Issue Position: PERA

Issue Position

Colorado may be facing a big problem in sustaining the Public Employees Retirement Account or PERA. It is of utmost importance that we protect the retirement investment of the hardworking public employees of Colorado. That includes me, hundreds of friends who worked with me while I served as a County Commissioner, when I was on the School Board at Ignacio, and now as a State Legislator. The bottom line is that the PERA fund may not be able to satisfy the promises made for the retirement of public employees. The legislature made some important improvements to PERA in the last few years, but many financial experts believe more must be done. These are some of the problems and possible solutions to those problems of PERA.

PERA retirement is based on an 8% return on investment. Some say that this is an unrealistic return and must be reduced to a more reasonable rate.
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.
The PERA board is made up of a large majority of people who have a vested interest in PERA retirement. If PERA were to fail, the taxpayers of Colorado would be forced to bail it out. Therefore, it seems logical that the board should be more balanced. This will help to insure that the plan is realistic and sustainable.

As your Representative I will have an open mind and it will be a priority of mine to find a lasting solution to the long term sustainability of PERA.

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