Retirement benefits provided by the Colorado Public Employees' Retirement Association, Denver, are cost efficient, said a report commissioned by the state's auditor that was released Monday.
Actuarial firm Gabriel, Roeder, Smith & Co. compared Colorado PERA's hybrid plan with other public- and private-sector retirement savings programs, including Social Security. PERA manages $47.7 billion in defined benefit and defined contribution assets.
The hybrid plan went into effect for employees hired on or after Jan. 1, 2011.
The report, one of three ordered by legislators last year, also found that moving newly hired state workers to an alternative plan will not eliminate the state's unfunded liability, and the state “must develop a plan to address” it.
The first mandated study surveyed employee compensation and benefits and found Colorado to be in line with other public- and private-sector employees. A third independent study that will be released this fall is looking at PERA's actuarial assumptions and attempts to reach full funding.
The study is available on the state auditor's website.