Colorado PERA logo
Member Login/Registration

PERA-Includable Salary

You and your employer contribute a percentage of your monthly salary to your PERA Defined Benefit (DB) Plan account. Colorado state law, C.R.S. § 24-51-101(42)(a) and PERA Rule 1.20F, define the salary that is subject to PERA contributions. PERA-includable salary is then used in determining your Highest Average Salary (HAS) for purposes of calculating your retirement benefit.

PERA-includable salary is compensation for services rendered to an employer and may include:

  • Regular salary or pay
  • Pay for administrative, sabbatical, annual, sick, vacation, or personal leave
  • Compensation for unused leave converted to cash payments
  • Pay for compensatory time or holidays
  • Payments by an employer from grants
  • Amounts deducted from pay pursuant to tax-sheltered savings or retirement programs
  • Amounts deducted from pay for a health savings account as defined in 26 U.S.C. Sec. 223, as amended, or any other type of retirement health savings account program
  • Performance or merit payments, if approved by the Board
  • Special pay for work-related injuries paid by the employer prior to termination of membership
  • Retroactive salary payments pursuant to court orders, arbitration awards, or litigation and grievance settlements
  • Tips
  • Cash payments made in lieu of fringe benefits that meet the requirements in Rule 1.20F(2)
  • One-time payments that meet the requirements in Rule 1.20F(7)
  • Contributions made under an Internal Revenue Code Section 125 or 132 plan for members who began membership on or after July 1, 2019.

PERA-includable salary does not include:

  • Commissions
  • Compensation for unused sick, annual, vacation, administrative, or other accumulated paid leave contributed to a health savings account as defined in 26 U.S.C. Sec. 223, as amended, or a retirement health savings program
  • Housing allowances
  • Uniform allowances
  • Reimbursement for expenses incurred, including automobile usage, insurance premiums, and dependent care assistance
  • Tuition expenses
  • Retirement inducements/incentives
  • Bonuses for services not actually rendered, including, but not limited to, Holiday bonuses and cash awards
  • Contributions made under an Internal Revenue Code Section 125 or 132 plan for members who began membership on or before June 30, 2019.
A group of four people, three men and one woman, stand around a table having a discussion in an office setting with a laptop in front of them.

Employer FAQs

Access resources and learn about when to communicate employee changes to PERA.