Colorado Public Employees Retirement Association, Denver, will likely have to increase employer contributions to reach its goal of being fully funded in 30 years, according to a COPERA report.
Meredith Williams, executive director, told the Colorado Legislative Audit Committee on Monday that the system has a market-value funding ratio of 51.8%, with assets of $29.5 billion and liabilities of $57 billion, and an actuarial-value funding ratio of 68.6%, with assets of $39.1 billion and liabilities of $57 billion.
In 2008, the system established the 30-year solvency schedule for its five divisions. But COPERA executives now say the financial crisis, which contributed to assets falling 29% in 2008 to $30.8 billion, will require an increase in employer contributions.
State workers and school employee contributions will have to increase to 17.91% and 16.56%, respectively, from 11.03% for both; local government employee contributions would have to rise to 11.14% from 10.88%; judicial employees to 17.08% from 14.54%; and the health-care trust fund to 1.12% from 1.02%.
“As recently as nine months ago, projections showed that the PERA trust funds were on a path to obtain a 30-year amortization period on unfunded liabilities within the actuarial projection period,” Mr. Williams said in a letter Monday to actuary consultant Clifton Gunderson. “With the unprecedented decline in the financial markets in 2008, these projections no longer hold true.”
Mr. Williams said in the letter that COPERA will hold a series of public meetings in August to solicit input from members, retirees and legislators in developing recommendations to present to its board of trustees at its annual shareholder meeting on Oct. 21.