News You Should Know: Trump Moves to Establish U.S. Sovereign Wealth Fund

What is a Sovereign Wealth Fund and Why is Trump Creating One Now? | The Guardian

President Donald Trump signed an executive order directing the Treasury and Commerce Departments to create a sovereign wealth fund. Common in oil-rich countries like Norway and Saudia Arabia, sovereign wealth funds often serve as a national pool into which countries can invest surplus funds for the greater good.

Survey Finds Support for Raising Taxes for Social Security | AARP

The country may be sharply divided politically, but Americans can agree on the value of Social Security. In a new survey from AARP and the National Academy of Social Insurance, 85% of respondents said Social Security benefits should be maintained or increased, even if that means paying higher taxes. That support is consistent across party lines, with strong majorities of Republicans, Democrats, and independents all supporting increasing revenue.

Personal Finance Classes are the New Hotness on Campus | Fortune

In school districts around the country, there’s a growing emphasis on the importance of teaching financial literacy, and that trend continues into college. In fact, students are so eager to sign up for personal finance classes that some colleges and universities have waitlists for those courses.

Public Health Worker Shortage Could Mean Challenges For Long-Term Care Providers | McKnights Senior Living

A new report from the U.S. Government Accountability Office found there’s a significant gap between the number of public health workers needed around the country and actual staffing levels. The report said public health emergencies such as the COVID-19 pandemic exacerbated the issue, but the Department of Health and Human Services has taken some steps to address the shortage.


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

Social Security Fairness Act Rollout Could Take A Year or More

Public employees hoping to see larger Social Security benefit payments following the repeal of the federal Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) may have a long wait.

While the Social Security Administration (SSA) hasn’t provided a timeline for when changes will take effect, officials are warning the process of recalculating and paying benefits for millions of beneficiaries will likely take a significant amount of time to complete—potentially a year or more.

What we know so far

Congress passed H.R. 82, the Social Security Fairness Act, in late December and President Joe Biden signed the bill in early January. The bill repeals WEP and GPO, which for decades had reduced Social Security benefits for retirees who also received a pension for work not covered by Social Security.

As enacted, the bill applies to benefits payable after December 2023, meaning affected retirees who were already receiving Social Security benefits in 2024 will be owed back payments once their benefit is recalculated. So far, SSA hasn’t said whether those back payments for 2024 will come as a lump sum or be included in future benefit payments.

Why the long timeline?

There are a couple reasons why implementation of the Social Security Fairness Act could have an extended timeline, with staffing and funding being two of the biggest challenges.

According to SSA, the agency is understaffed and has been under a hiring freeze since November 2024, meaning it is unable to bring on any additional staff to help with implementation or answering the phones. In addition, the Social Security Fairness Act did not include any funding to pay for any of the administrative costs associated with this significant change in federal law, SSA said.

Unless SSA receives additional funds or the staffing freeze is lifted, the agency will have to work within its current budget and staffing levels to complete all the changes required under the law.

How to stay in the loop

The Social Security Administration will continue to provide updates on its website, and more information should be available in the weeks and months ahead.

We will be closely monitoring this issue and will post updates on PERA On The Issues when available. To stay in the know, be sure to subscribe to the biweekly newsletter.

Recap of PERA Board’s January 2025 Meeting

The PERA Board of Trustees gathered at PERA’s offices in Denver on Friday, January 17 for its first regularly scheduled meeting of 2025.

The meeting consisted of important updates and discussions about legislation, strategic planning, actuarial assumptions, and more.

Legislative update

Director of Public & Government Affairs Michael Steppat and CEO/Executive Director Andrew Roth led the Board in a discussion about the legislative session and PERA-related bills, including two that have been introduced so far.

The first, House Bill 1052, is identical to a bill from last session that would provide a temporary tax credit for PERA retirees to reduce the impact of inflation. The second, Senate Bill 28, would codify into state law certain reporting practices the PERA Board already performs on a regular basis and would modify the cadence of those reports.

