BUILDING ON A
TRADITION OF SERVICE
Serving Colorado since 1931

Ron Baker
EXECUTIVE DIRECTOR'S MESSAGE

In 2021, PERA marked its 90th year of providing retirement and other benefits to Colorado’s public employees. When PERA was established in 1931 by the Colorado General Assembly, the Association had fewer than 1,500 members and just $63,000 in assets. Today, PERA manages more than $76.8 billion on behalf of nearly 650,000 members and benefit recipients.

Financially, 2021 was a strong year for the global markets, and PERA’s portfolio benefited from that environment. Although investment performance is just one factor among many that determine how much progress is made toward our goal of full funding. Other factors, such as the economy, workforce changes, and demographics also play a major role, and it’s vital that we continue to monitor and measure those factors and react to any changes to keep PERA on track to meet our goal.

When the General Assembly passed the package of PERA reforms (Senate Bill 200) in 2018, the Legislature mandated that PERA reach full funding within 30 years—by the end of 2047. Included in those reforms was the automatic adjustment provision (AAP), which automatically adjusts member and employer contributions as well as the annual increase paid to eligible benefit recipients if PERA is off-track to meet its target.

The AAP calculation is made on an annual basis to take effect the following year. Based on 2021’s financial results, additional adjustments will not be necessary in 2023.

As we’ve seen over the past two years, PERA members are incredibly dedicated and continued to serve their communities during difficult circumstances. In facing another year of the pandemic with its many challenges, PERA will continue to build on our tradition of service and uphold our mission as we have for more than 90 years ensuring that we provide reliable benefits for generations.

RON BAKER
Colorado PERA Executive Director

2021
IN REVIEW
Facts and Figures as of December 31, 2021

ASSETS UNDER MANAGEMENT (FNP)

$66 billion

(DIVISION TRUST FUNDS)

NET RATE OF RETURN

16.1%

MEMBERS ACTIVELY CONTRIBUTING TO PERA

207,269

EMPLOYERS

409

TOTAL COVERED PARTICIPANTS

(IN PERACARE HEALTH BENEFITS PROGRAM)

59,568

FUNDED STATUS

67.8%

RETIREES AND BENEFIT RECIPIENTS

132,111

ANNUAL RETIREMENT BENEFIT PAYMENTS

$5.0 billion

(DIVISION TRUST FUNDS)

INVESTED IN COLORADO-BASED COMPANIES, PARTNERSHIPS, AND ASSETS

$898.9 million

30-YEAR RATE OF RETURN

9.0%

(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 $85 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 10.9%.

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 2021.

Colorado-Based Investments

Hover or tap to show 2021 allocation.

Investment Expenses

PERA combines internal and external management to ensure its investment program produces competitive performance at a low cost. PERA spends 30.7 basis points on total asset management, which is less than one-third 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

$203.0 million

ASSETS MANAGED IN-HOUSE BY PERA STAFF

62%

SAVINGS IN 2021 DUE TO INTERNAL INVESTMENT MANAGEMENT

$65 million

BASIS POINTS OF TOTAL ASSETS SPENT ON MANAGEMENT

30.7

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: $27.2 billion
Funded Status: 67.8%

STATE UNFUNDED LIABILITY

$9.8 billion

FUNDED STATUS

64.0%

SCHOOL UNFUNDED LIABILITY

$16.1 billion

FUNDED STATUS

65.3%

LOCAL GOVT. UNFUNDED LIABILITY

$654 million

FUNDED STATUS

88.6%

JUDICIAL UNFUNDED LIABILITY

$69 million

FUNDED STATUS

85.9%

DPS UNFUNDED LIABILITY

$609 million

FUNDED STATUS

86.9%

Automatic Adjustment Provision

The automatic adjustment provision was part of the legislative changes 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 2021’s financial results, the automatic adjustment provision will not trigger any additional changes in 2023.

Watch: Automatic Adjustment

Video

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 2021 levels
  • Decrease member contributions by up to 0.5% in one year, not to fall below 2021 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

131,808 Retirees & beneficiaries receiving a benefit from PERA in 2021
59 Average age at retirement
22.7 Average years of service at retirement
$3,220 Average monthly benefit
42,937 Retirees & beneficiaries receiving a benefit from PERA in 2021
58.8 Average age at retirement
22.5 Average years of service at retirement
$3,419 Average monthly benefit
72,690 Retirees & beneficiaries receiving a benefit from PERA in 2021
59.1 Average age at retirement
22.9 Average years of service at retirement
$3,079 Average monthly benefit
8,570 Retirees & beneficiaries receiving a benefit from PERA in 2021
58.9 Average age at retirement
21.0 Average years of service at retirement
$3,212 Average monthly benefit
432 Retirees & beneficiaries receiving a benefit from PERA in 2021
62.5 Average age at retirement
23.2 Average years of service at retirement
$6,237 Average monthly benefit
7,179 Retirees & beneficiaries receiving a benefit from PERA in 2021
59.6 Average age at retirement
23.5 Average years of service at retirement
$3,293 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, 2020: $64,440,223,000

$13.9B Additions
Employer Contributions $2,080,273,000
Nonemployer Contributions (Distribution from the State Budget) $225,000,000
Member Contributions $1,305,289,000
Purchased Service $114,246,000
Employer Disaffiliation $0
Net Investment Income $10,164,321,000
Other $26,168,000
$5.7B Deductions
Benefit Payments $4,984,779,000
Health Care Benefits $67,409,000
Refunds of Contribution Accounts $572,786,000
Disability & Life Insurance Premiums $3,715,000
Administrative $57,810,000
Other $20,951,000

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

Net Position as of December 31, 2019: $57,124,515,000

$12.7B Additions
Employer Contributions $1,977,103,000
Nonemployer Contributions (Distribution from the State Budget) $0
Member Contributions $1,165,294,000
Purchased Service $75,623,000
Employer Disaffiliation $0
Net Investment Income $9,461,560,000
Other $23,199,000
$5.4B Deductions
Benefit Payments $4,825,842,000
Health Care Benefits $56,109,000
Refunds of Contribution Accounts $421,933,000
Disability & Life Insurance Premiums $4,776,000
Administrative $57,467,000
Other $20,944,000

Net Position as of December 31, 2020: $64,440,223,000

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 2021, PERA paid over $4.9 billion in pension benefits, and, of that, $4.3 billion was paid to 110,084 PERA retirees living in Colorado.

Benefits Paid by County

Annual PERA Benefits Paid in 2021 (Actual Dollars)

$200,000–$500,000
$500,000–$1,000,000
$1,000,000–$5,000,000
$5,000,000–$10,000,000
$10,000,000–$50,000,000
$50,000,000+
X

Benefit Recipients:

Annual PERA Benefits Paid:

Benefits Paid by County

Click/tap to show county information.

POSITIVELY IMPACTING COLORADO'S ECONOMY

$4.35B Amount PERA provides in retirement payments to 110,084 Colorado residents
$380.2M The economic impact to state/local government in tax revenue, which supports schools, roads, and other important services
$6.8B Total economic output generated by benefit payments that also help sustain 31,449 jobs
$1.8B Created in labor income
$3.16B Added to the total value of goods and services in Colorado