A New York lawmaker has introduced a bill in Congress that would reduce the amount of federal tax retirees owe on public pension income. Under current law, the federal government taxes pension payments like ordinary income, but the Public Service Retirement Tax Relief Act could provide tax relief up to $10,000 for individual taxpayers, if passed.
New rules took affect this month for the Public Service Loan Forgiveness program, which forgives student loan balances for borrowers working in government and other public service jobs. Here’s what to know about what’s changing and who remains eligible for the program.
Are you planning to retire “forward” or “backward”? While many people look ahead to retirement and picking up new hobbies or experiences, there seems to be a growing trend among younger retirees and soon-to-be-retirees of looking back at the things they enjoyed earlier in life and resuming those activities in retirement.
We’re already more than halfway through 2026, and while many people wait until the end of the year or the new year to assess progress toward financial goals, mid-year is a great opportunity for a check-up. The Center for Retirement Research at Boston College has some suggestions for taking stock of your financial situation and making adjustments as needed.
News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.
PERA’s executive leadership team hosted two Town Halls on Thursday, July 9 to provide updates on PERA and take questions from members and retirees.
CEO/Executive Director Andrew Roth was joined by Deputy Executive Director Sarah Wager, Chief Investment Officer/Chief Operating Officer Amy C. McGarrity, and Chief Benefits Officer Patrick Lane.
We’re providing clips of some of the answers to participant questions here, and full recordings of each Town Hall are available at copera.org/townhall.
Why doesn’t the Annual Increase for retirees keep up with inflation?
It’s important to note the amount of PERA’s Annual Increase is set in statute and can only adjust up or down based on PERA’s funding progress—along with member and employer contributions—and cannot exceed 2% while PERA has unfunded liabilities.
However, Roth said he has been in conversation with legislators to explore potential options for providing relief to retirees without negatively affecting PERA’s financial position.
“I want you to know that we hear what you’re saying and we’re committed to listening so that I can carry this message to policymakers and to our advocacy groups to try and figure out ways to provide relief, if not in the short term then definitely in the near- to medium-term,” Roth said.
How does PERA decide what to invest in?
Chief Investment Officer/Chief Operating Officer Amy C. McGarrity called attention to PERA’s annual Investment Stewardship Report, which provides detail into how staff manage plan assets with a focus on financial sustainability. The report and an interactive dashboard with report highlights are both available online.
“Generally speaking, the Board determines the strategic asset allocation, so from there we have an investment team internally that implements that asset allocation,” McGarrity said. “They implement it at the asset class level, so all five of our asset classes have teams that are responsible for delivering on the Board’s expectations.”
What is PERA doing about the rising cost of health care?
“While PERA can’t directly control healthcare costs or guarantee that premiums will stay the same from year to year, we do work closely with our carriers and offer competitive plan options,” Chief Benefits Officer Patrick Lane said. “We negotiate as effectively as possible and provide clear information so you can choose the coverage that best fits your needs.”
PERA carefully selects carriers for PERACare plans based on their ability to deliver exceptional customer service, ensure continuity of care, provide strong provider networks, and offer reliable, easy-to-navigate coverage that meets the unique needs of our retirees. Health carriers for some PERACare plans will be changing for 2027.
Does PERA face the same risk of insolvency that Social Security is facing in the near future?
Roth explained that PERA benefits remain secure and retirees do not have to worry about any reduction in benefits like what Social Security may be facing in the next decade without legislative reform.
“PERA, unlike Social Security, has to make sure that we have all of the money necessary to pay benefits for all members—active and retired—into the future,” Roth said. “Here at PERA, our benefits are rock solid. While we do have an unfunded liability, Senate Bill 18-200 has put us on a path and we are starting to make some real progress.”
As of December 31, 2025, PERA remains on track to reach full funding by 2048.
Is there a limit to how long I can receive a PERA benefit, or is it for life?
“One of the primary benefits of participating in a defined benefit pension plan like PERA is that we offer a guaranteed lifetime retirement benefit that you can count on,” Lane said. He went on to point out that a retiree can choose a joint-life benefit at retirement, which allows a spouse or other individual to continue the PERA retiree’s benefit after their death.
What is PERA’s stance on incentive pay for investment staff?
CEO/Executive Director Andrew Roth discussed PERA’s incentive pay program for investment staff, explaining that PERA’s approach to staff compensation follows best practices among public pension plans.
