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PERA News Archives (former Latest News items for 2003)

Colorado PERA Selects CitiStreet as 401(k) Administrator

Colorado PERA has selected CitiStreet, one of the nation’s largest providers of benefit services, to be the administrator for its 401(k) Plan covering state and local government employees.

“We selected CitiStreet after a vigorous search because of their overall plan expertise, technological capabilities, high level of personal service, and extent of services, which were all key areas of enhancement we were looking at,” said Katie Kaufmanis, director of communications, Colorado PERA.

As the recordkeeper and administrator for the Colorado PERA plan, CitiStreet will partner with Colorado PERA to provide extensive education and communication materials for the participants, as well as greater coordination between the 401(k) Plan and the defined benefit plan. For example, fully integrated Web will make review of information and transactions by plan participants a one-connection process, whether they desire information on their 401(k) Plan or the pension plan provided by Colorado PERA.

Colorado PERA’s 401(k) Plan includes 71,000 government employees and has about $830 million in assets.

“We look forward to partnering with Colorado PERA in its decades-long mission of promoting financial security for its members,” said Randy Taylor, CitiStreet senior vice president, government markets.

CitiStreet is a leader in serving state and local governments, and in the last three years has been awarded new business or contract extensions by entities including the states of Texas, Michigan, Ohio, Florida, South Carolina, Washington, and Hawaii; municipalities such as the city of Baltimore; and county-level clients such as Macomb County, Mich.

News Release (PDF)

Request for Proposals (RFP) for Investment Consultant

Colorado PERA is seeking the services of an investment consulting firm to provide services for the $27 billion defined benefit plan. Deadline for responses to the RFP is 4:00 p.m. MST, January 5, 2004. Colorado PERA expects to award a contract to the successful bidder at the end of January 2004.

RFP
Investment Policy
2002 Comprehensive Annual Report (CAFR)
Colorado PERA Law
Colorado PERA Rules

Colorado PERA Hires New Director of Human Resources

Colorado PERA Names Sandra Mills to Vacant Board Seat

Board Takes Preliminary Action to Ensure Funding Status – Legislative Package to be Discussed Further in November

At their meeting on October 17, the PERA Board of Trustees reviewed a number of alternatives designed to stabilize the funding status of the PERA trust funds. Listed below are the items that the Board will consider further at their November 21 meeting.

	Reducing future interest credit on member contribution accounts to 5 percent per year.
	Suspending MatchMaker as soon as possible.
	Including Section 125 and 132 salary deferrals as PERA salary.
	Establishing an earlier due date for employer contributions.
	Redirecting a small percentage of future employer contributions that are currently earmarked for the Health Care Trust Fund (HCTF) to the pension fund while maintaining sound funding for the HCTF.
	Charging the full actuarial cost for service credit purchases.
	Charging employer contributions for retirees working for PERA affiliates.
	Changing early retirement provisions for members hired after a future date to be determined.
	Reducing the annual post-retirement cost of living increase for members hired after a future date to be determined.
	Phasing in increased employer contribution rates over a period of several years.
	Providing a defined contribution plan choice for state employees in high-turnover jobs.
	The Board directed PERA staff to further study the above items for review at the Board’s November 21 meeting.

Send your comments to the PERA Board of Trustees.

Janus Fund to be Dropped from PERA’s 401(k) on March 1, 2004

The PERA Board of Trustees voted, at their October 17 meeting, to eliminate the Janus Fund from the PERA 401(k) Plan at the time the plan administrator is changed. The change is expected to take place on March 1, 2004. Reasons for termination are 1) The Janus Fund family has faced substantial leadership and portfolio manager departures in the recent past, 2) the Canary Capital partners trading issues are a substantial negative development for the firm and are a possible indication of poor policies, and 3) the Janus Fund has experienced a considerable loss of assets. The Fund has lost 59 percent of its assets under management since the end of 1999.

The Janus Fund is in the Growth Domestic Equity Category in the PERA 401(k) Plan. A search will be conducted for a replacement fund in this category. Any money remaining in the Janus Fund will be transferred to the replacement fund when PERA transitions to a new 401(k) Plan administrator on March 1, 2004.

