The Colorado PERA Board of Trustees met virtually on Friday, March 15 for its second regularly scheduled meeting of the year.
Below is a summary of key actions and discussions that took place during the meeting.
New Executive Director
At the beginning of the meeting, the Board announced it has selected PERA’s next Executive Director following an eight-month nationwide search.
Andrew Roth will fill that role beginning May 13. He comes to PERA from the Teacher Retirement System of Texas, and previously worked at the California State Teachers’ Retirement System and in various departments within the State of California.
READ MORE: PERA Board Names Andrew Roth as New Executive Director
Board election update
The Board announced in January that four Trustee seats would be up for election in May. At the March meeting, Trustees voted to move forward with elections for three of those seats—one in the School Division and two in the State Division.
The Denver Public School Division seat, currently held by Amy Grant, is uncontested. The Board voted to reappoint Grant to another four-year term beginning in July.
Members in the School and State divisions will receive ballots in May, and the Board will announce election results at its June meeting.
Legislative update
State lawmakers are halfway through the 2024 legislative session, and Public and Government Affairs Manager Michael Steppat joined Interim Executive Director/Chief Investment Officer Amy C. McGarrity to provide an update on PERA-related legislation.
So far this session, legislators have introduced more than 500 bills, seven of which pertain to PERA.
Of those seven proposed bills, one—HB24-1169, which would have repealed a 2016 law that requires PERA to divest all direct holdings from companies that have economic prohibitions against Israel—has died in committee. The other six remain under consideration at the State Capitol.
Steppat said it’s likely there will be some additional PERA-related legislation before the session is over. PERA On The Issues will continue to track all PERA bills and post updates when they’re available.
Asset/liability study continues
The Board also received an update on its ongoing asset/liability study. That study, which is an in-depth analysis of PERA’s investment portfolio and strategy, will help the Trustees determine if any changes are needed to PERA’s asset allocation, or mix of investments.
The Board’s consultants, Aon, modeled several different asset allocation—some with more risk than the current portfolio and some with less—across thousands of different economic scenarios to project how each option might affect PERA’s investment returns and progress toward its funding goals.
Overall, PERA’s current portfolio is within a reasonable range, Aon said, but there may be some opportunities to further diversify in a way that increases the potential for higher returns without adding unnecessary risk.
Consultants and PERA staff will continue to work on a recommendation and will present more information at the next Board meeting.
The Board’s next regular meeting, which will also include the release of PERA’s 2023 Annual Comprehensive Financial Report and Investment Stewardship Report, is scheduled for June 21.
StewardshipThe practice of overseeing or managing something entrusted to one’s care. PERA’s approach to investment stewardship is focused on ensuring the financial sustainability of the fund that pays benefits to retirees and beneficiaries.Asset allocationAn investor’s mix of stocks, bonds, and other investments. PERA’s strategic asset allocation is set by the PERA Board of Trustees.Asset allocationAn investor’s mix of stocks, bonds, and other investments. PERA’s strategic asset allocation is set by the PERA Board of Trustees.
P.E.R.A. participants. There are 1078 divorced retires that are paying life time ex-spouse settlements under option 3 of the retirement plan after ex-spouse has remarried. Other retirement plans like military and railroad pension plans when the ex-spouse remarries the pension stops and goes back to the participant of the plan. Thus allowing participant to collect full benefit for what “they” paid into and freeing them of a lifetime penalty to a full time working ex-spouse and full time working new spouse with retirement benefits. In 2023 HB23-1144 was denied asking for removal of unethical and outdated option 3. In most cases retired participants of the plan have had to go back to work fulltime to makeup for the loss and be able to sustain themselves at a low income life style because of the loss of a majority of their retirement pension. I encourage P.E.R.A. retires in this situation to contact their local and state representatives to balance in the injustice of the rule. Don’t be told that it is what it is and you just need to accept it!!!! Laws get changed and the legislature has the power to do it. Hoping this situation will resurface in 2024 with a new bill and fresh understanding of our “representatives for the people”!!!!!!
THIS STORY SHOULD HAVE BEEN TITLED: BEWARE THE IDES OF MARCH
There are so many inequities in the laws governing PERA benefits that need addressing (like the one mentioned in the comment above); but all we hear about are proposals to let teachers work longer after retirement and grant other workers “state-trooper” retirement status (so they can retire early); and PERA Board & Staff (PERA B.S.) go along with barely a peep, although these proposals burden all employees and retirees with higher unfunded expenses. Politicians and PERA B.S. … are one in the same!