The Colorado PERA Board of Trustees convened for three days in Colorado Springs for its annual September planning session. The planning session concluded with the Board meeting on Friday, Sept. 22.
Over the course of the three days, Trustees engaged in a number of discussions, education sessions, and planning meetings. Below is a summary of some of the highlights and important actions the Board took.
Executive Director search
The Board committee tasked with overseeing the search for PERA’s next Executive Director announced to the full Board that it has selected an outside firm to assist in that search. Hudepohl & Associates, a firm with experience in executive searches for public pension plans, will conduct a nationwide search over the coming months.
READ MORE: PERA Board Selects Firm to Conduct Executive Director Search
CEM Benchmarking Report
Each year, CEM Benchmarking releases a report comparing PERA to other public pension plans on factors such as plan administration costs and the quality of services provided to members. The most recent report, which CEM presented at the planning session, shows PERA continues to provide a high level of service at low cost to its members relative to its peers.
According to CEM, PERA’s administrative cost was $55 per member in 2022, below the peer average of $63. PERA’s service score of 83 was the 10th highest of the 61 pension systems around the world that were included in the report. Among its peers of similarly sized U.S. plans, PERA ranked fourth.
Notably, the report showed that most plans are seeing an increase in wait times and call lengths on their customer service phone lines in recent years, and PERA is no exception. Staff have been taking steps to improve service levels, including upgrading phone systems and better forecasting staffing needs to meet members’ expectations.
Asset/liability study
An important action the Board undertakes every few years is conducting what’s called an asset/liability study. The last study was completed in 2019.
The asset/liability study is what ultimately informs PERA’s strategic asset allocation — or the mix of stocks, bonds, and other investments that make up PERA’s portfolio.
Over the next several months, PERA’s investment consultants will work with staff and the Board to discuss PERA’s long-term investment goals, risk tolerance, expectations of future performance and other factors to determine if PERA should adjust its asset allocation . A notable change that resulted from the last study was allocating slightly more of the portfolio to global equity.
The Board will discuss the asset/liability study further at its November meeting, with the possibility of finalizing the study as soon as next spring.
The Board will hold its final meeting of 2023 on Nov. 17.
Global equityA type of investment that includes publicly traded stocks in companies based in the United States and abroad.Asset allocationAn investor’s mix of stocks, bonds, and other investments. PERA’s strategic asset allocation is set by the PERA Board of Trustees.BenchmarkA tool used to measure performance. For example, an investor can use a stock index as a benchmark to measure his/her own investment performance compared to the market as a whole.
Any progress in Congress to repeal the windfall tax on our Social Security?
Did you write a letter to your congressional representative in the state/district where you live? This is not a PERA controlled or Colorado State controlled issue. This affects everyone who would otherwise be entitled to the full social security benefits from their pay from which social security was deducted but for the pension.
Right now, write & call now and continue to push the issue. Encourage friends & family to write & call. Include non-voters to write. Everyone who worked under pension and also paid into social security with enough credits to collect, regardless of ability to vote, is affected. The congressional representatives need to know our wishes.
Great response. Thanks for the thoroughness of your response. Hopefully people will read it!
‘J Sullivan, Not JJ’ is absolutely right in directing GPO/WEP repeal appeals to the federal delegation (U.S. Senators and Representatives). Of course they won’t be responding while the government is shut down, but the important thing is to contact them (more than once). It’s okay if they don’t reply, because they do keep track of who contacts them on what issues; but YES, get you friends and family members to also contact Washington D.C.; AND don’t forget to contact AARP and ask them exactly what they’re doing to get the GPO/WEP repealed???
This Windfall issue needs to be addressed after a long time of ignoring it. This money was earned rightfully by many individuals and would help out so much in this time of every increasing hikes of prices. We have been wronged for too long concerning funds that we toiled for.
What Happened to all those years when, there was “WINDFALL drop” in our Social security, Income in the bad years, and all the excess Social security thry collect for people who still want to and NEED to work so that they can have monmies for their MEDICAL that Medkicare cannot and will not cover, and Doctors who refuse to take Medicare Patients, causing retired folk to keep working wau after teir retirement just to keep food on the tab;pe amd light and heat on in their homes/???
Absolutely! This is so unfair! I work on SS until age 40.
Interested in this too!!
Did you write a letter to your congressional representative in the state/district where you live? This is not a PERA controlled or Colorado State controlled issue. This affects everyone who would otherwise be entitled to the full social security benefits from their pay from which social security was deducted but for the pension.
Right now, write & call now and continue to push the issue. Encourage friends & family to write & call. Include non-voters to write. Everyone who worked under pension and also paid into social security with enough credits to collect, regardless of ability to vote, is affected. The congressional representatives need to know our wishes.
Any discussion regarding indexing the Annual Increase to an inflation index? PERA retirees are hurting and have sacrificed more than current employees and employers. After all employees have had nice raises and employers budget increases due to inflation since 2019.
The PERA Board should champion this initiative with the legislature! They also should propose to put a minimum floor (or AI difference from inflation) of 2% on the widely touted Auto-Adjust provision. This would protect retirees during times of high inflation (like we are experiencing). If it slows down the goal of being fully funded in 30 years so what? Many retirees did not have the time to increase retirement savings (or the health) to offset the changes when the 2018 bill was implemented.
The reality is that absent these changes, many PERA retirees will be forced to choose between medicine, food, heat etc. as their PERA retirement will decrease below poverty level. Unless something is done about the AI, PERA will fail in serving retirees and not be successful in it’s mission.
I agree full heartedly! I am under 200% of the federal poverty level and these annual increases amount to another $20.00 in my pocket while my medication costs alone go up $2000! I am seeking work again for the first time in years as I HAVE to have another source of income!!
Totally Agree, We need help!
Yes, it has been very tough. I now keep my winter heat 55 degrees to reduce my gas bill. My medical, auto, home and taxes have gone up more than 15 % over the 4 years of 1% increase. I’m getting into trouble.
The Windfall issue really needs to be addressed. I wrote my letters but the bill never gets put out there. And, nothing ever happens with reversing it. It is so unfair to those of us who also paid into the Social Security system for years before becoming State employees
Same here! I am 74 and still working as a Substitute teacher. I worked at a hospital after I retired but paid into Social Security which I will never see. Now as a sub I still pay into PERA but my own PERA does not increase. Oh yes, and because of the Government Pension Offset I don’t get a penny of my deceased husband’s SS either! I am penalized for teaching school for 32 years! No wonder no one wants to enter the profession anymore.
Oh my goodness you are so right. Paying into it for years and having made the full quarters, I thought that I had worked hard for it. Then I got surprised that I didn’t make it.
I can’t tell if this will post as it’s own topic, or if I’m replying on someone else’s comment, so apologies in advance if it’s wrong. I notice in the photo of the Board of Directors that it’s very/all white people. What actions are being taken to move the Board towards a more representative sampling of our society?
There seems to be an awfully high number of women on that board too!
That a very astute question. I, also would like to know that answer.
Thank you for your question. The majority of the Trustees on the Board (12 of the 16) are directly elected by PERA members and retirees. We invite you to learn more about the Board here: https://www.copera.org/board-of-trustees
I wish they would repeal the Windfall protection act.