Colorado PERA Disability Benefits: A Built‑In Protection for Your Workforce

What is PERA Disability Retirement?

Disability retirement is intended to provide members with monthly benefits if they are unable to resume any regular and substantial gainful employment due to a medical condition that totally and permanently disables them.

Key Points:

• Must be a member of the PERA DB Plan and have five years of earned service credit, with at least six months earned in the most recent membership period 
• Must apply while employed or within 90 days of termination 
• Must not be eligible for service retirement  
• Must meet medical requirements

Understanding the Difference: Short-Term Disability vs. Disability Retirement

The Short‑Term Disability benefits are sometimes confused with the Disability Retirement program, but they are two separate benefits that serve different purposes.

Short-Term Disability:

• Requires a 60-day waiting period 
• Pays up to a maximum of 22 months 
• Replaces a portion of income for a limited period

Disability Retirement

• Applies when an employee is permanently unable to perform their job 
• Is intended to replace income on a long‑term or lifetime basis 
• Requires medical certification of total and permanent disability

Understanding this distinction helps set realistic expectations and ensures employees are guided to the appropriate benefit at the right time.

Why Employer Awareness Matters

When employers are familiar with PERA’s Disability Retirement benefit and how it differs from the short‑term disability option, they are empowered to offer better guidance about benefits, and provide essential support during challenging health and life events.

For employees, knowing about this benefit offers peace of mind, particularly in physically demanding, safety‑sensitive, or high‑responsibility roles. For employers, it demonstrates a commitment to long‑term employee well‑being.

A Powerful Tool for Recruitment and Retention

PERA disability retirement is also a powerful recruitment and retention asset. Many PERA members are unaware that long‑term disability protection is included within their PERA membership at no additional cost to them. 

Highlighting this benefit during onboarding, open enrollment, or benefits discussions can:

• Differentiate PERA‑covered employment from private‑sector opportunities 
• Strengthen the perceived value of total compensation 
• Encourage employees to build long‑term careers in public service

Start the Conversation

We encourage employers to familiarize themselves with the PERA’s Disability Program by visiting copera.org/disability-benefits, downloading the Disability Program booklet, or by watching this short video. Understanding the difference between Short‑Term Disability and Disability Retirement today can make a meaningful difference when an employee needs it most.