Retirement insights from a Colorado PERA perspective

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

The Colorado PERA Board of Trustees voted to support <a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">SB25-147</a>, a bill that proposes changes to statute regarding Board operations and transparency. The Trustees held a special meeting on Friday, February 28 to discuss the bill and take a position.



The bill from sponsors Sen. Byron Pelton, Sen. Chris Kolker, Rep. Lori Garcia Sander, and Rep. Meghan Lukens would modify state law to impose term limits on Trustees; define the PERA Board as a local public body instead of a state public body as it applies to the Colorado Open Meetings Law; and require that PERA post certain financial information online, including staff compensation and various other administrative expenses.



In addition to the above changes, the bill sets out in state law some current Board and staff practices, including:



<ul>
<li>Posting Board meeting materials and recordings on PERA’s website: PERA currently streams every Board meeting on <a href="https://www.copera.org/about/board-and-leadership" target="_blank" rel="noreferrer noopener">copera.org</a> and <a href="https://www.youtube.com/@ColoradoPERA" target="_blank" rel="noreferrer noopener">YouTube</a>, and recordings are available afterward. Agendas for Board meetings are posted in advance and materials from past meetings are also available online.</li>



<li>Providing instructions for members of the public to participate in Board meetings: PERA currently provides multiple ways to communicate with the Board, including public comment (in person and over the phone) at every regular meeting and a Board-specific email address on the <a href="https://www.copera.org/contact-us" target="_blank" rel="noreferrer noopener">Contact Us page</a>.</li>



<li>Posting audited financial statements online: PERA’s <a href="https://copera.org/annual-report" target="_blank" rel="noreferrer noopener">Annual Comprehensive Financial Report</a> (ACFR) contains detailed information about PERA’s finances, membership, and operations. The ACFR and all other annual financial reports are <a href="https://www.copera.org/forms-resources/financial-reports-and-studies" target="_blank" rel="noreferrer noopener">available online</a>.</li>
</ul>







In their conversation about the bill and its proposed changes, Trustees discussed the importance of transparency in maintaining trust with stakeholders. The Board’s vote to support the bill demonstrates its commitment to making PERA more open and accountable.



“Strong governance and clear communication with our members and the public are vital to a mission-driven organization like Colorado PERA, and we believe Senate Bill 147 helps affirm our commitment to transparency,” said CEO/Executive Director Andrew Roth. “I want to thank the sponsors for bringing this bill before the Legislature, and we look forward to further engagement with policymakers as it makes its way through the General Assembly.”



On February 25, the Senate Finance Committee voted unanimously to refer the amended bill to Appropriations, where it remains under consideration.



Learn more and read the full text of the bill on the <a href="https://leg.colorado.gov/bills/sb25-147" target="_blank" rel="noreferrer noopener">General Assembly’s website</a>.

PERA Board Supports Bill That Codifies Board Practices, Enhances Transparency

2022 marks the fifth year Colorado PERA has published its <a href="https://content.copera.org/peras-investment-stewardship-report-turns-five-years-old-2/" target="_blank" rel="noreferrer noopener">Investment Stewardship Report</a>, which highlights how PERA manages and invests the funds that provide retirement benefits for nearly 650,000 members.



Released each year following PERA’s annual report, the Stewardship Report provides insight and transparency into PERA’s investment program and its focus on financial sustainability.



PERA invests with one goal — to pay current and future benefits to members and retirees. For five years, the Stewardship Report has detailed how PERA staff serve as good stewards of assets to ensure the plan can continue to do so.



<h2 class="wp-block-heading">Five years of the Stewardship Report</h2>



“We manage approximately $60 billion in assets on behalf of our members; that’s a big responsibility and it’s one we take seriously,” said Tara Stacy, PERA’s Director of Investment Stewardship. “The Investment Stewardship Report provides a great deal of helpful information on how we serve as stewards of funds, and we hope the report has become even more useful to those with questions about how and why we invest on their behalf.”



Over the years, the Stewardship Report has expanded and adapted as PERA’s investment staff have engaged with various stakeholders interested in how the organization makes investment decisions.



PERA often hears from various groups that would like to see PERA divest — or sell — certain types of investments, as well as groups that would like to see more money invested in certain industries or sectors. PERA’s approach to investment stewardship is straightforward: Seek out investments that are expected to provide the best risk-adjusted returns to PERA’s portfolio over the long term. &nbsp;



“A key takeaway we hope readers get from the Report is that our approach prioritizes financial value, rather than personal values, and supports PERA’s mission to provide retirement benefits while ensuring the financial sustainability of the Fund,” Stacy said.



