Tag: PERA

By Brian Eason | The Colorado Sun State pension members in Colorado are likely to face another round of benefit cuts and contribution hikes within the next two years, board members learned last week, after a study found that the public retirement system has been underestimating some of its future debts. The Colorado Public Employees’ Retirement Association holds a review every four years to ensure it is accurately estimating a range of assumptions about its investments, the public workforce and the lifespans of its retirees. Think of it like a financial checkup to make sure that the assumptions underpinning the future payments it owes to retirees are unfolding as expected. READ THE FULL STORY AT THE COLORADO SUN

By Brian Eason | The Colorado Sun Months before five Colorado school districts took the drastic step of suing the state pension plan, their elected representative tried to bring their concerns to the Public Employees’ Retirement Association Board of Trustees. “We (the Board) rarely hear from people in the field about how PERA staff decisions affect their organizations,” Scott Smith — a PERA board trustee at the time — wrote in a November 2023 email to school administrators. “If you have issues or concerns with any recent PERA staff decisions, I would encourage you to sign up for public comment.” The exercise got the board’s attention — just not the way Smith intended. READ THE FULL STORY AT THE COLORADO SUN

By Brian Eason | The Colorado Sun Colorado’s public employee pension system generated strong investment returns in 2023 — but its finances still deteriorated for the second time in five years as it struggles to bounce back from a miserable 2022. The Colorado Public Employees’ Retirement Association’s investments grew by 13.4% in 2023, according to its annual financial report released Friday. That matches its 13.4% loss from a year earlier. But because the pension has to average 7.25% returns a year to meet its funding targets, the net result was a step backward for the chronically underfunded pension. PERA’s unfunded debt to members grew by $1.2 billion to $27.5 billion, the report shows. Its funding ratio — the amount of money it has in the bank relative to...