July 2025 | Colorado PERA

A Closer Look at PERA’s 2024 Annual Report

Posted on July 22, 2025July 22, 2025 by Morgan

In June, PERA released its 2024 Annual Comprehensive Financial Report (ACFR), which contains detailed information on PERA’s finances, investment performance, and funded status for the year ended December 31, 2024.

The ACFR is a large report with a lot of information. We’re highlighting some of the key facts and figures from the report to make it easier to digest and to help those who want to know more about PERA’s finances.

A summary version of the ACFR is also available and you can explore highlights in an interactive format at copera.org/snapshot.

Plan Assets and Funding

2024 in review: $66.7 billion investment portfolio, 10.8% net rate of return, 219,204 active members, 412 employers, 57,232 PERACare participants, 69.2% funded status, 141,438 retirees and benefit recipients, $5.4 billion in annual benefit payments, $768.4 million invested in Colorado, 8.4% 30-year return. — Click or tap to enlarge

As of the end of 2024, PERA manages an investment portfolio of $66.7 billion for the defined benefit plans and $6.7 billion for the defined contribution plans. The defined benefit assets are split between five division trust funds from which PERA pays benefits: State, Local Government, School, Denver Public Schools, and Judicial.

The defined benefit trust funds saw a total of $12.4 billion in additions and $6.4 billion in deductions during 2024.

Across all five divisions, 219,204 members and 412 employers were actively contributing to PERA accounts. Member and employer contributions to PERA totaled more than $4.4 billion. Other additions included the State’s annual $225 million direct distribution and more than $96 million in service credit purchases.

Sixty-one percent of PERA’s investment assets are managed in-house by PERA staff, at an annual savings of $70 million compared to external management. Net investment income totaled more than $7.5 billion for the year.

PERA’s funded status at the end of the year – or the percentage of money PERA currently has on hand to pay all benefits earned to date – was 69.2%. While that represents a slight drop from the year before, PERA remains on track to meet its funding goals.

Benefits Paid

PERA paid a total of $5.4 billion in pension benefits to 141,438 retirees and benefit recipients, for an average monthly benefit of $3,264. The average age at retirement was 59.3 with 22.3 years of service credit. The remaining $1 billion in deductions included health care benefits and insurance premiums, member account refunds, and administrative expenses.

PERA provides benefits to nearly 1 out of every 10 Coloradans who are current and former teachers, State Troopers, snowplow drivers, correction officers, and other public employees who provide valuable services to all of Colorado. Of that $5.4 billion paid last year, approximately $4.6 billion went to more than 115,000 PERA retirees living in Colorado. That steady stream of income flows to every county in the state, providing stability to state, regional, and local economies.

Visit copera.org/snapshot for more details, including a county-by-county breakdown of benefits paid.

More Information

News You Should Know: How the New $6K Deduction for Seniors Works

Posted on July 22, 2025July 22, 2025 by Morgan

What to Know About the New $6,000 Tax Deduction | AARP

The recently passed tax and spending bill known as the One Big Beautiful Bill Act includes a new tax deduction for older Americans. The deduction—up to $6,000 per eligible taxpayer—applies to taxpayers who are 65 or older with a modified adjusted gross income of less than $175,000 ($250,000 for married couples filing jointly). The deduction takes effect for the 2025 tax year and is set to expire after the 2028 tax year.

Colorado Health Insurers Propose Huge Price Increases for 2026 | The Colorado Sun

Insurance carriers are asking the state to approve significant increases in plan premiums for people who buy health insurance on the individual marketplace. On average, insurers are proposing a 28.4% increase for 2026, but that percentage is even higher in more rural parts of the state. PERA staff are still working with carriers to finalize details for PERACare plans and we expect to have 2026 premium information available by October 1.

GENIUS Act: Trump Signs Stablecoin Bill He Championed | Axios

President Donald Trump signed into law a landmark cryptocurrency bill that establishes a regulatory framework for stablecoins, which are a type of digital currency that’s tied to relatively stable assets like the U.S. dollar. Critics have argued the bill doesn’t include enough guardrails or consumer protections, while proponents say the new regulations will pave the way for cheaper, more efficient ways to move money.

Why Gen Z Believes Side Hustles Are Key to a Secure Retirement | Investopedia

Research has shown that younger generations are thinking seriously about retirement and taking action to boost their finances. Not only are members of Gen Z saving for retirement earlier than older generations, but many of them are picking up extra work. A recent survey found over half Gen Z workers have a so-called “side hustle” that helps them pay down debt, save for retirement, and meet other money goals.

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

News You Should Know: What’s Included in the Federal Spending Bill?

