A huge problem is looming over Colorado tax payers. That problem is the Public Employment Retirement Act or PERA. The bottom line is that the PERA fund cannot sustain the promises made for the retirement of Public employees. The legislature made some important improvements to PERA this year, but more must be done. Simply stated these are some of the problems and the solutions to those problems of PERA.
1. PERA retirement is based on an 8% return on investment. This is an unrealistic return and must be brought down to a sustainable number.
2. The PERA plan does not have the same rules as private plans which insure long term stability. Private retirement plans are regulated and monitored to guarantee that employees and employers are not hurt by poor management. PERA should have the same type of oversight that private plans have.
3. The PERA board is made up totally of people who have a vested interest in PERA retirement. The board should be made up of a mixture of employees and other people that represent Colorado taxpayers. This will insure that the plan is realistic and sustainable.
As your Representative it will be a priority of mine to find a lasting solution to PERA before the cost is devastating to both employees and taxpayers.