Roth said incentive pay is meant to attract and retain talent, motivate and incentivize performance, and maintain competitiveness in the market. Roth also mentioned research that demonstrates the value of providing incentive pay to drive results.
That program is under review to ensure PERA is not an outlier among public pension peers, Roth said. Staff will present any proposed adjustments to the Board at its September planning session.
The President continues to look to Australia for inspiration for a potential shift in the how the United States handles retirement savings in the private sector. Unlike the U.S., Australia’s retirement system uses mandatory employer-funded accounts that follow a worker from one job to the next, with supplemental savings coming from a Social Security-style plan.
A judge has blocked Colorado from placing a price cap on the popular arthritis drug Enbrel. Colorado became the first state in the country to attempt to cap a prescription drug’s cost when the state’s Prescription Drug Affordability Board declared Enbrel unaffordable and moved to limit its price. In issuing a preliminary injunction, a federal judge said the price cap is likely to harm Amgen, the medication’s manufacturer.
A new survey finds that while many people report growing up in homes where money is rarely a topic of discussion, that trend appears to be shifting. According to the survey from U.S. Bank, 49% of Baby Boomers said they discussed money while growing up, versus 62% of Generation Z who said the same. In addition, a majority of current parents said they feel comfortable talking to their kids about money.
It’s a common misconception that financial advisers are only for people with large account balances or a lot of assets to manage. While many advisers’ fees are a percentage of their clients’ assets, it’s also possible to find advisers who charge an hourly rate and can help navigate individual financial decisions instead of managing your money for you.
News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.
A new ranking puts Colorado near the top of U.S. states for supporting healthy aging. According to the list from America First Healthcare, Colorado ranks second overall and lands among the top five for factors such as weather and low rates of smoking and physical inactivity among older residents. Our neighbors in Utah took the top spot on the list.
Many states, including Colorado, have added financial education to graduation requirements in recent years. But research shows not all education is effective at improving students’ finances long-term. Experts say providing standalone courses in personal finance—rather than embedding lessons into existing courses such as economics—is shown to be most effective at improving credit scores and financial well-being.
Members of Generation Z are participating in the stock market far earlier than the generations that preceded them, making their first investment at an average age of 19, according to recent research. But they appear to be doing so without a solid foundation of financial knowledge—that generation correctly answered just 38% of questions on the 2026 TIAA Institute-GFLEC Personal Finance Index, and nearly half of them are getting their investing advice from social media.
Being retired without children can provide a great deal of freedom, but it also brings some unique considerations when it comes to financial planning and health care. Here are some tips for managing estate matters, planning for long-term care, and factors to consider.
News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.
In June, PERA released its 2025 Annual Comprehensive Financial Report (ACFR), which contains detailed information on PERA’s finances, investment performance, and funded status for the year ended December 31, 2025.
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.
Explore an interactive version of this information and more at copera.org/snapshot.
Plan Assets and Funding
As of the end of 2025, PERA manages an investment portfolio of $75.1 billion for the defined benefit plans and $7.6 billion for the defined contribution plans. The defined benefit portfolio includes the five division trust funds from which PERA pays benefits—State, Local Government, School, Denver Public Schools, and Judicial—as well as the health care trust funds, life insurance reserve, and direct distribution reserve.
The defined benefit trust funds saw a total of $15.9 billion in additions and $6.6 billion in deductions during 2025.
Across all five divisions, 218,691 members and 414 employers were actively contributing to PERA accounts. Member and employer contributions to PERA totaled more than $4.6 billion. Other additions included the State’s annual $225 million direct distribution and more than $92 million in service credit purchases.
Sixty-two percent of PERA’s investment assets are managed in-house by PERA staff, at a cost of $23.6 million compared to the estimated cost of $124 million to outsource that management. Net investment income totaled more than $10.3 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 69.1%. 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 $5.6 billion in pension benefits to 145,554 retirees and benefit recipients, for an average monthly benefit of $3,274. The average age at retirement was 59.5 with 22.2 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 $5.6 billion paid last year, approximately $4.8 billion went to more than 119,000 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.
The Colorado PERA Board of Trustees met on Thursday, June 25 for its third regular meeting of the year. The Board released PERA’s annual financial reports, announced the results of Trustee elections, and more.
Staff compensation review
At the Board’s Compensation and Budget Committee meeting, CEO/Executive Director Andrew Roth and Director of Human Resources Rebecca Harren discussed PERA’s total compensation philosophy and investment compensation philosophy, which have been under review since last year.
