Transcript Document

December 16, 2010
DU Strategic Issues
Program
Colorado PERA’s Mission Statement
To promote long-term financial security for our
membership while maintaining the stability of the fund.
www.copera.org l 303-832-9550 l 1-800-759-PERA (7372) l 1301 Pennsylvania Street, Denver
PERA Membership
October 31, 2010
Total: 472,436
250,000
200,000
150,000
100,000
50,000
0
State
School
Local Gov't
Judicial
DPS
Total
Benefit Recipients
32,204
49,728
4,996
291
6,265
93,484
Active Members
57,517
120,121
17,264
314
13,819
209,035
Inactive Members
58,763
92,537
17,133
12
1,472
169,917
2
PERA Financial Recap
3
Colorado PERA Without
DC plans
In billions
Beginning Balance January 1, 1985
$4.5
Employer Contributions
11.8
Member and other contributions
11.9
Investment Income
35.9
Benefit and refund payments
Administrative Expenses
Ending Balance December 31, 2009
(30.7)
(0.5)
$32.9
Investment Asset Allocation
December 14, 2010
$37.7 Billion Market Value
Fixed Income
22.2%
Opportunity
Real Estate Fund
2.1%
6.8%
Cash & Short
Term
1.0%
Alternative
Investments
8.4%
Global Stocks
59.5%
5
PERA Assets vs. Liabilities
Market Value as of December 31 for each year
$60.0
In Billions
$50.0
$40.0
$30.0
$20.0
$10.0
$0.0
Assets
Liabilities
6
School Division
Actuarial Projection
140%
120%
Funded Ratio %
100%
80%
60%
40%
20%
0%
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Pessimistic Return (6.50%) 69% 65% 59% 59% 58% 57% 56% 56% 55% 54% 53% 52% 51% 50% 49% 48% 46% 45% 44% 43% 41% 40% 39% 38% 36% 35% 34% 33% 32% 32% 31%
Expected Return (8.00%)
69% 65% 60% 61% 61% 61% 61% 61% 61% 62% 62% 62% 63% 63% 63% 64% 64% 65% 66% 66% 67% 68% 69% 71% 72% 74% 76% 78% 81% 84% 88%
Optimistic Return (9.50%)
69% 65% 60% 62% 63% 64% 65% 67% 68% 70% 72% 74% 76% 78% 81% 83% 86% 90% 93% 97% 101% 106% 108% 110% 112% 115% 118% 121% 124% 128% 131%
2008 Projection
64% 57% 50% 49% 48% 47% 46% 45% 43% 42% 40% 38% 36% 34% 31% 28% 25% 22% 19% 15% 11%
7%
2%
0%
0%
0%
0%
0%
0%
0%
0%
Year Beginning
Pessimistic Return (6.50%)
December 31, 2009, Valuation Results
Expected Return (8.00%)
Optimistic Return (9.50%)
2008 Projection
7
Senate Bill 10-001
Shared Sacrifices





Modifies annual increase or “COLA”
Increases member/employer contribution rates
Increases retirement age (Rule of 90 with minimum
age 60 for new hires in 2017)
Includes funding corridor between 90 percent and
103 percent
Actuaries state that projections show full funding
achieved under current assumptions
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PERA’s Economic Engine

$3 billion in benefits paid annually







93,000 retirees – 90 percent Colorado residents
2.7 percent of the State’s wage income
20,000 jobs created
$2,885 average monthly benefit paid
$186 million in State and local tax receipts
$315 million in Colorado investments
One in 13 Coloradans is a PERA member
Source: Pacey Economics Group
9
Benefit Recipients in Colorado
December 31, 2009 –72,998
Moffat
194
Jackson
31
Routt
244
Grand
223
Rio Blanco
154
Weld
3,877
Larimer
5,638
Pitkin
86
Delta
702
Lake
111
Dolores
33
Montezuma
457
Park
192
Gunnison
280
Chaffee
577
Denver
5,209
San
Juan
8
La Plata
916
Hinsdale
10
Mineral
16
Archuleta
136
Saguache
72
Custer
111
Rio Grande Alamosa
431
294
Elbert
276
El Paso
8,884
Conejos
225
Costilla
91
Pueblo
5,286
Huerfano
210
Washington
105
Arapahoe
6,319
Fremont
1,574
Ouray
70
Yuma
220
Adams
4,058
Douglas
2,360
Teller
367
Montrose
794
San Miguel
46
Jefferson
8,961
Eagle
202
Garfield
552
Mesa
2,926
Clear
Creek
175
Phillips
77
Morgan
590
Boulder Broomfield
739
4,800
Gilpin
64
Sedgwick
69
Logan
540
Kit Carson
157
Cheyenne
39
Lincoln
126
Crowley
85
Otero
514
Las Animas
457
Kiowa
39
Bent
97
Prowers
317
Baca
96
10
PERA Recipient Payments as
a Percentage of Wage Income
State of Colorado Total: 2.7%
Northern
Colorado:
4.9%
Western Colorado:
4.7%
Mountain:
2.1%
Metro
Denver: 1.9%
Colorado
Springs:
3.5%
Southwest
Mountain:
4.7%
San Luis Valley:
11.6%
Eastern
Colorado: 8.8%
Pueblo/
Southern Mountains:
13.5%
Source: Pacey Economics Group, 2008 data
11
PERA’s DC Plans
Plan
401(k)
Who’s Eligible
All PERA members
and retirees
PERA DC State employees
hired in 2006 or later
Participants
Assets
(As of
September 30, 2010)
(As of
September 30, 2010)
74,350
$1.78 billion
3,355
$47 million
18,221
$423 million
Community College
employees hired in
2008 or later
457
State employees
and employees in
some school
districts
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