Colorado PERA Fund Secure, Board of Trustees Seeks to Improve Funded Status

Questions have been raised regarding the present and future condition of the Colorado Public Employees’ Retirement Association (Colorado PERA). Colorado PERA was formed in 1931 and has grown to the 23rd largest pension plan in the country with pension fund assets through August 2003 of $26.2 billion. PERA first reached full actuarial funding in 1999 after 68 years of growth and asset accumulation. Three years of dramatic market declines of a magnitude not experienced since the Great Depression have reduced the trust fund assets to 88 percent of actuarially projected liabilities as of December 31, 2002. In the most recent independent actuarial study of PERA’s funding, the firm of Gabriel, Roeder, Smith, & Co., Michael Carter, Senior Consultant, concluded: 

It is our opinion that PERA continues to have a relatively good funded ratio of 88 percent (based on the actuarial value of assets). However, the contribution rates are not currently sufficient to support the current benefit structures of the System. If there is not a significant recovery in the investment markets in the near future, the long-term ability of the System to support the benefits will be challenged in the absence of a significant increase in the contribution rates.

Analysis of cash flowing in and out of PERA reflects no threat that current benefits and future entitlements will not be met. However, absent sustained market recovery and return to contribution levels that existed prior to the boom markets of the 1990s, the long term funding status of PERA will continue to decline. 

Based on un-audited results for 2003 through August, total employer and employee contributions have brought in $617 million, while realized investment income has contributed $222 million and other cash receipts (service credit purchase receipts) have totaled $494 million. During the same period, $1.2 billion in benefits have been paid to over 63,000 retirees and survivors. 

PERA examines its liabilities over a long time horizon, considering liabilities associated with not only the existing retiree population but also new members who were hired only yesterday or will be hired in the future. Both liability projections and earnings projections extend over multiple generations. 

Actuarial funding status is determined upon a number of assumptions including market rates of return on PERA’s $26.8 billion current assets, the age at which employees retire, the escalation of salary rates over time, withdrawal rate of members from PERA, and the lifespan of our membership. In accordance with its statutory obligation to act as a fiduciary for the members and benefit recipients in the PERA system, the PERA Board has undertaken studies to assess the cost structure of PERA and the funding needs of the system for long-term stability. The Board’s concern about these issues did not just arise. These issues have been under constant reexamination.

During the past year, the Board modified its asset allocation for PERA’s investments to reduce exposure to the volatility of the markets, adjusted the price for purchasing service credit to more accurately reflect the cost to the system, imposed a limit on the amount of service credit that can be purchased, and adjusted the actuarial projections applicable to the fund. The Board plans to develop a comprehensive legislative proposal designed to further reduce the costs and liabilities of the system while addressing enhanced revenue requirements to ensure the fund can meet its promises to Colorado public servants and retirees. 

PERA believes that State constitutional provisions that prohibit the reduction of benefits to existing retirees and restrict the changes which can be imposed on vested members of PERA further limit alternatives. The funding reductions enacted as a result of the up markets of the 1990s must end. The State must return to fully funding future obligations to PERA members and retirees. The PERA Board is confident that all parties and branches of government responsible for maintaining the fiscal health of PERA and ensuring uninterrupted payment of benefits into the future can agree upon a reasoned and orderly plan to adequately fund PERA. 

The Board has retained national expertise to review and refine each and every aspect of the pension system. The PERA Board will continue to act to protect the interests of the PERA membership and benefit recipients and has heard the clear voice of its membership, some 330,000 citizens strong, supporting preservation of the system. 

It is important to maintain the stability of the PERA pension trust fund in order that Colorado public employers will be able to continue to recruit and retain the high caliber of public employees that contribute to the excellent quality of life Coloradoans enjoy.

Recent News on Mutual Funds

As you may know, the Janus Enterprise Fund was eliminated from the PERA 401(k) Plan on September 30, and funds remaining in that fund were transferred to the remaining Janus Fund. This action was a result of a recommendation by the 401(k) Investment Advisory Committee and approved by the Board of Trustees. PERA has a policy by which funds in the 401(k) Plan are monitored and reviewed each quarter. If action to eliminate a fund is needed, the 401(k) Investment Advisory Committee follows a process to do so.

