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



<p></p>


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


<p>As 2024 comes to a close, we’re taking a look back at the articles that resonated most with <em>PERA On The Issues </em>readers. Here are our most-read articles of the year.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/2024-proposed-legislation-status"><strong>2024 Proposed Legislation Status</strong></a></h4>



<p>Legislation is always a popular topic on <em>PERA On The Issues</em>, and 2024 was no exception—our article tracking PERA-related bills throughout the session was our most-visited page of the year. State lawmakers introduced nine PERA-related bills during the legislative session, ultimately passing six of them, though one was amended to remove the provision related to PERA.</p>



<p>Continue reading to find out what we expect to see in the 2025 legislative session.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/what-to-expect-for-medicare-advantage-in-2025-blog"><strong>What to Expect for Medicare Advantage in 2025</strong></a></h4>



<p>The open enrollment period for PERACare—PERA’s health benefits program—happens every fall for coverage beginning the following January. While premiums for PERACare’s Medicare Advantage plans had been stable for three years, that rate freeze expired and various regulatory changes led to carriers announcing this fall that Medicare Advantage premiums would be higher for plan year 2025.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/updated-tax-brackets-contribution-limits-and-more-to-know-for-2025"><strong>Updated Tax Brackets, Contribution Limits and More to Know for 2025</strong></a></h4>



<p>If you’re already thinking about your tax situation for 2025, you’re not alone. Our roundup of various tax-related inflation adjustments was one of our most-read articles of the year. The article includes details on updated retirement plan contribution limits, HSA/FSA contribution limits, new marginal tax brackets, and more.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/u-s-house-passes-wep-gpo-repeal-bill-heads-to-senate" target="_blank" rel="noreferrer noopener"><strong>U.S. House Passes WEP/GPO Bill, Heads to Senate</strong></a></h4>



<p>We frequently hear from PERA members who are frustrated with the way the Windfall Elimination Provision (WEP) and/or Government Pension Offset (GPO) reduce their Social Security benefit, so it was no surprise to see a high level of interest in the topic again this year.</p>



<p>Lawmakers have been introducing bills to modify or repeal WEP and/or GPO for years, and in 2024 the House of Representatives brought one such bill, the Social Security Fairness Act, up for a vote and passed it. With the bill awaiting action in the Senate, PERA and the Fire &amp; Police Pension Association of Colorado teamed up to <a href="https://content.copera.org/wp-content/uploads/2024/12/COPERA-and-FPPA_Please-Support-Repeal-of-Provisions-in-Social-Security-WEP-and-GPO_12.13.24.pdf">send a letter to Colorado’s senators</a> encouraging them to support the bill.</p>



<h4 class="wp-block-heading"><a href="https://www.copera.org/pera-on-the-issues/state-lawmakers-pursuing-two-pera-related-bills-in-2025" target="_blank" rel="noreferrer noopener"><strong>State Lawmakers Pursuing Two PERA-Related Bills in 2025</strong></a></h4>



<p>Back here in Colorado, state lawmakers are getting ready for the start of another legislative session in January. We expect to see some PERA-related legislation introduced in the new session, including two bills that lawmakers on the Pension Review Commission drafted during this year’s interim period between sessions.</p>



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<p>We want to thank everyone who subscribes and reads <em>PERA On The Issues</em>. We appreciate your readership and we look forward to helping you stay informed in the new year.</p>



<p>Make sure you’re <a href="https://www.copera.org/pera-on-the-issues/subscribe">subscribed to our biweekly newsletter</a> to stay up-to-date on all the latest news, and join the conversation on <a href="https://www.facebook.com/ColoradoPERA/" class="broken_link">Facebook</a> and <a href="https://www.linkedin.com/company/colorado-pera">LinkedIn</a>.</p>


Year in Review: Our Top Articles of 2024


<h4 class="wp-block-heading"><a href="https://thehill.com/homenews/5013493-social-security-bill-senate/" target="_blank" rel="noreferrer noopener" class="broken_link"><strong>Social Security Reform Bill Awaits Senate Vote Amid Uncertainty | The Hill</strong></a></h4>



<p>The Social Security Fairness Act, a federal bill that would repeal Social Security’s Windfall Elimination Provision and Government Pension Offset, passed the U.S. House in November. The bill is now awaiting action in the Senate, where its fate is increasingly uncertain with just days left for lawmakers to pass legislation before a new Congress begins.</p>



<h4 class="wp-block-heading"><a href="https://www.investopedia.com/lost-track-of-your-old-401-k-accounts-a-new-service-could-help-recover-the-money-8749171" target="_blank" rel="noreferrer noopener"><strong>Lost Track Of Your Old 401(k) Accounts? A New Service Could Help Recover The Money | Investopedia</strong></a></h4>



