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PERA
News Archives (former
Latest News items for 2001)
Fidelity
Freedom Funds
PERA
now offers you six more 401(k) Plan investment options. The
Fidelity Freedom Funds can simplify investing by enabling you to
choose one investment option that's designed to match your
target retirement date and goals for the future.
You
simply choose the fund closest to the date you want to retire or
one that meets your risk and time horizon. Then invest 100% of
your contributions in that fund. The six funds are designed to
take the guesswork out of investing by providing asset
allocation with a single investment decision. If you invest in a
Freedom Fund but later change your mind, you can reallocate your
funds or terminate contributions at any time.
For
more information about the funds:
Fidelity
Freedom Income Fund
For those who are already retired.
Fidelity
Freedom 2000 Fund
For those who are within 10 years of retirement
Fidelity
Freedom 2010 Fund
For those 10-20 years from retirement
Fidelity
Freedom 2020 Fund
For those 20-30 years from retirement
Fidelity
Freedom 2030 Fund
For those 30-40 years from retirement
Fidelity
Freedom 2040 Fund
For those 40 or more years from retirement
Interested
in Running for a Trustee Position?
In May, PERA
members will be sent ballots to elect one member from the
Municipal Division, one member from a State employer, and one
member from a School employer to serve on the PERA Board of
Trustees. All three positions are four-year terms.
Terms expire for
Mark Anderson, City of Colorado Springs; Donna Bottenberg,
University of Northern Colorado; and Kim Natale, Jefferson
County School District.
Because of
Colorado state law, the State employee elected to the Board
this year must be from Higher Education. Other state employers
may run in the election but would only be eligible to be
appointed to a vacant position should one occur.
Any PERA member
who works for an employer in the Municipal Division or a State
or School employer is eligible to run for a Trustee position
on the Board if he or she completes a candidacy packet.
Incumbents may run for re-election.
To be placed on
the ballot, a candidate must fulfill the requirements
explained in the candidacy packet, including the submission of
a petition form signed by 100 PERA members along with a
biographical sketch that must be returned to PERA by March 1,
2002.
Candidacy packets
will be available January 2, 2002, and may be obtained
through February 26 by writing to:
Deputy
Executive Director, Support Services
PERA
1300 Logan Street
Denver, CO 80203
Include
in your request your name, Social Security number, PERA
Division, mailing address, daytime telephone number, and
signature.
Kaiser
Freeze Does Not Affect the PERA Group Plan
Yesterday Kaiser
announced a freeze on new enrollments effective January 1,
2002 in their Medicare HMO plan. This freeze applies to those
who are trying to join the individual plan only. It does not
apply to PERA's group plan.
As an FYI, it
also does not apply to people:
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who are newly
eligible for Medicare,
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who are
already in Kaiser and are turning 65, or
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who are new to
the service area.
Additionally,
people enrolled in Blue Advantage who are losing coverage
January 1, can join PERA's group plan January 1 under the
"loss of coverage" procedure, which means that they
have to enroll within 30 days of the loss of coverage.
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In
Memoriam
J. David Barba
September 3, 1948 to
October 14, 2001
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During
his tenure on the PERA Board, Dave Barba served on the
Investment, Audit, Legislative, Proxy, Shareholder
Responsibility, Member-Directed Investment, and Asset
Management committees.
“Dave Barba will be long remembered for
his fairness, logical, and methodical approach to PERA issues
and his insistence that the PERA Board and staff always be
accountable. PERA members and retirees have lost a friend,” says Meredith Williams, PERA
Executive Director.
