Colorado has made 74.5 percent of its annual required contribution to its public employee retirement plans from 2001 through 2013, placing it 46th in terms of average state pension funding, a report suggests.
While most U.S. states are meeting their pension commitments, a report by the National Association of State Retirement Administrators shows Colorado has lagged for more than a decade.
Colorado placed behind New Jersey, Pennsylvania, Washington, North Dakota and Kansas, and is just ahead of Virginia, Illinois and Oklahoma, according to the report. The report also included the District of Columbia.
“Overall, the report shows that in most states, well-funded pension plans consistently receive the annual required contribution to their pension systems,” the AARP wrote in a news release about the report. “AARP feels strongly that public employees who worked hard and paid into the system their whole lives should receive the payments they were promised, and that initiatives to close defined benefit plans and replace them with riskier and less secure defined contribution and hybrid plans remain unnecessary, unwise, and unfair.”
NASRA used the Colorado Public Employees’ Retirement Association as an example, writing that PERA “publishes in its annual financial report a sensitivity analysis showing the effect minor changes in the investment return assumption would have on the ARC of PERA’s five pension plans.”
At the time of the report, PERA’s investment return assumption was 7.5 percent.
“The report, ‘Spotlight on The ARC Experience of State Retirement Plans, FY 01 to FY 13,’ examines how state governments performed meeting the annual required contribution (ARC) of their public employee retirement plans,” according to NASRA. “It details the ARC experience of 112 state-wide and state-sponsored public pension plans in the U.S. Together, these plans account for more than 80 percent of all public pension assets and participants.”
The entire report can be view online here.