Quiz: Test Your Knowledge of PERA Benefits

When you retire, you’ll earn a percentage of your Highest Average Salary (HAS) as your monthly benefit. The percentage will depend on your service credit and age at retirement. The basic formula for a full service, single-life retirement benefit is: Your HAS x 2.5% x Your years of service = your monthly lifetime benefit amount.

Every dollar you contribute to PERA is yours. If you leave for a new job that is not covered under PERA, you have two options: 1) Refund or rollover your account balance (which includes compounded interest and a potential match), or 2) keep your balance with PERA for a future benefit or rollover/refund.

The PERA Board is responsible for overseeing PERA’s staff and operations, including PERA’s investment program. The Colorado General Assembly sets contribution rates and benefit levels, and is responsible for crafting any legislation pertaining to PERA.

In the PERA Defined Benefit Plan, you earn service credit for every month you work for a PERA-covered employer. When you retire, your service credit and age will determine the percentage of your Highest Average Salary (HAS) you will receive each month as your benefit. Your HAS table can help you determine how much of a benefit you’ll receive with different combinations of age and service credit.

Active PERA members have the option to purchase service credit to receive a larger benefit, retire earlier, or receive a larger health care subsidy for PERACare health coverage. Eligibility and cost to purchase can depend on when you began PERA membership, your Highest Average Salary, the type of purchase you are making and your previous work history, and your age at the time of purchase.

PERA was established by the State of Colorado on Aug. 1, 1931, while Social Security was established by the federal government on Aug. 14, 1935. For most members, PERA serves as a substitute for Social Security.

PERA offers short- and long-term disability (after five years of service credit), survivor benefits (after one year of service credit), life insurance, and pre-Medicare and Medicare health plans to its members.

PERA provides a health care subsidy to retirees and some cobeneficiaries and survivors to help offset PERACare health care premiums, based on years of service credit. The maximum monthly subsidy for most Medicare retirees is $115 with 20 or more years of service credit. The maximum monthly subsidy for Medicare retirees under the Denver Public Schools (DPS) benefit structure who do not have Medicare Part A is $230. The subsidy is prorated for benefit recipients with less than 20 years of service credit.

When you apply for retirement, you’ll have the ability to choose between several benefit options, depending on whether you want your cobeneficiary (a person of your choice) to continue receiving benefits after you die. If you choose a joint-life benefit, your benefit payments will be lower to pay for your cobeneficiary’s continuing benefits.

Some PERA members have a choice between the PERA Defined Benefit Plan and the PERA Defined Contribution Plan. In addition, members also have access to optional PERAPlus 401(k) and 457 plans to save extra money for retirement.

We offer a variety of live and on-demand webinars. Topics include benefit information for new members, purchasing service credit, the retirement process, and PERACare health plans.