On
October 19, 2001, The Board of Trustees issued the following
Resolution:
Whereas,
J. David Barba, State Auditor of Colorado, passed away on
October 14, 2001, and
Whereas,
J. David Barba had an exemplary 24 year professional career in
public service at the Office of the State Auditor of Colorado,
and
Whereas,
J. David Barba, served as an ex-officio Trustee on the Board
of the Public Employees’ Retirement Association of Colorado
(PERA) since November 1995, and
Whereas,
through Dave’s dedication, selfless and wise contributions,
he earned the respect, confidence and esteem of the PERA Board
members and staff, and
Whereas,
Dave served PERA’s membership with dignity, vision, loyalty,
dedication and integrity by providing valuable counsel to the
PERA Board and staff, and
Whereas,
Dave will be deeply missed by his fellow PERA Trustees and
staff members he dealt with; now therefore, be it
Resolved,
that with deep sadness, the Board of Trustees of PERA
memorialize J. David Barba for his many contributions and
accomplishments while serving as a member of the Board of
Trustees, and
Resolved,
that all past and present members of the Board of Trustees and
the staff of PERA extend their sincere condolences to his
wife, Cheryl, and their two daughters, Anna and Sara, and that
a copy of this resolution be presented to the family, and
Resolved
that a copy of this Resolution be placed in the official
minutes of the October 19, 2001 PERA Board of Trustees
meeting.
Submitted
by J. Kim Natale,
Board Chair
Public Employees’ Retirement Association of Colorado
October 19, 2001
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Acting
State Auditor Appointed
The
Legislative Audit Committee recently appointed Joanne Hill as
the Acting State Auditor. Ms. Hill, formerly the Deputy State
Auditor, will attend PERA Board of Trustees meetings in an
unofficial capacity until a permanent successor is confirmed in
January.
U.S.
Pension Systems Express Support, Confidence in U.S. Financial Markets
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We, as representatives of the
National Association of State Retirement Administrators and the
National Council on Teacher Retirement wish to publicly express
our support of and confidence in the U.S. financial markets and
its financial systems. |
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Specifically:
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We
support the efforts of federal officials and stock exchange
officials and members to re-open the markets in an orderly
manner. In our view, time is not of the essence but
orderliness is.
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We
have unqualified confidence in the U.S. financial systems
and in the resilience of the U.S. financial markets.
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We,
as Institutional investors, will continue to provide
stability in the U.S. financial markets. We will remain
patient long-term providers of capital.
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We
remain confident in the underlying strength of the U.S.
economy.
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We
urge all other investors to remain calm when the markets
re-open.
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We
join all of America in offering our condolences to the
families, friends, and business colleagues who were
personally affected by this horrible tragedy.
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PERA's
North Office Ready for Business
PERA's new satellite office is open for business. Located
in Westminster at The Pointe Offices, 1120 West 122nd Avenue (I-25 and
120th), PERA staff provides all the same services available to members and
retirees at the Denver office. In addition, individual counseling will
be held the first Saturday of October, November, and December at the
north office.
To schedule an
appointment at either PERA office, call PERA's Customer Service Center
at 303-832-9550 or 1-800-759-732.
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Hours
at PERA's North Office |
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Monday,
Tuesday, Thursday, and Friday |
7:30
a.m. to 4:30 p.m. |
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Wednesday |
1:00
p.m. to 4:30 p.m. |
Directions and a map
are available on the Contact
Us page.
NOTICE OF HEARING
PROPOSED AMENDMENTS TO THE RULES OF THE PUBLIC EMPLOYEES’ RETIREMENT ASSOCIATION
The Board of Trustees of the Public Employees’ Retirement
Association (PERA) will hold a hearing on proposed amendments to the
Rules of the Association on Friday, October 19, 2001. The hearing
will begin at 11:00 a.m. in the PERA Board Room, located at 1300 Logan
Street in Denver. The Board’s authority to adopt and revise the
Rules is set forth in 24-51-204(5), C.R.S.
Amendments will be proposed to the name and number of employers
affiliated with PERA, listed in Rule 2.15.
An amendment will be proposed to Rule 2.30 A. The amendment would
clarify that petitions and biographical summaries submitted by
candidates for the Board must be received by the Association office by
the deadline.
An amendment will be proposed to Rule 2.70 A to require the Board of
Trustees to meet not less than quarterly, according to an annual
schedule adopted by the Board. The current rule requires that the Board
meet each month.
