
<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.


<h4 class="wp-block-heading"><a href="https://coloradosun.com/2024/12/10/colorado-economic-forecast-2025/" target="_blank" rel="noreferrer noopener"><strong>Colorado Experts Predict What the Economy Will Look Like in 2025 | The Colorado Sun</strong></a></h4>



<p>Every year, local experts have the difficult task of taking stock of the state economy and predicting what a new year will bring. For 2025, experts say the state’s population continues to grow, albeit slower than in years past. And that slower growth rate could have a ripple effect on the job market as employers struggle to find enough employees to fill open positions.</p>



<h4 class="wp-block-heading"><a href="https://www.irs.gov/newsroom/irs-urges-many-retirees-to-make-required-withdrawals-from-retirement-plans-by-year-end-deadline" target="_blank" rel="noreferrer noopener"><strong>IRS Urges Many Retirees to Make Required Withdrawals by Year-End Deadline | Internal Revenue Service</strong></a></h4>



<p>If you’re retired and you have savings in a defined contribution plan like a 401(k), 457, or IRA, you’re likely required to make minimum required distributions (RMDs) by the end of each year. The IRS sent out a notice reminding retirees of the deadline and new rules enacted under the SECURE 2.0 Act.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/personal-finance/quiz-test-your-financial-literacy" target="_blank" rel="noreferrer noopener"><strong>Quiz: Test Your Financial Literacy | Kiplinger</strong></a></h4>



<p>How would you rate your financial literacy? Believe it or not, three simple questions can help you gauge your literacy. If you can correctly answer all three multiple-choice questions, you’re doing better than over half of all Americans.</p>



<h4 class="wp-block-heading"><a href="https://www.usatoday.com/story/money/personalfinance/real-estate/2024/12/10/how-america-can-age-in-plaec/76826197007/" target="_blank" rel="noreferrer noopener"><strong>Baby Boomers Are Aging, and Most Want to Stay at Home Forever | USA Today</strong></a></h4>



<p>A recently released survey from AARP finds that an overwhelming majority of Americans say they want to stay in their homes and their local communities while they age, but many are unsure they’ll be able to do so. Half of the survey’s respondents said they were not confident their current living situation will meet their needs in the future, and over half of that group said they expect to move.</p>



<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 Will Colorado’s Economy Fare in 2025?


<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>



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



<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


<p>The new year is mere weeks away. To make sure taxpayers are informed and prepared, the IRS announced inflation adjustments for many tax provisions in 2025, including marginal tax brackets and retirement account contributions.</p>



<h4 class="wp-block-heading"><strong>Retirement plan contribution limits</strong></h4>



<p>The IRS announced higher contribution limits for 401(k), 403(b) and 457 plans next year.</p>



<p>The maximum amount a worker can contribute to those plans is $23,500 in tax year 2025, an increase of $500. The catch-up contribution limit for most plan participants age 50 and older remains unchanged at $7,500.</p>



<p>Beginning in 2025, some older workers can make additional catch-up contributions. As part of the SECURE 2.0 Act, plan participants who are between the ages of 60 and 63 can make catch-up contributions totaling up to $11,250 in tax year 2025.</p>



<p><a href="https://www.copera.org/retirees/peraplus-401-k-457-plans" target="_blank" rel="noreferrer noopener">Learn more about PERAPlus 401(k)/457 Plans</a></p>



<h4 class="wp-block-heading"><strong>HSA/FSA contribution limits</strong></h4>



<p>The amount of money workers can contribute to medical savings accounts also will increase in 2025.</p>



<ul>
<li><strong>HSA:</strong> Individuals enrolled in a high deductible health plan (HDHP) with a health savings account (HSA) will be able to contribute up to $4,300, and those with family coverage will be able to save a maximum of $8,550.</li>



<li><strong>FSA:</strong> For workers who don’t have an HDHP with an HSA and instead use a flexible spending account (FSA), the maximum contribution for 2025 is $3,300. For plans that allow unused balances to roll over, the maximum amount that can be rolled over will increase to $660.</li>
</ul>



