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


<p class="wp-block-paragraph"><em>In this story:</em></p>



<ul class="wp-block-list">
<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 class="wp-block-paragraph">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 class="wp-block-paragraph">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 class="wp-block-paragraph">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>



<h2 class="wp-block-heading has-medium-font-size">How are PERA’s investments doing?</h2>



<p class="wp-block-paragraph">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 class="wp-block-paragraph">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>



<h2 class="wp-block-heading has-medium-font-size">What is PERA doing about the Windfall Elimination Provision and reductions in Social Security benefits?</h2>



<p class="wp-block-paragraph">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. </p>



<h2 class="wp-block-heading has-medium-font-size">Will member contributions be going up again?</h2>



<p class="wp-block-paragraph">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 class="wp-block-paragraph">In addition, because of changes to PERA’s liabilities, 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>


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<figure class="alignright size-large"><a href="https://content.copera.org/wp-content/uploads/2021/07/AAP-slide.jpg"><img loading="lazy" decoding="async" width="1024" height="576" src="https://content.copera.org/wp-content/uploads/2021/07/AAP-slide-1024x576.jpg" alt="Automatic Adjustment Provision table displays changes to keep PERA secure. As of July 1, 2021 the State, School, and DPS Divisions member contributions are 10.5% while as of July 1, 2022 they should be 11.0%. As of July 1, 2021 the Safety Officer member contributions are 12.5% while as of July 1, 2022 they should be 12.0%. As of July 1, 2021 the Government member contributions are 8.5% while as of July 1, 2022 they should be 9.0%. As of July 1, 2021 the Judicial Division (excluding Denver County Judges) member contributions are 15.5% while as of July 1, 2022 they should be 11.0%. As of July 1, 2021 the Judicial Division (Denver County Judges) member contributions are 10.5% while as of July 1, 2022 they should be 11.0%." 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="auto, (max-width: 1024px) 100vw, 1024px" /></a><figcaption class="wp-element-caption">Click image to enlargen</figcaption></figure>
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<p class="wp-block-paragraph">“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>



<h2 class="wp-block-heading has-medium-font-size">Will retirees receive an annual increase this year?</h2>



<p class="wp-block-paragraph">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>



<h2 class="wp-block-heading has-medium-font-size">Did the state make its $225 million direct payment to PERA this year?</h2>



<p class="wp-block-paragraph">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>



<h2 class="wp-block-heading has-medium-font-size">Why doesn’t PERA divest from fossil fuels and invest in green energy instead?</h2>



<p class="wp-block-paragraph">PERA invests in a wide variety of asset types with the goal of securing the best possible risk-adjusted returns for its members. </p>



<p class="wp-block-paragraph"></p>



<h2 class="wp-block-heading has-medium-font-size">I’m counting on PERA for my retirement income; do you have my back?</h2>



<p class="wp-block-paragraph">“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 class="wp-block-paragraph">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>


Three individuals, two women and one man, are featured in a virtual meeting with the Colorado PERA logo and a mountainous background visible.

Thousands participate in PERA’s interactive town hall meetings