Author: Morgan

PERA Board Approves Interest Rate, Discusses Upcoming Legislative Session at November 2025 Meeting

Posted on by Morgan

The Colorado PERA Board of Trustees met in Denver on Friday, November 21 for its final regularly scheduled meeting of the year. 

Trustees voted to approve PERA’s 2026 operating budget, set the interest rate for member accounts, discussed the upcoming legislative session, and more. Additional details, including meeting materials and a recording of the livestream, are available on the Board Meeting Archive page.  

Investment consultant decision 

Earlier this year, the Board directed staff to request proposals from investment consulting firms as part of its regular review of third-party service providers. The Board’s Investment Committee interviewed three firms and the full Board voted to retain Aon, its current investment consultant. 

The Board is responsible for overseeing PERA’s investment program and utilizes an investment consultant to provide research, analysis, and advice in areas such as investment strategy, asset allocation, and fund performance. The investment consultant also conducts periodic asset/liability analysis that informs PERA’s strategic asset allocation, performance benchmarks, and assumed rate of return. 

Strategic plan update 

PERA CEO/Executive Director Andrew Roth and Director of Strategy Annalise Anderson provided an update to the Board on the organization’s three-year strategic plan. As the first year under the plan winds down, Roth and Anderson said they expect to complete 100% of the plan’s measures and targets for 2025. 

One of the main goals included in the plan is improving the customer and stakeholder experience, and Roth detailed much of the work he’s done over the past year, including meeting with lawmakers, holding in-person Town Halls to connect with members and retirees in Fort Collins and Pueblo, and increasing outreach to PERA-affiliated employers. 

Leaders will begin working on an implementation plan for year two to help guide staff’s work throughout 2026, with regular updates continuing at future Board meetings. 

Upcoming legislative session 

Director of Public and Government Affairs Michael Steppat joined Roth to discuss the 2026 legislative session and some of the issues they expect state lawmakers to tackle. 

Similar to the 2025 session, legislators will face the challenging task of cutting hundreds of millions in state spending to pass a balanced budget. While that won’t happen until the spring, Gov. Jared Polis has already submitted his proposed budget. The governor’s proposal calls for privatizing the state’s worker compensation insurance provider, Pinnacol Assurance, and reducing the amortization equalization disbursement (AED), a contribution that employers make to PERA, for employers in the State Division. 

If Pinnacol were to become a private entity, it would have to disaffiliate from PERA and pay its portion of DB Plan liabilities, which are estimated to be approximately $300 million.  

The proposed 1% reduction in the AED is estimated to reduce contributions to PERA by about $40 million over the next two years, adding up to about $180 million by the time PERA reaches full funding in 2048. 

Steppat and Roth also discussed two legislative proposals that, if introduced and passed, could help reduce the likelihood of triggering automatic adjustments to PERA contributions and retiree annual increases in future years under the Automatic Adjustment Provision. Those proposals include providing PERA flexibility to allocate the State’s annual $225 million direct distribution to whichever division trust funds would help minimize the likelihood of triggering automatic adjustments and reallocating a portion of employers’ health care trust fund contributions to help pay off pension liabilities. 

The 2026 legislative session begins on January 14, and PERA On The Issues will be closely tracking all PERA-related bills throughout the session. 

2026 Board election 

Two seats on the Board will be up for election in 2026: A School Division seat and a State Division seat to be filled by an employee of an institution of higher education. 

Candidacy for the two open seats will open in early January, and active members in the School and State divisions will receive ballots in May. 

Member contribution interest rate 

Each November, the Board is responsible for setting the interest rate that applies to PERA DB Plan accounts for the upcoming year. If a PERA member leaves PERA-covered employment and requests a refund of their DB Plan account, they receive their contributions, the interest earned on that balance (compounded annually), and any applicable employer match. If that member keeps their account with PERA, the balance will continue to accrue interest and the member has multiple options upon reaching retirement eligibility, including choosing a lifetime monthly benefit. 

The Board’s policy evaluates the interest rate as a component of members’ overall retirement benefit. After discussing the issue, Trustees voted to keep the interest rate at 3 percent for 2026. 

