
<p>Retirement insights from a Colorado PERA perspective</p>



<p></p>


A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.


<p class="has-medium-font-size"><a href="https://coloradosun.com/2026/01/13/colorado-legislature-2026-budget-problem/" target="_blank" rel="noreferrer noopener"><strong>Colorado Lawmakers Return to Capitol Facing $850 Million Mountain of Tough Budget Decisions | The Colorado Sun</strong></a></p>



<p>The State budget is once again front and center as the 2026 legislative session gets underway. Lawmakers are facing the prospect of cutting approximately $850 million in spending to pass a balanced budget for the next fiscal year, which begins July 1.</p>



<p class="has-medium-font-size"><a href="https://www.cnbc.com/2026/01/08/irs-accepting-tax-returns.html" target="_blank" rel="noreferrer noopener"><strong>When Does the IRS Start Accepting Tax Returns? Jan. 26 | CNBC</strong></a></p>



<p>Tax season is nearly upon us—the Internal Revenue Service announced it will begin accepting individual tax returns on January 26. Some taxpayers could see bigger refunds this year due to various changes included in President Trump’s One Big Beautiful Bill Act. The deadline to file is April 15 for most taxpayers.</p>



<p class="has-medium-font-size"><a href="https://www.aarp.org/money/retirement/obscure-terms-to-know/"><strong>5 Obscure Retirement Terms You Should Know |</strong></a><strong><a href="https://www.aarp.org/money/retirement/obscure-terms-to-know/" target="_blank" rel="noreferrer noopener"> </a></strong><a href="https://www.aarp.org/money/retirement/obscure-terms-to-know/"><strong>AARP</strong></a></p>



<p>How well do you know retirement terminology? Take this short quiz from AARP to test your knowledge and learn about important topics like required minimum distributions and longevity risk.</p>



<p class="has-medium-font-size"><a href="https://www.napa-net.org/news/2026/1/young-retirement-savers-are-doing-what-older-savers-wish-they-had" target="_blank" rel="noreferrer noopener"><strong>Why Young Retirement Savers Are Beating Older Generations | National Association of Plan Advisors</strong></a></p>



<p>A new survey found younger generations seem to be heeding advice to save money for retirement early in their careers. Compared to Generation X and Baby Boomers, Generation Z and Millennials are contributing to workplace retirement plans earlier, monitoring their progress, and planning for market volatility, according to the survey from Nationwide Retirement.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: Colorado Lawmakers Facing $850 Million Budget Gap


<p>October is National Retirement Security Month, and as we wrap up the month, we’re reflecting on how PERA has enabled generations of Coloradans who serve their communities to retire with dignity and peace of mind.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">The state of retirement</h2>



<p>Surveys often find workers who save for retirement on their own struggle to save enough to support their retirement goals. A <a href="https://mybrand.schroders.com/asset/360d3e58-5956-4497-bc8e-f8feaae2d20d/original/2025-US-Retirement-Survey-Retirement-Readiness.pdf" target="_blank" rel="noreferrer noopener">recent survey</a> by Schroders found more than 80 percent of workers with an employer-based retirement plan worry about outliving their savings, while more than half fear losing too much money if the stock market drops.</p>



<p>Social Security also faces an uncertain future; the latest forecasts show its trust funds are likely to <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=newssearch&amp;cd=&amp;cad=rja&amp;uact=8&amp;ved=2ahUKEwjJwMDli7uQAxUyD0QIHSHJE4s4ChDF9AEoAHoECBIQAQ&amp;url=https%3A%2F%2Fwww.cnbc.com%2F2025%2F06%2F18%2Fsocial-security-administration-releases-new-trust-fund-depletion-dates.html" target="_blank" rel="noreferrer noopener">run out of money in less than a decade</a>, which would lead to future reductions in benefits unless Congress takes action.</p>



<p>PERA, however, is on a clear path. With continued support from the State of Colorado, we expect to reach full funding by 2048, a goal that reflects both our responsibility to our members and our long-term planning discipline.&nbsp;</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Pensions and retirement security</h2>