<h2 class="wp-block-heading">Highlights from this year’s report</h2>



New in 2022, the Stewardship Report release includes an <a href="https://www.copera.org/peras-investment-stewardship-report-turns-five-years-old-2" target="_blank" rel="noreferrer noopener" class="broken_link">online digital snapshot</a>, which provides an interactive overview of the report’s highlights and key data points.



The 2022 report also includes additional case studies, charts and graphs that help explain various investment philosophies and practices.



The report includes expanded disclosures about how the PERA Board and staff consider climate-related and other environmental, social, and governance (ESG) themes in the management of the portfolio. PERA does not manage the portfolio to target any specific ESG metric or outcome, but staff do take into consideration any financially relevant factors when making investment decisions.<ins></ins>



The Stewardship Report now includes more information on how PERA integrates various financially material factors into its investment decisions, and why PERA chooses to engage with companies through proxy voting and other strategies <a href="https://www.copera.org/divestment" target="_blank" rel="noreferrer noopener">rather than divesting</a>.



The PERA Board <a href="https://peraontheissues.com/proxy-voting-keeping-policy-current/" target="_blank" rel="noreferrer noopener">updated its proxy voting policy in 2021</a>, and the Stewardship Report provides insight into some of PERA’s proxy voting activities, as well as other ways staff engage with companies in which PERA invests. 



For learn more about the Investment Stewardship Report and PERA’s approach to stewardship, visit <a href="https://www.copera.org/investment-stewardship" target="_blank" rel="noreferrer noopener">copera.org/investment-stewardship</a>.



More stewardship coverage over the years:



<ul>
<li><a href="https://peraontheissues.com/burritos-boardrooms-and-ballots-the-story-of-one-shareholder-proposal/">Burritos, Boardrooms, and Ballots: The Story of One Shareholder Proposal</a></li>



<li><a href="https://peraontheissues.com/evaluating-sustainability-in-peras-investment-portfolio/">Evaluating Sustainability in PERA’s Investment Portfolio</a></li>



<li><a href="https://peraontheissues.com/investment-stewardship-considering-relevant-issues-like-esg-factors-in-investment-decisions/">Investment Stewardship: Considering Relevant Issues Like ESG Factors in Investment Decisions</a></li>
</ul>

PERA’s Investment Stewardship Report Turns Five Years Old

In today’s ever-changing world, the ability to adapt is an important ingredient for success. At Colorado PERA, adaptability is key to making sure the Association can continue to meet the changing needs of its diverse membership.



Over the past several years, PERA’s Communications Division has been using data from a survey of members and retirees to identify segments of PERA membership whose needs weren’t being adequately met and to pinpoint other opportunities for improvement.



The survey is a vital tool for PERA to ensure its communications are member-focused and fulfill the Board’s strategic goals, which include elevating PERA’s identity among stakeholders to that of a partner, and improving retirement security outcomes through best-fit products, services and education.



<h2 class="wp-block-heading" id="changes-resulting-from-2019-survey">Changes resulting from 2019 survey</h2>



The member satisfaction survey, conducted in 2019, aimed to assign PERA a rating that would approximate a Net Promoter Score (NPS). An NPS is a simple way of gauging the likelihood of a company’s customers recommending that company to friends and colleagues, with scores ranging from -100 (unlikely) to +100 (likely). The survey responses of nearly 18,000 members established PERA’s NPS as 5, and while that’s a positive score consistent with other member-based financial services organizations, it revealed several important opportunities for improvement.



<h2 class="wp-block-heading" id="more-personalized-tailored-content">More personalized, tailored content</h2>



A major takeaway from the survey results was that PERA has too often taken a one-size-fits-all approach to communications, rather than tailoring content to fit different members’ and retirees’ needs. As a result, PERA’s communications team has been focused on segmenting its website content, emails and other communications by life and career stage — <a href="https://www.copera.org/new-members" target="_blank" rel="noreferrer noopener">new to PERA</a>, <a href="https://www.copera.org/mid-career" target="_blank" rel="noreferrer noopener">mid-career</a>, <a href="https://www.copera.org/ready-to-retire" target="_blank" rel="noreferrer noopener">ready to retire</a>, <a href="https://www.copera.org/retirees" target="_blank" rel="noreferrer noopener">retired</a> — as well as creating more content specifically for those audiences.



