Category: Inside Colorado PERA

A closer look into PERA operations, administration, and the Board of Trustees

Recapping the PERA Board’s 2025 Planning Session

Posted on by Kurt Sevits

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.

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

Posted on by Kurt Sevits

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

A Closer Look at PERA’s 2024 Annual Report

Posted on by Kurt Sevits

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

PERA Executives Give Updates, Take Questions at 2025 Town Halls

Posted on by Kurt Sevits

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

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

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

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

How did PERA’s investment portfolio perform in 2024?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What can retirees expect for PERACare plans in 2026?

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

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

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

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

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

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

Town Hall recordings

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

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

Posted on by Kurt Sevits

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

Annual Comprehensive Financial Report

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

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

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

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

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

Board election results

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

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

Elected Trustees began their terms on July 1.

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

READ MORE: PERA Board Announces Results of 2025 Trustee Elections; New Vice Chair Elected

Legislative update

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

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

READ MORE: Colorado Legislature Passes Four PERA-Related Bills in 2025 Session

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

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

Investment performance update

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

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

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

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

READ MORE: How Colorado PERA Invests for Long-Term Retirement Security

What’s next?

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

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

How Colorado PERA Invests for Long-Term Retirement Security

Posted on by Kurt Sevits

With over $65 billion under management, our investment team plays a critical role in PERA’s long-term stability and our ability to pay members’ earned benefits throughout their retirement.

This highly skilled team manages a diverse portfolio designed to achieve long-term gains through investments that span decades. A thoughtful, strategic approach ensures we can continue to meet member needs for many years to come.

Strategic asset allocation

The structure of PERA’s investment program is determined by the PERA Board of Trustees. Every four or five years, they complete what’s known as an asset/liability study. This study considers expected market returns for the next 30 years and balances them against PERA’s future liabilities and cashflow needs to create a mix of investments that is expected to produce returns over the long term.

Determining this asset allocation is one of the most important decisions the PERA Board makes, and it is the greatest single factor in PERA’s long-term investment returns. Once the Board determines this strategic asset allocation, it is up to PERA staff to implement it.

READ MORE: PERA Board Adopts New Strategic Asset Allocation Following Study

Asset classes

It can be helpful to think of the various asset classes as blocks that build upon one another and work together to produce the expected rate of return in the long run. Each block has an important role to play in the portfolio.

Global Equities: The Global Equities asset class includes stock holdings in publicly traded companies. It’s the largest piece of the PERA portfolio and the primary driver of returns in the long run; if Global Equities are having a good year, there’s a high likelihood the overall PERA portfolio will have a good year, too.

The global equity portfolio is well-diversified across developed and emerging countries and all sectors and company sizes. It’s a large portfolio that holds over 7,000 individual stocks, including major companies such as Apple, Microsoft, and Amazon.

Fixed Income: The role of Fixed Income, our second-largest asset class, is to provide diversification and liquidity while reducing portfolio volatility. The Fixed Income portfolio includes investment-grade bonds in all the major sectors—Treasuries, mortgage-backed securities, and corporate bonds—as well as some smaller sectors like asset-backed securities, government-related securities, and commercial mortgage-backed securities.

Fixed income assets are generally less volatile than equities and provide a predictable source of income, which can reduce overall risk in the portfolio.

Private Equity: Private Equity involves investing in companies that are typically not listed on a public stock exchange and are therefore not available to smaller individual investors. That can include venture capital (funding early-stage companies like startups), growth capital (funding businesses that are at or near profitability), and buyouts (larger transactions involving more mature and proven businesses to fund a change in ownership, promote growth, and provide money for acquisitions).

PERA has been investing in Private Equity since the early 1980s and was one of the first state pension funds to invest in this asset class. Over the decades, PERA has invested in a variety of companies that members use every day, including social media and entertainment companies, software and technology companies, wineries, restaurants, and clothing companies.

Because of private equity’s illiquid and opaque nature and higher management fees, the role of Private Equity in the PERA portfolio is to earn returns above that of Global Equities.

Real Estate: The Real Estate portfolio invests in a wide range of commercial real estate, which can include data centers or distribution warehouses, apartments, office space, retail space, or hotels. It invests primarily in the United States but does have some holdings throughout the world.

The role of real estate is to be a source of alternative income, such as monthly rental payments, in addition to steadily growing in value over time and reducing the impact of potential losses in other asset classes.

