Month: May 2021

Legislative Q&A with PERA’s Public and Government Affairs Manager

Posted on by planeteria

In January, we spoke with Michael Steppat, PERA’s Public and Government Affairs Manager. As the Colorado legislative session winds to a close, we checked back in to get his thoughts on a number of different topics.

The legislative session usually ends in early May. However, this year’s legislative session started with a multi-week recess due to COVID-19. So where does that put us now?

The state legislature can meet for no more than 120 days. The delay essentially just extended the deadline for the general assembly to adjourn sine die—the formal term used when the legislative session ends for the year. The number of days they were on recess can just be tacked on to the end of the original end date. That means the legislature must adjourn on or before June 12.

Two bills related to PERA have passed. What can you tell us about them? What effect will they have for PERA members?

PERA retirees who go back to work at a PERA employer in retirement must follow certain rules set by law. House Bill 21-1136 modified the provisions created for judges who work in retirement. These changes were made in order to address the massive caseload backlog caused by the pandemic and only affect retired judges.

Another bill, Senate Bill 21-228, set aside funds in the current fiscal year to be used by the state for future employer contributions or disbursements to PERA. This bill does not change anything about how PERA works. This bill was created primarily to give lawmakers additional flexibility to operate within Colorado’s state budget rules.

What is the status of last year’s direct distribution, which was part of across-the-board cuts the legislature made to the budget? Will this year’s $225 million direct distribution be made to PERA?

PERA did not receive the $225 million direct distribution in 2020, however the full direct distribution to PERA was restored going forward, including this year’s payment.

Do you expect any other PERA-related bills to come up this session?

I don’t expect any more bills that are directly related to PERA.

Many pieces of major federal legislation have been passed in the past few months. Do any of these impact state finances in a way that will affect PERA?

Anything that impacts state finances can potentially have an indirect effect on PERA, as we saw last year with the budget cuts that had to be made. However, there isn’t anything we’ve seen in any of the pandemic-relief-related federal legislation that would affect PERA directly. It’s also important to keep in mind that federal law prohibits state lawmakers from using the funds sent to them in recent COVID-related legislation for pension-related purposes.

As is the case most years, there is a bill to repeal the Government Pension Offset and Windfall Elimination Provision in Social Security. What is the state of that bill?

House Resolution 82, which would repeal the GPO and WEP, was introduced earlier this year. While it has gained cosponsors since it was introduced in January, we haven’t seen it move through legislative process.

A second bill has also been introduced recently. While this second bill would not repeal these Social Security-related measures, it would make some changes to the WEP. See more about House Resolution 2337.

Nearly 1,700 People Respond to Reader Survey

Posted on by planeteria

Over the past few weeks, 1,659 PERA On The Issues readers responded to our reader survey. Your feedback is critical as we look to keep you informed about the subjects you find important.

Below we’ve shared a few results from the survey and what we plan to do in response. We’ll share additional updates in the future.

Survey result

  • 88% of respondents said that the current newsletter frequency (every two weeks) is ideal
  • 93% said the length of a typical story is just right
  • 89% said story complexity is just right

What we heard

Readers like the form of the current website and newsletter.

What we’ll do

  • We will continue sending a newsletter every two weeks.
  • We will continue publishing stories that take no more than a few minutes to read.
  • A number or readers indicated they would like to see a summary at the top of each story. We will incorporate that idea whenever practical.

Survey result

Question: How important is each the following topics?Average rating (out of 10)
-Stories about legislation9.1
-Stories that explain the policies and concepts found at PERA8.0
-Stories that recap PERA Board meetings7.3
-Stories about insights, research, and reminders related to personal finance and retirement planning7.2
-Stories about the people and processes behind PERA6.7

What we heard

Legislative updates remain the top area of interest for PERA On The Issues readers. On the whole, readers are highly curious about understanding more about how PERA functions.

What we’ll do

  • We will continue delivering as many legislative updates and details as practical.
  • Because Colorado’s legislative session only lasts about four months out of the year, we will look to fill out the calendar with stories that align with other reader interests.
  • A number of people indicated they would like to learn more about PERA’s investment program. We will keep this in mind as we plan our editorial lineup.

Other takeaways

  • We’d like to find opportunities to talk with PERA members and retirees as we put stories together. More than 100 people said they’d be interested in talking with us.
  • We’ve heard from a few readers that they’d prefer a logo with the site’s name spelled out. Be on the lookout for a logo refresh soon.
  • More than 27% of readers said they don’t follow PERA on social media but that they would consider it. You can get started now by visiting us on Facebook, Twitter, LinkedIn, and Instagram.
  • About 40% said they’d like to see more charts and graphics in stories. We will find opportunities to bring more visuals to our stories.

Fighting Frauds and Scams

Posted on by planeteria

Picture what makes a typical fraud victim. Do you associate a certain age, occupation, socioeconomic status, or other common demographic marker with fraud? If so, you’re not alone. And you would also be mistaken.

Fraud, and in particular identity theft and cybercrime, is on the rise. And it’s affecting everyone.

  • About 4.8 million people filed identity theft and fraud reports in 2020. That represents a 45-percent jump in just one year.
  • Young people (ages 20 to 29) filed 44% of these reports.
  • Millions of people have lost money to scams – at least $3.3 billion in 2020. That’s more than twice the amount lost in 2019.
  • The median amount lost was greatest for those age 80 and above, at $1,300.
  • On a list of states with the most reports of identity thefts per capita, Colorado ranks 20th.

How PERA Helps Prevent Fraud

A report by the Insurance Information Institute states that criminals are “beginning to focus their attention on different financial accounts, such as loyalty and rewards programs and retirement accounts.”

From time to time, criminals target PERA members and their retirement accounts. PERA employs a number of tools to help thwart these attempts. While much of this work is conducted confidentially at PERA, some of the anti-fraud measures PERA takes are visible to members.

  • Those who have called PERA customer service know that customer service representatives ask questions to verify the identity of the person on the other line.
  • PERA has deployed two-factor authentication for members logging in to their online account. Alongside a strong password, this creates a barrier to anyone trying to access member accounts illegally.
  • Scammers can target PERA employers, too. PERA communicates regularly with employer contacts to share information that protects members.

Take Control of Your Information

In addition to the security defenses PERA employs, individuals can take the following steps to increase their protection:

  • Use strong passwords. This might seem common sense, but millions of people aren’t still following it. Try using a password generator from a trusted source.
  • Periodically check to see whether your information has been stolen on other websites. Scammers often use information they find in one scam to commit other, potentially more serious scams elsewhere.
  • If you want a trusted friend or family member to have access to your PERA account in the event you are incapacitated, you can. Complete and submit this form at any time. If this document is not on file, PERA representatives are unable to make changes or even share information with anyone, including spouses, other than the member.