
<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>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>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2024/07/amy-investments-2024.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-investments.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2024/07/amy-investments-2024.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<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


<p>Save the date—this year’s Town Halls with PERA executives are set for June 26.</p>



<p>PERA holds Town Halls each year after the release of the&nbsp;<em>Annual Comprehensive Financial Report</em>&nbsp;(ACFR), which contains details on the Plan’s finances and membership for the previous calendar year. The PERA Board of Trustees will release the 2023&nbsp;<em>ACFR</em>&nbsp;at its June 21 meeting.</p>



<p>This year, participants will have the opportunity to meet PERA’s&nbsp;<a href="https://content.copera.org/qa-with-peras-new-ceo-executive-director-andrew-roth/" target="_blank" rel="noreferrer noopener">new CEO/Executive Director, Andrew Roth</a>. He and the executive team will be taking questions live during two Town Halls.</p>



<p>This year’s Town Halls will once again be virtual, with the option to participate online, via social media, and on the phone.</p>



<h4 class="wp-block-heading"><strong>Event details</strong></h4>



<p><strong>Date and time:</strong>&nbsp;Wednesday, June 26</p>



<ul>
<li><strong>10:00 a.m. MT&nbsp;</strong>(retirees)<br><a href="https://www.addevent.com/event/eK21465061" target="_blank" rel="noreferrer noopener">Add to Calendar</a></li>



<li><strong>6:00 p.m. MT&nbsp;</strong>(active members)<br><a href="https://www.addevent.com/event/Au21465068" target="_blank" rel="noreferrer noopener">Add to Calendar</a></li>
</ul>



<h4 class="wp-block-heading"><strong>How to participate</strong></h4>



<p>There are multiple ways to take part in these virtual events:</p>



<ul>
<li><strong>Web:</strong>&nbsp;Visit&nbsp;<a href="https://content.copera.org/about/pera-town-hall/" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>&nbsp;to connect.</li>



<li><strong>Phone:</strong>&nbsp;<a href="https://content.copera.org/2024-pera-town-halls-taking-place-on-june-26/" target="_blank" rel="noreferrer noopener">Sign up for a phone call here</a>.</li>



<li><strong>Social Media:</strong>&nbsp;Connect on&nbsp;<a href="https://www.facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener" class="broken_link">Facebook</a>&nbsp;or&nbsp;<a href="https://www.youtube.com/ColoradoPERA" target="_blank" rel="noreferrer noopener">YouTube</a>.</li>
</ul>



<p>Both Town Halls are open to anyone who would like to participate, but the content of each will be tailored to its respective audience.</p>



<p>If you’re unable to attend either event, recordings will be available afterward.</p>



<p>For more information, visit&nbsp;<a href="https://content.copera.org/about/pera-town-hall/" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>


2024 PERA Town Halls Taking Place on June 26


<p>PERA leaders hosted two live Town Halls on Wednesday, July 12 to provide an update on PERA and answer questions from members and retirees.</p>



<p>Interim Executive Director and Chief Investment Officer Amy C. McGarrity was joined by Chief Benefits Officer Patrick Lane and Chief Administrative Officer Jeremy Hill for both meetings.</p>



<p>They answered questions on a number of important topics, including annual benefit increases, Social Security, and PERA’s investment portfolio. Responses to some of those questions are summarized below, and full recordings of each Town Hall are available at <a href="https://copera.org/townhall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>



<h4 class="wp-block-heading"><strong>Why was the previous executive director’s employment contract terminated?</strong></h4>



<figure class="wp-block-video"><video controls src="https://peraontheissues.com/wp-content/uploads/2023/07/2023-th-executive-director.mp4"></video></figure>



<p>“The decision was at the discretion of the PERA Board,” McGarrity said. “To reiterate, there was no criminal wrongdoing and no impact to retiree benefits. We are in the process of selecting an executive director. The first step is to select an executive search firm to assist with the recruitment of that next leader for PERA, and the Board has formed an ad hoc committee. Those ad hoc committee meetings are posted on <a href="https://copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">copera.org</a> and they’re streamed live for anyone who wishes to follow the process.”</p>



<h4 class="wp-block-heading"><strong>Why aren’t annual benefit increases for retirees keeping up with inflation?</strong></h4>



<figure class="wp-block-video"><video controls poster="" src="https://peraontheissues.com/wp-content/uploads/2023/07/2023-th-annual-increase.mp4"></video></figure>



<p>“We recognize the challenges that this inflationary environment presents. We feel it as consumers but we know it is particularly important to our retired members,” Lane said. “As you know, the Annual Increase percentage is set in statute and it is not within the purview of the PERA Board or staff to make changes to the Annual Increase…the only way that could change is if the state legislature decided to change the law, which would in effect extend PERA’s 30-year window to full funding.”</p>