You may have seen recent news reports regarding allegations of market timing within the mutual fund industry including at Janus. We encourage you to consult your financial planning expert, attorney, CPA, or tax adviser regarding your 401(k) investment selections.

Board Vacancy Notice

The Colorado PERA Board of Trustees is seeking a qualified candidate to fill a vacant School Category Trustee position. Please click on the PDFs for more information.

Board Vacancy Announcement (PDF)
Board Vacancy Application (PDF)
What to Expect as a Trustee (PDF)

Notice of Hearing

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 17, 2003. 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. PERA Rules are contained in 8 CCR 1502-1.

An amendment will be proposed to Rule 2.90 C to reduce the actuarial investment assumption rate from 8.75 percent per year to 8.5 percent per year. This rate is used by PERA in the calculation of the actuarial liabilities of the PERA trust funds, and for other purposes. Pursuant to C.R.S., 24-51-101(2), the rate is set by the Board with the advice of the actuary. 

A copy of the Rules and proposed amendment 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. 

401(k) Plan Blackout Period

On September 30, 2003, PERA will eliminate the Janus Enterprise and Morgan Stanley Institutional Fund Trust U.S. Mid Cap Core Portfolio Fund from the 401(k) Plan. As a result of these changes you will temporarily be unable to direct or diversify investments, obtain a loan from the Plan, or obtain a distribution from the Plan. This period, during which you will be unable to exercise these rights otherwise available under the Plan, is called a "blackout period."  The blackout period will begin at the close of market (2:00 p.m. Mountain time) on September 30, and end on October 2, when the market opens.

Option Factors Change

For retirements effective January 1, 2004, and later, the option factors used to calculate Option 2 or 3 benefit options will change. These factors are revised periodically to account for longer life expectancies and other actuarial assumptions. The PERA retirement calculators located on our Web site reflect the revised factors.

Governor Owens Signs Colorado PERA/DPSRS Merger Bill

Governor Bill Owens recently signed the bill that allows the merging of the Denver Public Schools Retirement System (DPSRS) into Colorado PERA under certain conditions.

On the date of the merger, approximately 14,000 members and retirees of DPSRS will be transferred to PERA, joining members and retirees from all other Colorado school districts. The Denver Public School System would be the last school district in Colorado to affiliate with PERA. Benefits of the merger include increased pension portability for all school districts in Colorado. Employees could move from district to district and still contribute to the same pension plan.

“The merger will remove the artificial barriers that limit educator mobility and will increase the stability and security of retirees’ pension benefits. Colorado's children and Colorado's taxpayers will both benefit from the merger,” said PERA’s Executive Director Meredith Williams.
News Release (PDF)

PERA/DPSRS Merger Update

In June, the Governor signed legislation allowing the merger between the Denver Public Schools Retirement System (DPSRS) and PERA to move forward. Currently, the agreement between the two systems is being drafted. Right now, neither PERA nor DPSRS has specific details available to share.

The merger can only be completed if the PERA Board of Trustees, the DPSRS Board, and the Denver Public Schools Board approve the agreement. If all three parties agree, then the merger will be effective on January 1, 2005. The PERA Board of Trustees has stated that they favor the merger only if allowing DPSRS members and benefit recipients to join does not financially impact the PERA plan.

Annual Financial Audit Finds Colorado PERA Unblemished

On August 18, PricewaterhouseCoopers LLC (PWC), the independent accounting firm retained by the State Auditor to review Colorado PERA’s financial statements, presented their report to the Legislative Audit Committee of the Colorado General Assembly. PWC reported that PERA is financially sound and issued what is called an “unqualified opinion.” 

While the auditors found no major errors, they made four suggestions to strengthen internal controls. They suggested that PERA:

	Take additional steps to make sure the Comprehensive Annual Financial Report (CAFR) is error-free and contains all appropriate supporting documentation.
	Take additional steps to ensure that checks paid using Electronic Fund Transfer (EFT) are properly tracked.
	Further secure the software system where the benefit administration system resides.
	Further secure the accounting system that tracks accounts payable and general ledger activities.