READ MORE: 2025 Proposed PERA-Related Legislation Status

Steppat also addressed Governor Jared Polis’ proposed “conversion” of Pinnacol Assurance, which is currently the State’s workers’ compensation insurer. That conversion would carry implications for PERA, since Pinnacol employees are currently PERA members and Pinnacol would have to disaffiliate from PERA if it were to become a private entity. The Governor’s proposal also calls for using proceeds from the conversion to offset the State’s annual $225 million direct distribution to PERA.

PERA CEO/Executive Director Andrew Roth concluded by providing an update on the Social Security Fairness Act, which President Joe Biden recently signed into law. The bill repeals Social Security’s Windfall Elimination Provision and Government Pension Offset, two provisions that reduced Social Security benefits for some PERA members. Roth said he expects it will take some time for the Social Security Administration to release details about how the bill will be implemented. Visit ssa.gov for the latest information.

Rules hearing

PERA’s legal team joined the Board to conduct a hearing on proposed changes to rules that govern some PERA benefit provisions. The Board and staff periodically review those rules to ensure they’re up to date, clarifying processes and procedures and updating language to reflect legislative changes.

Changes approved in this rule hearing included:

  • Removing the list of PERA-affiliated employers from PERA Rules, as this list is posted and regularly updated online.
  • Clarifying that designations of beneficiaries, cobeneficiaries and coannuitants can be made electronically.
  • Updating rules for working after retirement to align with recently passed legislation.

The full text of proposed changes is available online.

Strategic plan update

The Board continues to work on drafting PERA’s next strategic plan. During the meeting, Trustees reviewed the draft plan and provided feedback.

Incorporating feedback from previous discussions and work sessions, the draft plan sorts PERA’s strategic objectives into three main goals:

  • Financial stability: Strengthening PERA’s long-term financial health
  • Customer/stakeholder experience: Serving as a trusted partner to members and stakeholders
  • Organizational excellence and modernization: Creating value through high performance and strong governance

The Board is expected to sign off on the final version of the plan at its March meeting, after which PERA staff will begin the work of implementing and executing the plan.

Actuarial experience study results

For several months the Board’s actuarial consultant, Segal, has been conducting what’s known as an experience study. That analysis involves comparing current actuarial assumptions—factors such as expected investment returns, price inflation, payroll growth, and life expectancy—to the economic outcomes and member behaviors experienced over the past several years. That process, which takes place every few years, ensures PERA has an accurate picture of its financial health.

As a result of the study, Segal recommended adjustments to some demographic assumptions and the Board voted to adopt those recommendations for the 2024 Annual Comprehensive Financial Report, which will be released in June.

READ MORE: Actuarial Experience Study: Refining the Financial View of the Future

Update on legacy modernization initiative

One of the final agenda items was an update from CEO/Executive Director Andrew Roth. Roth discussed the long-term initiative to modernize the core technology systems used to administer benefits—a major project that is expected to take multiple years to complete.

Roth said the project is still in the beginning stages with staff conducting preparatory work, including data cleanup, staff development, and business process improvements. Roth will continue to provide the Board with updates on this major initiative as it moves forward in the coming months and years.

The Board’s next scheduled meeting is set for March 14.

Learn more at copera.org/board-and-leadership.

Actuarial Experience Study: Refining the Financial View of the Future

The Colorado PERA Board of Trustees has wrapped up work on an important periodic study that helps ensure better accuracy of PERA’s financial calculations.

Known as an actuarial experience study, the analysis gives retirement plans like PERA a periodic refinement or more accurate picture of their financial health and future obligations.

Planning for the future

PERA is in the business of providing retirement benefits for as long as a person lives, and that presents a unique challenge: Making sure we have an accurate sense of how much it will cost to pay those benefits over several decades and beyond.

Because a retiree’s benefit in the PERA Defined Benefit Plan is based on their age, years of service, and salary history, we need to be able to predict how certain factors will change over time, such as:

  • Expected lifespan of the retiree population
  • Expected pay increase patterns over the career of active members
  • Typical ages at which active members retire
  • Expected annual investment return, in the long-term
  • Expected change in the value of a dollar (rate of inflation)

Those factors are referred to as actuarial assumptions, and they’re grouped into either economic assumptions (inflation and investment returns) or demographic assumptions (rates of mortality and retirement). Together, the assumptions play a key role in the calculations PERA conducts every year as reported in its actuarial valuations and Annual Comprehensive Financial Report.