Alternatives: The alternatives asset class is where we put attractive investments that don’t fit into other traditional asset classes. Those can include assets like timberland, river barges, music royalties, renewable energy, toll roads, and lending to privately owned companies. Because alternatives don’t move in tandem with traditional stocks and bonds, these investments help reduce overall volatility in the portfolio.

Cash: PERA does not have a strategic asset allocation to cash, but because we pay over $350 million a month in benefits, it’s important to make sure we have the cash on hand to make those payments and also fund investments.

MORE: Defined Benefit Plan Assets

Internal asset management

PERA’s investments are managed by a staff of over 50 in-house investment experts. We’ve been managing assets internally since the 1970s and currently manage around 75% of the Global Equity asset class internally and 100% of the Fixed Income class. Not only does this give us significant control over these assets, but it also saves PERA members a great deal of money: Over the past five years, PERA saved at least $300 million using our in-house investment experts compared to having those assets externally managed.

We’re proud to be one of the most cost-effective public plans in the United States.

Investing for the long term

Regardless of internal or external management, all portfolios and asset classes are held to the same high standards. Those standards have served us well over the long term, as our 30-year annualized return is over 8% net-of-fees, and our 10-year net-of-fees return consistently ranks in the top 10% of our peer group universe.

Thanks to our Board and investment team’s strategic approach to asset allocation, Colorado PERA is well-positioned for long-term success, and our returns over our nearly 100-year history reflect that.

More info:

Save the Date: 2025 Town Halls Set for July 1

Posted on by Kurt Sevits

The date is set for this year’s Town Halls with PERA executives—they will take place on Tuesday, July 1.

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 2024 ACFR at its June 27 meeting.

There will be two Town Halls on July 1—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.

Event details

Date and time: Tuesday, July 1

How to participate

Both Town Halls are open to anyone who would like to participate, but the content of each will be tailored to its respective audience.

If you’re unable to attend either event, recordings will be available on our website afterward.

For more information or to register for an optional phone call, visit copera.org/townhall.

Unitization: Leveraging PERA’s Investment Expertise to Benefit Our Participants

Posted on by Kurt Sevits

The investment staff at Colorado PERA have a large responsibility: managing more than $61 billion for the defined benefit plans and almost $6 billion for the defined contribution plans on behalf of current and former public employees.

We operate a low-cost investment program—management expenses amount to less than one-half of one percent of the total fund—and staff are always looking for ways to improve. One way we reduce costs for members is by managing a large portion of the portfolio internally rather than paying outside managers.

PERA started managing some assets internally in the 1970s, and we’ve been expanding that capability where appropriate over the years. We now internally manage about 60% of all DB Plan investments.

We estimate we save our members at least $65 million a year in fees by managing PERA Defined Benefit (DB) Plan assets in-house and, through reductions in administration and investment management fees, have achieved an 82% decrease in fees in the PERAPlus 401(k) plan since 2011.

A new strategy PERA’s investment team has been exploring in recent years is unitization.

What is unitization?

Perhaps the easiest way to understand unitized investment products is to think of them like mutual funds—investors pool their resources in a fund which invests in a mix of investments, and each investor owns shares (or units) of the pool. This can make it easier for individual investors to have exposure to assets that are often only available to large institutional investors, since plan participants can own a portion of the overall pool instead of having to buy each underlying asset.

In the context of PERA’s investment program, unitizing offers to participants in the PERA Defined Contribution (DC) Plan and the PERAPlus 401(k) and 457 Plans the opportunity to invest alongside the PERA DB Plan in a combined pool of assets while reaping the benefits of the professional management experience of our staff.

Unlike the DB Plan, participants in the DC Plan and PERAPlus plans make their own investment decisions and select from a variety of white label funds that are overseen by internal and/or external asset managers. One goal of unitization is to increase the amount of assets managed internally, which reduces the amount of money participants pay in fees to those external managers.

“We have a highly skilled team of investment professionals who work every day to be effective and responsible stewards of the DB Plan’s assets,” said Chief Investment Officer/Chief Operating Officer Amy C. McGarrity. “I’m glad we can extend some of that investment management expertise to our DC Plan and PERAPlus participants and potentially lower their investment management fees.”

PERA’s investment team began exploring unitization several years ago and completed work on unitizing the Fixed Income asset class in 2022, producing cost savings for participants in the PERAdvantage Fixed Income fund. In early 2025, staff completed unitization of the Global Equity asset class, PERA’s largest, which allows for improved efficiencies in administration.

PERA’s investment team has long-term aspirations, including the potential of eventually unitizing the entire DB Plan portfolio or offering custom-built target retirement date funds.

