Collectively, these two decisions along with a few other smaller decisions made by the Board increased the unfunded liability by $21 billion and increased the time it would take PERA divisions to become fully funded by anywhere from 14 – 32 years depending on the division.
Senate Bill 1 (SB1) reforms had a significant impact on PERA’s sustainability; it went from projected to run out of money within 30-35 years to on track to reach 100% funded.
Here are the basics of what you need to know about Windfall Elimination Program, thanks to our partners at the National Education Association.
See where PERA funding levels have been from 2008 up until today.
PERA is a hybrid defined benefit plan. Colorado Public Employees’ Retirement Association (PERA) provides retirement and other benefits to the employees of more than 500 government agencies and public entities in the state of Colorado.
PERA is funded by employee and employer contributions along with investment income.