Latest PERA News
This section contains current items of interest to PERA members and retirees and the general public. For other news regarding PERA, you also may want to view the PERA News Archives. Any questions or comments regarding this information may be directed to PERA via e-mail.
Long-Term Care Program Update
Policyholders with Penn Treaty Network America (PTNA) and American Network Insurance Company (ANIC) should note that on May 3, 2012, the Commonwealth Court of Pennsylvania issued a ruling that requires the Insurance Commissioner of the Commonwealth of Pennsylvania to develop a plan of rehabilitation in consultation with Interveners (Penn Treaty companies) and submit the plan to the Court within 90 days. The Court denied the Insurance Department’s request to liquidate Penn Treaty and American Network.
As policyholders will remember, this ruling has been pending since the companies were placed in voluntary rehabilitation in 2009. The ruling supports the companies’ position that there are sufficient capital and claim reserves to warrant rehabilitation.
This ruling should move the rehabilitation.
Colorado PERA Board of Trustees Appoints Gregory W. Smith as Interim Executive Director
The Colorado PERA Board of Trustees have named PERA Chief Operating Officer and General Counsel, Gregory W. Smith, as Interim Executive Director. Mr. Smith will assume his new role after the June 30, 2012, departure of Meredith Williams who was recently named the Executive Director of the National Council on Teacher Retirement (NCTR).
The Board also created a search committee to conduct a search for an executive director in accordance with the Board's Governance Manual policy. The search committee will be chaired by Trustee James Casebolt, who is a judge on the Colorado Court of Appeals and has served on the PERA Board since 1999.
"I am honored that the Board has entrusted me with leading the best retirement system in the country and I look forward to the challenges and opportunities that the future will bring," said Mr. Smith. He added, "I take very seriously the retirement security of PERA's 485,000 members and will work diligently to ensure the financial futures of Colorado's current and former public employees."
Mr. Smith joined the PERA staff as General Counsel in 2002, and since 2009 he has served as Chief Operating Officer and General Counsel for PERA.
Colorado PERA Executive Director Meredith Williams to Leave for New Role as National Council on Teacher Retirement Executive Director
Colorado Public Employees' Retirement Association (PERA) Executive Director Meredith Williams has announced that he will leave PERA after 12 years to become the executive director of the National Council on Teacher Retirement (NCTR). Mr. Williams' resignation from PERA is effective June 30, 2012.
"It was a difficult decision for me because I have enjoyed working on behalf of the Colorado public employees who make this the best state in the country,” Williams said. “The opportunity to move to a national organization with a high profile presence in public retirement issues at this important time was difficult to resist, and the timing was right. I'll miss the great people at PERA and I am honored to have had the support of a dedicated Board of Trustees."
In announcing the appointment of Meredith Williams, NCTR President David Stella said, "Meredith Williams brings exceptional knowledge, experience, and proven leadership to NCTR and will be an extremely valuable asset to NCTR as it engages in the national dialog about how best to ensure retirement security, not only for America's teachers, but to all citizens."
President Stella also praised the tireless efforts of retiring Executive Director, Jim Mosman, whose leadership of NCTR over the past 10 years has been instrumental in developing NCTR into a leading advocate of pension security for teachers and a valuable source of information and education for pension fund trustees.
Williams came to PERA in March of 2000 after serving as the executive secretary of the Kansas Public Employees Retirement System. During his tenure at PERA, Williams oversaw significant legislative changes in response to the changing environment for public pension plans. Legislation enacted in 2010 (Senate Bill 1) marked a first-in-the-nation effort to address long-term sustainability for public systems, putting PERA back on track to being fully funded.
"For over a decade, Meredith has provided member-focused leadership at Colorado PERA. His transition to NCTR Executive Director is bittersweet. The Board and I wish him the same success for the millions of public employees represented by NCTR," said Carole Wright, chair of the Colorado PERA Board of Trustees.
The PERA Board of Trustees will be meeting in the near term to determine how Mr. Williams' replacement will be selected.
Court Rules in Favor of Colorado PERA in Treasurer Stapleton’s Request for Member Information Lawsuit
Denver District Court Judge Edward D. Bronfin late yesterday ruled in favor of Colorado PERA in the lawsuit (Stapleton v. PERA) brought by Colorado State Treasurer Walker Stapleton. In his ruling, Judge Bronfin determined that the Colorado PERA Board properly concluded that the Treasurer is not entitled to information he requested regarding the top 20 percent of PERA benefit recipients. Information requested by the Treasurer included: the annual retirement benefit, year of retirement, age at retirement, last five years of salary as a PERA member, employer division, and ZIP code.
Judge Bronfin stated “the Treasurer–just like any Trustee of the PERA Board–is not entitled to unlimited, unfettered access to individual PERA member and benefit recipient information which is rendered confidential by statute. Rather, any request for such confidential information must be in furtherance of the Treasurer’s–or other Trustees’–fiduciary duty ‘solely’ to act in the interest of PERA members and benefit recipients…The request for confidential information must reasonably be calculated or designed to further ‘solely’ the interests of PERA members and benefit recipients.”