<p>The U.S. Department of Labor is getting ready to launch a database to help workers find old retirement accounts. The so-called retirement savings lost and found aims to make sure workers can find and access their 401(k) savings when they switch jobs rather than leaving that money behind. The database should be up and running by the end of the year.</p>



<h4 class="wp-block-heading"><a href="https://www.fastcompany.com/91236800/retirement-saving-spending-psychology" target="_blank" rel="noreferrer noopener" class="broken_link"><strong>Retirement Saving and Spending Can Be Complicated. Here&#8217;s What Psychology Says | Fast Company</strong></a></h4>



<p>When making the transition from regular, full-time work into retirement, many people find themselves struggling to move from a saving mindset to a spending mindset. While every person’s situation is different, principles of psychology can help explain why that transition can be so difficult.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/personal-finance/ways-to-maximize-your-end-of-year-philanthropy" target="_blank" rel="noreferrer noopener"><strong>Five Ways to Maximize Your End-of-Year Philanthropy | Kiplinger</strong></a></h4>



<p>The end of the year is a popular time to give money to various causes. If you’re thinking of giving this holiday season, here are some things to keep in mind to ensure your donation makes an impact.</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: WEP/GPO Bill’s Fate Uncertain in Final Days of Congress


<p><em>Editor&#8217;s Note: In December 2024, Colorado PERA and the Fire &amp; Police Pension Association of Colorado sent a joint letter to Sens. Michael Bennet and John Hickenlooper, encouraging them to support the Social Security Fairness Act in the Senate. <a href="https://content.copera.org/wp-content/uploads/2024/12/COPERA-and-FPPA_Please-Support-Repeal-of-Provisions-in-Social-Security-WEP-and-GPO_12.13.24.pdf" target="_blank" rel="noreferrer noopener">Read the letter</a>.</em></p>



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<p>In a historic first, the U.S. House of Representatives voted to pass a bill that aims to repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which can reduce Social Security benefits for Colorado PERA members and other public employees.</p>



<p>The bill, <a href="https://www.congress.gov/bill/118th-congress/house-bill/82" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 82</a>—also known as the Social Security Fairness Act—was introduced in early January 2023 and eventually gained the support of over 300 cosponsors on both sides of the aisle. Lawmakers didn’t take any significant action on the bill until September 2024, when sponsors Reps. Abigail Spanberger (D-VA) and Garret Graves (R-LA) filed what’s known as a discharge petition, seeking to move the bill out of committee and force a floor vote.</p>



<p>Despite an Election Day maneuver seeking to table the bill, House leadership put H.R. 82 to a vote on Tuesday, November 12. It passed by a vote of 327 to 75.</p>



<p>The bill&#8217;s fate now lies with the Senate as lawmakers have just days to pass legislation before the current Congress ends. Senate Majority Leader Chuck Schumer has said he intends to bring the bill up for a vote.</p>



<p>Some lawmakers have expressed concern about the bill’s cost; a recent <a href="https://www.cbo.gov/system/files/2024-09/hr82.pdf" target="_blank" rel="noreferrer noopener">estimate from the Congressional Budget Office</a> found it would require nearly $200 billion in additional spending over the next decade to provide larger Social Security benefits to those affected.</p>



<div class="wp-block-advgb-accordions advgb-accordions-b92c7005-29f3-41c5-8ad2-2a98b034c717 advgb-accordion-wrapper">
<div class="wp-block-advgb-accordion-item advgb-accordion-item" style="margin-bottom:15px"><div class="advgb-accordion-header" style="background-color:#000;color:#eee;border-style:solid;border-width:1px;border-radius:2px"><span class="advgb-accordion-header-icon"><svg fill="#fff" xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24"><path fill="none" d="M0,0h24v24H0V0z"></path><path d="M12,5.83L15.17,9l1.41-1.41L12,3L7.41,7.59L8.83,9L12,5.83z M12,18.17L8.83,15l-1.41,1.41L12,21l4.59-4.59L15.17,15 L12,18.17z"></path></svg></span><h4 class="advgb-accordion-header-title" style="color:inherit">What are WEP and GPO?</h4></div><div class="advgb-accordion-body" style="border-style:solid !important;border-width:1px !important;border-color:undefined !important;border-top:none !important;border-radius:2px !important">
<p>Social Security benefits are designed to replace only some of a worker’s pre-retirement earnings, and lower-paid workers receive a larger replacement percentage than higher-paid workers. Prior to the WEP being enacted in 1983, non-Social Security government workers like PERA members would receive a larger-than-intended Social Security benefit because of those years in their earning record when they weren’t contributing to Social Security. The WEP was meant to remove that advantage.</p>