<h4 class="wp-block-heading"><strong>Are PERA benefits in danger due to 2022’s negative investment returns?</strong></h4>



<figure class="wp-block-video"><video controls src="https://peraontheissues.com/wp-content/uploads/2023/07/2023-th-investment-losses.mp4"></video></figure>



<p>No, PERA benefits are not in danger. The investment portfolio is well-diversified and contains a wide array of assets so the portfolio can withstand different market environments, McGarrity said. While we were subject to the market downturn in 2022, we are also subject to positive market swings and have been able to take advantage of those markets in prior years and so far in 2023, McGarrity said.</p>



<p>In 2022, PERA paid $5.2 billion in retirement benefits to retirees and benefit recipients, so you can continue to count on PERA to provide retirement income throughout your life.</p>



<h4 class="wp-block-heading"><strong>What is PERA doing about Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)?</strong></h4>



<figure class="wp-block-video"><video controls src="https://peraontheissues.com/wp-content/uploads/2023/07/2023-th-wep-gpo.mp4"></video></figure>



<p>“Social Security’s WEP and GPO are provisions within federal law and are therefore outside the scope of the PERA Board and staff to influence,” Lane said. “We encourage you to contact your members of the U.S. House and Senate to be heard on this issue.”</p>



<p>Bills to modify or repeal WEP and GPO are frequently introduced in Congress, and <em>PERA On The Issues </em>monitors and reports on those activities throughout the year. <a href="https://peraontheissues.com/an-update-on-2023-wep-gpo-legislation/" target="_blank" rel="noreferrer noopener">Click here</a> for our latest article on WEP/GPO reform efforts.</p>



<h4 class="wp-block-heading"><strong>What is PERA doing to improve wait times to talk to Customer Service on the phone?</strong></h4>



<figure class="wp-block-video"><video controls src="https://peraontheissues.com/wp-content/uploads/2023/07/2023-th-customer-service.mp4"></video></figure>



<p>“We have made a number of recent changes that have cut down on wait times in the call center,” Lane said. “We implemented a new caller verification process that makes the security process faster and shortens the length of calls. And we just migrated to a new phone system just within the last few weeks that allows us to better forecast call volumes throughout the day, throughout the month and throughout the year.”</p>



<p>He added: “We have seen service levels increase in recent months and we look forward to providing better service going forward.”</p>



<h4 class="wp-block-heading"><strong>Does PERA inform its investments by accounting for social goals, such as diversity, equity and inclusion? If so, what does that look like?</strong></h4>



<figure class="wp-block-video"><video controls src="https://peraontheissues.com/wp-content/uploads/2023/07/2023-th-esg.mp4"></video></figure>



<p>McGarrity explained that PERA’s primary goal is achieving the best risk-adjusted returns for PERA members and therefore PERA does not have any mandates related to environmental, social, or governance (ESG) or diversity, equity, and inclusion (DEI) outcomes. However, PERA staff will consider any financially relevant factors when making investment decisions.</p>



<p>“To the extent that a company’s long-term expected return may be influenced somehow by one of those factors in a financially material way, certainly we will consider it in our underlying due diligence of that investment and/or underwriting of that investment,” McGarrity said. “However, unless they are financially material factors or drivers of the expectations for long-term returns, they are not rising to the top of our considerations. So we are really focused on the factors that have an influence on long-term shareholder returns.”</p>



<h4 class="wp-block-heading"><strong>How can members be sure PERA will be there for them when they retire?</strong></h4>



<figure class="wp-block-video"><video controls src="https://peraontheissues.com/wp-content/uploads/2023/07/2023-th-will-pera-be-there.mp4"></video></figure>



<p>“I think the legislature has shown its commitment through the years to keeping PERA strong and enacting reforms several times in the past decade to ensure we are on a financially sustainable path. Most recently, Senate Bill 200 (enacted in 2018) puts us on a path to full funding by 2048,” McGarrity said. “The reforms are working and we’re committed to providing reliable income in retirement that our members cannot outlive.”</p>



<h4 class="wp-block-heading"><strong>PERA mobile app</strong></h4>



<p>Hill also mentioned <a href="https://content.copera.org/pera-leaders-answer-member-questions-at-2023-town-halls/" target="_blank" rel="noreferrer noopener">PERA’s new mobile app</a>, which is now available in the App Store for iOS devices and Google Play Store for Android devices. The app is part of PERA’s long-term goal of modernizing and improving the way it serves its membership, and it makes it easy for members and retirees to access and manage their accounts wherever they are.</p>



<p>These annual town halls are an important opportunity to speak directly with Colorado’s current and former public employees and we’re grateful to all who participated.</p>



<p>To watch full recordings of each Town Hall, visit <a href="https://copera.org/townhall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>


PERA Leaders Answer Member Questions at 2023 Town Halls


<p>Save the date: This year’s live Town Hall meetings with PERA leadership will take place on Wednesday, July 12.</p>