<h4 class="wp-block-heading"><strong>2025 tax rates</strong></h4>



<p>Below are updated marginal tax rates for single taxpayers and married couples filing jointly. Visit <a href="https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025">the IRS website</a> for more tax tables and additional details.</p>



<p>Note that since these changes are for tax year 2025, they will generally apply to tax returns filed in 2026; <a href="https://www.copera.org/pera-on-the-issues/updated-tax-brackets-contribution-limits-other-changes-for-2024">2024 tax rates</a> will apply to returns filed in 2025.</p>



<ul>
<li><strong>37%</strong> for incomes over $626,350 ($751,600 for married couples filing jointly)</li>



<li><strong>35%</strong> for incomes over $250,525 ($501,050 for married couples filing jointly)</li>



<li><strong>32%</strong> for incomes over $197,300 ($394,600 for married couples filing jointly)</li>



<li><strong>24%</strong> for incomes over $103,350 ($206,700 for married couples filing jointly)</li>



<li><strong>22%</strong> for incomes over $48,475 ($96,950 for married couples filing jointly)</li>



<li><strong>12%</strong> for incomes over $11,925 ($23,850 for married couples filing jointly)</li>



<li><strong>10%</strong> for incomes $11,925 or less ($23,850 or less for married couples filing jointly)</li>
</ul>



<h4 class="wp-block-heading"><strong>Standard deduction</strong></h4>



<p>In addition to updated tax rates, the IRS announced increases to the standard deduction for tax year 2025:</p>



<ul>
<li><strong>Single taxpayers and married couples filing separately</strong>: $15,000 ($400 increase)</li>



<li><strong>Heads of household:</strong> $22,500 ($600 increase)</li>



<li><strong>Married couples filing jointly:</strong> $30,000 ($800 increase)</li>
</ul>



<p></p>



<p>Taxpayers who are 65 or older can take an additional standard deduction, which is also adjusted for inflation. For tax year 2025, that amount is $2,000 for single filers and $1,600 for others.</p>



<p>Visit <a href="https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025" target="_blank" rel="noreferrer noopener">the IRS website</a> for more adjustments to tax provisions in 2025.</p>



<h4 class="wp-block-heading"><strong>PERA benefits and taxes</strong></h4>



<p>Colorado PERA benefits are subject to federal income tax, as well as applicable state and local taxes. PERA retirees who would like to update their tax withholding can do so by&nbsp;<a href="https://www.copera.org/member-login-registration" target="_blank" rel="noreferrer noopener">logging in</a>&nbsp;to their secure member account or completing a paper Form W-4P.</p>



<p>Retirees and benefit recipients can expect to receive their 1099-R tax forms for tax year 2024 in January 2025.</p>



<p>Learn more at&nbsp;<a href="https://www.copera.org/taxes-on-benefits" target="_blank" rel="noreferrer noopener">copera.org/taxes-on-benefits</a>.</p>


Updated Tax Brackets, Contribution Limits and More to Know for 2025


<h4 class="wp-block-heading"><a href="https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025" target="_blank" rel="noreferrer noopener"><strong>IRS Releases Tax Inflation Adjustments for Tax Year 2025 | Internal Revenue Service</strong></a></h4>



<p>The new year is just two months away, and the Internal Revenue Service has announced some important tax-related updates. For tax year 2025, the IRS is making adjustments to various tax provisions based on inflation, including the standard deduction, marginal tax rates, earned income tax credits, and more.</p>



<h4 class="wp-block-heading"><a href="https://qz.com/medicare-2-drug-list-medicaid-1851668732" target="_blank" rel="noreferrer noopener"><strong>Medicare Wants to Make These Generic Drugs Available for Just $2 | Quartz</strong></a></h4>



<p>The Centers for Medicare and Medicaid Services released a list of dozens of prescription medications that may be included in a pilot program to provide low-cost generic versions of drugs. The drugs—which include popular medications such as inhalers, antibiotics, blood thinners, and cholesterol pills—would be available for $2 beginning in 2027.</p>



<h4 class="wp-block-heading"><a href="https://www.uchealth.org/today/new-blood-tests-for-alzheimers-may-allow-for-earlier-detection/" target="_blank" rel="noreferrer noopener"><strong>New Blood Tests for Alzheimer’s May Allow for Earlier Detection | UCHealth Today</strong></a></h4>