<p>The GPO applies to PERA retirees who also receive a Social Security spousal or widow(er) benefit and reduces the Social Security benefit by two-thirds of the PERA benefit. That’s because spousal and widow(er) benefits are considered “dependent” benefits and were meant to help spouses who stayed at home and depended on their working partner for financial support. According to the Social Security Administration, now that it is common for both spouses to work, the GPO requires the “dependent” benefit to be offset by the dollar amount of their own retirement benefit.</p>



<p>It’s important to note that a retiree’s PERA benefit will never be reduced to Social Security or other benefits. Learn more about&nbsp;<a href="https://www.copera.org/retirees/benefit-basics-for-retirees/pera-and-social-security" target="_blank" rel="noreferrer noopener">PERA and Social Security</a>.</p>
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<p>Federal lawmakers also voted on another WEP-related bill, <a href="https://www.congress.gov/bill/118th-congress/house-bill/5342" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 5342</a>, which would have introduced a new formula for calculating Social Security benefit reductions rather than a full repeal. That bill failed on a vote of 175 to 225.</p>



<p><em>PERA On The Issues</em> will continue to monitor legislation on this issue and we’ll post updates when available. Be sure to <a href="https://copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener">subscribe to our biweekly newsletter</a> to stay informed.</p>


U.S. House Passes WEP/GPO Repeal Bill, Heads to Senate


<h4 class="wp-block-heading"><strong><a href="https://civicscience.com/retirement-redefined-how-the-pandemic-and-economic-factors-are-shaping-retirement-plans-among-older-americans/" target="_blank" rel="noreferrer noopener">Retirement Redefined: How the Pandemic and Economic Factors Are Shaping Retirement Plans Among Older Americans | CivicScience</a></strong></h4>



<p>More than four years after the start of the COVID-19 pandemic, we’re still seeing some of the effects of the public health crisis and new data attempt to shed some light on how the pandemic affected retirement planning. Survey data from CivicScience found most adults at or near retirement age said they did not leave the workforce during the pandemic, but older workers (65+) were more likely to say they left work and didn’t return. Of those who left the workforce and returned, more than half expect to work past the age of 65.</p>



<h4 class="wp-block-heading"><a href="https://www.investopedia.com/people-want-congress-to-fix-social-security-s-shortfall-8722073" target="_blank" rel="noreferrer noopener"><strong>Most Americans Want Congress To Fix Social Security and Medicare Shortfalls ASAP | Investopedia</strong></a></h4>



<p>In a recent survey, respondents made it clear that shoring up Social Security and Medicare are top priorities for ensuring retirement security. The survey from the Transamerica Institute for Retirement Studies found over 60 percent of people think the government needs to prioritize filling Social Security’s funding shortfall and over 50 percent think Medicare’s funding should be a priority.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/investing/farewell-paper-i-bonds-savings-bonds-going-online-only" target="_blank" rel="noreferrer noopener"><strong>Farewell Paper I-Bonds: Savings Bonds Are Going Online Only | Kiplinger</strong></a></h4>



<p>The last remaining paper savings bond is about to go all digital. The U.S. Treasury announced taxpayers will no longer be able to buy paper Series I bonds with their tax returns starting January 1, 2025. Electronic versions of I and EE bonds have been available for purchase online through TreasuryDirect for about two decades, and banks stopped selling paper savings bonds in 2012.</p>



<h4 class="wp-block-heading"><strong><a href="https://www.thetravel.com/beautiful-towns-in-colorado-that-are-great-for-retirement/" target="_blank" rel="noreferrer noopener">Beautiful Towns In Colorado That Are Great For Retirement | The Travel</a></strong></h4>



<p>While many people like to stay put in retirement and age at home, many others like to pack up in search of a change in scenery or a better way of life. This list aims to identify the best towns in Colorado for retirees with a focus on crime and cost of living.</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: How the Pandemic Affected Retirement Planning


<h4 class="wp-block-heading"><a href="https://www.nerdwallet.com/article/finance/when-the-fed-cuts-rates" target="_blank" rel="noreferrer noopener"><strong>What Happens Now That the Fed Finally Cut Rates? | NerdWallet</strong></a></h4>



<p>Federal Reserve Chair Jerome Powell recently announced the central bank would lower its key interest rate for the first time since 2020. While a rate cut was expected, some were surprised by the Fed’s decision to slash the rate by 0.5% instead of a more incremental 0.25%. Here’s what lower interest rates could mean for your finances and the economy as a whole.</p>