<p>PERA holds Town Halls each year after the release of the <em>Annual Comprehensive Financial Report</em> (ACFR), which contains details on the Plan’s finances and membership for the previous calendar year. The PERA Board of Trustees released the 2022 <em>ACFR</em> <a href="https://peraontheissues.com/pera-board-releases-2022-annual-report/" target="_blank" rel="noreferrer noopener">at its June 16 meeting</a>.</p>



<p>The Town Halls are a chance for members and retirees to receive the latest updates from PERA leaders and have their questions answered live.</p>



<p><a href="https://peraontheissues.com/pera-executives-answer-questions-from-members-retirees-at-virtual-town-halls/" target="_blank" rel="noreferrer noopener">Click here</a> for highlights from last year’s Town Halls.</p>



<p>This year’s Town Halls will once again be virtual, with the option to participate online, via social media, and on the phone.</p>



<h4 class="wp-block-heading"><strong>Event details</strong></h4>



<p><strong>Date: </strong>Wednesday, July 12</p>



<p><strong>Meeting times:</strong></p>



<ul>
<li>
<b>10:00 a.m. MT </b>for retirees
Add to your calendar:<br /><a href="https://www.addevent.com/event/VB17084151+apple" title="Apple" target="_blank" style="display:inline;" rel="noopener"><img decoding="async" src="https://cdn.addevent.com/libs/imgs/icon-emd-share-apple-t1.png" alt="Apple" width="45" border="0" style="width:45px;display:inline;"></a><a href="https://www.addevent.com/event/VB17084151+google" title="Google" target="_blank" style="display:inline;" rel="noopener"><img decoding="async" src="https://cdn.addevent.com/libs/imgs/icon-emd-share-google-t1.png" alt="Google" width="45" border="0" style="width:45px;display:inline;"></a><a href="https://www.copera.org/2023-pera-town-halls-scheduled-for-july-12" title="Office 365" target="_blank" style="display:inline;" rel="noopener" class="broken_link"><img decoding="async" src="https://cdn.addevent.com/libs/imgs/icon-emd-share-office365-t1.png" alt="Office 365" width="45" border="0" style="width:45px;display:inline;"></a><a href="https://www.addevent.com/event/VB17084151+outlook" title="Outlook" target="_blank" style="display:inline;" rel="noopener"><img decoding="async" src="https://cdn.addevent.com/libs/imgs/icon-emd-share-outlook-t1.png" alt="Outlook" width="45" border="0" style="width:45px;display:inline;"></a><a href="https://content.copera.org/2023-pera-town-halls-scheduled-for-july-12/" title="Outlook.com" target="_blank" style="display:inline;" rel="noopener"><img decoding="async" src="https://cdn.addevent.com/libs/imgs/icon-emd-share-outlookcom-t1.png" alt="Outlook.com" width="45" border="0" style="width:45px;display:inline;"></a><a href="https://www.addevent.com/event/VB17084151+yahoo" title="Yahoo" target="_blank" style="display:inline;" rel="noopener"><img decoding="async" src="https://cdn.addevent.com/libs/imgs/icon-emd-share-yahoo-t1.png" alt="Yahoo" width="45" border="0" style="width:45px;display:inline;"></a>
</li>
<li>
<b>6:00 p.m. MT </b>for active members
Add to your calendar:<br /><a href="https://www.addevent.com/event/lv17084182+apple" title="Apple" target="_blank" style="display:inline;" rel="noopener"><img decoding="async" src="https://cdn.addevent.com/libs/imgs/icon-emd-share-apple-t1.png" alt="Apple" width="45" border="0" style="width:45px;display:inline;"></a><a href="https://www.addevent.com/event/lv17084182+google" title="Google" target="_blank" style="display:inline;" rel="noopener"><img decoding="async" src="https://cdn.addevent.com/libs/imgs/icon-emd-share-google-t1.png" alt="Google" width="45" border="0" style="width:45px;display:inline;"></a><a href="https://www.copera.org/2023-pera-town-halls-scheduled-for-july-12" title="Office 365" target="_blank" style="display:inline;" rel="noopener" class="broken_link"><img decoding="async" src="https://cdn.addevent.com/libs/imgs/icon-emd-share-office365-t1.png" alt="Office 365" width="45" border="0" style="width:45px;display:inline;"></a><a href="https://www.addevent.com/event/lv17084182+outlook" title="Outlook" target="_blank" style="display:inline;" rel="noopener"><img decoding="async" src="https://cdn.addevent.com/libs/imgs/icon-emd-share-outlook-t1.png" alt="Outlook" width="45" border="0" style="width:45px;display:inline;"></a><a href="https://www.copera.org/2023-pera-town-halls-scheduled-for-july-12" title="Outlook.com" target="_blank" style="display:inline;" rel="noopener" class="broken_link"><img decoding="async" src="https://cdn.addevent.com/libs/imgs/icon-emd-share-outlookcom-t1.png" alt="Outlook.com" width="45" border="0" style="width:45px;display:inline;"></a><a href="https://www.addevent.com/event/lv17084182+yahoo" title="Yahoo" target="_blank" style="display:inline;" rel="noopener"><img decoding="async" src="https://cdn.addevent.com/libs/imgs/icon-emd-share-yahoo-t1.png" alt="Yahoo" width="45" border="0" style="width:45px;display:inline;"></a>
</li>
</ul>