RELATED: Explaining the Role of Actuaries in Retirement Plans Like PERA

The process of reviewing and refining actuarial assumptions is known as an experience study, so called because it involves comparing the assumptions with what actually happened over a set period of time. For example, if wage growth is much different than expected during the period of study, some adjustments to that assumption are likely needed going forward.

PERA typically conducts an actuarial experience study every four years. This year’s experience study offered additional challenges because the period studied, from January 1, 2020, to December 31, 2023, encompassed effects of the COVID-19 pandemic. Special consideration was needed to ensure the higher mortality and greater number of unreduced retirements were not inappropriately reflected within the revised assumptions.

Experience study results

The PERA Board’s actuarial consultant, Segal, conducted the experience study and provided the Board with recommendations for adjustments to various assumptions as a result.

Segal recommended the following adjustments to demographic assumptions:

  • Salary scale assumptions were altered to better reflect actual recent experience.
  • Assumed rates of termination, retirement, and disability were revised to more closely reflect actual experience.
  • Mortality base tables were retained with revised adjustments for credibility and gender, where applicable, and the applied generational projection scale was updated for all groups.
  • Administrative expense load was increased from 0.40% to 0.45%, as a percentage of covered payroll.
  • Assumed annual membership growth (for projection purposes only) was decreased for the School, Local Government, and DPS Divisions.
  • Assumed rates of PERACare participation for both Health Care Trust Funds were reduced to better reflect actual recent experience.

Segal recommended retention of the current economic assumptions, including the long-term expected rate of return (7.25%), price inflation (2.3%), and wage inflation (3.0%).

The Board voted unanimously to adopt all recommendations for the five Division Trust Funds and the two Health Care Trust Funds.

What the changes mean

First and foremost, changes in PERA’s actuarial assumptions do not affect the payment of retirement benefits. If you’re a PERA retiree, you’ll continue to receive your monthly benefit payments as expected, and working members can count on PERA providing benefits when they retire.

The main impact of the experience study is on PERA’s current and projected liabilities—which help determine how much money PERA will need to have on hand to pay benefits for its members.

The recent experience review noted over the period studied, that certain assumptions resulted in liability gains while others resulted in liability losses. However, the net result was an actuarial loss overall—meaning, the revised assumptions will likely result in a negative effect on PERA’s funding status.

The exact impact of the updated assumptions won’t be clear until the release of the Annual Comprehensive Financial Report (ACFR), as that will be the first time the revised assumptions are incorporated into PERA’s annual valuation process—assessing plan liabilities and other important actuarial metrics.

The 2024 ACFR will be available following the PERA Board’s June 27, 2025, meeting.

News You Should Know: What a New Administration, Congress Mean for Older Americans

New Congress, New President: Now What for Older Americans?

A new Congress and a new presidential administration are underway, bringing with them the potential for a slew of potential policy changes at the federal level. Here’s a look at some of what we can expect on topics such as Social Security and Medicare.

IRS Announces Jan. 27 Start to 2025 Tax Filing Season | Internal Revenue Service

Ready or not, tax season is upon us. The Internal Revenue Service says it will begin accepting tax returns on Monday, Jan. 27. The IRS also announced its Direct File pilot program has been expanded to include more states (though taxpayers in Colorado are not yet eligible to participate). PERA retirees can access tax forms in their secure member account and paper forms will be mailed at the end of January.

Prices for Top Medicare Part D Drugs Have Nearly Doubled Since Entering the Market | AARP

A new analysis by AARP found that prices for the prescription medications that account for the most spending in Medicare Part D have risen by an average of 98 percent since entering the market. Note that PERACare plans protect against drug price increases by offering no deductibles for prescriptions, flat copays, and a cap on out-of-pocket costs.

More SECURE 2.0 Retirement Enhancements Kick in This Year | Kiplinger

Congress passed the large package of retirement-related provisions known as the SECURE Act 2.0 several years ago, but many aspects of the bill are still going into effect. This year, changes taking effect include automatic enrollment in 401(k) and 403(b) plans, expanded access for part-time workers, and a retirement savings lost and found.


