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