Month: December 2021

News You Should Know: IRS Changing RMD Rules for 2022

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How an IRS Rule Update Impacts Required Minimum Distributions | AARP

Required Minimum Distributions (RMDs) — the minimum amounts retirees are required to withdraw from their retirement accounts each year — resumed in 2021 after being suspended in 2020. An update to the formulas the IRS uses to calculate RMDs could mean you’ll be required to withdraw less money in 2022. Here’s what you need to know.

2021’s Influencers in Aging | Next Avenue

The term “influencer” might conjure images of young social media stars and celebrities who help define what’s trendy and what’s not. Here are some entrepreneurs, authors, academics and others working to change perceptions about getting older.

You Can Deduct Up To $300 in Charitable Donations This Year—Even If You Take the Standard Deduction | CNBC

If you don’t itemize your tax deductions, you might not bother keeping track of the receipts from any charitable donations you make. But a change in the law during the COVID-19 pandemic means even those who take the standard deduction can write off some donations made in 2021 — up to $300 for individuals or $600 for married couples filing jointly.

The Best Wearables for Seniors | Yahoo!

Today’s wearable tech like smartwatches can do more than just count steps — they can keep track of important vital signs, detect falls, and put helpful features like voice control right on your wrist. If you’re shopping for the tech-savvy senior in your life (or shopping for yourself), here are some good options.

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

PERA Oversight Continues Between Legislative Sessions

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The Colorado General Assembly wrapped up the 2021 legislative session in June, but legislative work has continued in the ensuing months at the Capitol. Some of that work over the summer and fall involved committees that conduct routine oversight into Colorado PERA and its operations.

PERA and its Board of Trustees appreciate the value of rigorous review and transparency, so staff regularly engage with these legislative panels to provide updates on PERA’s finances, answer questions and listen to feedback from lawmakers and others. Summaries of those activities are included below.

Legislative Audit Committee

The Legislative Audit Committee met in August to hear an update on PERA’s financial status and receive the results of an independent audit of PERA’s Comprehensive Annual Financial Report. The Committee heard from PERA Executive Director Ron Baker, Chief Investment Officer Amy C. McGarrity, external auditors, and actuarial consultants.

The auditors gave PERA’s annual report a clean audit with no significant issues or outstanding recommendations.

Read more here.

Pension Review Commission and Pension Review Subcommittee

The legislature’s Pension Review Subcommittee, which was established as part of the PERA reforms of Senate Bill 200 in 2018, consists of legislators and members of the public with expertise in topics such as accounting, economics and investment management.

At its Sept. 10 meeting, the Subcommittee voted to draft 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. The Subcommittee forwarded that bill to the Pension Review Commission, which then forwarded the draft to Legislative Council for review. In November, the Legislative Council voted to approve the bill, clearing the way for it to be introduced in the upcoming legislative session, which begins in January.

Read more about that bill here.

The Pension Review Subcommittee also conducted an independent review of the actuarial assumptions PERA uses in its financial calculations and reporting. Based on that review, the Subcommittee made three recommendations to the PERA Board regarding PERA’s funding policy and Signal Light methodology and reporting.

At its November meeting, the Board discussed the recommendations in detail and heard from PERA staff as well as PERA’s actuarial consultants. Following the discussion, the Board decided to draft a letter to the Pension Review Subcommittee responding to the recommendations. In the letter, the Board stated it agrees with the Subcommittee that there’s a need for clearer communication in the Signal Light report and the Board will consider implementing changes in future versions of the report. The Board also said it will consider making changes to PERA’s funding policy when it undertakes its planned review of the policy in 2023.

Read the Board’s letter here.

Joint Budget Committee

On Dec. 9, PERA Executive Director Ron Baker and Chief Investment Officer Amy C. McGarrity appeared before the Joint Budget Committee for that panel’s annual hearing on PERA. Baker and McGarrity provided the Committee with updates on a number of topics — including PERA’s finances and membership, results of 2020’s actuarial experience study, and market performance in 2021 — and answered questions from committee members.

What’s ahead in 2022

The Colorado General Assembly will convene to kick off the 2022 legislative session on Jan. 12. PERA On The Issues will keep track of any proposed legislation that pertains to Colorado PERA, including the draft bill to make up the state’s missed 2020 payment of $225 million, and provide updates throughout the session. If you haven’t already subscribed to our newsletter, you can do so here.

Year in Review: Top Stories of 2021

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As the COVID-19 pandemic entered its second year in 2021, the world faced continued challenges and uncertainty. The top stories on PERA On The Issues reflected readers’ interest in two key topics that were top-of-mind throughout the year: retiree health care and legislation that could affect PERA and Social Security benefits.

Here are the most-read stories from 2021:

2021 Proposed Legislation Status

The Colorado General Assembly considered four bills in 2021 that would affect PERA, two of which were signed into law. SB 21-228 created a cash fund to be used for future payments to PERA, and HB 21-1136 modified the rules for retired judges returning to judicial duties.

WEP/GPO Bill Introduced in D.C.

Many federal bills have been introduced over the years to eliminate or modify the Windfall Elimination Provision (WEP) and/or Government Pension Offset, and 2021 was no different. HR 82, which would repeal the WEP and GPO, was introduced in January, and HR 2337, which would modify the WEP, was introduced in April. Both bill have stalled in Congress.

PERACare Working to Cut Costs as Medicare Advantage Enrollment Grows

For 2022, PERACare is switching providers for its Medicare Advantage plans, with UnitedHealthcare replacing Anthem Blue Cross Blue Shield. The UnitedHealthcare plans will offer lower premiums and some lower copays while combining medical and prescription coverage under one company.

Recently Introduced Divestment Bill Would Affect PERA Investments

Colorado lawmakers considered a bill that would have limited PERA’s investment options. HB 21-1246 would have directed the PERA Board to create an exclusion list of all of PERA’s direct investments in fossil fuel companies, and potentially sell those investments. The House Finance Committee chose to postpone the bill indefinitely.

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

When lawmakers made substantial budget cuts at the beginning of the COVID-19 pandemic in 2020, they passed legislation to forgo the state’s $225 million payment to PERA for that year. Lawmakers on the Pension Review Commission and Pension Review Subcommittee are seeking to introduce a bill in 2022 that will make up that payment, plus estimated investment gains.

Thank you to everyone who read PERA On The Issues and subscribed to our newsletter in 2021. We’ll continue following and unpacking the issues that matter to PERA’s many stakeholders like we’ve done for years. We’ll see you in 2022!