Engaging Stakeholders Across Colorado

Since July, Greg Smith, Colorado PERA’s Executive Director, has met with PERA Ambassadors, community leaders, and other stakeholders around the state. The main purpose of these meetings is to help educate influential business, community, and elected leaders about the economic value of PERA in their cities and counties and the effectiveness of the reforms made to PERA in 2010.

PERA wants to inform stakeholders so they have the facts whenever they hear negative misinformation about PERA. Throughout these meetings, many messages about PERA have been delivered to convey the value and importance of PERA.

PERA’s Value to Colorado

PERA is one of Colorado’s best investments. As a not-for-profit economic engine, PERA consistently delivers value to Colorado’s largest workforce and is a vital and stable contributor to Colorado’s economy.

PERA provides $3.36 billion in annual retirement benefit payments to 90,155 Colorado residents. These payments in turn support local businesses, create Colorado jobs, and generate hundreds of millions of dollars in state and local tax revenue. Research and data recently updated by Pacey & McNulty illustrates the positive impact PERA has on Colorado’s economy:

PERA benefit payments:

• Result in $4.79 billion in total economic output (all goods and services transactions)
• Create $1.12 billion in labor income
• Add $2.07 billion to the state’s gross domestic product
• Produce $283.4 million in state and local tax revenue
• Sustain 25,997 jobs statewide

One of Colorado’s Best Investments

PERA members are more than 500,000 strong—teachers, State Troopers, snowplow drivers, corrections officers, and many others who provide valuable services to keep Colorado moving.

Each month, $300 million is disbursed to retirees who live in Colorado. This is money that goes into local economies—hardware stores, diners, car dealerships, etc.

PERA is a stabilizing factor in Colorado’s economy because PERA’s retirement distributions don’t fluctuate with the market. This is especially critical in times of economic downturn.

PERA invests nearly $500 million in companies headquartered in Colorado.

Reforms are Working

We learned from the worldwide financial crisis of 2008 that bold action would be necessary to ensure the stability of the fund. Bipartisan effort, with months of public meetings with PERA stakeholders followed by months of negotiating with the Legislature, resulted in Senate Bill 10-001 (SB 1) in 2010.

Because of these significant reforms, which affect current members and retirees, including PERA Trustees, the fund’s obligations are being paid off over time.

Transparent and Adaptable

Have you ever had a question or wanted to learn more about PERA? There is a vast amount of information available on the PERA Web site—from annual financial reports, to newsletters and brochures, to commentary on the major issues facing the public pension community. PERA has endured over the last eight decades because we’ve embraced the fact that we live in an ever-changing world.

• PERA received yet another clean financial and compliance audit from one of the premier independent public accounting firms in the country, the State Auditor, and the Legislative Audit Committee.
• PERA’s Comprehensive Annual Financial Report consistently receives recognition awards for excellence in financial reporting and transparency.
• PERA ranks very high among retirement systems around the world in member satisfaction—and we do it at a low cost. (See post on CEM from November 1, 2013.)
• PERA is using new ways to communicate with our members through social media and by engaging in issues relevant to public employees and their financial and retirement security.

PERA values and respects the work of all public employees and the positive impact they have on the quality of life we all enjoy in Colorado. Whether patrolling our highways, keeping roads maintained and plowed in the winter, or teaching our children, PERA members contribute to the quality of life we enjoy in Colorado. And PERA is committed to ensuring the stable, secure retirement our members have earned for years to come.