<p>Multiple companies have been rolling out new blood tests to help screen for Alzheimer’s disease, aiming to someday replace expensive and invasive procedures like spinal taps and imaging scans. Experts at UCHealth say that while the new tests are promising, there’s still more research that needs to be done before they can be made widely available, and the tests are not yet FDA-approved or covered by insurance or Medicare.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/retirement/how-to-step-confidently-into-your-life-after-retirement" target="_blank" rel="noreferrer noopener"><strong>How to Step Confidently Into Your Life After Retirement | Kiplinger</strong></a></h4>



<p>Retiring is a major life change that goes beyond a change in employment status, and that move often involves a shift in identity. Here are some tips for handling the transition and embracing a new phase of life.</p>



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



<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: IRS Releases Tax Adjustments for 2025


<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>



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



<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://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>



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



<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


<h4 class="wp-block-heading"><a href="https://www.irs.gov/newsroom/irs-makes-direct-file-a-permanent-option-to-file-federal-tax-returns-expanded-access-for-more-taxpayers-planned-for-the-2025-filing-season" target="_blank" rel="noreferrer noopener"><strong>IRS Makes Direct File a Permanent Option to File Federal Tax Returns | Internal Revenue Service</strong></a></h4>



<p>During the last filing season, the Internal Revenue Service tested out a new system that allowed taxpayers in a dozen states to file directly with the IRS rather than using third-party tax preparers or software. The IRS says it plans to expand the system nationally and cover additional tax situations next year.</p>



<h4 class="wp-block-heading"><a href="https://www.cnn.com/2024/06/05/investing/texas-stock-exchange/index.html?utm_term=1717673554632efed536092f5&amp;utm_source=cnn_Before+the+Bell+Thursday+6%2F6%2F24&amp;utm_medium=email&amp;bt_ee=5bhqpLc8vzFxpxpWhZTTt%2B3%2BaeKGqj8SPk%2FvnOmLul1SpxR9qRwnCPgsOXVbv36V&amp;bt_ts=1717673554634" target="_blank" rel="noreferrer noopener"><strong>Texas is Coming for Wall Street With a New BlackRock-Backed Stock Exchange | CNN Business</strong></a></h4>



<p>The New York Stock Exchange and Nasdaq may get all the attention, but they’re not the only stock exchanges in the United States, and there could soon be one more. A group backed by some large investors is planning to open a new national exchange in Dallas, Texas. The group is aiming to have the new stock exchange up and running in 2026.</p>



<h4 class="wp-block-heading"><a href="https://www.healthyagingpoll.org/reports-more/poll-extras/most-older-adults-dont-know-about-resources-can-help-them-navigate-aging" target="_blank" rel="noreferrer noopener"><strong>Most Older Adults Don’t Know About Resources That Can Help Them Navigate Aging &amp; Caregiving | National Poll on Healthy Aging</strong></a></h4>



<p>A recent poll of Americans over the age of 50 found many people aren’t aware of and don’t use services and programs aimed at helping aging adults. The National Poll on Healthy Aging found fewer than 10% of people had used or knew a lot about programs such as Area Agencies on Aging (AAAs) and State Health Insurance Assistance Programs (SHIPs), which offer support at the local level.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/retirement/aging-parents-what-you-need-to-know" target="_blank" rel="noreferrer noopener"><strong>Four Things You Need to Know About Your Aging Parents | Kiplinger</strong></a></h4>



<p>As members of Generation X and Millennials get older, they’re increasingly finding themselves stepping into the roles of caregivers for aging parents. Those parents haven’t always taken the necessary steps for succession planning or communicated their needs and wants to their children, so it’s important to ask the right questions. Here are some tips for getting started.</p>



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



<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: IRS Making Direct File System Permanent


<h4 class="wp-block-heading"><a href="https://www.nerdwallet.com/article/finance/why-financial-criminals-target-older-adults-and-how-to-protect-yourself" target="_blank" rel="noreferrer noopener"><strong>Why Finance Cons Target Older Adults, and How to Protect Yourself | NerdWallet</strong></a></h4>



