Month: June 2022

News You Should Know: Colorado Tax Rebates Increase to $750 Per Filer

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Colorado Taxpayers Could Get More in TABOR Refunds, Forecasts Say | Denver7

State economists say tax rebate checks going out to every Colorado taxpayer this year will be higher than expected — $750 for single filers and $1,500 for joint filers. The increase is due to new forecasts that showed roughly $1 billion in additional state revenue.

Cooking With Gas: Senate Finance Committee Rolls Out Massive SECURE 2.0 Counterpart | National Association of Plan Advisors

The Senate Finance Committee introduced new legislation, dubbed the Enhancing American Retirement Now (EARN) Act, as a counterpart to the House’s SECURE Act 2.0. The bill includes a large number of provisions, including improving access to 401(k) plans, increasing catch-up contributions and increasing the age for starting required minimum distributions (RMDs).

401(k) Savers Will See a ‘Wake-Up Call’ in Their Next Statement, Says Law Professor. Here’s What to Look For | CNBC

Beginning this summer, administrators of 401(k) plans will be required to include “lifetime income illustrations” in account statements in addition to account balances. The illustrations will provide estimates of how much retirement income account holders can expect if they purchase an annuity with their balance.

3 Financial Planning Moves to Make When You Turn 50 | Forbes

Turning 50 can sometimes bring a moment of recognition that retirement is coming up, and it’s time to get serious about planning. Here are some tips from a retirement planner on the important steps to take when getting things in order.

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

News You Should Know: Medicare Part B Premium Reduction Scheduled For 2023

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Medicare Recipients to See Premium Cut — But Not Until 2023 | The Associated Press

Officials announced earlier this year that Medicare was reevaluating 2022’s Part B premium hike, which was tied to an expensive new Alzheimer’s drug. Health and Human Services Secretary Xavier Becerra said that while he believed the premium should be reduced mid-year, legal and operational hurdles mean the reduction won’t happen until 2023.

There’s a Push in Congress for a New National Retirement Plan to Fill Big Savings Gap | CNBC

Lawmakers in Washington, DC are considering legislation — known as Secure Act 2.0 — that would make some major changes to retirement plans like 401(k)s and IRAs. But a bipartisan group of lawmakers is also exploring the idea of a national retirement plan that covers those without access to a retirement plan through their employer, potentially modeled after the federal Thrift Savings Plan.

IRS Sitting on Your Tax Refund? There’s a Bright Spot. | CBS News

The IRS went into tax season with a backlog of millions of tax returns still awaiting processing from last year. The good news, if you’re still waiting on your refund, is that the IRS pays interest on payments that are 45 days late or more. The current interest rate is 4 percent, but that’s likely to increase later this year.

Overcoming Your Bias Against Aging Can Improve Your Life | Next Avenue

You know the old saying, “mind over matter”? Research shows it can apply to aging — people with positive views of getting older tend to be healthier and more active in their later years, and vice versa. The author of a recent book discusses how to challenge and change deeply held beliefs about aging.

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

Save the Date: PERA Town Halls to Take Place July 7

Posted on by planeteria

Each summer, PERA hosts town hall meetings for members and retirees to hear directly from PERA leadership and ask questions.

This year’s town hall meetings are scheduled for Thursday, July 7, 2022.

Like last year, the town hall meetings will be available across multiple platforms: on the web at copera.org, via telephone, or on PERA’s Facebook and YouTube pages. During the meetings, PERA Executive Director Ron Baker and Chief Investment Officer/Chief Operating Officer Amy C. McGarrity will discuss PERA’s 2021 Annual Comprehensive Financial Report (releasing in mid-June), the recent legislative session, and provide other updates. Participants also will have the opportunity to ask questions and have them answered live.

Click here to see highlights from last year’s town hall meetings.

Event details

Date: Thursday, July 7, 2022

How to participate

You can participate by web, phone, or social media. Here’s how: 

While each meeting is tailored for either retirees or active members, each meeting is open to whoever would like to participate.

Recordings will be available for on-demand viewing afterward.

For more information, visit copera.org/townhall.

PERA Board Releases 2021 Annual Report at June Meeting

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The Colorado PERA Board of Trustees met on Friday, June 17 for its third meeting of 2022.

The Board took action on a number of important items, including approving the release of PERA’s 2021 Annual Comprehensive Financial Report, and announcing results of the recent Board election.

2021 annual report released

Every June, PERA releases its annual report for the previous year. The 2021 Annual Comprehensive Financial Report (ACFR) is a detailed summary of PERA’s investment performance, funded status and membership information for the 2021 calendar year.

Financial performance

For the year that ended Dec. 31, 2021, PERA’s investment portfolio earned a return of 16.1% net of fees, surpassing its benchmark of 13.7%. Over the past 10 years, the fund has earned an annualized return of 10.9% versus its benchmark of 10.1%.

The value of the total fund increased to $65.6 billion in 2021, up from $58.3 billion at the end of 2020. PERA’s funded status at the end of the year was 67.8%.

“While 2021 was a strong year financially for PERA, investment performance is just one factor among many that determine how much progress we’re making toward our goal of full funding,” said PERA Executive Director Ron Baker. “It’s important that we keep our focus on that long-term goal, monitoring and reacting to any changes to keep PERA on track.”

Automatic Adjustment Provision

When the Colorado General Assembly passed the package of PERA reforms known as Senate Bill 200 in 2018, the Legislature mandated that PERA reach full funding within 30 years — by the end of 2047. Included in those reforms was the Automatic Adjustment Provision (AAP), which automatically adjusts member and employer contributions as well as the Annual Increase (AI) paid to eligible benefit recipients if PERA is off-track to meet that target.

The AAP calculation is made on an annual basis, to take effect the following year. Based on 2021’s financial results, adjustments will not be necessary in 2023.

For more information, read the full ACFR here or visit copera.org/snapshot to explore the report’s highlights in an interactive format.

Board election results

The Board held an election for open seats in the School and State divisions in May and announced the final results at its June meeting.

Members of the School Division elected Scott Smith to represent them on the Board. Smith, chief financial and operating officer at Cherry Creek School District 5, fills a seat currently held by Guillermo Barriga, who did not seek re-election.

The State Division elected Tracy Marie Rushing. Rushing, a supervisor in the Division of Vocational Rehabilitation at the Colorado Department of Labor and Employment, fills a seat currently held by Ashley Smith, who was appointed to the Board in 2021.

In addition to the above results, the Board appointed two new Trustees. The Board appointed Catherine “Trina” Ruhland to represent the Local Government Division. Ruhland is a deputy county attorney with the Boulder County Attorney’s Office. Ruhland fills a seat vacated by Cheryl Pattelli, who left the Board in November 2021.

The Board appointed JB Phillips to represent the School Division. Phillips is a middle school science teacher in Fruita and fills a seat vacated by Tina Mueh, who retired at the beginning of June.

Ruhland and Phillips, as appointees, will serve seats until the next Board election in 2023.

Click here for more information on the Colorado PERA Board of Trustees.