Printed on 3/14/12

PERA – Funding the Public Employees Retirement Association

Colorado government employees don't pay into or receive payments from Social Security. Instead, when they retire, they receive a defined benefit of a percentage of their income for the rest of their life.

Like almost every State in the country, PERA is going broke. The fix under consideration burdens taxpayers to cover the retirement plan for public employees, often at the expense of saving for their own.

Another fix is to change from a defined benefit to a defined contribution, as is typical in the private sector. The defined contribution becomes a property right that gives the public employee the opportunity to move in and out of the system, without loss to his or her retirement package.

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Representative Janak Joshi
Colorado House District 16L