Amendments will be proposed to delete the rules that apply to
disability retirement applications received on or before December 31,
1998. Rules 7.010 through 7.065 would be deleted. Legislation adopted in
1997 changed disability benefits and procedures for applications
received in 1999 and later, and Rules 7.10 through 7.85 pertaining to
such applications continue as is.
Amendments also will be proposed to Rule 14, concerning the Voluntary
Investment Program. The amendments will change the rules for this 401(k)
plan to conform to HB 01-1057. HB 01-1057 allows PERA retirees who
return to work for a PERA employer to contribute to the PERA 401(k)
Plan.
A copy of the Rules and proposed amendments may be obtained from the
Public Employees’ Retirement Association, 1300 Logan Street, Denver,
Colorado 80203. Individuals who wish to comment are encouraged to do so
at least five days prior to the hearing.
posted 9/5/01
New
Option Factors Determined
Retirees who retire on or after January 1,
2002, will have slightly higher benefit options as the result of revised
actuarial estimates. These new rates will be added to the benefits
calculators soon.
401(k)
Web Site Conversion
On July 16 the 401(k) Web site was converted to a new format. The site
continues to be administered by ADP Retirement Services, and the new
format should have been the only major change. Unfortunately, since the
conversion there have been some participants who have been unable to
access their account information. Both PERA and ADP are aware of the
problems and are working to eliminate the glitches. We apologize for any
inconvenience and hope to have the problems resolved soon. If you
experience any difficulties, please
contact us.
Notice
about Purchasing Service Credit
Recently, Congress passed and the
President signed legislation that will expand the tax deferred or
pre-tax monies that PERA can accept as a tax deferred roll over for the
purchase of service credit. This
legislation will be effective on January 1, 2002.
The
legislation, known as the Economic Growth and Tax Relief Reconciliation
Act of 2001 or H.R. 1836, will allow PERA to take as trust-to-trust
transfers for the purchase of service credit tax deferred or pre-tax
funds from a §403(b) account or a §457 account. A
§403(b) account is sometimes called a tax-sheltered annuity and a §457
account is sometimes called a deferred compensation account.
(Under present federal tax law, PERA can only take rollovers from
a §401(a) plan, a 401(k) plan or a §401(c) KEOGH plan.
These rollovers remain acceptable under the new law.)
At
this time the Internal Revenue Service is developing guidance for
implementing some of the provisions and PERA has joined other public
sector plans in asking for guidance in certain areas.
Transfers
to purchase service credit will be possible during active membership if
they are allowed by the §457 or §403(b) plan document. PERA has
received word that the administrators of the state of Colorado's §457
plan are expected to amend its plan document to allow such transfers.
PERA encourages you to check with your §457 or §403(b) plan
administrator to determine if your plan will be able to make a transfer
to purchase service credit.
If
you are not terminating PERA covered employment or retiring in 2001, you
may want to consider taking advantage of this new legislation.
Delaying your purchase of service credit until 2002 will, in most
cases, increase your purchase cost but may allow you to use these newly
allowed sources under the new law of tax deferred monies to fund your
purchase.
If
you are considering buying service credit, now is the time to provide
PERA with the necessary information to verify previous employment.
You may call PERA’s Customer Service Center at (303) 832-9550,
or 1-800-759-PERA to start the process.
As
soon as the verification process is complete, you’ll know exactly how
much time you are eligible to purchase, and you’ll be one step closer
to actually buying time once the new year begins. (You’ll
also beat the rush!)
Legislative
background (updated 7/20/01)
PERA
Money Market Account Has New Name
The PERA Money Market Account is now called the Northern Trust Short
Term Fund to more accurately reflect the composition of the fund.
401(k)
Plan for Retirees
Beginning July 1, 2001, a
retiree returning to work for a PERA-affiliated employer can contribute
to PERA's 401(k) Plan based on wages paid (not pension income). Retirees
with an open account do not need to complete a new Enrollment form but
must make arrangements with their employer before contributions can
begin. Those who did not have a PERA 401(k)
account, or closed their account, must complete a new Enrollment form.