<h4 class="wp-block-heading"><strong>How to participate</strong></h4>



<ul>
<li><strong>Web:</strong>&nbsp;Visit&nbsp;<a href="https://www.copera.org/about/pera-town-hall" target="_blank" rel="noreferrer noopener">copera.org/townhall&nbsp;</a>to connect.</li>



<li><strong>Phone:&nbsp;</strong><a href="https://vekeo.com/coloradopera/" target="_blank" rel="noreferrer noopener">Sign up</a>&nbsp;to receive a call at the time of the event.</li>



<li><strong>Social Media:&nbsp;</strong>Join on&nbsp;<a href="https://www.facebook.com/ColoradoPERA" target="_blank" rel="noreferrer noopener" class="broken_link">Facebook</a>&nbsp;or&nbsp;<a href="https://www.youtube.com/ColoradoPERA" target="_blank" rel="noreferrer noopener">YouTube</a>.</li>
</ul>



<p>Both Town Halls are open to anyone who would like to participate, but the content of each will be tailored to its respective audience.</p>



<p>Recordings will be available for on-demand viewing after the live events conclude.</p>



<p>Visit <a href="https://www.copera.org/pera-town-hall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a> for more information on how to participate.</p>


2023 PERA Town Halls Scheduled for July 12


<p>On Thursday, July 7, PERA held two virtual town halls with Executive Director Ron Baker and Chief Investment Officer/Chief Operating Officer Amy C. McGarrity.</p>



<p>More than 3,400 PERA members and retirees joined the town halls live on the web, on the phone and on social media to ask questions. Topics of discussion included PERA’s recently released 2021 <a href="https://peraontheissues.com/pera-board-releases-2021-annual-report-at-june-meeting/" target="_blank" rel="noreferrer noopener"><em>Annual Comprehensive Financial Report</em></a>, as well as current economic conditions, PERA-related legislation, and other topics of interest to members and retirees.</p>



<p>Below are summaries and video clips of some of the topics covered during this year’s town halls. To view full recordings of each event, visit <a href="https://copera.org/townhall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>



<h4 class="wp-block-heading"><strong>How did PERA do financially in 2021?</strong></h4>



<p>For the year that ended Dec. 31, 2021, PERA’s investment portfolio earned a return of 16.1% net of fees, surpassing its benchmark of 13.7%. Over the past 10 years, the fund has earned an annualized return of 10.9% versus its benchmark of 10.1%.</p>



<p>The value of the total fund increased to $65.6 billion in 2021, up from $58.3 billion at the end of 2020. PERA’s funded status at the end of the year was 67.8%.</p>



<h4 class="wp-block-heading"><strong>What is the impact of current market conditions on PERA’s investments?</strong></h4>



<figure class="wp-block-video"><video controls poster="" src="https://peraontheissues.com/wp-content/uploads/2022/07/2022TownHall_AmyMarketConditions.mp4"><track src="https://peraontheissues.com/wp-content/uploads/2022/07/AmyMarketConditions.vtt" label="2022 Town Hall - Amy on market conditions" srclang="en" kind="subtitles"/></video></figure>



<p>PERA’s portfolio is strategically designed to perform over long periods of time — not just several years but several decades, McGarrity said. PERA is invested in public and private markets and so our portfolio is experiencing volatility in the short term. Downturns can and do happen in a given year, but the Board’s strategic diversification of the portfolio is meant to ensure the Fund continues to earn returns over the long term.</p>



<h4 class="wp-block-heading"><strong>Why isn’t the annual increase paid to retirees keeping up with inflation?</strong></h4>



<figure class="wp-block-video"><video controls poster="" src="https://peraontheissues.com/wp-content/uploads/2022/07/2022TownHall_RonAnnualIncrease.mp4"><track src="https://peraontheissues.com/wp-content/uploads/2022/07/Ron-Annual-Increase.vtt" label="2022 Town Hall - Ron on Annual Increase" srclang="en" kind="subtitles"/></video></figure>



<p>The amount of PERA’s <a href="https://www.copera.org/annual-benefit-increases" target="_blank" rel="noreferrer noopener">annual increase</a> is set in statute and is not tied directly to inflation. It can adjust up or down based on PERA’s funding progress, along with member and employer contributions. PERA staff and the PERA Board cannot change the amount of the annual increase, Baker said, only the General Assembly can.</p>



