing their plans to directly negotiate some prescription drug prices with manufacturers. CMS plans to publish final guidance in July and then select the 10 costliest drugs for negotiations in September. Any lower prices wouldn’t take effect until 2026.</p>



<h4 class="wp-block-heading"><a href="https://www.marketplace.org/2023/04/10/why-aging-in-place-is-a-growth-industry/" target="_blank" rel="noreferrer noopener"><strong>Why “Aging in Place” is a Growth Industry | Marketplace</strong></a></h4>



<p>As the costs associated with long-term care continue to rise, the idea of staying put and aging at home has become more attractive. Aging in place often requires modifications to make a home more accessible, and the business market for aging in place now exceeds $150 billion a year, with strong growth expected in the years to come.</p>



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


News You Should Know: Pension Costs Don’t Affect Education Spending, Study Finds


<p>Two years into the COVID-19 pandemic, school districts across the country are facing serious shortages of qualified teachers and other staff, and those shortages have led to widespread concern.</p>



<p>In <a href="https://www.nirsonline.org/wp-content/uploads/2022/02/FINAL-2022-Americans-Views-of-Public-School-Teachers-.pdf" target="_blank" rel="noreferrer noopener">a recent survey from the National Institute on Retirement Security</a> (NIRS), 84 percent of people surveyed said they’re worried about shortages of teachers and school staff, and 81 percent said they’re worried about people leaving the profession.</p>



<p>The educator shortage was the topic of a recent forum held by the <a href="https://www.pebc.org/" target="_blank" rel="noreferrer noopener">Public Education and Business Coalition</a> (PEBC), a Denver-based organization that works with school districts, teachers and business leaders across the country to improve public education. Colorado PERA was a sponsor of PEBC’s Colorado Education Workforce Forum.</p>



<p>At the forum, state education officials, district superintendents and business leaders came together to discuss the sobering reality of Colorado’s educator shortage and brainstorm solutions.</p>



<figure class="wp-block-image size-large"><a href=""><img decoding="async" src="https://content.copera.org/pensions-a-valuable-tool-in-efforts-to-solve-teacher-shortages/"" class="wp-image-5046"/></a><figcaption>Image credit: Public Education and Business Coalition</figcaption></figure>



<p>In the 2020-2021 school year, there were nearly 7,000 teaching positions to fill in Colorado, but only about 3,000 graduates from teaching programs, according to PEBC. In addition, school districts across the state are dealing with a 16 percent turnover rate and per-student funding that’s well below the national average.</p>



<p>Teacher pay is a major factor in discussions about shortages, and so are benefits — particularly retirement benefits. In the NIRS survey, 90 percent of respondents agreed that teachers and school staff should have access to a pension for retirement security, and 94 percent agreed that elected officials should ensure those pensions are adequately funded.</p>



<h4 class="wp-block-heading"><strong>The role of Colorado PERA in attracting and retaining teachers</strong></h4>



<p>Decades ago, it was common for many workers to receive a defined benefit (DB) retirement plan — also known as a pension — from their employer. Today, public employees like teachers and other school employees are among the few who still have access to DB plans. Most other workers have to rely on defined contribution (DC) plans like 401(k)s to save for retirement.</p>



<blockquote class="wp-block-quote"><p><strong>Related:</strong> <a rel="noreferrer noopener" href="https://peraontheissues.com/states-consider-reviving-closed-pensions-in-effort-to-recruit-retain-public-workers/" target="_blank">States Consider Reviving Closed Pensions in Effort to Recruit, Retain Public Workers</a></p></blockquote>



<p>PERA’s hybrid&nbsp;defined benefit&nbsp;plan is a particularly strong recruitment and retention tool because of the value it offers to employees regardless of the length of their career. PERA’s plan design has evolved to serve both long-service employees as well as those who only work for a short time in public employment. For example, every dollar a PERA member contributes to their account is theirs, and they can take those funds with them when they leave PERA-covered employment. This plan design benefits Colorado’s public employees, their employers and the valuable services delivered to Colorado taxpayers.</p>