<h4 class="wp-block-heading"><a href="https://www.govexec.com/pay-benefits/2024/09/lawmakers-successfully-force-vote-eliminating-windfall-elimination-provision/399759/" target="_blank" rel="noreferrer noopener"><strong>Lawmakers Successfully Force a Vote on Eliminating the Windfall Elimination Provision | Government Executive</strong></a></h4>



<p>The federal lawmakers leading the charge on H.R. 82—aka the Social Security Fairness Act, which would repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)—have succeeded in their efforts to force a floor vote on the issue. Reps. Abigail Spanberger (D-VA) and Garret Graves (R-LA) used a rare tactic called a discharge petition, which reached the necessary threshold of 218 signatures to bypass Congressional leadership and get a vote on the floor of the House of Representatives. A vote likely won’t happen until at least November, and the bill would still have to pass the Senate before the conclusion of this Congress in January.</p>



<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2024/09/24/september-consumer-confidence-falls-the-most-in-three-years.html" target="_blank" rel="noreferrer noopener"><strong>September Consumer Confidence Falls the Most in Three Years | CNBC</strong></a></h4>



<p>The latest survey data show American consumers are increasingly pessimistic about the current and future state of the economy. According to the monthly Conference Board report, its consumer confidence index dropped to 98.7 in August, marking the biggest single-month decline since 2021. Survey respondents largely cited the weakening job market and the effects of inflation as their main concerns.</p>



<h4 class="wp-block-heading"><strong><a href="https://www.ecu.edu.au/newsroom/articles/research/travel-could-be-the-best-defence-against-ageing" target="_blank" rel="noreferrer noopener">Travel Could Be the Best Defense Against Aging | Edith Cowan University</a></strong></h4>



<p>If your retirement plans include travel, you could be doing yourself the favor of improving your health and slowing down the aging process. According to new research from Edith Cowan University in Australia, the pleasure we derive from travel activities—such as unplugging from daily life, getting more exercise, and having new experiences—can help alleviate stress and boost our overall functioning, which can help slow down the clock in terms of aging.</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: What Lower Interest Rates Mean For Your Finances


<h4 class="wp-block-heading"><a href="https://spanberger.house.gov/posts/spanberger-graves-file-discharge-petition-for-social-security-fairness-act-push-to-force-u-s-house-vote-on-bipartisan-bill-to-eliminate-wep-gpo" target="_blank" rel="noreferrer noopener"><strong>Spanberger, Graves File Discharge Petition for Social Security Fairness Act, Push to Force U.S. House Vote on Bipartisan Bill to Eliminate WEP &amp; GPO | Rep. Abigail Spanberger</strong></a></h4>



<p>Congress is back from recess, and the two main sponsors of a bill that would repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) say they’re going to attempt to force a floor vote on the bill. Representatives Abigail Spanberger (D-VA) and Garret Graves (R-LA) filed a discharge petition, which will need 218 signatures to force a vote. The bill, The Social Security Fairness Act, has received the support of more than 300 members of Congress but has stalled since it was introduced in early 2023.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/retirement/employee-retirement-income-security-act-erisa-turns-50" target="_blank" rel="noreferrer noopener"><strong>Employee Retirement Income Security Act Turns 50: Protecting Your Plans | Kiplinger</strong></a></h4>



<p>It’s been 50 years since the Employee Retirement Income Security Act of 1974 (ERISA) was enacted into law, adding new protections for workers and changing the way many people save for retirement. While ERISA doesn’t govern public pension plans like Colorado PERA, it’s been a consequential piece of legislation in the private sector and paved the way for today’s employer-based retirement plans like 401(k)s.</p>



<h4 class="wp-block-heading"><a href="https://chhs.source.colostate.edu/new-drug-may-improve-memory-in-older-adults-treat-alzheimers/" target="_blank" rel="noreferrer noopener"><strong>New Drug May Improve Memory in Older Adults, Treat Alzheimer’s | Colorado State University</strong></a></h4>



<p>Researchers at Colorado State University say they’ve been testing a drug that shows promise in treating memory loss associated with aging and neurological conditions like Alzheimer&#8217;s disease. The researchers teamed up with a local biotech company to test the drug, which targets two specific proteins in the brain. The team hopes to get approval for human trials soon.</p>



<h4 class="wp-block-heading"><a href="https://coloradosun.com/2024/09/10/colorado-taxes-pilot-program/" target="_blank" rel="noreferrer noopener"><strong>Colorado Department of Revenue to Help 100,000 Residents File Their Taxes | The Colorado Sun</strong></a></h4>



