Evolve.
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Investments
Funding
Membership
Financials
Economic Impact
Additional Resources

Andrew Roth
MESSAGE FROM THE CEO

Colorado PERA continues to build on our tradition of service as we evolve, innovate, and invest on behalf of our nearly 700,000 members. As we accomplish this work, we’re staying true to our mission to provide retirement security for our members while ensuring the sustainability of the fund.

PERA’s investment portfolio for the defined benefit plans ended the year with a positive return of 13.4% net of fees. As of December 31, 2023, PERA manages a portfolio of $61.5 billion for the defined benefit plans and $5.9 billion for the defined contribution plans. The combined funded ratio for the five Division Trust Funds was 69.6%.

Investment performance is just one of many factors that determine PERA’s progress toward full funding. A primary tool used to monitor this progress is the automatic adjustment provision (AAP) that was established in 2018 and performed annually. The AAP adjusts contribution rates and annual increases for retirees to keep PERA on track to fully fund the system by 2048. The results of the 2023 AAP assessment indicate that no required adjustments will take effect in 2025.

While it’s good news that an automatic adjustment will not occur in 2025, it’s important that we keep our sights on long-term goals and the responsibility we have to our stakeholders to stay on track for full funding. As we continue to assess our progress each year, we will make adjustments as necessary under state statute to ensure we don’t fall behind.

Colorado’s public employees spend their careers providing vital services to their communities and to our state, and it’s our responsibility to stay committed to financial stability, transparency, and service to help ensure we continue to deliver retirement security and long-term value to all stakeholders. As Colorado PERA’s eighth CEO/Executive Director, I look forward to helping this important organization continue its nearly 100-year legacy and move its mission forward.

ANDREW ROTH
Chief Executive Officer/Executive Director

2023
IN REVIEW

FACTS AND FIGURES
AS OF DECEMBER 31, 2023

INVESTMENT PORTFOLIO FAIR VALUE

$61.5 billion

(DEFINED BENEFIT PLANS)

NET RATE OF RETURN

13.4%

MEMBERS ACTIVELY CONTRIBUTING TO PERA

213,548

EMPLOYERS

410

TOTAL COVERED PARTICIPANTS

59,470

(IN PERACARE HEALTH BENEFITS PROGRAM)

FUNDED STATUS

69.6%

(DIVISION TRUST FUNDS)

RETIREES AND BENEFIT RECIPIENTS

138,553

ANNUAL RETIREMENT BENEFIT PAYMENTS

$5.3 billion

INVESTED IN COLORADO-BASED COMPANIES, PARTNERSHIPS, AND ASSETS

$788.9 million

30-YEAR RATE OF RETURN

8.3%

(ANNUALIZED, GROSS-OF-FEES)

INVESTMENTS

PERA invests its assets for the sole benefit of its members and believes that the most effective and efficient long-term strategy is to invest in a broad array of asset classes. Investment portfolio income is a significant source of revenue for PERA. Earnings from this portfolio have generated over $81 billion in investment income in the last 30 years.

Because PERA benefits are payable over decades, the fund is broadly diversified within and across all asset classes to limit volatility and maximize returns.

Rates of Return Over 10 Years (Net-of-Fees)

The 10-year annualized return is 7.8%.

Hover or tap to show returns.

Asset Allocation

The graph below shows the percentage of PERA's investments by asset class.

Hover or tap to show returns for 2023.

Colorado-Based Investments

Hover or tap to show 2023 allocation.

Investment Expenses

PERA combines internal and external management to ensure its investment program produces competitive performance at a low cost. PERA spends 35.5 basis points on total asset management, which is less than one-half of one percent of total assets to manage a multi-billion dollar portfolio that is responsible for generating returns used to provide retirement income to hundreds of thousands of PERA members.

INTERNAL AND EXTERNAL MANAGEMENT EXPENSES

$218.5 million

ASSETS MANAGED IN-HOUSE BY PERA STAFF

59.8%

SAVINGS IN 2023 DUE TO INTERNAL INVESTMENT MANAGEMENT

$65 million

BASIS POINTS OF TOTAL ASSETS SPENT ON MANAGEMENT

35.5

FUNDING

It is both PERA's goal and a requirement of state law to bring the plan to full funding, which benefits PERA's membership and Colorado taxpayers with a stronger, more stable retirement fund.

Projected Years to Reach Full Funding

Hover or tap to see years to full funding.

PERA analyzes its progress to reach the goal of full funding for each of the five divisions of PERA’s trust funds and report the total amount of unfunded liability. Each division's current funded status is also reported.

Total Unfunded Liability: $27.5 billion
Funded Status: 69.6%

STATE UNFUNDED LIABILITY

$9.6 billion

FUNDED STATUS

66.2%

SCHOOL UNFUNDED LIABILITY

$16.8 billion

FUNDED STATUS

66.7%

LOCAL GOVT. UNFUNDED LIABILITY

$572 million

FUNDED STATUS

90.7%

JUDICIAL UNFUNDED LIABILITY

$58 million

FUNDED STATUS

89.2%

DPS UNFUNDED LIABILITY

$521 million

FUNDED STATUS

89.6%

Automatic Adjustment Provision

The automatic adjustment provision was part of legislative changes in 2018 designed to make sure PERA continued to positively move toward the funding goal and ensure the long-term stability of retirement benefits for retirees today and in the future. The provision keeps PERA on the path to full funding by making incremental changes that are responsive to demographic and economic conditions. Based on 2023's financial results, the automatic adjustment provision will not trigger any additional changes in 2025.

