On June 23 PERA released their Comprehensive Annual Financial Report, also known as the CAFR. The defined benefit plan has the most money it has ever had at $44.2 billion. In 2014, PERA distributed $3.9 billion to former public employees. Of that $3.9 billon, $3.5 billion went to Colorado retirees who spend those dollars here in Colorado helping to keep Colorado’s economy strong.
A new report was released in June by Colorado PERA, “Colorado PERA Economic and Fiscal Impacts”. The report, which was prepared by the economic and business analysis firm Pacey Economics, shows that distributions from Colorado PERA translate to $5.2 billion in economic output. This helps support more than 29,000 Colorado jobs annually.
NIRS research indicates that the best way for a state to address pension underfunding is to implement a responsible funding policy with full annual required contributions. The research reveals that West Virginia, Alaska and Michigan shifted from DB pension plans to DC individual accounts only to experience higher costs. Moreover, current financial data indicate that the DB to DC switch in fact worsened pension funding issues.
The Colorado Retirement Security Task Force bill creates a legislative task force that will make recommendations for increasing the number of Coloradans working in the private sector who have invested for their retirement and are enrolled in a retirement plan.
This bill would allow all PERA employees the option to choose the PERA pension plan or the 401(k) style plan. Currently, State employees have this option. This bill would expand that option to all divisions.
Secure PERA opposes this bill. Retirement security for our employees is of the utmost importance and this bill erodes that security.
This bill fixes the law to protect dependents who are disabled from losing access to needs-based government benefits because of their designation as a beneficiary and protects those rights upon the death of the PERA recipient.
Secure PERA supports this bill.