<p>State officials are working to implement a new law that will help many Coloradans claim tax credits they may know they qualify for. Under the law, the Colorado Department of Revenue will help up to 100,000 households file or amend their tax returns to claim state and/or federal earned income tax credits and child tax credits, which could help many lower income families in the state.</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: Lawmakers Push for Floor Vote on WEP/GPO Bill


<p><em>Update: In November 2024, the House passed H.R. 82, the Social Security Fairness Act. Please <a href="https://www.copera.org/pera-on-the-issues/u-s-house-passes-wep-gpo-repeal-bill-heads-to-senate">visit this page</a> for the latest.</em></p>



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<p>We often hear from Colorado PERA members who want to know if legislators have made any progress in their efforts to change two provisions of federal law that can reduce retirees’ Social Security benefits.</p>



<p>Because most PERA members do not participate in Social Security while working for a PERA employer, any Social Security benefit they earned from private-sector work may be affected by the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO).</p>



<p>Those provisions have been part of federal law since the 1980s, but lawmakers in recent years have repeatedly sought to modify or repeal them without success.</p>



<div class="wp-block-advgb-accordions advgb-accordions-505a0fe6-41e1-4105-b85d-38166d97884b advgb-accordion-wrapper">
<div class="wp-block-advgb-accordion-item advgb-accordion-item" style="margin-bottom:15px"><div class="advgb-accordion-header" style="background-color:#000;color:#eee;border-style:solid;border-width:1px;border-radius:2px"><span class="advgb-accordion-header-icon"><svg fill="#fff" xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24"><path fill="none" d="M0,0h24v24H0V0z"></path><path d="M12,5.83L15.17,9l1.41-1.41L12,3L7.41,7.59L8.83,9L12,5.83z M12,18.17L8.83,15l-1.41,1.41L12,21l4.59-4.59L15.17,15 L12,18.17z"></path></svg></span><h4 class="advgb-accordion-header-title" style="color:inherit">Why WEP and GPO exist</h4></div><div class="advgb-accordion-body" style="border-style:solid !important;border-width:1px !important;border-color:undefined !important;border-top:none !important;border-radius:2px !important">
<p>Social Security benefits are designed to replace only some of a worker’s pre-retirement earnings, and lower-paid workers receive a larger replacement percentage than higher-paid workers. Prior to the WEP being enacted in 1983, non-Social Security government workers like PERA members would receive a larger-than-intended Social Security benefit because of those years in their earning record when they weren’t contributing to Social Security. The WEP was meant to remove that advantage.</p>



<p>The GPO applies to PERA retirees who also receive a Social Security spousal or widow(er) benefit and reduces the Social Security benefit by two-thirds of the PERA benefit. That’s because spousal and widow(er) benefits are considered “dependent” benefits and were meant to help spouses who stayed at home and depended on their working partner for financial support. According to the Social Security Administration, now that it is common for both spouses to work, the GPO requires the “dependent” benefit to be offset by the dollar amount of their own retirement benefit.</p>



<p>It’s important to note that a retiree’s PERA benefit will never be reduced to Social Security or other benefits. Learn more about <a href="https://www.copera.org/retirees/benefit-basics-for-retirees/pera-and-social-security" target="_blank" rel="noreferrer noopener">PERA and Social Security</a>.</p>
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<h4 class="wp-block-heading"><strong>Where things stand</strong></h4>



<p>While federal lawmakers have introduced about a half-dozen bills this Congress that touch on the WEP and GPO issue, the one that has received the most attention and support is <a href="https://www.congress.gov/bill/118th-congress/house-bill/82" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 82</a>, the Social Security Fairness Act of 2023. Its counterpart in the Senate is <a href="https://www.congress.gov/bill/118th-congress/senate-bill/597" target="_blank" rel="noreferrer noopener" class="broken_link">S. 597</a>. Both bills were introduced in early 2023.</p>



<p>Other bills that seek to modify or repeal WEP and/or GPO include <a href="https://www.congress.gov/bill/118th-congress/house-bill/4583" target="_blank" rel="noreferrer noopener" class="broken_link">H.R. 4583</a> and <a href="https://www.congress.gov/bill/118th-congress/senate-bill/2280" target="_blank" rel="noreferrer noopener" class="broken_link">S. 2280</a>—both known as the Social Security 2100 Act—which propose a number of changes to Social Security, including temporarily eliminating WEP and GPO. Those bills were introduced in July 2023.</p>