<h2 class="wp-block-heading" id="simpler-language">Simpler language</h2>



Similarly, PERA members and retirees have expressed a need for simpler, more accessible language from PERA. Much of the terminology around retirement benefits — and finance in general — can be complex and difficult to understand. PERA staff regularly review and update publications, website content and other communications, and part of that review now includes identifying language that can be made more approachable.



This is an ongoing effort and PERA staff will continue to look for opportunities to simplify the language it uses to explain PERA benefits and services.



<h2 class="wp-block-heading" id="expanded-use-of-social-media">Expanded use of social media</h2>



In an effort to meet more PERA members where they are, PERA has been working to expand its presence on social media to complement its other communications channels. That includes launching <a href="https://www.facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener" class="broken_link">Facebook</a> and <a href="https://www.copera.org/dont-lose-track-of-your-future-benefits" target="_blank" rel="noreferrer noopener">Instagram</a> profiles and using those platforms <a href="https://peraontheissues.com/inaugural-facebook-live-event-attracts-hundreds/" target="_blank" rel="noreferrer noopener">to engage more directly with PERA members and retirees</a>.



<h2 class="wp-block-heading" id="website-updates">Website updates</h2>



PERA’s website is a vital tool for its members, retirees, and other stakeholders, and it was a clear area of opportunity to make some improvements. PERA staff used feedback from the survey to build a redesigned website that’s more user-friendly, including an updated account dashboard that displays a member’s account balance, estimated monthly benefit, and more. The new site <a href="https://peraontheissues.com/pera-launches-redesigned-website-with-better-navigation-other-improvements/" target="_blank" rel="noreferrer noopener">launched in mid-January</a>.



<h2 class="wp-block-heading" id="preparing-for-the-next-survey">Preparing for the next survey</h2>



A key step in assuring PERA meets its member expectations is to measure the effectiveness of the various changes and initiatives that have taken place since the first survey.



Planning is underway for a follow-up NPS survey, which will take place this spring. From that survey, PERA will be able to formulate an updated score and determine not only whether those changes are working, but also identify areas where staff should continue to focus their efforts in the future.<ins></ins>



“We hope everyone who receives the survey will participate, so we can get an accurate measure of how we’re doing and whether we’re meeting member expectations,” said PERA Senior Director of Communications Patrick von Keyserling. “We look forward to seeing the results and continuing to evolve based on your feedback.”

We Heard You: Responding to Member Feedback

In this story:



<ul>
<li>PERA Board meeting in September to hear updates on strategic plan, investments, member service</li>



<li>PERA staff continue efforts to fulfill Board’s vision of innovation in service delivery</li>



<li>Member Education’s transition to remote webinars just one example of this work</li>
</ul>



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



When the COVID-19 pandemic struck the United States in early 2020, PERA joined offices around the country in transitioning to remote work. While disruptive, the pandemic also provided opportunities to speed up work that was already underway to improve the ways PERA provides service to members and retirees.



<h2 class="wp-block-heading">Fulfilling PERA’s mission and vision</h2>



PERA’s stated vision is “to innovate and build on a tradition of service by being a trusted partner in order to meet the changing needs of our diverse membership.” At its annual <a href="https://www.copera.org/pera-on-the-issues/pera-board-continues-to-press-for-innovation" target="_blank" rel="noreferrer noopener">planning session</a> — taking place Sept. 15 to 17 — the Board of Trustees will hear updates on how various departments within PERA have been working to fulfill that vision.



A big part of that effort is taking advantage of technology to meet people where they are. In the past year and a half, PERA has made moves to increase transparency and accessibility by live streaming Board meetings on <a href="https://www.youtube.com/user/ColoradoPERA" target="_blank" rel="noreferrer noopener">YouTube</a> and providing additional ways to connect to <a href="https://peraontheissues.com/thousands-participate-in-peras-interactive-town-hall-meetings/" target="_blank" rel="noreferrer noopener">PERA’s annual town hall meetings</a>.



In addition, efforts have been underway to reduce the amount of mail PERA sends to members and retirees and increase the use of digital communication channels like email, social media and video conferencing.



<h2 class="wp-block-heading">Improving efficiency, accessibility of member education</h2>



PERA’s Field Education team — now called Member Education — was already working to adapt some of its educational offerings into an online format when the pandemic began. With the sudden shift to remote work, the team was well-positioned to kick that process into high gear and reach more PERA members than ever before.



“We’ve been able to have higher attendance at fewer meetings,” said Carissa Cummins, a Member Education Representative. “You can join from your couch; you can join anywhere. We are offering webinars at all sorts of times of the day.”