2026 actuarial audit 

In 2026, the Board will hire an outside firm to conduct its periodic actuarial audit. Such audits have been part of the Board’s governance practices since the 1980s, with audits taking place every four or five years. With the passage of Senate Bill 28 in 2025, the Board is now required by law to conduct actuarial audits every four years. The last audit took place in 2022. 

The goal of the actuarial audit is to receive an independent assessment of PERA’s actuarial methods and assumptions and attempt to replicate the calculations of the Board’s actuarial consultant, Segal.   

Staff will conduct a search for a third-party firm to conduct the audit in early 2026, with results expected by the Board’s November 2026 meeting. 

2026 meeting dates 

The Board concluded its business with a look at 2026’s meeting calendar. The following Board meetings are scheduled for the year: 

  • January 23 
  • March 20 
  • June 25 
  • September 23-26 (planning session and meeting) 
  • November 20 

For more information on Board meetings, including recordings and meeting materials, visit the Board and Leadership page. 

News You Should Know: Drugmaker Suing Colorado Over Price Cap

Posted on by Morgan

Amgen Sues Colorado Prescription Drug Board Over Enbrel Price Cap | The Colorado Sun

The fight over Colorado’s first-ever price cap on a prescription drug continues. Amgen, the company that makes Enbrel, is suing over the Prescription Drug Affordability Review Board’s decision to put an upper limit on the price of the rheumatoid arthritis drug. The case is expected to go to court next year, while the price cap is set to go into effect in 2027.

IRS Direct File Won’t be Available Next Year. Here’s What That Means for Taxpayers | ABC News

Tax season will be here before you know it, but taxpayers hoping to save money by filing directly with the IRS this time around are out of luck. Direct File started out as a test program in 2024 and the federal government had planned to make it permanent, but the IRS now says the service will no longer be available.

Curious About Retirement Spending? Here’s What The Average Monthly Expenses Are For Retirees | Investopedia

When preparing for retirement, it’s important to estimate not just your income but also how much you’ll spend. According to the most recent government data, Americans ages 65 and older spend about $60,000 a year, on average. Housing is the biggest expense for that age group, followed by transportation, health care, and food.

CU Denver Program Helps Older Adults Find Purpose After Retirement | Denver7

Finding meaning after decades of working can be a challenge for many retirees. A relatively new adult education program at the University of Colorado Denver aims to help by providing pre-retirees and retirees with the opportunity to audit courses and connect with peers who are also seeking inspiration, meaning, and direction.

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

How Are Public Pensions Doing?

Posted on by Morgan

A recent assessment finds the funding levels of public pension plans across the United States have generally improved in recent years despite market volatility and other challenges.

It’s a positive sign that while access to defined benefit pensions in the private sector has dwindled, many states remain committed to providing their public employees with a secure retirement.

Assessing the financial health of public pensions

Pew Research Center, a nonpartisan research firm, keeps track of the financial health of public pensions in all 50 states. Its latest report focuses on plans’ funded ratios, which provide a comparison between a plan’s assets and its future obligations to members. For example, if a plan is 70% funded, that means the plan currently has 70% of the money it would need to pay out all benefits its retirees and working members have earned to date.

In 2023, the most recent year for which Pew has data for each plan, the overall funded ratio for public pensions was 74%. Thirty-five out of 50 states reported funding ratios in 2023 that were higher than in 2022, according to Pew.

A key factor Pew examined is net amortization, a measure of whether a plan receives enough funding and income from investments to reduce its unfunded liabilities—the portion of benefit obligations for which the plan does not have money on hand—while also paying benefits. A positive net amortization trend means the fund is bringing in enough money to pay down debt. Pew found most plans, including Colorado PERA, showed positive amortization from 2019 to 2023.

PERA’s funded status

Thanks to the reforms included in Senate Bill 200 in 2018, PERA is on a path to full funding by 2048. As of December 31, 2024, the combined funded ratio for the five Division Trust Funds (State, School, Local Government, Judicial, and DPS) was 69.2%. In 2018, that number was only 59.8%. Senate Bill 200’s Automatic Adjustment Provision (AAP), which adjusts member and employer contributions, retiree annual increases, and the State’s direct distribution to PERA based on our funding progress, has been an important part of that improvement. The AAP is assessed every year so adjustments can be made as needed without requiring legislative intervention.

