Month: October 2021

News You Should Know: Who’s Eligible for a COVID-19 Booster in Colorado?

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Breaking Down the Guidance for Booster Shots for the COVID-19 Vaccine | 9News

Health officials in Colorado have given slightly different guidance than federal health officials on who is eligible for a third COVID-19 shot. Here’s what to know about who’s eligible in Colorado and where to get a booster shot.

Can the US Cut Drug Prices Without Sacrificing New Cures? | Vox

The latest federal proposal to rein in rising prescription drug costs would put a cap on the amount Medicare could pay for some drugs, with the goal of paying no more than 20 percent more than what other wealthy nations pay for the same drugs. Drug companies argue cost controls could limit their ability to produce new medications.

Is the Backdoor Roth IRA Disappearing Before Our Eyes? | The Motley Fool

Lawmakers are considering a change that would eliminate the so-called “backdoor” Roth IRA. The backdoor strategy allows people whose income exceeds the limit to stash money away in a Roth IRA tax-free by taking advantage of a loophole.

U.S. News Ranks the Best Places to Retire in the U.S. in 2021-2022 | U.S. News & World Report

U.S. News & World Report ranked U.S. cities on a number of factors, including desirability, affordability, and access to health care, to determine which cities are the best places for retirees to live. See which state dominated the top 10 and where Colorado cities landed on the list.

News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

Legislative Committee Seeks to Make Up Missed $225M Payment to PERA

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Editor’s note: On Monday, Nov. 15, the Legislative Council voted to approve the bill, clearing the way for it to be introduced during the regular legislative session, which is set to begin on Jan. 12. PERA On The Issues will continue to monitor the bill and will provide updates regarding its status during the session.

The Colorado General Assembly’s Pension Review Commission on Tuesday voted to recommend a bill for the 2022 legislative session that would make up the legislature’s missed $225 million direct distribution payment to PERA from July 2020.

Lawmakers enacted legislation to forego the annual $225 million payment to PERA during the height of the COVID-19 pandemic, when the General Assembly cut billions of dollars from the state budget. The state resumed payments in July 2021 but did not make up 2020’s payment.

The Pension Review Commission’s draft calls for the state to make a payment totaling $303.57 million — $225 million plus estimated investment gains, had the money been invested — on July 1, 2022.

Lawmakers recommended using money from the state’s general fund to make the payment, though committee members also suggested using money from a new cash fund the legislature established during the 2021 legislative session. That fund, which currently has a balance of $380 million, is meant specifically for future payments to PERA.

The draft bill will head next to the Legislative Council before it could be introduced in the 2022 legislative session.

The $225 million direct distribution to PERA is part of a package of reforms enacted under Senate Bill 200 in 2018 and is meant to help PERA pay down its unfunded liability. Also included in Senate Bill 200 was the Automatic Adjustment Provision, which will trigger increases in employee and employer contributions to PERA and reductions to annual increases for benefit recipients in July 2022.

News You Should Know: Beware of This Medicare Phone Scam

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‘Becky From Medicare’ Robocall is Sweeping the Nation | AARP

Retirees across the country have received fraudulent calls from people claiming to work with Medicare and offering unnecessary genetic testing. AARP put these callers under the microscope and found that while the scam is unlikely to cost Medicare recipients anything directly, such scams can cost Medicare billions of dollars a year.

Is It Safe for Retirees to Buy Cryptocurrency? | The Motley Fool

Cryptocurrencies like Bitcoin have been growing in popularity in recent years. They’re notoriously volatile, and that can mean the potential for big gains and also big losses. Here are some things retirees should consider when looking at investing in cryptocurrency.

Amazon Launches an Elder Care Subscription Service, ‘Alexa Together’ | TechCrunch

Last year, Amazon launched the Care Hub, which allows family members to keep an eye on aging relatives, with their permission. With a new subscription, Amazon is looking to expand the service with additional features like an emergency help line and the ability to add more caregivers, like a neighbor or additional relatives.

Falls are Increasing in Older Adults. Here are 5 Ways to Prevent Them | Livestrong

Falls are on the rise, and they are the leading cause of injuries in older Americans. Here are some simple steps retirees can take to reduce their risk of falling — from making some updates around the house to staying in shape.

News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

PERA Benefits Provide Economic Stability During Uncertain Times

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This is the second in a series of articles for National Retirement Security Month exploring how Colorado PERA provides retirement security to public employees.

Stability amid uncertainty

At a time when many people have struggled to save for retirement on their own, PERA has continued to pay retirement benefits that support retirees and Colorado’s economy.

