PERA Generates $6.5 B for Colorado

A new study by Pacey Economics found that PERA generates $6.5 Billion in economic output.  Over $4.1 billion in benefits is paid out to PERA retirees annually and 87 percent of PERA retirees stay in Colorado and spend their retirement income in every county in Colorado, providing a steady stream of income to businesses in Colorado.

Retirees spend those benefit payments in every community in our state.  These payments are a critical source of reliable, predictable income and proved an “automatic stabilizing effect” on State and local economies, especially in economic downturns as these monies provide important stimulus.  These steady monthly benefit payments are especially vital to small communities.  Households with stable incomes can be counted on to spend on basic needs and other purchases as well as pay taxes and fees generating revenue for State and local governments.

The impact of the PERA payments reaches well beyond those who receive the initial payments because they spend money in their local grocery stores, restaurants and gas stations.  This creates the “multiplier” effect.  Here’s how it works:

  • PERA makes monthly payments to recipients.
  • PERA recipients spend the monthly monies on household needs such as food, gasoline and utilities and pay taxes and fees.
  • Businesses and/or governments providing those needs use their existing inventory or purchase new inventory and may also be required to hire labor to sell or produce their products or provide their services.
  • Business owners, as well as their employees, get income from these purchases and they too then go out and buy goods and services
  • Which, in turn, generates more demand for local goods and services—and the cycle repeats itself.

So, you see when a household receives PERA payments, it represents an infusion of income into the local economy that creates a chain of economic activities whose total impact is greater than the initial benefit payments.  That is, these payments have substantial “multiplier” effects where one recipient’s spending becomes someone else’s income.  In all, spending by PERA retirees generates 35,031  Colorado jobs and $343 million in Colorado state and local tax revenue.

PERA has a large economic footprint on the State and local economies.  These payments are a critical source of reliable, predictable income and provide and “automatic stabilizing effect” on State, regional and local economies, especially in economic downturns as these monies provide important stimulus to local and State market activity.

For more information on the impact these payments make click here.

To read PERA’s entire economic study click here.

PERA Releases 2015 Annual Financial Report

The PERA Board of Trustees released the Comprehensive Annual Financial Report or CAFR for short. This annual report let’s us know how all of the divisions of PERA did over the last year.  This year the release of the CAFR came with the news that PERA had gotten a 1.5% rate of return on their investments. While this is lower than the 30 year projected rate of return of 7.5% it is important to remember PERA is a long term investor and over 35 years they have a rate of return of 9.5%.

You can view the CAFR summary by clicking here. And, you can view the entire CAFR by clicking here.


PERA Puts $3.5 Billion Directly into Colorado’s Economy

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.

The report shows that $3.5 billion in annual PERA distributions to more than 90,000 Colorado residents drives the following:

  • $5.2 billion in economic output, which includes all local shopping at grocery stores, restaurants, and more
  •  $1.46 billion in labor income
  • 29,357 jobs

Every party of the state is touched by the benefit of these distributions. They create “an infusion of income into the local economy that creates a chain of economic activities whose total impact is greater than the initial retirement distribution payment. The impact of the PERA retirement distributions reaches well beyond those who receive the initial retirement distributions,” according to the report.

Additionally, the report notes that the economic impact of the distributions has increased nearly $2 billion since 2009. You can read the entire report by Pacey here. Also, check out the infographic  from PERA below that shows just how far its distributions go:

PERA Releases 2014 CAFR Report

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.

PERA earned a 5.7% rate of return so retirees will be receiving a COLA (cost of living adjustment) this year. Making PERA’s 30-year rate of return 9.4% – you may remember PERA lowered its 30 year expected rate of return to 7.5% over a year ago, and they continue to remain above that!

Below is the infographic that PERA released in light of the CAFR release and the Pacey study of how PERA contributes more than $5 billion into Colorado’s economy, helping to sustain over 29 thousand jobs.

You can view the CAFR here and the Pacey study here.

Please copy the infographic below highlighting how Secure PERA is as an economic generator for Colorado and share it with your network.

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