PERA has implemented or is in the process of implementing all of the auditor’s suggested changes. You can read the auditor’s letter on page 16 in the 2002 CAFR.

Board of Trustees Take Action to Make Sure Fund Remains Strong

PERA benefits being paid are guaranteed and the system is in good financial condition. However, because of the decline in the financial markets and increased liabilities (more people retiring earlier than estimated), the Colorado PERA Board of Trustees is considering several steps to maintain the financial soundness of the fund. 

Changes have already been made to ensure the health of PERA. They include:

	Increasing service credit purchase costs, effective November 1, 2003,
	Limiting the number of years that can be bought, effective November 1, 2003,
	The Board has also reduced the assumed rate of investment return to better reflect future market returns. Interest paid to member accounts is tied to this rate and will be reduced on January 1, 2004 to 6.8 percent,
	PERA will propose legislation in early 2004 to suspend MatchMaker contributions as soon as possible in 2004.

The Board has requested that staff review possible employer contribution rate increases and benefit changes to determine what the impact would be on PERA’s benefit design and the effect the changes would have on the current and future liabilities of the PERA trust funds.

Some of the options that will be researched and discussed include:

	Lowering the interest credit on member contribution accounts, possibly below the proposed 6.8 percent effective January 1, 2004,
	Limiting the annual increase in benefits to the actual CPI increase. (This was the standard used before legislation passed in 2000 changed the annual increase to 3.5 percent.),
	Reducing the percentage of HAS paid for members who retire before age 55,
	Eliminating the “freeze” on option factors,
	Changing the definition of “salary” to include Section 125 plan and Transportation Equity Act Plan contributions.
	Any of the changes would require legislation to be passed by the Colorado General Assembly.

Other changes could also be considered.

PERA staff is in the process of fully researching and analyzing the issue of changing benefits and has not recommended anything to the Board regarding such changes. PERA has not made the decision to propose legislation that would change the current benefit levels of vested members. PERA will first be addressing many other alternatives including the possibility of increasing funding levels to a point that will improve PERA’s current funded status. In any event, members and retirees with fully vested rights and entitlements provided by the PERA Statutes will not suffer any impairment of those rights and the Board of Trustees will continue to fight to protect the PERA membership.

These issues are complex and will be thoroughly reviewed by the Board of Trustees before action is taken. Members and retirees will be notified of the changes in the Member and Retiree Report, and information will be posted on the PERA Web site. 

Colorado PERA Hires Deputy Executive Director of Support Services

E-Mail Solicitations Reported

Many Colorado PERA members have contacted us with complaints about a financial services vendor contacting them via e-mail at work. Be assured that Colorado PERA does not give out or sell information about its members or retirees. Your records are protected by state law and are secure at Colorado PERA.

If you should receive an e-mail or see an advertisement from a company touting its ability to assist you in purchasing PERA service credit or understanding your PERA account, look at it carefully. Does it state that it is sponsored by Colorado PERA? If not, then it’s not from PERA. It’s probably from a company that’s trying to sell you one of its products or services.

We encourage members to attend an official meeting sponsored by PERA held around the state to learn about the PERA retirement plan. We list all of our meetings on the Web site and in the Member Report. 

Colorado PERA Board Elects Chair and Vice Chair

At their annual planning meeting held July 18, the Colorado PERA Board of Trustees elected James Casebolt as the new Chair and Mark Anderson as Vice Chair. 

Casebolt is a judge with the Colorado Court of Appeals. He has served on the Board since 1999 and as Vice Chair since 2001. Elected by judges, his current term expires June 30, 2007.

“I am gratified that the Board of Trustees has chosen me to serve as its chairperson for the next two years,” said Casebolt. “During that period, PERA will face a number of challenges that the Board will confront with its customary alacrity. Among these challenges are funding issues, volatility in the financial markets, and decreasing state tax revenues. I share the Board’s determination to maintain PERA’s standing as one of the premier state retirement systems in the nation, serving the retirement needs of our membership with prudence, loyalty, and care.”

Anderson is a risk manager for the City of Colorado Springs. He has been a member of the Board of Trustees since 1993 and is elected by municipal employees. His term expires June 30, 2006.