Posted on July 9, 2025July 9, 2025 by Kurt Sevits

What’s in the Big Bill That Trump Has Signed into Law | AP News

Congress passed and President Trump signed the large tax and spending bill, known as the One Big Beautiful Bill Act, that President Trump has made a priority. The bill, which is nearly 900 pages long, makes a wide variety of changes to federal law, including extending tax cuts, creating new temporary tax deductions, boosting funding for border security, and reducing the number of people covered by Medicaid and food assistance programs.

The New Trend in Personal Finance: Revenge Saving | Forbes

You may remember the term “revenge spending” from the period following COVID-related lockdowns, which described the surge in spending that occurred as people began to resume regular daily activities. Now, there’s a reversal happening with many people opting for “revenge saving” instead. Experts say unlike traditional saving, which is often focused on long-term goals, revenge saving is more emotionally reactive and a response to economic volatility and uncertainty.

Where do Americans Go to Retire? Not Where You Think. | USA Today

While it’s long been known that retirees like to move to warm states like Arizona and Florida, recent analyses have found changing trends as retiree priorities shift. According to one such list, Wyoming is the top destination for retirees, followed by South Carolina and Idaho. Another ranking lists Massachusetts, Florida, and Illinois as top destinations for retirees. Experts say various factors beyond climate influence retiree migration, including proximity to nature, amenities, and cost of living.

The ‘First Year of Retirement’ Rule | Kiplinger

If you’re nearing retirement, you may be thinking about what your transition away from work looks like and daydreaming about the possibilities. But experts say that without careful planning, the first year of retirement can make or break the years that follow. Here’s why the first year is so important, and some tips for making sure you’re set up for success in retirement.

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

PERA Executives Give Updates, Take Questions at 2025 Town Halls

Posted on July 9, 2025July 9, 2025 by Kurt Sevits

PERA’s executive leadership team hosted two Town Halls on Tuesday, July 1 to provide updates on PERA and take questions from members and retirees.

CEO/Executive Director Andrew Roth was joined by Chief Investment Officer/Chief Operating Officer Amy C. McGarrity, Chief Benefits Officer Patrick Lane, and Chief Administrative Officer Jeremy Hill.

Below are clips of some of the executives’ answers to participant questions.

Full recordings of each Town Hall are available at copera.org/townhall.

How did PERA’s investment portfolio perform in 2024?

McGarrity highlighted PERA’s financial results from 2024, as reported in the recently released 2023 Annual Comprehensive Financial Report (ACFR).

“For the year ended December 31, 2024, PERA’s investment portfolio earned a return of 10.8% net-of-fees,” McGarrity said. “The value of the total defined benefit fund was $66.7 billion and our funded status was 69.2%.”

Based on 2024’s financial results, PERA remains on track to meet its funding goals. That means there will be no adjustments to contribution rates and all eligible benefit recipients will receive a 1.0% increase this July and most, if not all, will receive 1.0% in July 2026.

View more highlights from the 2024 ACFR at copera.org/snapshot.

If PERA’s investments earned positive returns in 2024, why aren’t retirees getting a bigger Annual Increase?

Roth acknowledged that the 1% Annual Increase retirees have received in recent years has been a challenge and reiterated that while PERA has unfunded liabilities, the Annual Increase is limited under state law to keep the plan on track to full funding.

“The good news is because we’re having strong investment returns, there is no decrease to the Annual Increase,” Roth said.

What will happen to my PERA benefits if there’s a recession?

“First and foremost, nothing happens to the benefits that are being paid,” McGarrity said, affirming that PERA would continue to pay earned benefits if there were a downturn in the economy.

As far as PERA’s portfolio is concerned, McGarrity said that because PERA is invested in the markets, it would likely experience the effects of a recession. However, the Board’s focus is on achieving returns over the course of decades, regardless of what happens in any one year.

“That’s really why the Board underscores a strategic approach and remains invested in the asset classes across the markets through various environments in order to achieve our very long-term objectives,” she said.

Does the repeal of the Windfall Elimination Provision and Government Pension Offset through the Social Security Fairness Act mean PERA members have to start contributing to Social Security?

“The short answer is no changes that resulted from the Social Security Fairness Act will impact PERA members with regard to their contributions,” Roth said, adding that PERA serves as a substitute for Social Security for most members, and a person’s PERA benefit is never affected by any other benefit they may receive.

PERA members who were previously affected by WEP or GPO will no longer see reductions in their Social Security benefits since those two provisions have been repealed.

For more information on the Social Security Fairness Act, visit ssa.gov.

What can retirees expect for PERACare plans in 2026?

“We will continue to offer the same plans and carriers for our Medicare and pre-Medicare offerings in the 2026 plan year,” Lane said. “We’re still in the process of finalizing premium information, but we do expect premiums to go up across the board next year, so I want to be very transparent about that.”