As of the end of 2024, PERA remains on track and adjustments via the AAP will not be necessary in 2026.

With budget discussions now underway at the State Capitol, PERA CEO/Executive Director Andrew Roth and Board Chair Hon. Rebecca R. Freyre recently wrote a guest opinion explaining the importance of consistent contributions in keeping PERA on track to reach its funding goal.

“While PERA is on a path to full funding by 2048, it’s important that we stay on that path and follow the plan laid out in SB18-200,” they wrote. “While we’re making progress, we need the General Assembly’s support to keep that momentum going. We all owe it to our members and retirees to stay the course.”

Read more on the Colorado Politics website.

Meet Trina Ruhland, Vice Chair of the PERA Board

Posted on by Morgan

The PERA Board of Trustees gained a new Chair and Vice Chair in June, when then-Chair Taylor McLemore announced he would be leaving the Board. The Hon. Rebecca R. Freyre assumed the role of Chair and Trina Ruhland was elected Vice Chair.  

Trina Ruhland joined the Board in 2022 and attended her first meeting as Vice Chair in September. We caught up with Ruhland to learn more about her and the experience she brings to the Board. 

Tell us a little about yourself and your background. 

My day job is as a deputy county attorney for Boulder County, which is a PERA member. I have a degree in mathematics from the University of Chicago, so I’ve always had a math-minded brain and a personal interest in finance, and I’ve always considered myself a fan of PERA. I first found out about PERA during my first job in law school with the Attorney General’s Office. I remember even then recognizing its value and thinking, “Wow, this is an amazing benefit.” I was excited to join Boulder County, and PERA benefits were a factor in my choosing to work there.  

How has your career informed your work as a Trustee? 

As an attorney for a local government, I have a direct view into the importance of good governance and public service as well as the impact a board can have on an organization and its stakeholders. I believe in the importance of good governance and careful long-term planning. I teach a class at the University of Colorado Law School every semester for law students interested in government service and am constantly reminded of the importance of government service for our community and society. 

What are you most looking forward to as you step into a leadership role on the Board? 

When it comes to PERA, the members are always at the forefront of my mind. I really look forward to having the opportunity to make sure every voice on the Board is heard, as well as supporting transparency for our members and other stakeholders.  

What makes for an effective Trustee, in your eyes? 

I think preparation is key to being a good Trustee. It’s important to have a foundational understanding of how pension funds work, and Trustees are expected to obtain a certain number of hours of education, both on the specifics of PERA and more generally about best practices among public plans like ours. I think effective Trustees are those who understand the Board’s role as an oversight board and understand the governance framework we have put in place. PERA is a long game—we’re not just making decisions for this year but for many years in the future—so we have to be very intentional with each of our decisions to keep the best interests of our members’ retirement security at the forefront.  

What’s something you wish more people knew about the Board? 

I want people to know how passionate the Board members are in making sure our members have secure retirements, and that their benefit is really our sole focus. Many of our trustees, myself included, are PERA members themselves. Each Trustee puts in a significant amount of time, work, and mental energy into the work of the Board, and I think that makes the organization stronger in ensuring our members have secure retirements. 

To learn more about the PERA Board, visit our Board and Leadership page. 

Recapping the PERA Board’s 2025 Planning Session

Posted on by Morgan

The Colorado PERA Board of Trustees met in Colorado Springs for its annual September planning session that concluded with a Board meeting on Friday, Sept. 19.

The multi-day planning session is a valuable opportunity for Trustees to engage in more in-depth conversations and planning activities than a typical one-day meeting allows. Below is a summary of some of the highlights and important actions the Board took.

Actuarial modeling

A common activity for the Board during its annual planning session is actuarial modeling. System Actuary Koren Holden, Actuary Bill Detweiler, and the Board’s actuarial consultant, Segal, joined the Trustees to discuss theoretical scenarios and how they might affect the funding of the PERA Defined Benefit Plan. For example, if the investment portfolio experienced losses in future years, or state employment dropped significantly, those events could negatively impact the plan’s progress toward reaching full funding.