<p>Fraudsters have been increasing their efforts to scam older Americans out of their money in recent years. The latest data from the FBI show losses of $3.4 billion last year from scams targeting people who are 60 and older, an 11% increase from the previous year. Here are some tips for spotting and avoiding some common scam techniques.</p>



<h4 class="wp-block-heading"><a href="https://coloradosun.com/2024/05/25/colorado-retirement-law-secure-savings-401k/" target="_blank" rel="noreferrer noopener"><strong>How 55,000 Coloradans Are Saving Up for Retirement | The Colorado Sun</strong></a></h4>



<p>Colorado SecureSavings, the state-facilitated retirement plan for private-sector workers without access to a plan through their employer, has enrolled more than 50,000 workers in its first year. In total, workers have saved more than $50 million, and the program is on track to nearly double its participants by the end of this year.</p>



<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2024/05/22/irs-extends-free-file-tax-program.html" target="_blank" rel="noreferrer noopener"><strong>IRS Free File Tax Program Has Been Extended Through 2029 | CNBC</strong></a></h4>



<p>The IRS is continuing its Free File partnership with tax software companies while it determines the future of its own direct-file program. The Free File program, which allows some taxpayers to file their taxes using third-party software without paying fees, will continue through 2029. As for the agency’s plans for Direct File, which several states piloted this past tax filing season, the IRS expects to announce more soon.</p>



<h4 class="wp-block-heading"><a href="https://www.nextavenue.org/what-401k-creator-thinks-of-retirement-plan-now/" target="_blank" rel="noreferrer noopener"><strong>What the Creator of the 401(k) Thinks of the Retirement Plan Now | Next Avenue</strong></a></h4>



<p>Ted Benna is credited with creating the first 401(k) retirement plan by taking advantage of new legislation in the early 1980s. Today, he says the plans haven’t quite lived up to their potential and he’s on a mission to help lower-income workers save more money for retirement.</p>



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



<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: Scammers Increasingly Targeting Older Adults


<h4 class="wp-block-heading"><a href="https://coloradosun.com/2024/03/27/colorado-budget-state-worker-shortages/" target="_blank" rel="noreferrer noopener"><strong>Will Pay Raises Be Enough to Stem Colorado’s State Worker Shortage? | The Colorado Sun</strong></a></h4>



<p>The General Assembly is currently considering the proposed 2024-2025 state budget, also known as the Long Bill. The $40.6 billion bill includes pay raises for some of the state’s hardest-to-fill positions, such as health care workers. Officials say the increases will help, but more work is needed to fill shortages that continue to persist in some sectors.</p>



<h4 class="wp-block-heading"><a href="https://content.copera.org/news-you-should-know-proposed-budget-includes-pay-raises-for-state-workers/"><strong>Pharma Targets Colorado Drug Afford</strong></a><strong><a href="https://content.copera.org/news-you-should-know-proposed-budget-includes-pay-raises-for-state-workers/" target="_blank" rel="noreferrer noopener">a</a></strong><a href="https://content.copera.org/news-you-should-know-proposed-budget-includes-pay-raises-for-state-workers/"><strong>bility Board | POLITICO</strong></a></h4>



<p>Amgen, maker of the rheumatoid arthritis drug Enbrel, is suing Colorado’s Prescription Drug Affordability Board. The Board, which was created in 2021, declared Enbrel unaffordable in February, setting the stage for Colorado to set a maximum price for the drug. The drugmaker is challenging the Board’s decision and its authority to cap prices.</p>



<h4 class="wp-block-heading"><strong><a href="https://www.nytimes.com/2024/03/26/business/fiduciary-rule-retirement.html?ugrp=m&amp;unlocked_article_code=1.hU0.yIoU.t9Lw6gNoupr0&amp;smid=url-share" target="_blank" rel="noreferrer noopener">How a New Rule Could Change the Way Advisers Handle Your Retirement Money | The New York Times</a></strong></h4>