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

2025 Proposed PERA-Related Legislation Status

The 2025 legislative session commenced January 8 and will continue for up to 120 days.

Below you’ll find summaries of proposed legislation affecting Colorado PERA. The status of each bill will be updated regularly.

Last updated: February 4, 2025


SB25-028

Public Employees’ Retirement Association Risk-Reduction Measures

Summary: Codifies into state law certain reporting practices the PERA Board already performs on a regular basis and modifies the cadence of those reports, including actuarial experience studies and independent reviews of actuarial audits.

Sponsors: Rep. Eliza Hamrick, Rep. Rick Taggart, Sen. Chris Kolker

Status: Introduced Jan. 8, scheduled for hearing in Senate Finance Committee Feb. 11.

HB25-1052

Income Tax Credit for Public Employees’ Retirement Association Retirees

Summary: Creates a temporary refundable tax credit of $700 for qualifying PERA retirees. To qualify, a retiree would have to be 65 or older at the end of tax year 2025 or 2026, and have annual gross income of no more than $38,000 for single tax filers or $76,000 for joint filers.

Sponsors: Rep. Eliza Hamrick, Rep. Rick Taggart, Sen. Chris Kolker

Status: House Finance Committee voted to postpone indefinitely Jan. 27.

HB25-1105

PERA True-Up of Denver Public Schools Division Employer Contribution

Summary: Would reduce the total employer contribution rate for the Denver Public Schools Division from 10.4% to 7.4% of salary beginning July 1, 2025.

Sponsors: Rep. Sean Camacho

Status: Introduced Jan. 27; assigned to House Finance Committee.

HB25-1150

Forfeiture of PERA Benefits by Sex Offenders

Summary: Requires a PERA member to forfeit part of their retirement benefits should that individual be convicted of a sex crime. It would also establish a new fund into which forfeited benefits would be transferred and these monies would be used to provide grants to survivors of a sex crime for necessary medical and mental health resources.

Sponsors: Rep. Ron Weinberg

Status: Introduced Jan. 29; assigned to House Finance Committee.

News You Should Know: The 2024 Stock Market by the Numbers

How the Stock Market Defied Expectations in 2024, by the Numbers | PBS News

2024 was a great year for the stock market. The S&P 500, for example, notched dozens of all-time records as stocks soared throughout the year. Here are more notable numbers from the market’s performance. Note that PERA’s 2024 investment performance data won’t be available until the Annual Comprehensive Financial Report is released in June.

Understanding the Fed’s Rate Decisions: Do We Want High or Low Interest Rates​? | Yahoo Finance

The past several years have been notable for the Federal Reserve’s interest rate moves—the Fed began raising its key interest rate in 2022 and it remained high through much of 2024 before the Fed began lowering the rate in September. It’s not always easy to understand the implications of these decisions, so here are some pros and cons of high and low interest rates for various financial situations.

Here’s How to Maximize Your 401(k) Plan for 2025 with Higher Limits, Bigger Catch-Up Contributions | CNBC

If you’re saving additional money for retirement in a PERAPlus 401(k) or 457 Plan, you have the opportunity to boost your savings even more this year. The amount of money you can contribute to those plans is going up in 2025, and there’s also a new, higher catch-up contribution limit for workers who are getting closer to retirement.

How To Make Financial Resolutions You Can Actually Stick To In 2025 | Investopedia

It’s that time of year when many of us are setting intentions and resolutions for the new year. If you’re making money goals, here are some tips for making sure they’re realistic and achievable so you’re set up for success.


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

President Biden Signs WEP/GPO Repeal Bill into Law

Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) will soon be no more.

After legislators took historic action to pass the Social Security Fairness Act in the final hours of Congress in late December, President Joe Biden signed the bill into law on Sunday, Jan. 5.

It’s now up to the Social Security Administration to begin implementing the changes.

Why it matters

The bill removes from federal law Social Security’s WEP and GPO, two provisions that can significantly reduce Social Security benefits for retirees who also receive retirement income from work that wasn’t covered by Social Security. In Colorado, most public employees do not contribute to Social Security and therefore faced reductions to any earned Social Security benefits under WEP and GPO if they or their spouse contributed to Social Security before or after their public sector employment.