The judge went on to conclude that “here, the Treasurer was unable or unwilling to provide his co-Trustees and co-fiduciaries with any explanation about how the requested information was reasonably designed to further ‘solely’ the interests of PERA members and benefit recipients.” He explained further, “Because the Treasurer was unable to articulate any legitimate explanation for how or why the requested information was needed, or how or why it would further his fiduciary duty ‘solely’ to PERA members and benefit recipients, the Court concludes…the PERA Board acted appropriately in denying the Treasurer’s request for the requested information.”
Colorado law requires PERA to maintain the confidentiality of “all information” in PERA’s member records. With this ruling, PERA was able to obtain guidance regarding circumstances under which it can lawfully disclose information regarding its members and benefit recipients to PERA Trustees.
PERA’s actuarial consultants review each member and retiree record every year and report the overall results of their analysis to the PERA Board of Trustees and to the General Assembly’s Legislative Audit Committee. Additionally, the State Auditor’s Office hires one of the four largest accounting firms in the world to audit PERA’s financial report and operations every year. This information is publicly available on the State Auditor’s Web site and in PERA’s Comprehensive Annual Financial Report (CAFR). PERA also has created a fact sheet about benefit payments, including the number of retirees by different ranges of annual benefits.
“PERA members should applaud the court’s decision to continue the statutory protection of the privacy rights of retirees and their families. The court reinforced the principle that no individual, no matter how highly placed in state government, has the right to go on a ‘fishing expedition’ with member’s confidential records.”
– Daniel M. Chapman, Retiree, Former Legislative Staffer
“It’s gratifying the court has determined the requested personal information must remain confidential, especially since it’s never been clear exactly why this information is needed and how it would be used.”
– Bill Timmermeyer, Retiree, Colorado Department of Local Affairs
“During my nearly two decades serving as a trustee on the Board for the Denver Public Schools Retirement System, all the information I required to perform my duties was published in the Comprehensive Annual Financial Report. With PERA, this information is presented annually in open session and made available online. It is inappropriate for a trustee to request specific information which could be used to identify individuals and their related benefits.”
– John MacPherson, Retiree, Denver Public Schools
“It is nice to see that the court recognized that even PERA recipients have the same rights to privacy that their fellow citizens enjoy.”
– John Strombeck, Retiree, Colorado Department of Revenue
Colorado PERA was represented by John V. McDermott, Esq., of Brownstein Hyatt Farber Schreck, LLP.
Stapleton v. PERA rulingColorado PERA Appoints Three Trustees to Four-Year Terms
At its March meeting the Colorado PERA Board of Trustees voted to appoint two incumbents and one new Trustee to seats on the Board.
Richard Delk, a current State Division Trustee, and Amy Nichols, a current School Division Trustee, were the only candidates for their seats in an election scheduled to be held later this year. Amy Grant was the only candidate for the Denver Public Schools (DPS) Division seat, an ex officio, non-voting position. All three Trustees will serve four-year terms beginning July 1, 2012.
Delk is the Director of the Strategic Fiscal Planning Office for the Colorado State Patrol and has served on the Board since 2008. Nichols is a Math Teacher in Aurora Public Schools and has served on the Board since 2000. Grant is the former chair of the Denver Public Schools Retirement System (DPSRS) board. She will replace Wayne Eckerling, who was appointed to fill the DPS Division seat in January 2010.
By State law, the management of Colorado PERA is vested in the Board of Trustees while the General Assembly sets contribution rates and benefit levels.
The Board is composed of 16 Trustees, including three Governor-appointed Trustees, an ex officio non-voting member from the Denver Public Schools, and the State Treasurer who serves as a ex officio voting member of the Board.
Colorado PERA Issues RFP for a Manager for a Colorado-Based Fund
Colorado PERA has issued an RFP for an investment manager to oversee a pool of capital for investments with a nexus to Colorado. This external manager will oversee the investments of this Colorado-focused endeavor.
Those interested in receiving a copy of the RFP and submitting a Proposal should contact Rob Parkinson, Associate Partner, Hewitt EnnisKnupp, Inc., via e-mail.
RFP responses must be received on or before 4:30 p.m. (MDT) on April 6, 2012.
Morningstar Fund Fact Sheets Now Available for PERAdvantage Funds
Morningstar Investment Profiles, also known as fund fact sheets, are now available for the PERAdvantage investment funds. (Participants in the PERAPlus and DC Plans invest in the PERAdvantage funds.) The fact sheets let you easily compare not only investment options available within the Plan, but also investments you may have elsewhere.
You can view the fund fact sheets on each of the Plan Web sites by clicking on the name of the PERAdvantage fund:
Colorado PERA Survey
Colorado PERA is in the process of conducting a public opinion survey to help us identify ways to better serve our membership. As a part of this effort, we have contracted with a research company, Standage Market Research, to conduct surveys. If you are contacted by this organization, please be assured that they are working on behalf of PERA. PERA has ensured that neither your contact information nor your responses to any questions can be used for any purpose other than PERA's research.
If you have any questions about this survey, please contact the PERA Customer Service Center at 1-800-759-7372 or 303-832-9550 or by e-mail. Thank you in advance for your participation.