Employers should contact their Employer Representative for
reporting information.
Request
an Enrollment packet
ERA
401(k) Advisory
PERA
was unable to perform any 401(k) transactions during the closure
of the New York Stock Exchange. This included any distributions
or loans since shares could not be traded to obtain money to
write checks.
Transactions
are now back to normal.
PERA
Money Market Account Has New Name
The PERA Money Market Account is now called the Northern
Trust Short Term Fund to more accurately reflect the composition of the
fund.
New PERA
Affiliates
PERA welcomes new affiliates to the PERA retirement plan:
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The Collbran Conservancy District, Collbran,
Colorado
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Northeastern Colorado Association of Local
Governments (NECALG), Fort Morgan, Colorado
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University Laboratory School (Weld SD 5 charter
school), Greeley, Colorado
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Yuma SD 1, Yuma, Colorado, (formerly part of the
West Yuma School District)
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Liberty SD J-4, Joes, Colorado (formerly part of
the West Yuma School District)
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Wray SD RD-2, Wray, Colorado, (formerly part of the
East Yuma School District)
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Idalia SD RJ-3, Idalia, Colorado, (formerly part of
the East Yuma School District)
Employer
Contribution Rates to Decrease
The following employer contributions rate reductions will
occur for pay periods that end in July 2001:
State and School
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10.40% |
to |
9.90% |
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Judicial |
14.00% |
to |
11.82% |
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State Troopers |
13.10% |
to |
12.60% |
PERA
Board of Trustees Election
PERA retirees in the School, Judicial and
Municipal divisions were sent ballots to vote for a candidate for the Board of Trustees.
The candidates for the retiree position (in alphabetical
order) were:
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Dr. Joan Grady, retiree from
Cherry Creek School District
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Dr. Thomas Howerton, retiree from El Paso County School
District #11
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Mr. Richard Lansford, retiree from Jefferson County School
District (and incumbent)
During the March
Board meeting, the Board of Trustees approved not conducting an election in the
State Division since there was only one candidate who met the filing
requirements. The Board also approved making both school positions four-year
terms. Because of this change, ballots were not sent to the members of the
School Division. No other division had an open position.
Portman-Cardin
Pension Reform bill
The House Ways and Means Committee
approved the Comprehensive Retirement Security and Pension Reform Act
(H.R. 10, commonly called the Portman-Cardin pension reform bill) by a
vote of 35 to 6 on April 25. All committee Republicans voted in favor of
the bill joined by 11 Democrats. Three amendments to the bill were
adopted during debate. The House Education & Workforce Committee
unanimously approved the bill. The full House approved the bill May 2 by
a margin of 407 to 24 and it now moves to the Senate.
A similar bill in
the Senate is S. 742. It is uncertain whether the Senate will include
the pension reform items in its tax bill. This bill may be considered by
the Senate Finance Committee in mid-May. See
Federal Legislation Affecting
PERA for more on pension reform legislation.
Extended
Hours for Customer Service Call Center
The
Customer Service Center is available to answer calls from 7 a.m.
until 5:30 p.m. Monday through Thursday. On Friday, the call center hours
are 7 a.m. until 4:30 p.m. This change is for the call center only.
PERA's office hours remain 7:30 a.m. to 4:30 p.m. Monday through
Friday.
Kaiser
Senior Advantage (Medicare) Adds Dental Benefit
Kaiser is adding a dental benefit back to the Senior Advantage
(Medicare) Plan effective March 1, 2001. Congress recently passed
legislation which allowed Medicare+Choice plans to modify their 2001
offerings. It is not the same benefit they had in 2000; it is a more
modest benefit, but there is no additional charge for the coverage. PERA
will allow Senior Advantage enrollees to drop any dental coverage they
enrolled in through PERACare effective March 1, 2001, provided we
receive the request by March 22. Retirees enrolled in Kaiser's Senior
Advantage Plan will receive a mailing summarizing the benefits this
week.