“PERA has an excellent reputation within the pension industry and has adopted a sound strategic plan,” said Anderson. “That’s not to say the Board won’t have to make some difficult decisions as we look to the future and the stability of the fund. As Vice Chair, I hope my experience as a Board member will help add balance to our decision-making process. The Board takes their job very seriously; I want to make sure everyone’s voice is heard and understood.”

The Chair and Vice Chair serve two-year terms and the Chair cannot serve more than two consecutive terms in that position.
News Release (PDF)

Colorado PERA Board Election Results Announced

Colorado PERA members elected incumbent F. Elizabeth Friot and Douglas S. Windes to the two State Category seats, and retirees elected Sara R. Alt to the Retiree seat of the 16-member Board of Trustees. Three candidates ran unopposed: incumbent James Casebolt for the Judicial Division, incumbent Patricia Kelly for the Municipal Division, and Marcus Pennell for the School Category of the State and School Division.

Friot is a professor of secondary education at Metropolitan State College of Denver. The runner-up candidate in the May 2002 Board election, she has served on the Board since August 2002 when she replaced a Trustee who retired. 

“In tough economic times, it is very important that people be able to count on their long-term retirement plans like PERA,” said Friot. “The Board will work to ensure the level of benefits is maintained and improved as funding is available.”

Windes is the cash manager for the Colorado State Treasurer’s Office and is a former director of financial management for the Denver City Treasury.

“I thank the state employees for voting for me, and as I said when I was running, my number one priority is to protect members’ retirements,” said Windes.

Alt worked for the State of Colorado for more than 22 years, including 14 years as a legislative liaison for The Department of Personnel and Administration and 12 years as Stateline editor.

Casebolt is a judge with the Colorado Court of Appeals. He has served on the Board since 1999 and as Vice Chair since 2001.

“The decline in stock market values over the past three years, the general state of the economy, and the budget crisis facing Colorado present significant challenges to the Board and administration of Colorado PERA,” said Casebolt. “During the next four years I look forward to meeting these tests while keeping the best interests of all fund members foremost in my mind. PERA is a great organization, recognized as a leader in the pension industry, and I will do my best to maintain that level as we move forward.”

Kelly is the city attorney for the City of Colorado Springs. She has served on the Board since 1993.

“I am thankful that members have the confidence in me to allow me to remain on the PERA Board of Trustees. I will continue working to assist employers and members,” said Kelly.

Pennell is a science teacher at Ralston Valley High School in the Jefferson County School District.

Friot received 1,976 or 17.53 percent of the votes in the State Category. Windes had 1,958 or 17.37 percent of the votes. A recount was performed as required by election rules when the margin between the winning candidate and the runner-up is less than 1 percent of the total votes cast. Friot will serve a four-year term and Windes will serve for two years, finishing the term of a vacancy created by a Trustee resignation.

Alt received 1,764 or 20.15 percent of Retiree votes. Runner-up Gordon P. East received 1,338 votes or 15.28 percent of the votes cast. 

By state law, the management of the public employees’ retirement fund is vested in the Board of Trustees. The Board is composed of 16 Trustees, including the State Auditor and the State Treasurer as voting ex-officio members of the Board. Fourteen Trustees are elected by mail ballot by their respective Division/Category members and serve on the Board for four-year terms. Five members are elected from the School Category and four from the State Category in the State and School Division, two from the Municipal Division, and one from the Judicial Division. Two members are elected by retirees.
News Release (PDF)

Consultant Selected to Assist with 401(k) Plan RFP

Colorado PERA has retained Watson Wyatt & Company to request proposals to provide full service administration and participant services for the Colorado PERA 401(k) defined contribution plan. Five vendors have been identified and have been asked to participate in the process. The vendors are:

• ING

• Great West

• Fidelity Investments

• CitiStreet

• Nationwide

Further information on the RFP process may be obtained by contacting:

Leslie Andersen
Consultant
Watson Wyatt Worldwide
10 Universal City Plaza, Suite 3500
Universal City, CA  91608
Office: 818/623-4502
Fax: 818/623-4501

Board Election Ballots Mailed

Ballots for this year’s election were mailed earlier this month to State and Retiree members.