Lawmakers had been trying for decades to remove or modify WEP and GPO, but those bills never made it to the floor of the House or Senate for a vote. The passage of the Social Security Fairness Act in 2024 marks a historic change; removing those two provisions means the public employees affected by them will no longer receive reduced Social Security benefits.

As written, the bill’s changes are effective for Social Security benefits payable starting in 2024 and beyond.

What does repeal mean for PERA members?

At this early stage, there are still a lot of questions about how the bill will be implemented. The Social Security Administration has not yet released any details on when or how any changes might take place. Visit ssa.gov for the latest information from the Social Security Administration.

It’s important to note the repeal of WEP and GPO does not affect a PERA retiree’s PERA benefit; the changes only apply to Social Security benefits. Any questions about Social Security benefits should be directed to the Social Security Administration.

Throughout the legislative process, much of the debate on the bill had to do with its cost—the Congressional Budget Office estimates it will require nearly $200 billion in additional spending over the next decade to provide larger Social Security benefits to those affected by WEP and GPO. That additional cost could also accelerate the depletion of the Social Security trust funds, which may add urgency to legislative efforts to shore up the program.

PERA On The Issues will continue to closely monitor this issue and provide updates when available. Be sure to subscribe to our biweekly newsletter and follow Colorado PERA on social media (we’re on Facebook, Instagram, and LinkedIn) for the latest information.

What to Expect from the 2025 Legislative Session

State lawmakers convened at the Capitol Building in Denver on January 8 to begin the 75th Colorado General Assembly. Over the course of 120 days, legislators will introduce and debate hundreds of bills that could become law.

As in past legislative sessions, a handful of those bills will be related to PERA and its members. We caught up with PERA Director of Public & Government Affairs Michael Steppat ahead of the new session to get his perspective on what to expect.

What role does the State Legislature play in PERA?

While the PERA Board of Trustees is responsible for administering benefits and overseeing PERA’s investments, the Colorado General Assembly is responsible for many other aspects of PERA, such as contribution rates, benefit levels, providing oversight through various legislative committees, and setting the amount of the annual benefit increases that retirees receive.

It’s important to make sure lawmakers understand how PERA works and how legislation can potentially affect our funding progress. The majority of time spent in the weeks leading up to the start of the new session involves meeting with legislators and other stakeholders on PERA-related issues and potential legislation for the upcoming session.

How does the recent election impact PERA?

Due to term limits for state legislators in Colorado and just natural turnover, the previous election cycle and futures cycles include many individuals being elected for the very first time. This means it is an ongoing process to educate lawmakers on PERA-related issues. As is the case with most public policy issues, there are very few who are experts right out of the gate in every aspect of an issue and this is especially true with a state retirement system. There will certainly be incoming lawmakers with experience in finance or investments or actuarial science, but it is not common for someone to have experience in all aspects of a pension plan like PERA.

A primary focus, both year-round and following a recent election, is to meet with and educate lawmakers. To get a good sense of how quickly the state legislature turns over, just look at how many legislators are still part of the General Assembly who voted on Senate Bill 200 in 2018—it’s fewer than a dozen out of 100 total legislators.

We already have an idea of some of the PERA-related legislative issues lawmakers will be looking at this year. Can you tell us more about that?

Legislative work doesn’t only happen while the General Assembly is in session—throughout the summer and fall, various “interim” (the period when the legislature is not in regular session) committees meet and begin work on studying issues and drafting bills for the next session. This past September, the Pension Review Commission drafted two bills related to PERA.

The first, known as Bill A (until it is given a bill number after being officially introduced), is identical to a bill from last session that would provide a temporary tax credit for PERA retirees to reduce the impact of inflation. The second, Bill B, would codify into state law certain reporting practices the PERA Board already performs on a regular basis and would modify the cadence of those reports.