<p>In April 2024, the House Ways and Means Committee convened for <a href="https://www.ncpers.org/blog_home.asp?display=350" target="_blank" rel="noreferrer noopener">an informational hearing on the topic of WEP and GPO</a>. The meeting didn’t result in any action on the above bills, but lawmakers heard from a panel of experts on the effects the two provisions have on retired public employees and the potential impacts of any changes to Social Security. Testimony largely centered around the fact that the Social Security Administration now has better worker data and WEP/GPO formulas could potentially be updated, but the cost to make any changes would amount to billions of dollars over the next decade.</p>



<p>Neither Social Security Fairness Act bill has made forward progress in Congress, but they continue to gather support—H.R. 82 in particular has gained more than 300 cosponsors in the House. And in May, the bipartisan Problem Solvers Caucus threw its support behind the Social Security Fairness Act with its 62 members <a href="https://problemsolverscaucus.house.gov/media/press-releases/problem-solvers-back-legislation-to-guarantee-full-social-security-benefits-for-police-officers-firefighters-and-public-servants" target="_blank" rel="noreferrer noopener">endorsing the legislation</a>.</p>



<p>In September, bill sponsors Reps. Abigail Spanberger (D-VA) and Garret Graves (R-LA) filed what&#8217;s known as a discharge petition, seeking to move H.R. 82 out of committee and force a floor vote. That petition reached the required threshold of 218 signatures, allowing the sponsors to request a vote in the House of Representatives. With Congress in recess for the month of October, a vote could happen as soon as November, but even if it passes the House, the bill faces an uncertain future in Senate.</p>



<h4 class="wp-block-heading"><strong>What’s next?</strong></h4>



<p>We can expect congressional lawmakers to continue discussing this issue. Even if none of the above bills see any meaningful action before the current Congress ends, legislators are likely to introduce new bills in the next Congress.</p>



<p>As we’ve seen repeatedly over the years, bills that seek to modify or repeal WEP and/or GPO face a steep uphill battle, with lawmakers often citing the cost of increased Social Security benefits as a significant hurdle to overcome. That’s especially true in the face of pessimistic forecasts of Social Security’s finances.</p>



<p>While the most recent projections are somewhat better than expected, Social Security’s cash reserves are still <a href="https://www.cnbc.com/2024/05/06/social-security-expected-to-run-short-on-funds-in-2035-government-says.html" target="_blank" rel="noreferrer noopener">expected to be depleted in about a decade</a>. If that happens and Congress hasn’t taken any action, Social Security will be forced to begin reducing benefits, but experts expect lawmakers will take action to shore up the system’s finances before any benefit reductions are necessary. It’s possible that a package of reforms for Social Security could also include some changes to the WEP and GPO, but only time will tell.</p>



<p>One of the most effective forms of advocacy is for PERA members and retirees to&nbsp;<a href="https://www.usa.gov/elected-officials" target="_blank" rel="noreferrer noopener">contact their senators and representatives</a>&nbsp;in Congress to let them know how the WEP and GPO affect them, as this issue is will be decided at the federal level.</p>



<p>We’ll continue to monitor this issue and post any updates on <em>PERA On The Issues </em>when we can. To stay in the loop, be sure to <a href="https://www.copera.org/pera-on-the-issues/subscribe" target="_blank" rel="noreferrer noopener">subscribe</a> to our biweekly newsletter.</p>


The Latest on Federal WEP/GPO Legislation


<p>PERA’s executive team hosted two virtual Town Hall meetings on Wednesday, June 26 to provide updates on PERA and answer questions from members and retirees.</p>



<p>Chief Executive Officer/Executive Director was joined by Chief Investment Officer/Chief Operating Officer Amy C. McGarrity, Chief Benefits Officer Patrick Lane, and Chief Operating Officer Jeremy Hill.</p>



<p>We’ve included clips of some of the executives’ answers below, and full recordings of each Town Hall are available at <a href="https://copera.org/about/pera-town-hall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>



<h5 class="wp-block-heading"><strong>How did PERA’s investments perform last year and what is PERA’s financial status?</strong></h5>



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<p>McGarrity began by highlighting PERA’s financial results from 2023, as reported in the recently released 2023 <em>Annual Comprehensive Financial Report</em>.</p>



<p>“For the year ended December 31, 2023, PERA’s investment portfolio earned a positive return of 13.4% net-of-fees,” McGarrity said. “The value of the total PERA Defined Benefit Plan was $61.5 billion at the end of the year, and PERA’s funded status was 69.6%.”</p>