When the COVID-19 pandemic began in early 2020, businesses shut their doors, stock markets dropped, and many people found themselves facing the loss of income and savings. That economic disruption was especially painful for older Americans who rely on their savings for income in retirement: A recent survey by The Commonwealth Fund found that in the United States, 19 percent of adults 65 and older used up all or most of their savings or lost a source of income during the pandemic. That’s a higher percentage than other high-income countries included in the survey.

For public sector employees who participate in a defined benefit pension plan like what PERA offers, benefit payments have offered some financial stability during otherwise uncertain times.

The value of reliable income

Retirees who rely on retirement plans like 401(k)s or their personal savings have to carefully track their withdrawals during retirement to make sure they don’t overspend and deplete their accounts. But in a defined benefit retirement plan, retirees receive a monthly payment that isn’t determined by their account balance, and a retiree cannot outlive their benefit.

While the COVID-19 pandemic and its effects have been felt far and wide, PERA continued to pay monthly benefits to the thousands of retirees in Colorado who rely on them.

In 2020, PERA paid more than $4.2 billion in pension benefits to more than 107,000 retirees living in Colorado, with an average monthly benefit of $3,204. Those benefit payments translate to billions of dollars in spending, supporting local businesses and jobs. In 2019, a report by Boulder-based Pacey Economics calculated that retiree spending in Colorado supported more than 32,000 jobs.

The stabilizing effect of PERA benefits is especially important in Colorado’s rural areas, where retiree income makes up a greater share of area payroll. In 26 Colorado counties (nearly all rural), these distributions represent at least 10 percent of the county’s total payroll.

In addition, PERA had more than $808 million invested in Colorado-based companies, partnerships, and assets as of the end of 2020. Those investments include equity of companies headquartered in Colorado and real estate investments. PERA also employs investment managers with operations and employees in the state.

Together, PERA benefits and investments strengthen Colorado’s economy and help provide stability during periods of uncertainty. And although changes to PERA — including increased contributions and a decreased Annual Increase — have been difficult for everyone, they have resulted in a more resilient plan that is able to continue to pay monthly lifetime benefits while meeting its funding goal.

PERACare Working to Cut Costs as Medicare Advantage Enrollment Grows

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In this story:

  • Enrollment in Medicare Advantage plans has grown steadily in recent years
  • PERACare is changing providers for PPO Medicare Advantage plans in 2022
  • UnitedHealthcare will offer same plan benefits, lower premiums

More people than ever are enrolled in Medicare Advantage plans, and PERACare is making some changes in 2022 to make its plans more affordable and convenient for retirees.

A data analysis by the Kaiser Family Foundation found that enrollment in Medicare Advantage plans – like those offered by PERACare – has been steadily increasing since the early 2000s. In 2020, nearly 40 percent of all Medicare beneficiaries were enrolled in a Medicare Advantage plan rather than traditional Medicare, KFF found.

Colorado was one of 19 states where more than 40 percent of Medicare beneficiaries were enrolled in a Medicare Advantage plan in 2020.

The advantages of Medicare Advantage

Medicare Advantage plans are offered by private insurers and serve as “all-in-one” or “package” plans. They combine the benefits of Medicare Parts A (hospital insurance) and B (medical insurance) with Part D (prescription coverage) into one comprehensive plan. These plans also usually cover extra services that aren’t covered by original Medicare, like dental and vision and even gym memberships.

While Medicare Advantage enrollees pay a premium on top of the Medicare Part B premium, Medicare Advantage plans may have lower out-of-pocket costs for some services. They also have yearly limits on out-of-pocket spending on services that Part A and Part B cover, while original Medicare doesn’t have any limits.

Medicare Advantage plans differ from Medicare Supplement Insurance, also known as Medigap, which supplements the coverage provided by original Medicare. Medigap plans typically don’t offer as much coverage as Medicare Advantage plans and they don’t include prescription drug coverage. A retiree cannot have both Medigap and Medicare Advantage.

PERACare offers three Medicare Advantage plans for PERA retirees, in addition to four pre-Medicare plans for retirees who aren’t yet eligible for Medicare.

Cost-saving changes coming to PERACare

In 2022, PERACare is making some changes to the providers who administer PERACare’s Medicare Advantage plans. UnitedHealthcare will replace Anthem Blue Cross Blue Shield and Silverscript.

One reason for the change is that UnitedHealthcare is able to offer lower plan premiums than Anthem. The new plans will also combine medical and prescription coverage under one company, making for a more streamlined process for enrollees and their providers.