This process helps the Board assess the financial health of the trust funds and gauge the possibility of falling behind and triggering the Automatic Adjustment Provision, which automatically raises member and employer contributions and lowers retiree benefit increases based on the plan’s funding progress.

As of December 31, 2024, PERA remains on track to reach full funding, and adjustments are not needed this year or next year.

The Board also discussed the possibility of pursuing legislation that could help reduce the possibility of triggering automatic adjustments in coming years, as outlined in their presentation on a recent study about the Automatic Adjustment Provision and related impacts. We expect to have more information on any proposed bills closer to the start of the next legislative session in January.

Strategic plan update

Chief Executive Officer/Executive Director Andrew Roth and Director of Strategy Annalise Yahne provided an update on staff progress toward implementing PERA’s three-year strategic plan. The plan is a roadmap to strengthen the organization through stronger relationships with members and stakeholders, continued focus on funding, and modernizing technology.

Roth and Yahne walked through what the organization has accomplished so far this year, including building a dashboard to track progress, meeting with various member groups and other stakeholders, and completing a significant amount of groundwork for PERA’s long-term modernization project.

CEM Benchmarking report

The PERA Board receives a report every year from CEM Benchmarking that scores PERA on the quality and cost of services we provide to members and compares those factors to other public pension plans.

PERA earned a service score of 87 for 2024, compared to the peer median score of 81. CEM calculated PERA’s total administrative cost per member at $63, below the peer average of $71. Overall, the CEM report finds PERA provides a higher level of service at lower cost than the average pension plan.

CEM gave PERA particularly high scores in areas such as the accessibility of online services, speed of processing retirements, communications to members approaching retirement, and call wait times.

Health care update

Chief Benefits Officer Patrick Lane and Director of Insurance Jessica Linart discussed the PERACare health benefits program and the state of the health care market. The conversation covered legislative and regulatory changes at the federal level and other challenges that have affected plan premiums over the past decade.

PERACare staff review plan offerings every few years and plan to solicit bids from insurance companies for plan year 2027. Staff sent retirees a survey earlier this year, and the responses from that survey will help inform the selection process.

For more information on 2026 PERACare open enrollment, visit copera.org/peracare-open-enrollment-2026.

Market and portfolio update

Chief Investment Officer/Chief Operating Officer Amy C. McGarrity provided an update on conditions in the financial markets and the overall economy. McGarrity said while it’s been a strong year for public financial markets, there’s still a good deal of uncertainty due to factors such as volatility in the technology sector and the growth of artificial intelligence, geopolitical uncertainties, inflation, and tariffs and trade policy.

On interest rates, McGarrity said there is growing consensus it’s likely the Federal Reserve will cut rates again this year after a slight decrease earlier in September.

PERA benefit statistics

Lane again joined the Board to provide an update on business operations such as retirement processing and customer service interactions. He shared the following statistics, which provide a window into the volume of transactions PERA staff have processed so far in 2025:

  • 5,419 new retirements across all five PERA divisions
  • 2,404 individual counseling sessions with members nearing retirement
  • 1,501 service credit purchases
  • 135,300 phone calls to the Customer Service team
  • 6:53 average call time
  • 21,495 secure email interactions with members

Upcoming Board meetings

The Board’s last regularly scheduled meeting of 2025 is Friday, November 21.

The Board also approved its meeting schedule for 2026:

  • January 23
  • March 20
  • June 18
  • September 23-25 (planning session and meeting)
  • November 20

Details on upcoming Board meetings and materials from past meetings are available online.

PERA Receives Clean Audit at 2025 Legislative Audit Committee Hearing

Posted on by Morgan

Colorado PERA received a clean audit at its annual hearing with the Legislative Audit Committee on August 11.

Results of annual audit

Every year, the State hires an independent auditor to examine PERA’s financial reports, compliance, and internal controls. Since 2015, the State has enlisted CliftonLarsonAllen, a nationally recognized financial services firm, to conduct that work.

As in years past, the audit did not find any issues with PERA’s recently released 2024 Annual Comprehensive Financial Report (ACFR) and did not find any deficiencies or weaknesses in PERA’s internal controls.