<p>In the 2022 legislative session that just wrapped up in May, Colorado lawmakers tackled the issue of educator shortages with <a href="https://co.chalkbeat.org/22899633/colorado-education-school-bill-tracker-2022" target="_blank" rel="noreferrer noopener">a number of bills</a> to increase public school funding. They also <a href="https://peraontheissues.com/2022-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">passed two bills</a> that allow some PERA retirees to return to work in school districts dealing with critical shortages.</p>



<p>Solving the teacher shortage in Colorado and elsewhere will require creativity and commitment, and Colorado PERA remains a valuable tool for school districts looking to hire and keep qualified educators.</p>


Pensions a Valuable Tool in Efforts to Solve Teacher Shortages


<h4 class="wp-block-heading" id="americans-views-of-public-school-teachers-and-personnel-in-the-wake-of-covid-19-national-institute-on-retirement-security"><strong><a href="https://www.nirsonline.org/reports/k-12survey/" target="_blank" rel="noreferrer noopener">Americans’ Views of Public School Teachers and Personnel in the Wake of COVID-19</a> | National Institute on Retirement Security</strong></h4>



<p>A new survey by the National Institute on Retirement Security found that a large majority of Americans — 83 percent — are worried about public school staff shortages. The survey also found strong support for those staff and the benefits they receive. Ninety-four percent of those surveyed said elected officials should ensure that healthcare and pension benefits continue to be funded and protected.</p>



<h4 class="wp-block-heading" id="colorado-to-begin-accepting-cryptocurrency-as-payment-for-taxes-this-summer-denver7"><a href="https://www.thedenverchannel.com/news/national/colorado-to-begin-accepting-cryptocurrency-as-payment-for-taxes-this-summer" target="_blank" rel="noreferrer noopener"><strong>Colorado to Begin Accepting Cryptocurrency as Payment for Taxes This Summer</strong></a><strong> | Denver7</strong></h4>



<p>Colorado Gov. Jared Polis announced plans to allow Coloradans to pay their state taxes and fees with cryptocurrencies like Bitcoin. Polis said the state will start rolling out the program in the summer, so you’ll still have to use traditional forms of currency for this year’s taxes.</p>



<h4 class="wp-block-heading" id="covid-has-changed-retirement-and-canceled-the-celebrations-that-usually-mark-it-nbc-news"><a rel="noreferrer noopener" href="https://www.nbcnews.com/think/opinion/covid-has-changed-retirement-canceled-celebrations-usually-mark-it-ncna1289381" target="_blank"><strong>COVID Has Changed Retirement — And Canceled the Celebrations That Usually Mark It</strong></a><strong> | NBC News</strong></h4>



<p>Retirement has often been met with fanfare to celebrate the end of one life stage and the beginning of another. But the COVID-19 pandemic upended many traditions, including the typical retirement celebrations. A psychologist reflects on what that means for workers entering their golden years.</p>



<h4 class="wp-block-heading" id="6-reasons-you-re-putting-off-writing-a-will-and-how-to-overcome-them-next-avenue"><a href="https://www.nextavenue.org/7-reasons-youre-putting-off-writing-a-will-and-how-to-overcome-them/" target="_blank" rel="noreferrer noopener"><strong>6 Reasons You’re Putting Off Writing a Will and How to Overcome Them</strong></a><strong> | Next Avenue</strong></h4>



<p>For many people, estate planning is a topic that can wait until later — if they’re thinking about it at all. But having a will is important regardless of your age. Here are some common reasons for putting off writing a will and some tips for getting started.</p>



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


Tag Archives:

News You Should Know: Pension Costs Don’t Affect Education Spending, Study Finds

Pensions a Valuable Tool in Efforts to Solve Teacher Shortages

News You Should Know: Americans Express Support for Public Education Staff, Benefits

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