“We have designed the new UnitedHealthcare plans to mirror the current plans as closely as possible; if there are changes to benefits, they are upgrades, not downgrades,” said PERA Director of Insurance Jessica Linart. “Plus, UnitedHealthcare brings an expanded fitness center benefit with access to more gyms, the Real Appeal weight loss program, and a commitment to delivering our retirees a high level of customer service.”

Retirees enrolled in an Anthem plan will be automatically enrolled in a corresponding UnitedHealthcare plan and recently received a letter in the mail with details on their new, lower premiums. Most copays for the new plans will be the same, though some copays will be lower with UnitedHealthcare. Like Anthem, UnitedHealthcare offers nationwide coverage.

Enrollees in PERACare’s Kaiser Permanente HMO plan will also see a reduction in their premiums for 2022.

PERACare open enrollment began Oct. 11 and retirees will be able to sign up for coverage for the first time, or make changes to their existing coverage through Nov. 17. For more information on the changes on open enrollment, including details on virtual meetings, click here.

Meet the New Vice Chair of PERA’s Board

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Suzanne Kubec has served on the PERA Board of Trustees since 2017, and earlier this year she was re-elected to the Board and elected to fill the Vice Chair seat vacated by David Hall.

Kubec recently sat down with PERA On The Issues to discuss her background and the work the Board does. That conversation is summarized below.

Tell us a little bit about yourself and your background

I was born in New York and moved to Denver when I was 6, then to Littleton a few years later where I grew up and consider home. I started working as a temporary employee at the Colorado Department of Transportation just shy of my 22nd birthday. Eventually I was hired permanently and stayed for 11 years; most of that time was in Human Resources. In 1998 I transferred to the Department of Personnel and Administration (DPA) and have been there for 23 years. The first half of my time in the department was with the Employee Benefits Unit. For much of that time, about 10 years, I was the 457 Deferred Compensation Plan administrator. This is where I started my passion for retirement education. In 2009 the administration of the 457 Plan was moved from DPA to PERA. The change of administration was great for participants, but not so much for me as I was without a program to manage. There was an opportunity at the State Office of Risk Management as the Liability Claims Manager. I applied and have been there for 12 years managing claims and lawsuits.

What interested you about joining the Board?

I was reading the PERA newsletter one day, and although I knew the Board members rotated through annual elections, it never really dawned on me that I could resume my passion for retirement administration through an elected position on the PERA Board of Trustees. I knew many of the staff from my time as the 457 Plan administrator. I was familiar with the retirement processes, fiduciary duties and managing investment and recordkeeper contracts. A position on the Board would provide me with the opportunity to continue contributing to retirement decisions that are in the best interest of all State employees.

Do you see or value your own personal PERA membership any differently after having been on the Board?

I have always known PERA was an excellent value because of my dad, who worked for the Department of Transportation. There were times when I thought about looking into the private sector, and he would always say, “You’ve got PERA; it’s a great retirement, don’t ever quit!” I have worked in a variety of areas in human resources for most of my career, where I continued to learn increasingly more about PERA benefits. My time on the Board, over the last four years, has provided me with an elevated appreciation for the value of the retirement benefits.

You have been on the Board since 2017. How has that experience prepared you for the role of Vice Chair?

Once I was elected to the Board, my goal was to become the chair of the Benefits Committee. Being chair of a committee was certainly a stepping stone to becoming Vice Chair. I think all my previous experience and understanding of retirement programs, coupled with the last four years as a Trustee, have provided me with the leadership skills needed to fulfill this position. I will be working closely with the Board Chair to continue to improve Trustee education opportunities along with other goals and objectives within the strategic plan. It is rewarding to be a part of making decisions that will assist members into retirement.

Anything else you want PERA members, retirees and stakeholders to know about the work the Board does?

The Trustees are well-educated volunteers and bring a variety of skillsets to the PERA Board. You must have a desire to be effective for members, as there is a huge time commitment to becoming a Trustee. Trustees provide thoughtful high-level direction to executive staff on the many retirement programs. Trustees and PERA staff are always focused on what is in the best interest of the members, and not just because they have to, but because they want to.

If I am having a conversation with a new employee, and they say “PERA probably won’t be around when I’m ready to retire,” I say, “Not if I have anything to say about that.” I always tell employees I am confident my dad will continue receiving retirement benefits, I am confident I will receive retirement benefits, and I am confident my son will receive a retirement benefit in 35 years. In addition, I point out that the Legislature created PERA for State employees prior to Social Security being enacted. So, they (PERA, and especially those who manage the investments) must be doing something right!