<p>The value of a defined benefit plan—also known as a pension—is in the name: it defines what your benefit will be. A PERA member can <a href="https://copera.org/how-your-pera-benefit-is-calculated/" target="_blank" rel="noreferrer noopener">calculate their retirement income</a> from the day they’re hired because they know the factors that determine it—age, salary, and length of service. There’s no guesswork about how much to save, how to invest it, or when to withdraw. And most importantly, that income is guaranteed for life, no matter what happens in the stock market.</p>



<p>Retirement security is also economic security: When retirees spend their income—on groceries, housing, health care, and other goods and services—they’re supporting Colorado businesses and jobs.&nbsp;</p>



<p>In 2023, PERA paid $4.56 billion to more than 114,000 retirees living in Colorado. <a href="https://content.copera.org/wp-content/uploads/2024/07/economic-and-fiscal-impacts-report-2024.pdf" target="_blank" rel="noreferrer noopener">According to an analysis</a> by Boulder-based Pacey Nehls Economic Consulting, those benefit payments resulted in $7.1 billion in total economic output and supported 28,525 jobs. Retirees also paid nearly $382 million in local and state taxes on those benefits, helping support public services that make Colorado a great place to live.&nbsp;</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">How can I promote retirement security?</h2>



<p>PERA’s Ambassador Program engages members in the retirement security conversation by sharing the value of PERA to all of Colorado. You can <a href="https://www.copera.org/about/legislation/ambassador-program" target="_blank" rel="noreferrer noopener">sign up for the Ambassador mailing list</a> to stay in the loop and be notified of any potential legislative changes that might affect PERA, as well as lend your voice to the conversation.</p>



<p>We love to hear from PERA members and retirees who have dedicated their careers to serving Colorado. Browse <a href="https://www.copera.org/member-stories" target="_blank" rel="noreferrer noopener">member stories</a> and fill out our form to share your own PERA story with us.</p>



<p>In addition, independent member and retiree groups like <a href="https://www.securepera.org/" target="_blank" rel="noreferrer noopener">Secure PERA</a> advocate for strengthening and protecting retirement security for Colorado’s public employees. The <a href="https://publicpensions.org/" target="_blank" rel="noreferrer noopener">National Public Pension Coalition</a> does the same on a national scale.</p>



<p>Providing retirement security is what we at PERA have been doing for 94 years, and we plan to continue that work for many more generations to come. Colorado’s public employees deserve it.&nbsp;</p>



<p><strong>RELATED:</strong></p>



<ul>
<li><a href="https://www.copera.org/pera-on-the-issues/how-private-equity-helps-us-secure-public-employee-retirement">How Private Equity Helps Us Secure Public Employee Retirement</a></li>



<li><a href="https://www.copera.org/pera-on-the-issues/study-confirms-pera-a-valuable-tool-for-recruiting-retaining-public-workers">Study Confirms PERA a Valuable Tool for Recruiting, Retaining Public Workers</a></li>
</ul>


Providing Retirement Security for Colorado


<p class="has-medium-font-size"><a href="https://www.intuit.com/blog/global-stories/financial-literacy-ranking-by-state/" target="_blank" rel="noreferrer noopener"><strong>Financial Literacy by State: 2025 Rankings | Intuit</strong></a></p>



<p>A new ranking puts Colorado in the middle of the pack when it comes to financial literacy among high schoolers. Intuit ranked states on factors such as required coursework, test scores, and youth employment rate, giving Colorado a score of 9.3 out of 18 possible points. It’s worth noting a new state law will require all Colorado high school students to take a financial literacy course in order to graduate.</p>



<p class="has-medium-font-size"><a href="https://www.cbsnews.com/colorado/news/colorado-teetering-recession-governors-budgeting-office/" target="_blank" rel="noreferrer noopener"><strong>Colorado is Teetering on the Edge of a Recession, Governor&#8217;s Planning, Budgeting Director Says | CBS Colorado</strong></a></p>



<p>State lawmakers will have to deal with yet another budget shortfall during next year’s legislative session. The latest forecasts show the state will once again have to cut hundreds of millions of dollars in spending, driven largely by increases in Medicaid costs. Lawmakers will get their next quarterly update in December, and the legislative session begins in January.</p>



