CEA Message on PERA

We have three firm positions:

• that new employees not be forced into a Defined Contribution plan (privatized 401-K type plan)
• that PERA not be a two-tier system with inferior benefits for new employees
• that the PERA Board have a majority of employee representatives and remain independent of the state

We must do everything we can to maintain current benefits and keep PERA financially healthy, not only for retirees and current employees, but also for future employees.

Colorado teachers and support staff are hard working professionals who deserve a secure retirement for our commitment to public service. We pay into PERA from our salaries and we are not covered by Social Security. The average school retiree’s pension is just $2300 a month.

Our own research tells us that the Employer contribution rate is low compared to the other non-Social Security states*. The Legislature has already scheduled increases in the School Division Employer contribution: 0.5% increases in 2006 and 2007, and 0.4% increases each year from 2008-2013 (up to 13.55%).

CEA is working with the Colorado Coalition for Retirement Security and key legislators to determine how to correct specific issues like the Employer contribution -- rather than buy into the wholesale reforms pushed by “Too Extreme for Colorado” people who are trying to exploit the natural ups and downs of the stock market by claiming there is a crisis in PERA.

PERA does not need radical reforms. As with any pension system, problems arise. It is prudent to correct specific problems in a reasoned, thoughtful manner. If the kitchen sink is clogged, unclog it – but don’t tear down the house.

* Educators in 12 states (AK, CA, CO, CT, IL, KY, LA, MA, ME, MO, NV, OH) do not pay into Social Security and thus have only their state pension plans as guaranteed retirement income.