<p>PERA remains on track to meet its funding goals, and as such, there will be no automatic adjustments to member and employer contributions or annual benefit increases. Retirees and beneficiaries will receive a 1% Annual Increase in July 2024 and another 1% in 2025.</p>



<p>Explore PERA’s financial results in an interactive format at <a href="https://copera.org/snapshot" target="_blank" rel="noreferrer noopener">copera.org/snapshot</a>.</p>



<h5 class="wp-block-heading"><strong>As PERA’s new CEO, do you anticipate making any major changes, such as implementing a larger annual benefit increase for retirees?</strong></h5>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2024/07/24-andrew-increase.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2024/07/andrew-ai.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/07/24-andrew-increase.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>Roth reiterated that staff and the Board understand the challenge inflation has posed in recent years as the <a href="https://www.copera.org/retirees/benefit-basics-for-retirees/annual-benefit-increases" target="_blank" rel="noreferrer noopener">Annual Increase</a>—which is set in statute and can only adjust up or down based on PERA’s funding progress, has not kept pace.</p>



<p>“I, as Executive Director, do not have the power or authority to make changes to the Annual Increase,” Roth said. “We understand and are doing everything we can to address financial security for our retirees, as is central to our mission.”</p>



<h5 class="wp-block-heading"><strong>Has PERA been planning for the possibility of a recession, and what could that mean for the portfolio?</strong></h5>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2024/07/24-amy-recession.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2024/07/amy-recession.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/07/24-amy-recession.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>McGarrity discussed PERA’s strategic asset allocation—which is set by Board—and its focus on long-term performance. In addition, the Board is currently conducting a study of its investment strategy known as an <a href="https://www.copera.org/pera-on-the-issues/asset-liability-study-a-guide-to-building-a-strategic-portfolio" target="_blank" rel="noreferrer noopener">asset/liability study</a>, and that process includes modeling many different scenarios.</p>



<p>“In that 30-year capital market assumption set, they have a variety of market scenarios, there are recessions, there are bull markets,” McGarrity said. “So as it relates to shorter term or medium term economic events…they’re incorporated into those long-term assumptions.”</p>



<h5 class="wp-block-heading"><strong>PERACare premiums have largely held steady over the past few years; will they remain the same next year?</strong></h5>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2024/07/24-patrick-peracare.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2024/07/patrick-peracare.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/07/24-patrick-peracare.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“I’ll be very direct and say, ‘No.’ PERACare premiums will be going up for the 2025 plan year,” Lane said. “Our Medicare Advantage participants have been protected from premium increases for the last three years because of the rate we were able to get guaranteed when we renewed three years ago. Unfortunately, that rate guarantee is expiring this plan year.”</p>



<p>Lane added that regulatory changes have also prompted insurance carriers to raise their rates for the coming plan year. PERA is still working out the details with carriers and expects to provide 2025 plan information in the fall.</p>



<h5 class="wp-block-heading"><strong>What is PERA doing about Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)?</strong></h5>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2024/07/24-patrick-wep-gpo.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2024/07/patrick-wep-gpo.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/07/24-patrick-wep-gpo.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>Lane said that since the WEP and GPO are provisions of federal law, any changes would have to come from Congress. And while legislators have introduced various bills related to the issue over the years, lawmakers haven’t come to an agreement on a path forward.</p>



<p>“What would happen if the WEP/GPO were to be repealed, that would mean more money coming out of the Social Security trust fund, and that is really where legislation has failed in the past,” Lane said. “I think there are a lot of members of Congress who are interested in the subject and are open to the conversation, but they have yet to reach an agreement on how to actually fund that additional money that would be coming out of the trust fund.”</p>



<p>We follow this issue closely and will provide any updates on federal WEP/GPO legislation when we can.</p>



<h5 class="wp-block-heading"><strong>Where do you see PERA headed in the future and how can I be sure I will receive my full benefit when I retire?</strong></h5>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2024/07/24-andrew-pera-future.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2024/07/andrew-pera-future.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/07/24-andrew-pera-future.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“We have been delivering benefits for almost a century, and we are focused on doing the exact same thing for the next century; your benefits will be here,” Roth said. “Colorado PERA is here for its members and we look forward to serving you as we move into the future together.”</p>



<p>For full recordings of both Town Halls, visit <a href="https://copera.org/about/pera-town-hall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>


CEO Andrew Roth, Executives Answer Questions in PERA Town Halls


<h2 class="wp-block-heading" style="font-size:28px"><a href="https://content.copera.org/news-you-should-know-lawmakers-reintroduce-federal-auto-ira-bill/" target="_blank" rel="noreferrer noopener"><strong>Federal Automatic IRA Bill Introduced in the House | TheStreet</strong></a></h2>



