At PERA, our mission is to provide retirement security for our membership while ensuring the sustainability of the Fund. This is a fiscal responsibility we take very seriously as we manage the Fund on behalf of the many retirees and public employees who have dedicated their careers to public service. It is their commitment and service to their local communities and our state that help guide our mission with integrity and purpose. That purposeful approach to PERA’s mission guides our investment strategy in both up and down markets.
2022 was a challenging year in the markets with major indexes down for the year. PERA, as an investor in those markets, was not immune to those losses. PERA’s strategic asset allocation set by the PERA Board ensures we have a well-diversified portfolio that’s built to withstand different market environments. We may experience losses in any given year, but our portfolio is designed to deliver returns for our members over several decades.
While PERA’s 2022 investment performance was below expectations compared to the market, the negative return did not trigger modifications to the plan under the Automatic Adjustment Provision (AAP) implemented by the General Assembly in 2018. This means member and employer contributions, as well as the annual benefit increases paid to retirees, will remain unchanged in 2024.
Colorado’s public employees provide vital services to their communities and to our state, and we owe it to them to stay committed to the values of integrity and purpose that guide our mission. By keeping our focus on our funding goals, investing for the future, and evolving our service delivery, we will continue to provide retirement security to Colorado’s public workforce for many decades to come.
AMY C. MCGARRITY
Interim Executive Director/Chief Investment Officer