Ensuring robust and accurate financial reporting and internal controls is a vital part of providing retirement security to Colorado’s public workforce. To that end, the ACFR is prepared to conform with generally accepted accounting principles, including requirements of the Governmental Accounting Standards Board and Actuarial Standards of Practice. PERA’s internal audit team routinely reviews internal controls and operations, and the Chief Audit Executive regularly reports to the Board of Trustees’ Audit Committee, which includes independent experts.

RELATED: A Closer Look at PERA’s 2024 Annual Report

PERA plan study

In addition to the outside audit, the hearing included the Office of the State Auditor presenting the results of an independent study that compared the cost and benefits of the PERA Defined Benefit Plan to other plan designs.

That study found PERA continues to be a valuable tool for recruiting and retaining public employees by providing cost-effective retirement benefits.

READ MORE: Study Confirms PERA a Valuable Tool for Recruiting, Retaining Public Workers

Other interim activities

While PERA staff and consultants typically meet with various other legislative panels throughout the summer, those hearings are paused this year due to budget constraints. The suspension of interim activities applies to both the Pension Review Commission, which typically begins working on bills for the next legislative session, and the Pension Review Subcommittee.

PERA’s next hearing at the State Capitol will be with the Joint Budget Committee in the fall.

Study Confirms PERA a Valuable Tool for Recruiting, Retaining Public Workers

Posted on by Morgan

A new independent study found Colorado PERA continues to be a valuable tool for recruiting and retaining public employees by providing cost-effective retirement benefits.

As part of its regular review and oversight of PERA, the General Assembly approved the study with House Bill 1427 and directed the Office of the State Auditor to enlist an actuarial firm experienced with public pension plans to conduct the analysis. The State last performed a study like this one a decade ago.

Methodology

The study, conducted by Cheiron, compared PERA’s Hybrid Defined Benefit (DB) Plan to various theoretical alternative plan designs, compared the DB Plan to the PERA Defined Contribution (DC) Plan, and included results from a survey of current and former state employees on the importance of retirement benefits in their employment decisions.

The nine alternative plans included in the analysis incorporated a variety of benefit accrual and payment methods, from a combination of Social Security and a defined contribution plan like many employers in the private sector offer, to a cash balance plan in which a worker’s account balance is converted to an annuity at retirement.

The study primarily looked at the costs associated with each plan and potential income replacement ratios—or the percentage of pre-retirement pay a person can expect to receive in retirement—for both short- and long-term public employees.

PERA vs. other plans

While no single plan design offers the best possible benefits for every individual, the study found the PERA DB Plan provides higher income replacement than the alternatives for employees who spend the majority of their careers in public service.

Some of the alternative plan designs and the PERA DC Plan can provide higher income replacement for non-career employees, according to the study, because of the “front-loaded” nature of accruing savings in a defined contribution plan. Contributions an employee makes early in their career have a lot of time to grow, which is more beneficial for workers who switch jobs throughout their careers. By contrast, a defined benefit pension is “back-loaded” since a worker’s benefit is based on their highest earnings, which are usually toward the end of their career. This can encourage late-career workers to remain in their jobs, which benefits employers by retaining experienced employees and reducing costly turnover.

A line chart showing the different accrual patterns between defined benefit and defined contribution plans. The DB plan line slopes upward as years increase, while the DC plan line slopes downward.
The “back-loaded” accrual of benefits in a traditional defined benefit plan compared to the “front-loaded” nature of defined contribution plans. In a DC plan, a worker’s early-career contributions have more time to grow, while in a DB plan the worker’s contributions later in their career have a larger effect on the benefit. Source: Cheiron.

The study noted plans that tend to be more beneficial for non-career employees also come with trade-offs, such as higher costs and more risk placed on the employee. For example, plans that require the worker to manage their own retirement savings and investments also require that worker to manage the risks associated with overspending in retirement or outliving their savings.

It’s also important to note that in the PERA DB Plan, income replacement ratios are predictable—a member can use their highest average salary (HAS) table to estimate their benefit well before they retire. In a DC plan, on the other hand, retirement income depends significantly on investment returns, which are much less predictable.