If PERA is...

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Behind Schedule

  • Decrease annual increase percentage by up to 0.25% in one year, not to fall below 0.5%
  • Increase employer contributions by up to 0.5% in one year, not to exceed an additional 2%
  • Increase member contributions by up to 0.5% in one year, not to exceed an additional 2%
  • Increase the direct distribution from the State budget by up to $20 million in one year, not to exceed $225 million

On Schedule

  • No automatic adjustments

Ahead of Schedule

  • Increase AI percentage by up to 0.25% in one year, not to exceed 2%
  • Decrease employer contributions by up to 0.5% in one year, not to fall below 2018 levels
  • Decrease member contributions by up to 0.5% in one year, not to fall below 2018 levels
  • Decrease the direct distribution from the State budget by up to $20 million in one year

MEMBERSHIP

Colorado PERA provides retirement and other benefits to nearly 1 out of every 10 Coloradans who are current and former teachers, State Troopers, snowplow drivers, corrections officers, and other public employees who provide valuable services to all of Colorado.

Membership is divided into three categories: retirees and benefit recipients, who are receiving a PERA benefit, active members who are currently working for a PERA employer and contributing to PERA, and inactive members who are no longer working for a PERA employer but still have a PERA account.

Membership by Division

Hover or tap to show breakdowns by division.

Members and employers contribute to PERA's hybrid defined benefit plan, which is a substitute for Social Security for most members, and provides monthly lifetime income in retirement.

Retirement Benefits at a Glance

STATE SCHOOL LOCAL JUDICIAL DPS ALL RETIREES
Average age at retirement 59.0 59.3 59.2 62.7 59.8 59.2
Average years of service at retirement 22.4 22.7 20.8 23.2 23.0 22.5
Average monthly benefit $3,463 $3,106 $3,259 $6,545 $3,305 $3,252
135,193 Retirees & beneficiaries receiving a benefit from PERA in 2023
59.1 Average age at retirement
22.6 Average years of service at retirement
$3,238 Average monthly benefit
43,754 Retirees & beneficiaries receiving a benefit from PERA in 2023
58.9 Average age at retirement
22.5 Average years of service at retirement
$3,442 Average monthly benefit
74,939 Retirees & beneficiaries receiving a benefit from PERA in 2023
59.2 Average age at retirement
22.8 Average years of service at retirement
$3,095 Average monthly benefit
8,808 Retirees & beneficiaries receiving a benefit from PERA in 2023
59.1 Average age at retirement
20.9 Average years of service at retirement
$3,236 Average monthly benefit
444 Retirees & beneficiaries receiving a benefit from PERA in 2023
62.6 Average age at retirement
23.2 Average years of service at retirement
$6,433 Average monthly benefit
7,248 Retirees & beneficiaries receiving a benefit from PERA in 2023
59.7 Average age at retirement
23.2 Average years of service at retirement
$3,302 Average monthly benefit

FINANCIALS

PERA receives contributions as a percentage of payroll from active employees and employers and invests the money in a diversified, low-cost portfolio. At retirement, members will receive a lifetime monthly benefit from PERA. The Financials at a Glance shows the inflows (contributions, investment income) and outflows (benefits paid, plan administration costs) during the year, and the net assets available to pay future benefit payments.

Financials at a Glance

Net Position as of December 31, 2022: $61,247,763,000

$12.6B Additions
Employer Contributions $2,481,066,000
Nonemployer Contributions (Distribution from the State Budget) $49,561,000
Member Contributions $1,568,084,000
Purchased Service $89,958,000
Employer Disaffiliation $26,000,000
Net Investment Income $8,309,310,000
Other $26,145,000
$6.1B Deductions
Benefit Payments $5,308,424,000
Health Care Benefits $86,862,000
Refunds of Contribution Accounts $646,603,000
Disability & Life Insurance Premiums $3,786,000
Administrative $60,194,000
Other $21,058,000

Net Position as of December 31, 2023: $67,670,960,000

Net Position as of December 31, 2021: $72,648,070,000

($5.4B) Additions
Employer Contributions $2,240,271,000
Nonemployer Contributions (Distribution from the State Budget) $605,000,000
Member Contributions $1,423,230,000
Purchased Service $107,526,000
Employer Disaffiliation $--
Net Investment Income ($9,840,443,000)
Other $24,735,000
$6.0B Deductions
Benefit Payments $5,153,727,000
Health Care Benefits $87,167,000
Refunds of Contribution Accounts $638,650,000
Disability & Life Insurance Premiums $3,220,000
Administrative $56,702,000
Other $21,160,000

Net Position as of December 31, 2022: $61,247,763,000

ECONOMIC IMPACT

PERA retirement benefit payments represent a steady stream of income in every county in Colorado, and provide stability to state, regional, and local economies. In 2023, PERA paid $5.30 billion in pension benefits, and, of that, approximately $4.55 billion was paid to over 114,000 PERA retirees living in Colorado.

Benefits Paid as a Percentage of Total Payroll

Annual PERA Benefits Paid in 2023 (Actual Dollars)

$400,000–$1,000,000
$1,000,000–$5,000,000
$5,000,000–$10,000,000
$10,000,000–$50,000,000
$50,000,000+

Benefit Recipients:

Annual PERA Benefits Paid:

Benefits Paid by County

Click/tap to show county information.