Roth said incentive pay for investment staff is meant to attract and retain talent, motivate and incentivize performance, and maintain competitiveness in the market. That program is under review to ensure PERA is not an outlier among public pension peers, Roth said. Staff will present any proposed adjustments to the Board at its September planning session.
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, 2025, PERA manages an investment portfolio of $75.1 billion for the defined benefit trust funds. The portfolio ended the year with a return of 14.1% net-of-fees. Over the past 30 years, the portfolio has earned an annualized return of 8.1%. As of the end of the year, the combined funded ratio for the defined benefit trust funds was 69.1%.
Based on 2025’s financial results, adjustments via the Automatic Adjustment Provision will not be needed in 2027. 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 2027.
Chief Investment Officer/Chief Operating Officer Amy C. McGarrity and the Board’s investment consultant, Aon, discussed investment performance and market conditions in 2025 and so far in 2026.
Aon said PERA’s investment portfolio continues to perform well relative to other public pension funds over short- and long-term time periods. PERA’s 2025 return of 14.1% was in the top 35% of the peer group of public funds, Aon said, and the 10-year annualized return of 9.5% is in the top 4%.
McGarrity addressed the recent SpaceX initial public offering (IPO), which drew widespread attention due to its record-breaking valuation and questions around corporate governance. McGarrity said PERA did not directly participate in the IPO, but she expects PERA to gain exposure to SpaceX stock through index investments. Other large players in the artificial intelligence field, including OpenAI and Anthropic, are also preparing for significant IPOs.
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 two seats on the Board:
School Division: Tonya J. Thompson was reelected to a 4-year term.
State Division: Chad Marturano was elected to a 4-year term.
Thompson is the General Counsel for Harrison School District 2 and has been on the PERA Board since July 2025.
Marturano is the Vice President and Chief Financial Officer for the University of Colorado System. He fills a seat held by Lisa Landis, whose term expired June 30.
Trustee terms began July 1.
Legislative update
Director of Public and Government Affairs Michael Steppat joined CEO/Executive Director Andrew Roth to discuss the recently concluded legislative session.
Legislators passed six PERA-related bills this session, covering topics such as purchasing service credit, access to the PERAPlus 401(k) and 457 plans, and giving PERA flexibility in allocating the State’s annual $225 million direct distribution.
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 for the second summer in a row due to legislative cost-cutting measures, PERA staff will appear before the Legislative Audit Committee in August and the Joint Budget Committee sometime in the fall.
Modernization update
Director of Modernization Faheem Naushad provided the Trustees with an update on the long-term project to upgrade and replace many of the technology systems the enable the daily work of administering PERA benefits, collectively known as PRISM (Pension Resource & Information Services Manager).
The project, which is expected to take years to complete, is still in an early stage. Current work includes establishing the project roadmap, phases, milestones, and long-term budget needs.
Staff will continue to provide updates at future Board meetings.
What’s next?
The PERA Board plans to hold two more regularly scheduled meetings in 2026. Those dates are:
September 23 to 25 (planning session and meeting)
November 20
For more information on Board meetings, including recordings and meeting materials, visit the Board and Leadership page.
This year’s virtual Town Halls with PERA executives will take place on Thursday, July 9.
PERA holds Town Halls each year after the release of the Annual Comprehensive Financial Report(ACFR), which contains details on the Plan’s finances and membership for the previous calendar year. The PERA Board of Trustees will release the 2025 ACFR at its June 25 meeting.
There will be two Town Halls on July 9—one for retirees and one for active members—and both will be virtual with the option to participate online, on the phone, or on social media. PERA executives will be taking questions live during both events.
The FDA has signed off on Colorado’s plan to start importing some prescription medications from Canada to save consumers money. The approval applies to 20 drugs that could be available in Colorado by next year, if Canada has enough supply to export them.
Defined benefit pensions may be harder to come by these days, but they’re still a major piece of the retirement income puzzle for many Americans. While many private-sector employees used to have access to a pension at work, such plans are largely only available to public employees today. That shift shows up in the data when you compare pension access by age group: More than half of workers age 65 or older have a pension compared to just 4% under the age of 24.
Social Security’s retirement trust fund is now expected to run out of money in 2032 if Congress doesn’t take action to shore up the system, according to the latest estimate from Social Security’s trustees. Medicare’s trust fund is in similar shape, facing depletion in 2033. Both programs could be forced to reduce benefits if they run out of money in their reserves.