<p>“In terms of what PERA can do as an organization, is trying to do, especially for our retired members, is we are working hard for those of you in PERACare to continue to reduce cost to the extent that we can, knowing that healthcare is a large component of retirees’ [financial] situation in retirement,” Baker said.</p>



<h4 class="wp-block-heading"><strong>How did the 2022 legislative session affect PERA?</strong></h4>



<p>The Colorado General Assembly <a href="https://peraontheissues.com/2022-proposed-legislation-status/" target="_blank" rel="noreferrer noopener">passed several PERA-related bills</a> in 2022. One of those bills directed the state to make up the state’s missed 2020 direct distribution payment of $225 million to PERA. Under <a href="https://peraontheissues.com/colorado-lawmakers-pass-bill-making-up-225m-payment-to-pera/" target="_blank" rel="noreferrer noopener">HB22-1029</a>, PERA received $380 million from the state on July 1.</p>



<p>That amounts to a restoration of the missed $225 million direct distribution plus a prepayment of a portion of future direct distributions to PERA.</p>



<p>“I am excited about the fact that the bill was passed on a strong bipartisan basis,” Baker said. “Which means Republicans and Democrats felt it was important to backfill the promise to Colorado PERA.”</p>



<p>Lawmakers also passed <a href="https://leg.colorado.gov/bills/hb22-1057" target="_blank" rel="noreferrer noopener">HB22-1057</a>&nbsp;and&nbsp;<a href="https://leg.colorado.gov/bills/hb22-1101" target="_blank" rel="noreferrer noopener">HB22-1101</a>, which expand the ability of PERA retirees to work after retirement without a reduction in benefits.</p>



<p>HB22-1057 temporarily waives working after retirement limits for qualified service retirees working as substitute teachers in any school district while there are critical substitute teacher shortages. HB22-1101 expands provisions that had been scheduled to repeal on July 1, 2023 that allow PERA service retirees to work full-time in certain roles, without a reduction in benefits, for a rural school district that has determined there is a critical shortage of qualified individuals for these positions.</p>



<h4 class="wp-block-heading"><strong>What’s the latest on the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)?</strong></h4>



<p>Several pieces of legislation <a href="https://content.copera.org/checking-in-with-peras-public-and-government-affairs-manager/" target="_blank" rel="noreferrer noopener">have been introduced in Washington, DC</a> to modify or repeal the WEP and GPO, which can reduce Social Security benefits for PERA benefit recipients. While similar legislation is introduced each session and PERA engages with Colorado’s congressional delegation to educate them on how the WEP and GPO affect PERA members, Congress has not taken any action, citing the cost.</p>



<p>“The federal government has not come up with a compromise as to where those additional dollars to pay for giving more of a Social Security benefit would come from,” Baker said.</p>



<h4 class="wp-block-heading"><strong>Is PERA divesting from fossil fuels?</strong></h4>



<figure class="wp-block-video"><video controls poster="" src="https://peraontheissues.com/wp-content/uploads/2022/07/Amy-Divestment-REDUCED.mp4"><track src="https://peraontheissues.com/wp-content/uploads/2022/07/Amy-Divestment.vtt" label="2022 Town Hall - Amy on divestment" srclang="en" kind="subtitles"/></video></figure>



<p>“The Board has a philosophy statement surrounding divestment that we will execute divestment as mandated by the state or federal governments, but otherwise choose not to divest,” McGarrity said. “The reason for that is we believe allowing the investors, either internal or external, the broadest possible universe from which to choose investments enables us to outperform for the long term.”</p>



<p>Learn more about the PERA Board’s stance on divestment <a href="https://www.copera.org/divestment" target="_blank" rel="noreferrer noopener">here</a>.</p>



<h4 class="wp-block-heading"><strong>Is PERA still financially sound?</strong></h4>



<p>“Yes, PERA is financially sound,” Baker said. “We do need to keep monitoring the fact that we’re not 100% funded. We need to stay steady in the course of paying down that unfunded liability. Certainly there is not any alarm in which we would not be able to pay benefits in any given year based on current circumstances. This is something we always need to monitor…and ensure that the folks who are receiving benefits continue to receive those benefits.”</p>



<h4 class="wp-block-heading"><strong>How will Colorado PERA change in the next few years and into the future?</strong></h4>



<figure class="wp-block-video"><video controls poster="" src="https://peraontheissues.com/wp-content/uploads/2022/07/RonPERAFutureREDUCED.mp4"><track src="https://peraontheissues.com/wp-content/uploads/2022/07/RonPERAFuture.vtt" label="2022 Town Hall - Ron on the future" srclang="en" kind="subtitles"/></video></figure>