Upon receiving your ballot, take a moment to read the enclosed biographies of the candidates, then select the candidates of your choice. Ballots must be postmarked by May 31. Election results will be announced in late June.

If you have not received a ballot by mid-May and are a state employee or a retiree from the Municipal, Judicial, or the State Category of the State and School Division, the deadline to request a duplicate ballot is May 23.

Colorado PERA’s Deputy Executive Director of Support Services to Retire

Colorado PERA Selects New Chief Investment Officer 

March CAPE Premium Deductions

Some retirees who are members of the Colorado Association of Public Employees (CAPE) did not have a deduction taken from their March PERA checks for their CAPE premiums. CAPE will be sending affected retirees a letter about this situation.

If you have questions, please call the CAPE Office at 303-629-1001, or 1-800-245-2273.

Changes to PERA's 401(k) Plan

At its February Meeting, the Colorado Board of Trustees approved the following changes to the 401(k) Plan:

• The Janus Enterprise Fund and the Morgan Stanley Institutional Fund Trust U.S. Mid Cap Core Portfolio Fund will be eliminated from the 401(k) Plan on September 30, 2003 because of poor performance. The Morgan Stanley fund will be replaced with a value fund. The Board is expected to approve the replacement at its April meeting. When these two funds are terminated on September 30, any money invested in the Janus Enterprise Fund will automatically be transferred to the Janus Fund and any money in the Morgan Stanley fund will be transferred to the new fund. In the meantime, please review your investments and decide how this change will affect your 401(k) portfolio. To make changes to your investment mix, visit the 401(k) Web site, call the interactive phone system at 1-800-833-8581, or PERA's Customer Service Center at 303-832-9550 or 1-800-759-PERA (7372).

• The Northern Trust Short-Term Fund will no longer use the Short-Term Extendable Portfolio (STEP) in its fund and will only use the Short-Term Investment Portfolio (STIP). While STEP is not considered an aggressive investment portfolio, the guidelines for STIF are more conservative in terms of credit at maturity limits. In a category where the safety of principal is the primary objective, this change is appropriate.

• Beginning in 2003, you will be allowed two transfers from the 401(k) Plan per calendar year to purchase service credit. You can no longer make an additional transfer within 90 days of retirement or termination.

• The IRS requires loans to be coordinated between 401(k), 403(b) and 457 plans. Before a loan check is issued, you or your 403(b) or 457 vendor must provide PERA's 401(k) Plan with your account balances and the balance of any outstanding or defaulted loans. All of the properly completed information must be received before your loan will be approved and a check issued.

• Participants who default on a loan will have the option of repaying loans with a lump sum. You may call PERA's Customer Service Center to request a calculation of the payoff amount. Payments will be deposited in your 401(k) account as after-tax contributions. The taxes and penalty, payable to the IRS, on the default will still apply.

• The 401(k) account balance will be paid to the designated beneficiary (ies) no later than December 31 of the calendar year immediately following the calendar year of death.

Colorado PERA Hosts Conference for Institutional Investors

The Colorado Public Employees’ Retirement Association (PERA) is proud to host the 2003 Institutional Limited Partners Association (ILPA) conference, March 5 and 6 at the Marriott City Center in Denver.

The ILPA holds semi-annual meetings for members with selected external parties invited to participate as guest speakers and panelists. Kevin Kester, PERA’s director of alternative investments and program director of the ILPA’s Executive Committee, and his team have been instrumental in planning and organizing the conference. J. Kim Natale, Chair of PERA’s Board of Trustees, will give the opening remarks on March 5.

Guests of the Colorado ILPA conference will hear presentations on disclosure and partnership reporting and participate in a variety of round-table discussions, including reporting standards, and investment opportunities and the freedom of information act. Dr. Ken Dychtwald, a world renowned demographer, will speak on “Demography is De$tiny: How the Age Wave Will Transform the Investment Marketplace.”

