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Update 1/26/10 - Secure PERA Supports SB1 As Amended
On January 26th the Senate Finance committee amended Senate Bill 1 as discussed here regarding the COLA and age and service changes. These amendments allowed Secure PERA to support SB1.
Update 1/25/10
The Colorado Coalition for Retirement Security has voted to oppose Senate Bill 1 as introduced. We are requesting several amendments be made to reduce unreasonable hardship or risk on either taxpayers or PERA members. You can learn more about our position by clicking here.
Update 1/11/09
In an emergency meeting the PERA Board has voted to support President Shaffer's proposed Senate Bill 1 to see the details of the President's proposal click here you can also see a table comparing the President's proposal to the PERA Board proposal here.
Update 12/24/09
The Coalition has released its position - you can find it here.
What is PERA?
PERA provides a retirement plan to the employees of more than 400 government agencies and public entities in the state of Colorado. PERA is the 23rd largest public pension plan in the United States.
Why Should We All Help Secure PERA?
Here in Colorado, 9% of our citizens—276,380 people—rely on a PERA pension for their retirement. PERA members include teachers, highway workers, department of corrections workers, state patrol officers, as well as other local, county, and state employees.
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Michelle is a teacher in the Adams 12 school district.
Teachers are members of PERA.
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Retirement security is important: it lessens the strain on our already over burdened public assistance programs, and it adds economic value to our economy. Current economic conditions have 8 out of 10 people concerned about their retirement.
Defined benefit plans like PERA play a critical role in reducing the risk of poverty and hardship for older Americans. Poverty rates among older households lacking pension income are about six times greater than those households with pension income. The ability for millions of Americans to sustain their self-sustaining standard of living into their retirement years is an issue that we as a state cannot afford to get wrong.
During their time of public service, PERA employees do not receive Social Security benefits. Instead, they pay into PERA as a Social Security replacement fund. This fund then provides them a modest lifetime benefit once they retire; the average benefit in 2008 was $2,772 per month.
These retirement benefits are funded in two ways:
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79% comes from employee contributions and PERA’s investment income.
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Only 21% is paid for by the employers and often, the employer contribution comes out of the same pot of money from which employee raises would have been funded.
PERA is also an economic generator. Each year, PERA provides $2.6 billion in benefit payments to 82,400 PERA members. (Of that, $2.45 billion goes to Colorado residents.) Retirees spend those benefit payments, resulting in total spending in Colorado of $3.53 billion. That means for each $1 paid to a retiree, the economy sees $1.44 in total economic activity. While employers' contributions make up 21% of the PERA fund, every tax payer dollar contributed generates $7.00 in total economic activity. For more information on the impact these payments make click here.
This is why we all share the responsibility for securing PERA
The chart below is from PERA and shows how PERA's positive economic impact is spread all across Colorado.
You can find county detailed information here.
Click on this chart for a larger view
Much of the information contained on this website is also available in this presentation - click here to open.
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