Web
site Posting of 401(k) Contribution Information
There is a delay from the time your employer deducts your 401(k)
contribution from your check until the time it is posted on the PERA Web
site. Employers are allowed up to 10 days from the end of the pay period
to submit 401(k) contribution information to PERA. Members' contributions
are generally posted within three business days after receipt by
PERA, as long as the employer reporting and contributions balance
correctly.
Trustee Candidacy Packets
Available
In May, PERA members will vote for candidates for the Board
of Trustees. One 3-year term and one 4-year term are open in the school
category, and one 3-year term in the state category. There also will be a
retiree trustee position open from the School, Municipal, and Judicial
Divisions.
Terms of office expire for Barbara Betzler, Academy
School District #20; Gloria Santistevan-Feeback, Pueblo City School
District 60; Gary Kasson, Auraria Higher Education Center; and retiree
Richard Lansford, Jefferson County Schools.
Any PERA member who works for a state or school employer
is eligible to run for an active member position and any school, municipal,
or judicial retiree may run for the retiree position.
To be placed on the ballot, a candidate must fulfill the
requirements explained in the candidacy packet, including the submission
of a petition form signed by 100 PERA members (50 for the retiree
position) along with a biographical sketch that must be returned to PERA
by March 1, 2001.
Candidacy packets may be obtained through February 26 by
writing to:
Deputy Executive Director, Support Services
PERA
1300 Logan Street
Denver, CO 80203
Include in your request for the candidacy packet your
name, Social Security number, PERA Division, mailing address, daytime
telephone number, and signature.
The Board of Trustees meets monthly and is responsible
for adopting the rules and policies for the administration of PERA. Board
members serve without pay, but are reimbursed for necessary expenses.
If a Board member resigns his or her position during the
year, the candidate who received the highest number of votes for that
position in the most recent election is appointed to fill the vacant
position until the next Board election. Ballots will be mailed to members
in early May.
Notice
of 02/16/01 Hearing
The Board will hold a hearing on a proposed amendment to the Rules of the
Association on February 16, 2001, at 11:00 a.m. in the PERA Board Room, to
adopt and revise the Rules as set forth in 24-51-204(5), C.R.S. The
proposed amendment would revise an amendment to Rule 11.40 (Commencement
of Employment After Retirement) adopted by the Board on September 15,
2000.
House Bill 00-1222 requires a PERA retiree to be retired
from employment with any PERA employer during the month of the effective
date of retirement. If the retiree returns to work in the month of the
effective date of retirement, Rule 11.40 specifies that the retiree will
lose one full month’s benefit. The amendment would change this reduction
and require a 5 percent reduction for each day worked during that month.
NOTICE
OF HEARING
Proposed
Amendments to the Rules of the Public Employees' Retirement
Association
The Board of Trustees of the Public
Employees’ Retirement Association (PERA) will hold a hearing on proposed
amendments to the Rules of the Association on Friday, September 15, 2000.
The hearing will begin at 11:00 a.m. in the PERA Board Room, located at
1300 Logan Street in Denver. The Board’s authority to adopt and revise
the Rules is set forth in 24-51-204(5), C.R.S.
An amendment will be proposed to Rule
11.40 (Commencement of Employment After Retirement) to comply with changes
made by House Bill 00-1222. That act requires a PERA retiree to be retired
from employment with any PERA employer during the month of the effective
date of retirement. The retiree may begin work for a PERA employer once
the month of the effective date of retirement has ended.
Amendments will be proposed to the name
and number of employers affiliated with PERA, listed in Rule 2.15.
A copy of the Rules and proposed
amendments may be obtained from the Public Employees’ Retirement
Association, 1300 Logan Street, Denver, Colorado 80203. Individuals who
wish to comment are encouraged to do so at least five days prior to the
hearing.
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