The ILPA is a non-profit organization committed to serving limited partner investors in the global private equity industry. Members of the ILPA include corporate and public pension plans, endowments, foundations and insurance companies. The membership includes more than 150 member organizations from over nine countries worldwide, and manages more than $1 trillion in combined assets.
News Release (PDF)

The City of Las Animas Affiliates with Colorado PERA

In an effort to increase retirement plan portability, the City of Las Animas affiliated with Colorado PERA, effective January 1, 2003.

“We felt it was important to increase the benefits available to city employees and make sure they had an adequate retirement,” said City Clerk Charmaine Tripp. “Our other plan wasn’t adequate for future needs. With PERA, Las Animas employees have a guaranteed benefit for life.”

Las Animas city employees will receive a PERA benefit in addition to Social Security.

Tripp said, “The cost of adding PERA was something the City Council and Mayor had to consider before making their decision. In the end, they decided that employees are a top priority and we’ll be able to handle the additional cost. It will be better for us in the long run.”

As PERA members, employees of the city of Las Animas will receive a guaranteed lifetime PERA benefit and the option of joining PERA’s 401(k) Plan. “The 401(k) Plan is an added bonus, as is the MatchMaker program,” said Tripp.

Las Animas was founded in 1882 and is located in Bent County in the rural Arkansas Valley of southeastern Colorado. It provides municipal services to more than 2,700 citizens. The City of Las Animas employs 35 people.

News Release (PDF)

Colorado PERA is Recognized for its Commitment to Accurate Financial Reporting

The Government Finance Officers Association (GFOA) announced that the Public Employees’ Retirement Association of Colorado (Colorado PERA) had been awarded the Certificate of Achievement for Excellence in Financial Reporting. This is the 17th straight year PERA has won the award. The Certificate of Achievement is the highest form of recognition in the area of public employee retirement system accounting and financial reporting.

Meredith Williams, Colorado PERA’s executive director who accepted the award, said “The Certificate of Achievement acknowledges PERA’s commitment to excellence in all aspects of serving our membership. PERA’s continued pursuit of excellence in financial reporting reinforces the organization’s steadfast commitment to accountability. It is just one of the many reasons that we have been able to provide such comprehensive benefits to our members.”

In order to win this award, PERA’s comprehensive annual financial report (CAFR) was judged by an impartial panel and found to meet the high standards of the program including demonstrating a constructive “spirit of full disclosure” to clearly communicate its financial story and motivate potential users and user groups to read the CAFR.

News Release (PDF)

Board of Trustees Election Slated – Candidates Sought

In May 2003, Colorado PERA will hold an election for seats on the Board of Trustees for the following positions:

• One School Category position

• One State Category position (An additional State Category position may become vacant prior to the May 2003 election due to the possible resignation of a Board member who has two years remaining in his or her term. In that event the State Category candidate receiving the highest number of votes shall take the four-year term position and the State Category candidate with the second highest number of votes shall take the two-year term position.)

• One Municipal Division position

• One Judicial Division position

• One Retiree position (According to state law, both retiree positions on the Board cannot be held by retirees who retired from the same category of employer. The June 2003 retiree vacancy can only be filled by a retiree who retired from a State, Judicial, or Municipal employer.)

PERA members will be sent ballots in early May to elect representatives in the above categories. All positions are four-year terms except as noted above.

Terms expire on June 30, 2003, for School Category Trustee Julie Coleman; State Category Trustee F. Elizabeth Friot (appointed to fill a vacant seat in 2002), Municipal Division Trustee Patricia Kelly, Judicial Division Trustee James Casebolt, and Retiree Trustee Edward Bohac.

Any PERA member who works for an employer in the Municipal Division, Judicial 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. Any retiree, except those retired from a School Category employer, may run for the Retiree position. 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, or 50 retirees for those seeking the Retiree seat, along with a biographical sketch that must be returned to PERA by March 3, 2003.

Candidacy packets will be available January 2, 2003, by writing to:

Deputy Executive Director, Support Services
Colorado PERA
1300 Logan Street
Denver, CO 80203-2386

Candidacy packet requests should include the name, Social Security number, PERA Division, mailing address, daytime telephone number, and signature of the candidate.

The Board of Trustees meets monthly (except in June, August, and December) 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.

News Release (PDF)