The PERA DB Plan’s “hybrid” nature also carries features that make it attractive to members regardless of career tenure. Those include portability—members can take their contributions with them when they leave PERA employment—as well as compounding interest, an employer match, and a money purchase benefit calculation that can provide a higher benefit for some non-career employees.

Because every employee has different financial goals, PERA offers a choice between DB and DC plans for some public employees, and the PERA DB Plan remains a valuable and desirable benefit for career employees.

State employee survey results

An important part of any analysis of retirement benefits is the perspective of the workers receiving those benefits. For this study, Cheiron surveyed thousands of State employees who had the option to choose between the PERA DB Plan and the PERA DC Plan.

Of those surveyed, 81% said retirement benefits were a factor in their decision to work for the State of Colorado and 83% cited retirement benefits as a factor in their decision to remain in State employment.

When it came to choosing which plan to enroll in, the PERA DB Plan was the clear choice with 77% of those who gave it a great deal of thought choosing DB over DC, according to the survey.

Conclusions

While career patterns shift over time, the report makes it clear that providing a secure lifetime retirement benefit continues to draw people to careers in public service. This study confirms that as Colorado’s public workforce evolves, PERA is well-positioned to meet the changing needs of its diverse membership and provide retirement security for generations to come.

For more information, read the full report.

How PERA’s In-House Investment Experts Reduce Costs, Add Value

Posted on by Morgan

Colorado PERA manages a portfolio of $66.7 billion on behalf of more than 700,000 members and benefit recipients. It’s a big job that requires a high level of skill and expertise, and PERA’s in-house investment team has a wealth of experience that helps us save money while adding value for our members and retirees.

PERA’s approach to investment stewardship

At Colorado PERA, investment stewardship comprises four pillars that lay out our approach to managing plan assets:

  • Protect members’ interests by watching costs.
  • Integrate relevant factors into investment strategy.
  • Advocate for robust markets.
  • Evaluate exposures and recognize limitations.

We work every day to protect the retirement benefits our members have earned throughout their careers. One of the ways we do that is through low-cost, high-quality internal management of the majority of our investments.

Our team of more than 50 investment experts is highly skilled with extensive investment industry experience. That expertise reduces the need to use outside managers, minimizing plan expenses.

EXPLORE MORE: Investment Stewardship Digital Snapshot

Internal management reduces costs

Graphic explaining PERA's in-house investment expertise: 21 years average experience in investment management among internal investment experts; 61% of Total Fund managed in-house at a cost of ~0.05% of those assets; $70 million estimated annual savings due to internal investment management.
Click/tap to enlarge

As of the end of 2024, PERA managed 61% of all assets internally. By relying on our own staff, PERA maintains the flexibility to make investment decisions without paying high fees that often come with external management. PERA pays less than $4 for every $1,000 in the fund, saving an estimated $70 million annually in management fees that would have otherwise gone to outside experts.

“Internal management supports our ability to be agile in responding to market conditions while also saving PERA significant costs,” said Director of Fixed Income Keith Tayman.

Opportunities for cost savings can vary by asset class. For example, the team that manages the Global Equity portfolio—the largest of PERA’s asset classes—was an early leader in negotiating unbundled equity research and trading fees with broker-dealers. Strategies like that have helped PERA save 40% on annual spending with broker-dealers since 2011.

PERA’s investment team boasts an average of 21 years of experience. Such a high level of experience means staff can use their expertise and relationships with external managers to find additional opportunities for cost savings, such as negotiating lower fees.

“The long tenure of the Private Equity team positions PERA as a limited partner of choice,” said Private Equity Portfolio Manager Ryan Murphy. “Low turnover leads to stronger relationships with our partners. Stronger partnerships allow for preferred allocations and seats on advisory committees.”

PERA’s expertise in investment management is reflected in the inclusion of PERA staff in various industry organizations and advocacy groups. Our staff lend their knowledge and experience to groups such as the Council of Institutional Investors, Healthy Markets Association, the Public Company Accounting Oversight Board, and the Securities and Exchange Commission’s Investor Advisory Committee.

