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.

- Advertisement -

“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.

 

 

2 COMMENTS

  1. for the city, the state and the country we have to start urgently the discussion on the following:
    1.
    retirement age of 65 for Public employees has to go up to afford a pension system
    2. retirement at age 50 if you have worked for 30 years is not affordable as they still have 30 years to live..

    to make our retirement packages work in these days of lower birth rates and longer life expectancy we can not afford to have close to the same rules when the country invented this in the 30’s and live expectancy was 65 compared to close to 80 today

  2. Gee can’t imagine why the state of Colorado won’t do the right thing and pay the contributions they owe… oh, then they wouldn’t have as much corporate welfare to lavish on their cronies and fellow criminals, like DeVita defrauding Medicare!
    Thanks to years of Democrat and Republican legislators and governors deceiving the public and circumventing TABOR spending limits, we can all join in the mindless mantra that government workers are bad in order to justify stealing from public pension funds…now if lawmakers could just get away with breaking their promise to pay any state retirement benefits at all… hmmmm, maybe next year they’ll pass a law to sell Pension Obligation Bonds (that’s one way the state could uise to avoid fulfilling it’s own obligations!).

Comments are closed.