Unitization is just one way PERA staff are working to innovate and modernize the services we provide to our members and ensure a secure retirement for the hundreds of thousands of current and former public employees who serve Colorado.

PERA Board Adopts New Strategic Plan at March 2025 Meeting

Posted on by Kurt Sevits

The PERA Board of Trustees met at PERA’s offices in Denver on Friday, March 14 for its second regular meeting of the year.

The Trustees took action and received updates on several important topics, including strategic planning, legislation, and the upcoming Board election.

Board election update

PERA’s internal audit team presented an update on this year’s Board election. There are five seats up for election and 21 candidates will be vying for those seats, staff said.

PERA members and retirees who are eligible to vote will receive ballots in early May. New this year, voting will be available through the Colorado PERA mobile app and secure online portal in addition to mail and phone voting.

The Board will announce election results at its June 27 meeting.

Legislative update

CEO/Executive Director Andrew Roth and Director of Public & Government Affairs Michael Steppat provided an update on the 2025 legislative session so far.

Of the six PERA-related bills introduced so far, two remain under consideration: House Bill 1105, which would reduce the employer contribution rate for the Denver Public Schools Division, and Senate Bill 147, which would modify a number of provisions under current law related to the PERA Board. Two bills that would have provided tax relief to retirees, House Bill 1052 and Senate Bill 136, have failed.

In addition, lawmakers passed a bill that will suspend interim legislative activity in an effort to reduce costs and free up funds for the state budget. That means the Pension Review Commission and Pension Review Subcommittee, which usually meet every year in between legislative sessions, will not meet this year.

READ MORE: 2025 Proposed PERA-Related Legislation Status

New strategic plan

Following many months of work, the Board took the important step of adopting PERA’s next strategic plan, which will guide organizational priorities and aspirations over the next three years. The plan defines PERA’s long-term direction and provides a high-level roadmap for achieving its priorities, ensuring alignment between the Board and staff.

The plan focuses on three main strategic goals:

  • Financial stability: Strengthen PERA’s long-term financial health
  • Customer/stakeholder experience: Be a trusted partner in service to members
  • Organizational excellence and modernization: Create value through exceptional performance

With the Board’s adoption of the plan, it’s now up to staff to implement it. Yearly implementation plans will provide concrete steps toward achieving the plan’s goals and objectives over the next three years.

READ MORE: PERA Board Adopts New Three-Year Strategic Plan

Pension administration modernization update

PERA is in the early stages of a multi-year project to modernize the core technology systems used to administer benefits, and staff have been providing the Board with regular updates as the project progresses.

Chief Technology Officer Ryan Ericson, Chief Administrative Officer Jeremy Hill, and Chief Benefits Officer Patrick Lane highlighted some of the preparatory work staff have been doing, such as data cleanup, business process mapping and improvement, and staff onboarding.

CEO/Executive Director update

Board meetings commonly include an update from PERA’s CEO/Executive Director, Andrew Roth. Roth detailed some of the work he and staff have been doing to engage with stakeholders and enhance transparency.

Since he joined PERA last year, Roth has been meeting with many stakeholder groups, such as legislators and business leaders as well as educator groups like the Colorado Education Association and coalitions like Secure PERA.

On transparency, Roth discussed PERA’s efforts to make information about the Board and Board meetings more readily available. That includes posting three years’ worth of meeting materials, livestream recordings of past meetings, and ensuring materials for upcoming meetings are posted online ahead of time.

Market and portfolio update

Chief Investment Officer/Chief Operating Officer Amy C. McGarrity provided the Trustees with an update on recent economic and market conditions. McGarrity explained that U.S. stocks—particularly tech stocks—have seen volatility so far this year and there’s uncertainty in the markets. And while inflation is down, concerns remain that higher prices will persist in coming years.

McGarrity also explained that while PERA sometimes receives questions or criticisms about its investment program and active asset management, the Board’s strategic asset allocation, with its focus on diversification, has proven itself over the long term.

“Certainly in any short-term period we may experience volatility and even underperform the markets, but long-term we’ve done really well,” McGarrity said. As of Dec. 31, 2024, PERA’s total portfolio has earned an annualized return of 8.3% over the past 30 years.

Upcoming Board meetings

The Board concluded by reviewing meeting dates for the remainder of the year. They are:

  • June 27
  • September 17-19 (offsite planning session and meeting)
  • November 21

For more information on upcoming Board meetings or to view materials from past meetings, visit copera.org/about/board-and-leadership.

Recap of PERA Board’s January 2025 Meeting

Posted on by Kurt Sevits

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.