PERA retirees warn of looming pension shortfall as employer contributions fall short

A retiree's urgent plea for action on the PERA Cola situation dominated discussions at the recent Joint Finance meeting in Colorado. The speaker, a PERA retiree, highlighted the alarming decline in pension value, noting that retirees could face a staggering 25% loss by 2032 if current conditions persist.

The retiree emphasized the critical need for legislative intervention, pointing out that the current 1% cost-of-living adjustment (COLA) could drop to as low as 0.5%, further jeopardizing financial security for those reliant on PERA pensions. He underscored the importance of addressing this issue, as many retirees, including himself and his wife, do not receive Social Security benefits and depend solely on their PERA pensions.

The speaker referenced Senate Bill 18200, which aimed to enhance the sustainability of the PERA fund but inadvertently compromised the retirement security of its members. He called for an increase in the employer contribution rate, currently set at 21.4%, to help rectify the funding shortfall that has developed over the past 18 years due to insufficient employer contributions.

This heartfelt testimony underscores the pressing need for lawmakers to prioritize the financial well-being of Colorado's retirees as they navigate the complexities of pension funding and sustainability. The implications of these discussions could shape future legislative actions aimed at safeguarding retirement security for thousands of Coloradans.