READ MORE: State Lawmakers Pursuing Two PERA-Related Bills in 2025

In addition, there’s been discussion at the Capitol regarding a potential ”conversion” of the State’s share of Pinnacol Assurance, which is currently the State’s workers’ compensation insurer, after the proposal was included as part of the Governor’s budget request to the General Assembly last month. The proposed conversion has two main aspects related to PERA that were both included in the budget request. The first is that if Pinnacol becomes a private entity, then it cannot continue to be part of PERA both for current and future employees, and it would have to disaffiliate from PERA. The second involves using the proceeds from the sale of Pinnacol to offset the State’s $225m ‘direct distribution’ payment to PERA in future years.

Aside from PERA-related topics, what are some other legislative priorities lawmakers will likely be pursuing this year?

A top priority for the Legislature this session will be coming up with a balanced budget. When Gov. Jared Polis submitted his budget proposal to the Joint Budget Committee, it included nearly $700 million in cuts to fill a projected funding gap. The Legislature ultimately develops the State budget, and they may have different ideas for how to make up the shortage, so we’ll be closely monitoring as that process plays out to see if there are implications to PERA.

It is important to note PERA benefits come out of the trust funds reserved for paying those benefits, which are funded through contributions from employees and their employers as well as investment returns.

At the federal level, a new Congress is just getting underway. What can we expect in Washington, DC?

The beginning of the year will be busy for Congress. The House and Senate convened on January 3, and President Trump will be sworn in for his second term on January 20. Then, Congress will begin confirmation hearings for Trump’s various nominees. With Republicans controlling the White House and both chambers of Congress, we can expect to see the party try to push through many of its legislative priorities on issues such as immigration, trade, and regulation. One policy issue at the federal level which does often impact PERA more than many others is changes to healthcare policy and we will continue to monitor what, if any, proposals come forward in that respect.

In the final days of the last Congress, legislators took the historic step of approving a bill to repeal Social Security’s Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), and President Biden has since signed the bill into law. What’s the latest on that issue?

Congress had been trying to repeal or modify WEP and GPO for decades without success, but the political environment was just right to make it happen at the end of 2024. We were encouraged to see legislators take action to improve the retirement security of public employees and we’ll be watching closely to see how the repeal of those two federal provisions unfolds.

There’s still a lot we don’t know at this point—it’s unclear what the implementation of the Social Security Fairness Act will look like, and the Social Security Administration has yet to release any details. As written the bill should apply to Social Security benefits paid in 2024, so some retirees may be owed additional benefit payments, but we don’t yet know when that might happen.

What do you recommend to anyone who wants to get involved in the legislative process?

I always tell people the most important thing they can do is contact their legislators about issues that are important to them. In addition, the General Assembly website has lots of great information. You can listen to committee meetings, view calendars, review the status of a bill, and sign up to testify at committee meetings.

And of course the biweekly PERA On The Issues newsletter will have up-to-date information on any legislation that affects PERA.

News You Should Know: How Will Colorado’s Economy Fare in 2025?

Colorado Experts Predict What the Economy Will Look Like in 2025 | The Colorado Sun

Every year, local experts have the difficult task of taking stock of the state economy and predicting what a new year will bring. For 2025, experts say the state’s population continues to grow, albeit slower than in years past. And that slower growth rate could have a ripple effect on the job market as employers struggle to find enough employees to fill open positions.

IRS Urges Many Retirees to Make Required Withdrawals by Year-End Deadline | Internal Revenue Service

If you’re retired and you have savings in a defined contribution plan like a 401(k), 457, or IRA, you’re likely required to make minimum required distributions (RMDs) by the end of each year. The IRS sent out a notice reminding retirees of the deadline and new rules enacted under the SECURE 2.0 Act.

Quiz: Test Your Financial Literacy | Kiplinger

How would you rate your financial literacy? Believe it or not, three simple questions can help you gauge your literacy. If you can correctly answer all three multiple-choice questions, you’re doing better than over half of all Americans.

Baby Boomers Are Aging, and Most Want to Stay at Home Forever | USA Today

A recently released survey from AARP finds that an overwhelming majority of Americans say they want to stay in their homes and their local communities while they age, but many are unsure they’ll be able to do so. Half of the survey’s respondents said they were not confident their current living situation will meet their needs in the future, and over half of that group said they expect to move.

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