Lane added that while PERA does its best to negotiate competitive rates with PERACare carriers, there are many factors that affect premiums and other health plan costs, such as rising costs for services and prescription drugs and regulatory changes at the federal level.

We’ll have more information on 2026 PERACare premiums in the fall.

How do I know when I can retire and how much my monthly benefit will be?

“The PERA mobile app is a really valuable tool to help you through this process,” Lane said. “It has calculators, it can help you determine your dates for eligibility to receive benefits, and it can help you go through some hypothetical scenarios that would help you gain a better understanding of your retirement.”

Lane also pointed out other tools and resources that are available on PERA’s website, including highest average salary tables, webinars, and educational videos.

Town Hall recordings

For full recordings of both Town Halls, visit copera.org/townhall.

PERA Board Releases Annual Report, Announces Election Results at June 2025 Meeting

Posted on July 9, 2025July 9, 2025 by Morgan

The Colorado PERA Board of Trustees met on Friday, June 27. The Board released PERA’s annual financial reports, announced the results of Trustee elections, and more.

Annual Comprehensive Financial Report

At its June meeting every year, the PERA Board approves the release of the Annual Comprehensive Financial Report (ACFR) for the previous calendar year. The report contains detailed information on PERA’s financial health, operations, and membership.

As of December 31, 2024, PERA manages an investment portfolio of $66.7 billion for the defined benefit trust funds. The portfolio ended the year with a return of 10.8% net-of-fees. Over the past 30 years, the portfolio has earned an annualized return of 8.4%.

As of the end of the year, the combined funded ratio for the defined benefit trust funds was 69.2%. While that’s a slight decrease from the year before, it’s well within the expected range of volatility.

Based on 2024’s financial results, adjustments via the Automatic Adjustment Provision will not be needed in 2026. That means there will be no adjustments to contribution rates and all eligible benefit recipients will receive a 1.0% increase this July and most, if not all, will receive 1.0% in July 2026.

The ACFR and a summary version, the Popular Annual Financial Report (PAFR), are available online, and an interactive version with report highlights is available at copera.org/snapshot.

Board election results

Another important item the Board completes at its June meeting is releasing the results of Trustee elections. This year, elections were held to fill five seats on the Board:

School Division: Trustees Marcus Pennell and Eunice Botchway were each reelected to 4-year terms and Tonya J. Thompson was elected to a 1-year term.
State Division: Maruti D. Moré was elected to a 4-year term.
Retiree: Tina Mueh was elected to a 4-year term.

Elected Trustees began their terms on July 1.

In addition to the above election results, the Trustees voted to elect Trina Ruhland as Vice Chair of the Board. Trina Ruhland fills the role that was vacated by Hon. Rebecca R. Freyre, who assumed the role of Chair to replace outgoing Chair Taylor McLemore.

Legislative update

Director of Public and Government Affairs Michael Steppat joined CEO/Executive Director Andrew Roth to discuss the recently concluded legislative session. In total, legislators introduced 657 bills over the course of four months, 476 of which passed and were signed into law.

Four of those enacted bills related to PERA. They modify things such as Board terms and meeting rules, the timing of some PERA reports, the employer contribution rate in the Denver Public Schools Division, and funding for voter-approved Proposition 130.

Steppat also briefed the Trustees on upcoming legislative hearings that PERA staff will attend as part of the State’s regular review and oversight of PERA. While the Pension Review Commission and Pension Review Subcommittee won’t be meeting this summer as usual due to a bill pausing interim committee activity, PERA staff will appear before the Legislative Audit Committee in August and the Joint Budget Committee sometime in the fall.

In addition, PERA is awaiting the results of an independent study comparing the cost and effectiveness of the PERA Defined Benefit Plan to alternative plan designs. We expect to receive that study this summer.

Investment performance update

Chief Investment Officer/Chief Operating Officer Amy C. McGarrity and the Board’s investment consultant, Aon, discussed financial markets and economic conditions in 2024 and so far in 2025.

While markets started 2024 with strong positive returns, the second half of the year saw increased volatility, with fixed income and real estate assets in particular struggling to make up losses. In PERA’s portfolio, strong returns from global equities were a major factor in our 10.8% overall return. According to Aon, PERA’s portfolio performed better than 85% of public pension funds in its peer group in 2024, and the 10-year return of 8.3% was better than 95% of the peer group.

In the first quarter of 2025, uncertainty around federal trade policy contributed to market downturns, particularly in global equities. Since then, markets have largely recovered, with both equities and bonds up for the year so far, Aon said.

The PERA Board’s strategic asset allocation and focus on long-term performance has paid off, according to Aon, allowing PERA to beat its benchmark returns over the course of multiple decades.

What’s next?

A recording of the Board meeting and accompanying materials are available at copera.org.

The Board’s next regularly scheduled meeting is the annual planning session from September 17 to 19.