There are many pluses to defined benefit plans like PERA:
- They help to attract and retain high quality public employees
- They are a sound income replacement for life – you won’t outlive your retirement
- They require shared responsibility through employee & employer contributions
- They create a shared investment risk
- They provide survivor & disability protection
- They are the lowest-cost retirement plan to run
- Pensions are an economic engine benefiting local business, and promote stability in national markets, keeping America strong.
- 65% of American’s with pensions are confident their pension will be there when they retire – compared to only approx. 50% of those with 401(k) type accounts
- 87% of Americans believe all workers should have a pension so that they can be self-reliant in retirement – this is defined by having enough money to pay the bills and fulfill basic needs.
- The most desired features of a retirement plan are portability, followed by employer contribution, continuation for a spouse after death, and a regular paycheck that cannot be outlived.
The Economic Benefits of PERA
The National Institute on Retirement Security conducted research on the economic impact pension benefits have in Colorado. A one-pager created by NIRS can be found here.
This research is based on 2006 data.