<p class="has-medium-font-size"><a href="https://www.cnbc.com/2025/09/17/federal-social-security-payments-electronic.html" target="_blank" rel="noreferrer noopener"><strong>Social Security payments, federal benefits go electronic Sept. 30 | CNBC</strong></a></p>



<p>Say “goodbye” to paper checks from the federal government. If you receive Social Security benefits, you’ll now have to be signed up for direct deposit to receive your benefit payments. The shift away from paper checks is intended to cut down on fraud while also saving the government money. The change will also apply to tax refunds and other federal payments going forward.</p>



<p class="has-medium-font-size"><a href="https://money.com/taxes-in-retirement/" target="_blank" rel="noreferrer noopener"><strong>You’re Retiring. Get Ready for These Tax Changes | Money</strong></a></p>



<p>Retirement is more than just a change in employment—it also brings some important changes to your finances. Here are some important tax considerations to keep in mind if you’re approaching retirement and are expecting to draw from Social Security and other savings.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: New Report Ranks Colorado on Financial Literacy


<p>PERA’s executive leadership team hosted two Town Halls on Tuesday, July 1 to provide updates on PERA and take questions from members and retirees.</p>



<p>CEO/Executive Director Andrew Roth was joined by Chief Investment Officer/Chief Operating Officer Amy C. McGarrity, Chief Benefits Officer Patrick Lane, and Chief Administrative Officer Jeremy Hill.</p>



<p>Below are clips of some of the executives’ answers to participant questions.</p>



<p>Full recordings of each Town Hall are available at <a href="https://copera.org/townhall" target="_blank" rel="noreferrer noopener" class="broken_link">copera.org/townhall</a>.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">How did PERA’s investment portfolio perform in 2024?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-investment-performance.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2025/07/amy-investments-2.jpg" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-investment-performance.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>McGarrity highlighted PERA’s financial results from 2024, as reported in the recently released 2023&nbsp;<em>Annual Comprehensive Financial Report</em> (ACFR).</p>



<p>“For the year ended December 31, 2024, PERA’s investment portfolio earned a return of 10.8% net-of-fees,” McGarrity said. “The value of the total defined benefit fund was $66.7 billion and our funded status was 69.2%.”</p>



<p>Based on 2024’s financial results, PERA remains on track to meet its funding goals. That means there will be no adjustments to contribution rates and all eligible benefit recipients will receive a 1.0% increase this July and most, if not all, will receive 1.0% in July 2026.</p>



<p>View more highlights from the 2024 <em>ACFR</em> at <a href="https://copera.org/snapshot" target="_blank" rel="noreferrer noopener">copera.org/snapshot</a>.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">If PERA’s investments earned positive returns in 2024, why aren’t retirees getting a bigger Annual Increase?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-annual-increase.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2025/07/andrew-annual-increase.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-annual-increase.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>Roth acknowledged that the <a href="https://copera.org/retirees/benefit-basics-for-retirees/annual-benefit-increases" target="_blank" rel="noreferrer noopener">1% Annual Increase</a> retirees have received in recent years has been a challenge and reiterated that while PERA has unfunded liabilities, the Annual Increase is limited under state law to keep the plan on track to full funding.</p>



<p>“The good news is because we’re having strong investment returns, there is no decrease to the Annual Increase,” Roth said.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What will happen to my PERA benefits if there’s a recession?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-recession.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2025/07/amy-recession-2.jpg" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-recession.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“First and foremost, nothing happens to the benefits that are being paid,” McGarrity said, affirming that PERA would continue to pay earned benefits if there were a downturn in the economy.</p>



<p>As far as PERA’s portfolio is concerned, McGarrity said that because PERA is invested in the markets, it would likely experience the effects of a recession. However, the Board’s focus is on achieving returns <a href="https://copera.org/pera-on-the-issues/how-colorado-pera-invests-for-long-term-retirement-security" target="_blank" rel="noreferrer noopener">over the course of decades</a>, regardless of what happens in any one year.</p>



<p>“That’s really why the Board underscores a strategic approach and remains invested in the asset classes across the markets through various environments in order to achieve our very long-term objectives,” she said.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Does the repeal of the Windfall Elimination Provision and Government Pension Offset through the Social Security Fairness Act mean PERA members have to start contributing to Social Security?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-social-security.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2025/07/andrew-social-security.jpg" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-social-security.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“The short answer is no changes that resulted from the Social Security Fairness Act will impact PERA members with regard to their contributions,” Roth said, adding that PERA serves as a <a href="https://copera.org/retirees/benefit-basics-for-retirees/pera-and-social-security" target="_blank" rel="noreferrer noopener">substitute for Social Security</a> for most members, and a person’s PERA benefit is never affected by any other benefit they may receive.</p>



<p>PERA members who were previously affected by WEP or GPO will no longer see reductions in their Social Security benefits since those two provisions have been repealed.</p>



<p>For more information on the Social Security Fairness Act, visit <a href="https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html?tl=2%2C6%2C10" target="_blank" rel="noreferrer noopener">ssa.gov</a>.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">What can retirees expect for PERACare plans in 2026?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-peracare.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2025/07/patrick-peracare-2.png" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-peracare.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“We will continue to offer the same plans and carriers for our Medicare and pre-Medicare offerings in the 2026 plan year,” Lane said. “We’re still in the process of finalizing premium information, but we do expect premiums to go up across the board next year, so I want to be very transparent about that.”</p>



<p>Lane added that while PERA does its best to negotiate competitive rates with PERACare carriers, there are many factors that affect premiums and other health plan costs, such as rising costs for services and prescription drugs and regulatory changes at the federal level.</p>



<p>We’ll have more information on 2026 PERACare premiums in the fall.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">How do I know when I can retire and how much my monthly benefit will be?</h2>



<div class="wp-block-advgb-video advgb-video-block full-width" data-video="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-when-can-i-retire.mp4" data-source="local" data-video-attr="controls,playsinline" data-video-preload="metadata"><div class="advgb-video-wrapper full-width no-lightbox"><video class="full-width" height="450" poster="https://content.copera.org/wp-content/uploads/2025/07/patrick-retirement.jpg" controls preload="metadata" playsinline><source src="https://content.copera.org/wp-content/uploads/2025/07/2025-TH-when-can-i-retire.mp4"/>Your browser does not support HTML5 video.</video></div></div>



<p>“The <a href="https://copera.org/app" target="_blank" rel="noreferrer noopener">PERA mobile app</a> is a really valuable tool to help you through this process,” Lane said. “It has calculators, it can help you determine your dates for eligibility to receive benefits, and it can help you go through some hypothetical scenarios that would help you gain a better understanding of your retirement.”</p>



<p>Lane also pointed out other tools and resources that are available on PERA’s website, including <a href="https://www.copera.org/welcome-pera-members/benefit-basics/highest-average-salary-tables" target="_blank" rel="noreferrer noopener">highest average salary tables</a>, <a href="https://content.copera.org/webinars/" target="_blank" rel="noreferrer noopener">webinars</a>, and <a href="https://www.copera.org/forms-resources/video-library" target="_blank" rel="noreferrer noopener">educational videos</a>.</p>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Town Hall recordings</h2>



<p>For full recordings of both Town Halls, visit&nbsp;<a href="https://copera.org/about/pera-town-hall" target="_blank" rel="noreferrer noopener">copera.org/townhall</a>.</p>


PERA Executives Give Updates, Take Questions at 2025 Town Halls


<p>April 2021 is Financial Literacy Month. Now in its eighteenth year, the month has kept its focus on the original goal, as stated in the original 2004 Senate Resolution: </p>



<blockquote class="wp-block-quote">
<p>“to raise public awareness about the importance of financial education in the United States and the serious consequences associated with a lack of understanding about personal finances.”</p>
</blockquote>



<p>President Biden has also proclaimed April to be National Financial Capability month, saying: </p>



<blockquote class="wp-block-quote">
<p>“High-quality financial education should build on and respond to people’s individual strengths, circumstances, and needs in order to help them work toward their own unique goals.”</p>
</blockquote>



<h2 class="wp-block-heading">What is “Financial Literacy”?</h2>



<p>There is no single measure for financial literacy. Google “financial literacy quiz”, and you could spend an entire day taking tests. </p>



<p>For example, the National Financial Educators Council has created a half-dozen quizzes that ask general awareness questions on a wide array of topics (including <a href="https://www.financialeducatorscouncil.org/national-financial-capability-test/" target="_blank" rel="noreferrer noopener">standard</a> and <a href="https://www.financialeducatorscouncil.org/advanced-financial-education-test/" target="_blank" rel="noreferrer noopener">advanced</a> versions).</p>



<p>About 59% of more than <a href="https://www.financialeducatorscouncil.org/national-financial-literacy-test/" target="_blank" rel="noreferrer noopener">60,000 test-takers</a> passed the standard test referenced above, and the average score was 68%.</p>



<p>But what makes a particular personal finance topic relevant — paying off debt, owning a home, planning for retirement, and more — depends on the circumstances each person faces and the tools they have at their disposal. These, of course, can vary.</p>



<p>So, while quizzes like these are a fun way to gauge general awareness about financial topics, they aren&#8217;t the best measure of literacy on an individual basis. What, then, does it mean to be “literate?”</p>



<h2 class="wp-block-heading">Bridging the Gap Between Knowledge and Action</h2>



<p>Financial knowledge can equip a person to make more informed decisions. But without action, knowing about personal finance adds nothing to a person’s net worth. A person who saves 3% of their salary in a 401(k) but who isn’t confident they know how a 401(k) works is probably better off than a person who knows every detail about 401(k) accounts but who has no savings and has no plan to start.</p>



<p>In a sense, a person achieves literacy when they implement financial knowledge into their life in a tangible way. It’s similar to learning a language: Memorizing vocabulary words on flash cards is an important step in learning, but it takes more than a vocabulary to have a conversation or become fluent.</p>



<p>PERA offers members a variety of tools and resources to bolster financial literacy. One way to help understand what’s available is to think about each resource as either education-oriented or action-oriented. A few examples are shown below:</p>



<hr class="wp-block-separator has-css-opacity"/>



<div class="wp-block-group is-layout-flow"><div class="wp-block-group__inner-container">
<figure class="wp-block-table alignleft"><table class="has-white-color has-text-color has-background" style="background-color:#e9fbe5 color:#ffffff;"><thead><tr><th><strong>Education</strong></th><th><strong>Action</strong></th></tr></thead><tbody><tr><td><br>PERA partners with employers by offering free workshops about how to make sense of investing.</td><td>PERA members can enroll in a PERAPlus 401(k) with their employer or in PERAPlus 457 directly online.</td></tr><tr><td>PERA offers webinars about planning for retirement.</td><td><br>Refine your own individual retirement plan. Meet with a PERA representative if you have additional questions about your PERA benefit.<br></td></tr></tbody></table></figure>



<p></p>



<p></p>



<hr class="wp-block-separator has-css-opacity"/>
</div></div>



<h4 class="wp-block-heading"><strong>The Importance of a Plan</strong></h4>



<p>Financial literacy is important. While it takes more than simply memorizing financial principles to reap the rewards, having a baseline of knowledge is an invaluable part of becoming financially secure. Not surprisingly, a lack of financial knowledge is a <a href="https://www.thebalance.com/overcome-excuses-and-save-money-4129534" target="_blank" rel="noreferrer noopener">common</a> barrier to getting started.&nbsp;</p>



<p>So in recognition of Financial Literacy Month, go ahead – take an online quiz. Test your knowledge against others. But when you’re done, go a step farther. Strive for true literacy. Keep learning, and find ways to apply what you know.</p>


Tag Archives:

News You Should Know: Colorado Lawmakers Facing $850 Million Budget Gap

Providing Retirement Security for Colorado

News You Should Know: New Report Ranks Colorado on Financial Literacy

PERA Executives Give Updates, Take Questions at 2025 Town Halls

Making Sense of Financial Literacy

Subscribe to PERA On The Issues