Member Education <a href="https://www.copera.org/members/webinars" target="_blank" rel="noreferrer noopener">hosts free Zoom webinars</a> every weekday on a variety of topics, from benefit basics for new members to purchasing service credit and preparing for retirement. With the added flexibility of conducting meetings remotely, the team has been able to develop four new webinars in the past year.



Member Education continues to find and develop new ways to connect with PERA members, including utilizing live streaming on <a href="https://facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener" class="broken_link">PERA’s Facebook page</a>. They’ll be using that platform and Zoom webinars to help retirees navigate <a href="https://www.copera.org/peracare" target="_blank" rel="noreferrer noopener" class="broken_link">PERACare</a> open enrollment in October.



“I’m really excited for the next Facebook Live,” Cummins said. “We do work really hard to engage the audience…we really try to get them involved in the process and the experience.”



<h2 class="wp-block-heading">Feedback from webinar attendees</h2>



As the Member Education team gathers feedback from webinar participants, many of them appreciate having the ability to attend virtually rather than in person.



“It allows people an opportunity to attend a session that they would never be able to schedule and attend in person,” one attendee said.



For others, the format of the meeting isn’t as important as what they gained: “I have a better understanding of what it takes to retire, even if it is further down the road. Now I know how to prepare for the future,” another attendee said.



View PERA’s <a href="https://www.copera.org/members/webinars" target="_blank" rel="noreferrer noopener">webinar</a> offerings and sign up for a session.

PERA Board Continues to Press for Innovation

In this story:



<ul>
<li>Committee members heard from PERA leaders, external auditors and actuarial consultants</li>



<li>External auditors gave PERA’s 2020 annual report a clean audit with no issues</li>



<li>PERA gets a “green light” on its funding progress</li>
</ul>



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



PERA leaders and actuarial consultants appeared before the Colorado General Assembly’s Legislative Audit Committee on Aug. 18. The purpose of the hearing was to review PERA’s <a href="https://content.copera.org/how-its-made-peras-financial-report/" target="_blank" rel="noreferrer noopener">2020 Comprehensive Annual Financial Report</a>, released earlier this summer, and to review the findings of an external audit of the report. Committee members also heard an update from PERA’s actuarial consultants on PERA’s funded status and had the opportunity to ask questions.



Below is a summary of information presented at the hearing. Listen to an <a href="https://sg001-harmony.sliq.net/00327/Harmony/en/PowerBrowser/PowerBrowserV2/20210824/67/12036#info_" target="_blank" rel="noreferrer noopener">audio recording</a> of the full hearing.



<h2 class="wp-block-heading">Results of PERA’s annual audit</h2>



Every year, the Office of the State Auditor hires an independent auditor to review PERA’s financial status and fiscal controls. CliftonLarsonAllen LLP has been auditing PERA’s annual statements since 2015.



For the year that ended Dec. 31, 2020, the auditors gave the annual report a clean audit, with no significant issues or outstanding recommendations.



<a href="https://leg.colorado.gov/sites/default/files/documents/audits/copera_legislative_audit_report_dec_2020.pdf" target="_blank" rel="noreferrer noopener">Click here</a> to read the full audit report.



<h2 class="wp-block-heading">PERA gets a ‘green light’</h2>



As part of its annual financial reporting, PERA enlists actuarial consulting firm Segal to issue an assessment of PERA’s funding progress called Signal Light Reporting. The report uses a simple color-coded system similar to a traffic signal — shades of green, yellow and red — to give a clear representation of whether PERA is on track to eliminate its unfunded liability.



Segal simulates thousands of possible scenarios to test the effects of different variables — like investment returns and public employer payroll changes, for example — on the likelihood of PERA reaching its target of full funding by 2048. The projected results range from dark green (fully funded ahead of schedule) to dark red (insolvent within 20 years). As of Dec. 31, 2020, all five division trust funds were in “green” or “dark green” status, meaning they are expected to be fully funded by 2048.



The Legislative Audit Committee is one of several legislative committees and subcommittees that PERA reports to regularly. Others include the Joint Budget Committee, Joint Finance Committee, Pension Review Subcommittee, and Pension Review Commission. These regular meetings with lawmakers allow for robust oversight and transparency into the state’s largest public employee retirement system.

Tag Archives:

PERA Board Supports Bill That Codifies Board Practices, Enhances Transparency

PERA’s Investment Stewardship Report Turns Five Years Old

We Heard You: Responding to Member Feedback

PERA Board Continues to Press for Innovation

PERA Receives Clean Audit, Positive Funding Assessment at Committee Hearing

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