<p>The U.S. Department of Labor is preparing to release a final rule that will expand the number of financial professionals who are required to act as fiduciaries—meaning they must act in the best interest of their clients. The new rule is currently under review at the White House, after which it is expected to be published this spring.</p>



<h4 class="wp-block-heading"><a href="https://apnews.com/article/tax-season-irs-refund-april-15-7d448039c59df67f054806d00110ff18" target="_blank" rel="noreferrer noopener"><strong>IRS Has 940,000 Unclaimed Tax Refunds About to Expire | The Associated Press</strong></a></h4>



<p>The deadline for filing 2023 tax returns—April 15—is right around the corner. But the IRS says nearly a million people still haven’t filed and claimed their refunds from 2020. The unclaimed refunds amount to over $1 billion, and taxpayers have until May 17 to claim those refunds.</p>



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



<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: Proposed Budget Includes Pay Raises for State Workers


<p>Saving money is always a good idea. Whether it’s for a rainy day or for a major purchase, saving now can help provide flexibility and security when big expenses come down the road.</p>



<p>April 8 through April 12 is&nbsp;<a href="https://americasavesweek.org/" target="_blank" rel="noreferrer noopener">America Saves Week</a>, an annual initiative of the Consumer Federation of America, a nonprofit consumer advocacy organization. It promotes the value of saving money and the importance of making a plan to save.</p>



<p>Beyond peace of mind, here are some additional reasons to consider stashing away some more money this year, if you can.</p>



<h4 class="wp-block-heading"><strong>Take advantage of high interest rates</strong></h4>



<p>The Federal Reserve started raising its key interest rate in March 2022 in an effort to fight inflation. Increases continued throughout 2023, and so far this year, the Fed is holding rates steady.</p>



<p>While the Federal Reserve rate mostly pertains to financial institutions, many banks have passed on those higher rates to their customers. That means interest rates on many savings accounts and certificates of deposit (CDs) are higher than they’ve been in years.</p>



<p>Some high-yield accounts, especially those offered by online banks, advertise rates of 5% annual percentage yield (APY) or higher. On a $5,000 account balance, 5% APY can result in $250 in interest earnings over the course of a year. That extra cash from interest could help you reach your goals faster or help you pay for an unexpected expense.</p>



<h4 class="wp-block-heading"><strong>You may be eligible for a tax break</strong></h4>



<p>If you make pre-tax contributions to a retirement plan such as an IRA, 401(k), or 457 plan, you may already be reducing your taxable income. But you may also qualify for an additional tax break for a portion of your contributions, based on your income.</p>



<p>The&nbsp;<a href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit" target="_blank" rel="noreferrer noopener">Retirement Savings Contributions Credit</a>, also known as the Saver’s Credit, offers a credit between 10% and 50% of eligible retirement plan contributions (for a maximum credit of $1,000 for single filers or $2,000 for joint filers).</p>



<p>For tax year 2023, the maximum income for a single filer to qualify for the Saver’s Credit is $36,500 ($73,000 for joint filers).</p>



<h4 class="wp-block-heading"><strong>Boost your retirement security</strong></h4>



<p>PERA members are already setting aside money for retirement with every paycheck. Members in the PERA&nbsp;Defined Benefit&nbsp;Plan can count on PERA to provide monthly retirement income for life, but you’ll never regret having more money available in your golden years.</p>



<p>Whether you’re saving in a traditional savings account, an employer-based plan such as a <a href="https://content.copera.org/retirees/peraplus-401-k-457-plans/" target="_blank" rel="noreferrer noopener">PERAPlus 401(k) or 457 Plan</a>, or even a health savings account (HSA) if eligible, additional savings can provide the flexibility to cover expenses that are hard to plan for. That could include costs like health care—one of the biggest (and growing) expenses—in retirement, long-term care, family needs, and housing.</p>



<p>Colorado PERA will be sharing more information and tips for America Saves Week on social media, so be sure to join the conversation on&nbsp;<a href="https://www.facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener" class="broken_link">Facebook</a>&nbsp;and&nbsp;<a href="https://www.copera.org/do-you-have-a-savings-plan-for-2023" target="_blank" rel="noreferrer noopener">Instagram</a>.</p>


Tag Archives: