PERA's investments generated billions in 2020. But the Colorado pension's financial condition

[TexasTowelie]

PERA’s investments generated billions in 2020. But the Colorado pension’s financial condition worsened.


It was another frustrating year for Colorado’s 631,000 public pension members.

Despite a banner stock market year that saw Colorado’s Public Employees’ Retirement Association generate 17.4% returns on its investments — more than double its target — the state’s public pension still ended 2020 in worse financial shape than it started.

PERA’s unfunded debt to retirees grew by $1.2 billion, to $31 billion, and at current projections, it would take 43 years to reach full funding. That’s well outside the 30-year target required by state law.

The PERA board on Friday released its 2020 financial report, making official what PERA’s leaders have been expecting since at least November. The deteriorating funding means public workers and the government agencies that employ them will have to contribute more, and retirees will receive less starting in July 2022. These changes are the latest ripple effect of the 2018 pension overhaul that automatically adjusts contributions and benefits whenever the pension’s funding veers off course.

Read more: https://coloradosun.com/2021/06/21/pera-financial-forecast-inflation-benefits/