<p>Lawmakers in Congress have reintroduced a bill that aims to boost retirement savings for the millions of Americans who don’t have access to a retirement plan at work. The Automatic IRA Act of 2024 would create a system for automatically enrolling workers in individual retirement accounts (IRAs) similar to the auto-enrollment plans that several states, including Colorado, have set up in recent years.</p>



<h2 class="wp-block-heading" style="font-size:28px"><a href="https://www.cnbc.com/2024/02/09/limiting-retirement-plan-tax-perks-may-help-social-security-experts-say.html" target="_blank" rel="noreferrer noopener"><strong>Limiting Retirement Plan Tax Perks May Help Social Security, Experts Say | CNBC</strong></a></h2>



<p>A new research paper from the Center for Retirement Research at Boston College is making a splash for its controversial proposal for shoring up Social Security’s finances. The paper promotes the idea of eliminating tax incentives for defined contribution plans like 401(k)s. That means workers would pay tax on their retirement plan contributions, and that tax revenue could be put toward improving Social Security’s funding. The paper has received pushback from those who argue workers will be less likely to save for retirement without tax incentives.</p>



<h2 class="wp-block-heading" style="font-size:28px"><a href="https://finance.yahoo.com/news/why-the-1960s-can-help-us-understand-our-confusing-economic-mood-163052769.html" target="_blank" rel="noreferrer noopener"><strong>Why the 1960s Can Help Us Understand Our Confusing Economic Mood | Yahoo! Finance</strong></a></h2>



<p>Despite a growing economy, public sentiment remains stubbornly low, baffling some economists and political experts. In some ways, our current economic mood mirrors the 1960s, a decade marked by a booming economy but also social upheaval and, toward the end of the decade, rising inflation.</p>



<h2 class="wp-block-heading" style="font-size:28px"><a href="https://www.kiplinger.com/retirement/guide-to-caring-for-your-aging-parents" target="_blank" rel="noreferrer noopener"><strong>Caring for Your Aging Parents: A Seven-Step Guide | Kiplinger</strong></a></h2>



<p>Finding yourself responsible for the care of people who used to care for you can be an overwhelming experience. Here are a few key considerations and tips for tackling them, from finances and logistics to remembering your own needs and capabilities.</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: Lawmakers Reintroduce Federal Auto-IRA Bill


<h4 class="wp-block-heading"><a href="https://www.asppa.org/news/neal-reintroduces-proposal-fix-wep" target="_blank" rel="noreferrer noopener"><strong>Neal Reintroduces Proposal to Fix WEP | American Society of Pension Professionals &amp; Actuaries</strong></a></h4>



<p>Rep. Richard Neal (D-MA) is among the members of Congress who are renewing efforts to modify or repeal Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). Neal’s bill, the Public Servants Protection and Fairness Act of 2023, would update the WEP to create a new, proportional formula for calculating a pensioner’s Social Security benefit.</p>



<h4 class="wp-block-heading"><a href="https://apnews.com/article/alzheimers-drug-fda-approval-medicare-leqembi-a9c8b770aa1868a59889143c3bc9d127" target="_blank" rel="noreferrer noopener"><strong>Alzheimer&#8217;s Drug Leqembi Has Full FDA Approval Now and That Means Medicare Will Pay For It | The Associated Press</strong></a></h4>



<p>The U.S. Food and Drug Administration gave its full approval to the new Alzheimer’s drug Leqembi, meaning the agency believes the medication is safe and effective. Full approval means Medicare will cover the drug, despite earlier concerns about its cost and the effects on Medicare’s finances.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/retirement/great-wealth-transfer-gen-x-should-prepare" target="_blank" rel="noreferrer noopener"><strong>Gen X Should Prepare Now for the Great Wealth Transfer | Kiplinger</strong></a></h4>



<p>An event known as the Great Wealth Transfer — when Baby Boomers will hand down an estimated $84 trillion to their children and others — is expected to take place over the next several decades. Many of the beneficiaries of that transfer are members of Generation X, and they may find themselves with newfound money or other assets they’re not sure how to manage.</p>



<h4 class="wp-block-heading"><a href="https://www.nextavenue.org/understanding-caregiver-burnout/" target="_blank" rel="noreferrer noopener"><strong>Understanding Caregiver Burnout | Next Avenue</strong></a></h4>



<p>When a loved one suddenly falls ill or otherwise loses the ability to care for themselves, a spouse or relative often ends up in the role of caretaker. It’s a role that brings its own share of challenges, and it’s important to make sure the caregiver is also getting the care they need.</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>


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