In addition to the PERA Defined Benefit (DB) Plan portfolio, investment staff also work to reduce costs in the PERA Defined Contribution (DC) Plan and the PERAPlus 401(k) and 457 Plans by increasing internal management of assets and negotiating lower fees with external managers. For example, since 2011, the all-in costs of the PERAPlus 401(k) Plan have decreased by 83%. Effective in 2025, participants pay a flat monthly fee of $1 per plan.

WATCH THE VIDEO: How Colorado PERA Invests for Long-Term Retirement Security

The value of a low-cost investment program

Investment income is the largest source of assets in the DB plan trust funds. Over the past 30 years, the portfolio has earned an annualized return of 8.4% and generated more than $88 billion for PERA members and retirees. Of every dollar a PERA retiree receives, 61 cents come from the investment income, while 39 cents come from contributions from members, employers, and the State.

A dollar bill showing the portion of PERA funding that comes from various sources: 61 cents from investment income, 23 cents from employer and non-employer contributions (including disaffiliations) and 16 cents from member contributions (including service purchases).
A visual representation of PERA funding sources.

As fiduciaries, every person on PERA’s investment staff is an expert committed to serving our members’ financial longevity. By working to reduce fees and other costs, the PERA investment team is able to keep more money available in the trust funds to invest on behalf of members. And that means a more secure, reliable retirement for Colorado’s public employees.

Learn more

What the One Big Beautiful Bill Act Means for Retiree Health Care

Posted on by Morgan

President Trump signed into law the “One Big Beautiful Bill Act,” a bill that makes changes to federal taxes and spending, some of which could affect older Americans receiving government assistance for food and health care.

The bill includes new tax provisions, such as a $6,000 tax deduction for seniors and expanded deductions for charitable giving. It also reduces government spending on programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP), as well as the individual insurance marketplace created by the Affordable Care Act.

Those changes could affect some people with disabilities, family caregivers, retirees who are not yet old enough to qualify for Medicare, and others who shop for health insurance on their own. The bill does not directly affect Medicare or Medicare Advantage plans like what PERACare offers.

Health and food assistance programs

According to AARP, more than 11 million Americans age 50 and older rely on SNAP benefits to afford their groceries and more than 17 million older adults use Medicaid for their health care. The One Big Beautiful Bill Act will make it harder to qualify for both programs and will require more paperwork for some enrollees to continue receiving their benefits.

To qualify for Medicaid, people under the age of 65 will need to show that they’re working or taking part in other job-related activities, such as job training or volunteering, at least 80 hours a month, unless they qualify for an exception. States also will be required to verify some enrollees’ eligibility more often—at least every six months.

The bill also expands work requirements for SNAP food assistance to include more older Americans. Able-bodied adults under the age of 65 will have to work at least 20 hours a week to receive benefits for more than three months, unless they qualify for an exception.

Medicaid work requirements are expected to take effect by early 2027, but it’s less clear when the new SNAP requirements will go into effect.

The individual insurance marketplace

The One Big Beautiful Bill Act adds new requirements for enrolling in health care coverage through insurance marketplaces like Connect for Health Colorado.

The bill eliminates automatic reenrollment in marketplace health care plans, meaning participants in those plans will need to manually enroll every year or face losing their coverage. It also shortens the annual open enrollment period and allows the expiration of enhanced tax credits that made plans more affordable.

Experts say premiums for marketplace insurance plans are likely to go up as a result of the changes, and insurers in Colorado have already proposed substantial increases for next year.

Coverage options under PERACare

PERA’s health benefits program, PERACare, includes pre-Medicare and Medicare Advantage plans, as well as combination coverage for retirees who want to cover both Medicare and non-Medicare eligible family members.

PERA provides a health care subsidy to help offset PERACare health care premiums. The subsidy amount is based upon a retiree’s years of service, for a maximum $115 monthly subsidy for Medicare-eligible retirees.

While the federal tax and spending bill does not include changes to Medicare, other regulatory changes (among other factors) are expected to influence plan premiums next year. PERA staff are still finalizing plan details, but we do expect PERACare premiums to rise for 2026.

PERACare open enrollment will take place between October 20 and November 20, 2025, and we will have plan information available by October 1.

For more information, visit copera.org/peracare.

A Closer Look at PERA’s 2024 Annual Report

Posted on 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