<p>“From the benefit plan perspective, I think the benefits we provide will stay the same; they’re set by the General Assembly,” Baker said. “Colorado PERA as an organization…we have been an institution since 1931 and we need to continue to move forward with the times. Do we have a mobile app? Can we allow people to transact in a way that meets them where they are? Are we providing content to people that is on-demand, where they need it to be? That is what I see PERA morphing into in terms of how we deliver services. We need to continue to move forward as an organization and ensure members who are part of this program receive absolutely top-quality customer service and have the same level of interaction with us that you would with any high-end financial institution.”</p>



<p>PERA’s annual town halls are an important opportunity to hear directly from members and retirees and we’re grateful to all who participated. Visit <a href="https://copera.org/townhall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a> for more.</p>


PERA Executives Answer Questions From Members, Retirees at Virtual Town Halls


<p>Each summer, PERA hosts town hall meetings for members and retirees to hear directly from PERA leadership and ask questions.</p>



<p>This year’s town hall meetings are scheduled for Thursday, July 7, 2022.</p>



<p>Like last year, the town hall meetings will be available across multiple platforms: on the web at <a href="https://www.copera.org/pera-town-hall" target="_blank" rel="noreferrer noopener">copera.org</a>, via <a href="https://vekeo.com/coloradopera/" target="_blank" rel="noreferrer noopener">telephone</a>, or on PERA’s <a href="https://www.facebook.com/ColoradoPERA" target="_blank" rel="noreferrer noopener" class="broken_link">Facebook</a> and <a href="https://www.youtube.com/ColoradoPERA" target="_blank" rel="noreferrer noopener">YouTube</a> pages. During the meetings, PERA Executive Director Ron Baker and Chief Investment Officer/Chief Operating Officer Amy C. McGarrity will discuss PERA’s 2021 <em>Annual Comprehensive Financial Report </em>(releasing in mid-June), the recent legislative session, and provide other updates. Participants also will have the opportunity to ask questions and have them answered live.</p>



<p><a href="https://peraontheissues.com/thousands-participate-in-peras-interactive-town-hall-meetings/" target="_blank" rel="noreferrer noopener">Click here</a> to see highlights from last year’s town hall meetings.</p>



<h5 class="wp-block-heading"><strong>Event details</strong></h5>



<p><strong>Date:</strong> Thursday, July 7, 2022</p>



<ul>
<li>
<b>Retiree Town Hall: </b>10:00 a.m. MT 
<a title="Add to Calendar" class="addeventatc" data-id="By13589052" href="https://www.addevent.com/event/By13589052" target="_blank" rel="nofollow noopener">Add to Calendar</a>
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</li>
<li>
<b>Active Member Town Hall: </b>6:30 p.m. MT 
<a title="Add to Calendar" class="addeventatc" data-id="iI13589175" href="https://www.addevent.com/event/iI13589175" target="_blank" rel="nofollow noopener">Add to Calendar</a>
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</li>
</ul>



<h5 class="wp-block-heading"><strong>How to participate</strong></h5>



<p>You can participate by web, phone, or social media. Here&#8217;s how:&nbsp;</p>



<ul><li><strong>Web:</strong>&nbsp;Visit&nbsp;<a href="https://content.copera.org/save-the-date-pera-town-halls-to-take-place-july-7/" target="_blank" rel="noreferrer noopener">copera.org/townhall&nbsp;</a>to connect.</li><li><strong>Phone:</strong>&nbsp;<a href="http://vekeo.com/coloradopera/" target="_blank" rel="noreferrer noopener">Sign up</a>&nbsp;to receive a call at the time of the event.</li><li><strong>Social Media:</strong>&nbsp;Join on&nbsp;<a href="https://www.facebook.com/ColoradoPERA" target="_blank" rel="noreferrer noopener" class="broken_link">Facebook</a>&nbsp;or&nbsp;<a href="https://www.youtube.com/ColoradoPERA" target="_blank" rel="noreferrer noopener">YouTube</a>.</li></ul>



<p>While each meeting is tailored for either retirees or active members, each meeting is open to whoever would like to participate.</p>



<p>Recordings will be available for on-demand viewing afterward.</p>



<p>For more information, visit <a href="https://www.copera.org/about/pera-town-hall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>


Save the Date: PERA Town Halls to Take Place July 7


<p><em>In this story:</em></p>



<ul>
<li><em>More than 3,000 PERA members and retirees took part in two town hall meetings</em></li>



<li><em>Topics of discussion included PERA’s financials, state funding, investments, and Social Security</em></li>



<li><em>Read summaries of questions/answers and view clips from the events</em></li>
</ul>



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



<p>This year’s town hall meetings with PERA Executive Director Ron Baker and Chief Investment Officer Amy C. McGarrity, which featured new ways for members and retirees to connect, drew more than 3,000 live participants across the web, phone, and social media. Many more have since watched the events online.</p>



<p>The conversation centered on PERA’s recently released <em>2020 Annual Report</em> but also touched on topics such as state funding, green energy investments, and Social Security.</p>



