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More contribution hikes, benefit cuts may be needed to close $4.5 billion hole in Colorado’s PERA – The Colorado Sun – Colorado Springs, Colorado

Colorado Springs, Colorado 2020-11-21 05:00:00 –

The cool news comes shortly after PERA reports in June the highest fiscal year of decades. The highest benchmarks warned by state pension authorities can make pension finances look better on paper than they really are. At that time, the effects of coronavirus and empirical studies were not considered.

When PERA last conducted a similar survey four years ago, pensions fell into a full-blown crisis, eventually reaching Senate Bill 200, the 2018 pension bill. The fact that no one on the PERA board has sought another legislation to bail out this, the financials of previous reforms designed to put the system on a financial track even if the economy stagnates. Resilience is highlighted.

PERA, on the other hand, is quickly running out of its own financial cushion. If auto-adjustment provisions start as expected next year, PERA will run out of half of the financial lifeline that lawmakers have incorporated into reforms. If there are still financial problems with the system at that point, more legislation will be needed.

Meanwhile, the state government’s finances have remained volatile. Last year, lawmakers cut $ 225 million in pension payments. The rise in coronavirus threatens the state’s economic recovery. And Colorado voters passed conflicting fiscal voting bills this fall that could limit the amount the state can use to repay PERA’s outstanding debt.

Asahi

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More contribution hikes, benefit cuts may be needed to close $4.5 billion hole in Colorado’s PERA – The Colorado Sun Source link More contribution hikes, benefit cuts may be needed to close $4.5 billion hole in Colorado’s PERA – The Colorado Sun

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