PERA benefits are paid at the end of the month for that month. Depending on your election, your benefit payments will either be mailed or deposited into your bank or credit union account on the last workday of each month. For example, your September 2021 benefit will be paid on September 30, 2021.

Yes, your PERA benefit is subject to federal and state income tax. The taxable amount of your benefit will depend on the tax-paid and the tax-deferred balances in your member contribution account at retirement. If you have tax-paid money, based upon your age (and the age of your cobeneficiary, if applicable), part of your PERA benefit will not be taxable at the federal level for a specified number of months. Depending on your age, a portion of your benefit may not be taxable by the state of Colorado. Please review the Taxes on PERA Benefits booklet for more details.

No, PERA is only able to withhold taxes for Colorado. If you become a resident of a state other than Colorado, you need to update your tax withholding, as PERA does not automatically stop tax withholding for the state of Colorado based on an address change.

Under the PERA benefit structure, you may change your benefit option or cobeneficiary up to 60 days after the date your first benefit payment is issued. After 60 days have passed, you may not change your option or cobeneficiary, except in certain situations involving marriage, civil union, divorce, or death.  

Under the DPS benefit structure, you may change your option or cobeneficiary before your first benefit payment is issued. After your first benefit payment is issued, you may not change your option or cobeneficiary, except in certain situations involving divorce.  

Under both benefit structures there may be additional options. Please review the Changing Your Cobeneficiary or Benefit Option booklet to learn more. 

The annual increase (AI) is paid in July of each year and may change with the Automatic Adjustment Provision (AAP). Eligibility for the AI and the amount depends on a variety of factors. Please see the Annual Increases for Benefit Recipients fact sheet.

Your PERA benefit is not affected by Social Security. However, your Social Security benefit may be reduced if you are receiving a PERA benefit. Contact Social Security for specific information about a reduction to your Social Security benefit by calling 1-800-772-1213 or visiting their website at www.ssa.gov. You may also review the PERA and Social Security fact sheet.  

Yes, if you work for a private company or work for a public employer not affiliated with PERA, you can work without limitations.  

If you return to work for a PERA employer, there are specific rules about returning to work during the month of your retirement or as an independent contractor, and there are limits to the amount you can work in a calendar year.

When you return to work for a PERA employer, in most cases, your employer will be responsible for paying employer contributions on your salary, and you will be required to pay a working retiree contribution. 

Learn more about the limits and additional rules with working after retirement here.

If you have PERA life insurance, it will continue when you retire unless you cancel it in writing. As a retiree, your monthly premium will increase to $10.28 per unit of coverage and will be paid by a deduction from your monthly benefit.  

Yes, PERA offers health care, dental, and vision insurance under the PERACare Health Benefits Program to retirees, other benefit recipients, and their eligible dependents. You may enroll at retirement or during the annual open enrollment period. In addition, you may become eligible to enroll, change plans, or add dependents based on certain life events. Visit the Health Benefits (PERACare) page for more information.  

Yes, you will be eligible for Medicare when you turn age 65. Medicare is the federal health insurance program for everyone age 65 and older. Please see Social Security’s Medicare booklet (#05-10043) for information about enrolling in Medicare.  

Everyone qualifies for Medicare Part B and pays a premium for Part B. Most PERA retirees also qualify for premium-free Medicare Part A, but if you do not, you do not have to purchase it if you are enrolled in one of PERACare’s Medicare plans.  

PERA offers PERACare and Medicare meetings, please see the Webinars webpage for more information.

When you retire, you may leave your PERAPlus 401(k) and/or 457 Plan account(s) at PERA and continue to make transfers between investment funds, roll money into the PERAPlus 401(k) Plan, or request a loan or distribution. Even if you did not contribute to the PERAPlus 401(k) Plan prior to retirement, you may still roll money into the Plan after retirement.  

If you have a PERAPlus 401(k) account and work for a PERA employer after retirement, you can continue to make contributions from your salary earned. If you have a PERAPlus 457 account and work for a PERA employer that participates in the PERAPlus 457 Plan, you can continue to make contributions from your salary earned. 

You will be required to begin distributions from these Plans upon reaching the appropriate Required Minimum Distribution (RMD) age set for you by the Internal Revenue Service (IRS). You can find more information about this requirement at www.irs.gov. 

In most cases, the amount you receive will increase to your Option 1 amount in the PERA benefit structure or Option A amount in the DPS benefit structure (no other person or estate will receive a monthly benefit after your death).

Yes, in addition, your PERACare subsidy transfers to your cobeneficiary as well.

The balance of your account will be matched 100% and sent as a one-time, lump-sum payment to your named beneficiary(s).

The balance of your account will be sent as a one-time, lump-sum payment to your named beneficiary(s).