<p>Below is a summary of some of the questions and answers from the events. For full recordings of the town halls, visit <a href="https://www.copera.org/about/pera-town-hall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>



<h5 class="wp-block-heading"><strong>How are PERA’s investments doing?</strong></h5>



<p>While 2020 was turbulent for investors, it ultimately was a strong year in the markets. PERA’s total fund return for the year was 17.4%. The 10-year annualized return is 9.4%. PERA’s funded ratio at the end of 2020 was 62.8%.</p>



<p>More information is available in PERA’s <a href="https://content.copera.org/how-its-made-peras-financial-report/" target="_blank" rel="noreferrer noopener">Annual Report</a>.</p>



<h5 class="wp-block-heading"><strong>What is PERA doing about the Windfall Elimination Provision and reductions in Social Security benefits?</strong></h5>



<p>Executive Director Ron Baker discussed PERA’s efforts to work with Colorado’s congressional delegation on this issue and the challenges with changing the WEP at the federal level. Watch the clip below for more:</p>



<figure class="wp-block-video"><video controls poster="" src="https://peraontheissues.com/wp-content/uploads/2021/07/WEP.mp4"><track src="https://peraontheissues.com/wp-content/uploads/2021/07/WEP.en_US.vtt" label="WEPvtt" srclang="en"/></video></figure>



<p></p>



<h5 class="wp-block-heading"><strong>Will member contributions be going up again?</strong></h5>



<p>Member contribution rates increased by 0.5% on July 1 for all members except those in the Local Government Division due to the scheduled increases established in 2018’s Senate Bill 200. This is the third and final year of the three-year phase-in of the 2% rate increase for member contributions.</p>



<p>In addition, because of changes to PERA’s liabilities (<a href="https://www.copera.org/what-to-know-about-peraplus-401k-457-dc-plans-in-2022" target="_blank" rel="noreferrer noopener" class="broken_link">learn more about this here</a>), the <a href="https://content.copera.org/thousands-participate-in-peras-interactive-town-hall-meetings/" target="_blank" rel="noreferrer noopener">Automatic Adjustment Provision</a> will go into effect next year. That means member contributions will increase by 0.5%, and the annual increase for benefit recipients will decrease by 0.25%, in July 2022.</p>


<div class="wp-block-image">
<figure class="alignright size-large"><a href="https://content.copera.org/wp-content/uploads/2021/07/AAP-slide.jpg"><img decoding="async" loading="lazy" width="1024" height="576" src="https://content.copera.org/wp-content/uploads/2021/07/AAP-slide-1024x576.jpg" alt="" class="wp-image-44048" srcset="https://content.copera.org/wp-content/uploads/2021/07/AAP-slide-1024x576.jpg 1024w, https://content.copera.org/wp-content/uploads/2021/07/AAP-slide-300x169.jpg 300w, https://content.copera.org/wp-content/uploads/2021/07/AAP-slide-768x432.jpg 768w, https://content.copera.org/wp-content/uploads/2021/07/AAP-slide.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /></a><figcaption class="wp-element-caption">Click image to enlargen</figcaption></figure></div>


<p>“We understand how difficult that is to hear,” Baker said. “For our active members, that is more money out of your pocket, and for our benefit recipients, that is less money in your pocket in increases. The reason we need to do this is so we continue to have a strongly funded system.”</p>



<h5 class="wp-block-heading"><strong>Will retirees receive an annual increase this year?</strong></h5>



<p>Yes, the <a href="https://www.copera.org/retirees/annual-benefit-increases" target="_blank" rel="noreferrer noopener">Annual Increase</a> (AI) paid in July 2021 will be 1.25% for most retirees. The AI amount for eligible PERA benefit structure retirees hired on or after January 1, 2007 will be 1.2%.</p>



<h5 class="wp-block-heading"><strong>Did the state make its $225 million direct payment to PERA this year?</strong></h5>



<p>The state paid its $225 million direct distribution to PERA on July 1, 2021. While the direct distribution from 2020 will not be paid, the Legislature underscored its commitment to PERA and the retirement security of hundreds of thousands of Coloradans by creating a cash fund to pay for future contributions to PERA.</p>



<h5 class="wp-block-heading"><strong>Why doesn’t PERA divest from fossil fuels and invest in green energy instead?</strong></h5>



<p>PERA invests in a wide variety of asset types with the goal of securing the best possible risk-adjusted returns for its members. Hear more from Chief Investment Officer Amy C. McGarrity in the clip below:</p>



<figure class="wp-block-video"><video controls src="https://content.copera.org/wp-content/uploads/2021/07/investments-video-cover.png"><track src="https://peraontheissues.com/wp-content/uploads/2021/07/Divestment.en_US.vtt" label="DivestmentCaptions" srclang="en"/></video></figure>