Annual Increase for 2012
Senate Bill 10-001 enacted in 2010 changed the amount and timing of the annual increase (AI) to PERA benefits, which applies to benefit recipients under both the PERA and Denver Public Schools (DPS) benefit structures. This law ties the AI to PERA’s annual investment performance.
- If PERA’s investment performance is above zero for the calendar year, then the AI paid the following July will be 2 percent.
- If PERA’s investment performance is less than zero for the calendar year, then the AI paid the following July will be based on the change to the CPI-W for the previous calendar year, not to exceed 2 percent.
PERA will know the investment return for 2011 in late spring/early summer when audited financial results are available. However, preliminary results indicate that PERA’s investment return for the 2011 calendar year will be positive (above zero). Even if PERA’s investment return for the 2011 calendar year were to be negative (less than zero), the change to the CPI-W for the 2011 calendar year is above 2 percent, which means that the AI paid to benefit recipients in July 2012 will be 2 percent.
Note: The CPI-W is the national Consumer Price Index for Urban Wage Earners and Clerical Workers published by the United States Department of Labor.
Secured Log On Tutorial Now Available
PERA has created a tutorial to guide members and retirees through the new secured log on procedures, including how to create a User ID and password. The tutorial can be viewed here.
PERA Cancels Meetings in Denver
Colorado PERA's meetings scheduled for February 4, 2012, in Denver are canceled due to the continuing Winter Storm and heavy snowfall.
Canceled Meetings:February 4, 2012
Denver
Group Workshop, 8:00 a.m. - 9:30 a.m.
Benefit Information Meeting, 10:00 a.m. - 12:00 p.m.The canceled Denver meetings were scheduled at Penn Center, 1301 Pennsylvania St, Denver, 80203
The decision to cancel the meetings was made in the best interest of the safety of Colorado PERA members and staff who would have to travel to Denver. Weather and road conditions are to be hazardous through the morning hours.
We regret any inconvenience that this may cause PERA members. Efforts will be made to reschedule the sessions in the next several weeks. Please consult PERA's Web site for further updates.
For further details or information, contact Dennis Gatlin, Colorado PERA Field Education Services Director, at 303-863-3788 or dgatlin@copera.org.
PERA Cancels Meetings in Colorado Springs and Fort Collins
Colorado PERA's meetings scheduled for February 2, 2012, in Colorado Springs and Fort Collins are canceled due to a winter storm warning and the potential for heavy snowfall.
Canceled Meetings:February 2, 2012
Colorado Springs
Fort CollinsRetirement Process Meeting, 4:30 p.m. - 6 p.m.
PERACare Information Meeting, 6:30 p.m. - 8 p.m.The canceled Colorado Springs meetings were scheduled at the Senior Center, 1514 N. Hancock, Colorado Springs, 80903
Retirement Process Meeting, 4:30 p.m. - 6 p.m.
PERACare Information Meeting, 6:30 p.m. - 8 p.m.The canceled Fort Collins meetings were scheduled at the Hilton Fort Collins, 425 W. Prospect Rd., Fort Collins, 80526
The decision to cancel the meetings was made in the best interest of the safety of Colorado PERA members and staff who would have to travel to Colorado Springs and Fort Collins. Road conditions are expected to be extremely hazardous due to snow accumulations up to 8 inches and high winds.
We regret any inconvenience that this may cause PERA members. Efforts will be made to reschedule the sessions in the next several weeks. Please consult PERA's Web site for further updates.
For further details or information, contact Dennis Gatlin, Colorado PERA Field Education Services Director, at 303-863-3788 or dgatlin@copera.org.
Economic and Fiscal Impacts Study Now Available
A study prepared by Pacey & McNulty that measures the positive economic and fiscal impacts of PERA's benefit payments to Colorado recipients is now available. This research shows that the $3 billion in PERA benefit payments made annually to Colorado residents are an important driver in the Colorado economy and represent 3.3 percent of statewide income, generate $230 million in tax revenue to local and state government, and create over 23,000 jobs in Colorado. This study is a follow-up to the initial study completed in August 2009. Review the Economic and Fiscal Impacts study.
Colorado PERA Produces New Fact Sheets
Colorado PERA has produced two new fact sheets: What Counts as PERA-Includable Salary and Taxes on PERA Benefits (State Trooper and CBI Agent Provisions). The What Counts as PERA-Includable Salary fact sheet provides information about per diem and reimbursement payments and when such extra payments are considered PERA-includable salary. The Taxes on PERA Benefits (State Trooper and CBI Agent Provisions) fact sheet outlines when a State Trooper or CBI Agent might be entitled to special tax treatment as it relates to PERA benefits and the responsibility of claiming the tax exclusion. Both of these fact sheets are now available on the PERA Web site.
PERAPlus and DC Plan Account Balance Error
On December 30, 2011, an ING programming error caused PERAPlus and DC Plan accounts to incorrectly show a zero balance. The error was corrected late Sunday, January 1, 2012, and all account balance information has been restored. Money in individual accounts was never removed from the participants’ accounts and no units were sold, transferred, or otherwise compromised.
You may review your PERAPlus and/or DC Plan account balance by logging on to your account.