Working with a professional such as a financial advisor can make a big difference when it comes to setting and achieving money goals. If you’re meeting with an advisor for the first time, some of the most helpful questions to ask don’t actually have anything to do with how to manage your money.
News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.
While the proposed conversion of Pinnacol Assurance from a quasi-public entity to a private one—and its potential financial implications for Colorado PERA—was the subject of discussions during the recently concluded legislative session, lawmakers did not move forward on the issue. Supporters of privatization had been pursuing a ballot measure on the topic, but that proposal is also off the table as stakeholders discuss other options for the workers’ compensation insurer.
The 2026 legislative session ended in mid-May after 120 days during which lawmakers introduced and debated hundreds of bills. Here are some over-arching themes from the session, from bipartisan work to the major task of passing a balanced budget.
The Federal Reserve has a new chair for the first time in nearly a decade. Kevin Warsh, who previously served as a governor on the Fed’s board, is replacing outgoing chair Jerome Powell. He takes over the central bank during a challenging period when inflation remains above the Fed’s 2% target.
If you’re turning 65 soon, you’re approaching a major milestone in life that brings with it some important decisions that can affect your finances in retirement. Take this quiz to test your knowledge on topics like Medicare, Social Security, and longevity.
News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.
It’s no secret that Social Security is facing financial trouble in the near future; the program is expected to deplete its reserves in less than ten years, according to the latest estimates.
There have been many suggestions for improving Social Security’s finances, one of which would involve requiring all public employees to participate in Social Security. Some public-sector pension plans—like Colorado PERA—serve as a replacement for Social Security, so neither workers nor their employers contribute via payroll deductions.
However, such a shift in federal policy could have unintended negative consequences, according to a recently released report from the Coalition to Preserve Retirement Security (CPRS) and benefits consulting firm Segal. (The Colorado PERA Board of Trustees employs Segal as its actuarial consultant.)
Many states have been providing their public employees with retirement benefits longer than Social Security has been around. For example, the Colorado General Assembly created Colorado PERA in 1931, four years before the federal government established Social Security.
It wasn’t until 1950 that Social Security began accepting state and local government workers into the program. Colorado was among the states that stuck with its own plan to provide retirement, disability, and survivor benefits to the majority of its public workforce (some PERA members and members of other public pension plans may contribute to both a pension and Social Security).
Note: If you’re a PERA member who has earned a Social Security benefit from other employment, you’ll receive benefit payments from both PERA and Social Security in retirement. Learn more on the PERA and Social Security page.
According to the CPRS report, more than four million public employees across the country today are not covered by Social Security, and nearly 250,000 of them are in Colorado.
The impact of mandatory Social Security
The potential implications of requiring participation in Social Security can be difficult to predict, since each state or local government and plan is different and could take a different approach.
For states that would opt to preserve existing plans and also join Social Security, there could be significant added costs. Employees and employers both contribute 6.2 percent of payroll through Federal Insurance Contributions Act (FICA) taxes. Adding those contributions to existing payroll deductions for public employee retirement benefits would eat into workers’ paychecks and put financial strain on school districts, state and local governments, and other public employers.
The CPRS report estimates the cost of additional contributions nationwide to be somewhere between $45 billion and $60 billion in the first five years. In Colorado alone, mandatory Social Security could cost more than $2.5 billion, according to the report.
There’s also the potential impact on existing retirement plans to consider. Even if existing plans closed to new members to try to offset the added cost of FICA taxes, for example, the plans would still have to pay retirement benefits their members had earned. And without contributions coming in from working members and their employers, those plans would face additional risk and uncertainty.
In addition, public retirement plans are structured to attract and retain qualified public employees and may provide better benefits that Social Security, especially for workers in demanding and dangerous positions. For example, plans that cover first responders often allow members to retire earlier than plans that don’t. Forcing all employees into Social Security could remove this benefit and make it harder to hire and maintain a talented public workforce.
Requiring all public employees to participate in Social Security isn’t a sure bet when it comes to shoring up the program’s finances. While increasing the number of participants would increase the amount of money coming into the Social Security trust funds, those new members would also add liabilities—earned benefits—over time, leading to additional expenses for Social Security.
Improving the financial sustainability of the Social Security program is an important goal, and one that will likely require a great deal of discussion between legislators, government officials, and other stakeholders.
While requiring public employee participation may be a part of that conversation, it’s important to keep in mind the potential impacts on employees, employers, governments, and taxpayers who could face additional costs, uncertainty, and other risks.