<p></p>



<h5 class="wp-block-heading"><strong>I’m counting on PERA for my retirement income; do you have my back?</strong></h5>



<figure class="wp-block-video"><video controls poster="" src="https://peraontheissues.com/wp-content/uploads/2021/07/Stability.mp4"><track src="https://peraontheissues.com/wp-content/uploads/2021/07/Having-your-back.en_US.vtt" label="HaveMyBackCaptions" srclang="en"/></video></figure>



<p>“This organization, and I think more importantly, the General Assembly, has your back,” Baker said. “The PERA Board absolutely has your back; they are members and also governor appointees. All of us in this organization work very diligently to ensure that we’ll be here for the long term as well.”</p>



<p>To watch the town hall events in full, visit <a href="https://www.copera.org/about/pera-town-hall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>


Thousands participate in PERA’s interactive town hall meetings


<p><em>Key points from this story:</em></p>



<ul>
<li><em>PERA is hosting two interactive virtual town hall meetings on Wednesday, June 23</em></li>



<li><em>In the past, PERA called every member and retiree when the meeting started</em></li>



<li><em>New this year: PERA members and retirees can join on the web, over the phone<ins>,</ins> or on social media</em></li>



<li><em>Executive Director Ron Baker and Chief Investment Officer Amy C. McGarrity will discuss PERA’s 2020 Annual Report and provide other updates on PERA</em></li>



<li><em>Details about when and how to participate</em></li>
</ul>



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



<p>Every year, Colorado PERA hosts town hall meetings following the release of its Annual Report. The same is true this year, but now participants will have more ways to connect.</p>



<p>In past years, PERA has called members and retirees on the phone to invite them to participate in the town hall. This year, instead of automatically calling members and retirees, PERA is taking a new approach that will incorporate video in addition to audio. This will allow connection via web, phone (opt-in), Facebook<ins>,</ins> and YouTube.</p>



<p>“Staying connected with our members has been one of our biggest priorities and challenges over the past year,” said Laura Morsch-Babu, PERA’s director of communications. “The result is that we’ve found innovative ways to provide service to our members, and the new town hall format is an extension of that effort. We’re proud to be able to offer multiple ways for our members to connect with us, learn more about PERA, and get answers to their questions.”</p>



<p>Below are details on the two town hall sessions and instructions on how to connect.</p>



<figure class="wp-block-image size-large"><a href="https://www.copera.org/about/pera-town-hall" target="_blank" rel="noopener"><img decoding="async" src="https://content.copera.org/more-ways-to-connect-to-upcoming-pera-town-hall-meetings/"" class="wp-image-4439"/></a></figure>



<h4 class="wp-block-heading">Event details</h4>



<p><strong>Date</strong>: Wednesday, June 23</p>



<p><strong>Retiree Town Hall</strong>: 10:00 a.m. MT</p>



<p><strong>Member Town Hall</strong>: 6:30 p.m. MT</p>



<p>PERA members or retirees may join whichever session works best for them, but the content of each session will be tailored to its intended audience.</p>



<p>Recordings will be available for anyone who is unable to participate.</p>



<h4 class="wp-block-heading">What to expect</h4>



<p>PERA Executive Director Ron Baker and Chief Investment Officer Amy C. McGarrity will discuss PERA’s 2020 Annual Report (set for release in mid-June) and provide other updates on PERA, as well as answer member and retiree questions. Topics of discussion will include:</p>



<ul>
<li>PERA’s financial status</li>



<li>Investment returns</li>



<li>Member contributions and annual increases</li>



<li>Transitioning PERA’s DC plans from Voya to Empower Retirement</li>
</ul>



<h4 class="wp-block-heading">How to participate</h4>



<p>There are multiple ways to join either Town Hall meeting:</p>



<ul>
<li><strong>Web</strong>: Visit <a href="https://www.copera.org/about/pera-town-hall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a></li>



<li><strong>Phone</strong>: PERA won’t automatically call everyone. <a href="https://vekeo.com/coloradopera/" target="_blank" rel="noreferrer noopener">Click here</a> and fill out the form (at least 1 hour in advance) to have PERA call you at the time of the event</li>



<li><strong>Facebook</strong>: <a href="https://www.facebook.com/events/477694460214474/" target="_blank" rel="noreferrer noopener" class="broken_link">Retirees (10 a.m.)</a> | <a href="https://www.facebook.com/events/1128599860884617/" target="_blank" rel="noreferrer noopener" class="broken_link">Members (6:30 p.m.)</a></li>



<li><strong>YouTube</strong>: <a href="https://www.youtube.com/watch?v=xi6I68A9mBQ" target="_blank" rel="noreferrer noopener">Retirees (10 a.m.)</a> | <a href="https://www.youtube.com/watch?v=z_V0yvAgn4E" target="_blank" rel="noreferrer noopener">Members (6:30 p.m.)</a></li>
</ul>


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