Month: June 2024

PERA Board Releases 2023 Annual Report

Posted on by Kurt Sevits

At its June meeting, the PERA Board of Trustees released the 2023 Annual Comprehensive Financial Report, which contains a detailed account of PERA’s finances, investment performance, and funded status for the 2023 calendar year.

The report provides a wealth of information for anyone who wants to know more about PERA’s financial health, operations, and membership. Below we highlight some key numbers from the report and what they mean for members and retirees.

Financial highlights

An overview of PERA's financial results from 2023. Investment portfolio fair value: $61.5 billion. Net rate of return: 13.4%. Members actively contributing to PERA: 213,548. Employers: 410. Total covered participants: 59,470. Funded status: 69.6%. Retirees and benefit recipients: 138,553. Annual retirement benefit payments: $5.3 billion. Invested in Colorado-based companies, partnerships, and assets: $788.9 million. 30-year rate of return: 8.3%.
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As of December 31, 2023, PERA manages an investment portfolio of $61.5 billion for the defined benefit trust funds. The portfolio ended the year with a positive return of 13.4% net-of-fees. Over the past 30 years, the portfolio has earned an annualized return of 8.3%.

In total, PERA paid $5.3 billion in retirement benefits to more than 138,000 retirees and benefit recipients in 2023.

As required by state law, PERA is on a path to full funding by 2048, and as of the end of the year, the combined funded ratio for the defined benefit trust funds was 69.6%.

Want to know more? Explore highlights from the ACFR in an interactive format here.

What the numbers mean

The bottom line is member contributions and retiree benefit increases will remain at their current levels.

The Automatic Adjustment Provision, which went into effect with Senate Bill 200 in 2018, adjusts member and employer contributions and annual benefit increases based on PERA’s funding progress. The calculation is made on an annual basis, to take effect the following year.

Based on 2023’s financial results, adjustments via the provision will not be needed next year. That means member contributions will remain unchanged in 2025. Employer contribution rates also will not change as a result of the provision. Eligible benefit recipients will receive a 1% Annual Increase in July 2024 and another 1% Annual Increase in July 2025.

More resources

News You Should Know: New Laws Going Into Effect July 1

Posted on by Kurt Sevits

New Colorado Laws Go Into Effect July 1, 2024 | 9News

During the recently concluded legislative session, state lawmakers passed more than 500 bills and sent them to Gov. Jared Polis for action. Of the bills signed into law, some are now starting to go into effect. Here are details on new laws taking effect July 1, including one pertaining to PERA retirees returning to work in school districts.

The “Lag Effect” of High Interest Rates is Playing Out | Marketplace

When the Federal Reserve began raising interest rates in an effort to tamp down inflation in 2022, it did so with the understanding that the effects of higher rates would take some time to be realized. Experts say we’re now seeing some of those effects, though relief in the form of lower rates may not come as soon as previously expected.

Don’t ‘Just Set It and Forget It’: How To Do a Mid-Year Financial Checkup | CNBC

We’re halfway through 2024, and it’s a great time to pause and take stock of your financial situation for the year so far and gauge your progress toward meeting any goals you might have made. Taking a look at your cash flow, account balances, and even thinking ahead to next year’s tax returns can all help you make sure you’re on the right track.

8 Little-Known Facts About RMDs | Morningstar

If you’re retired, you’re probably familiar with required minimum distributions (RMDs) which are retirement account withdrawals you have to take from plans like IRAs and 401(k)s each year once you reach a certain age. But knowing when to start taking them and how much to withdraw can be a challenge, especially as rules change. Here are some tips and some common misconceptions about RMDs.

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

Changes Coming Soon to ‘PERA On The Issues’

Posted on by Kurt Sevits

Soon, things will look a little bit different around here.

PERA On The Issues is moving to a new (but familiar) home. All the content you see here will soon be located on PERA’s main website, copera.org.

Beginning in late June, you’ll find PERA On The Issues at copera.org/pera-on-the-issues, where the articles will be shown alongside the rest of PERA’s informational and educational content.

Why the change?

We want to make sure all the content on PERA On The Issues is as convenient and accessible as possible for our readers. That’s a major reason we’re moving the blog to the same website where we post other news and information for PERA members, retirees, and stakeholders.

Beyond streamlining our online content publishing and management, moving PERA On The Issues articles to our main website will ensure the content meets our accessibility and brand standards. It also removes any doubt that the information you’re reading is coming directly from Colorado PERA.

With this move, copera.org will be a one-stop online location for information about PERA benefits, educational webinars, Board of Trustees meetings, account management, and more. That means it will be easier to find all the relevant information on a topic with fewer clicks.

What’s not changing

While the blog location is moving, we’re not changing anything about the topics we cover or how often we post new articles. You’ll still receive a biweekly email with news about PERA and retirement security in four categories: Inside Colorado PERA, Issues & Perspectives, Legislation & Governance, and News You Should Know, and we’ll still share those articles on our social media channels and elsewhere.

We’ll continue to focus on legislation and policy that are important to PERA’s stakeholders, as well as other timely news about public employee retirement.

We encourage you to take a look at the new homepage when it launches on June 28 and let us know what you think. And as always, you can join the conversation on any of our social media pages—we’re on Facebook, Instagram, and LinkedIn. You can also email us at POTImail@copera.org.

News You Should Know: IRS Making Direct File System Permanent

Posted on by Kurt Sevits

IRS Makes Direct File a Permanent Option to File Federal Tax Returns | Internal Revenue Service

During the last filing season, the Internal Revenue Service tested out a new system that allowed taxpayers in a dozen states to file directly with the IRS rather than using third-party tax preparers or software. The IRS says it plans to expand the system nationally and cover additional tax situations next year.

Texas is Coming for Wall Street With a New BlackRock-Backed Stock Exchange | CNN Business

The New York Stock Exchange and Nasdaq may get all the attention, but they’re not the only stock exchanges in the United States, and there could soon be one more. A group backed by some large investors is planning to open a new national exchange in Dallas, Texas. The group is aiming to have the new stock exchange up and running in 2026.

Most Older Adults Don’t Know About Resources That Can Help Them Navigate Aging & Caregiving | National Poll on Healthy Aging

A recent poll of Americans over the age of 50 found many people aren’t aware of and don’t use services and programs aimed at helping aging adults. The National Poll on Healthy Aging found fewer than 10% of people had used or knew a lot about programs such as Area Agencies on Aging (AAAs) and State Health Insurance Assistance Programs (SHIPs), which offer support at the local level.

Four Things You Need to Know About Your Aging Parents | Kiplinger

As members of Generation X and Millennials get older, they’re increasingly finding themselves stepping into the roles of caregivers for aging parents. Those parents haven’t always taken the necessary steps for succession planning or communicated their needs and wants to their children, so it’s important to ask the right questions. Here are some tips for getting started.

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