DU Strategic Issues Program December 16, 2010 Colorado PERA’s Mission Statement To promote long-term financial security for our membership while maintaining the stability of the fund.   PERA (7372)  1301 Pennsylvania Street, Denver

PERA Membership October 31, 2010 StateSchoolLocal Gov'tJudicialDPSTotal Benefit Recipients32,20449,7284, ,26593,484 Active Members57,517120,12117, ,819209,035 Inactive Members58,76392,53717,133121,472169,917 2

PERA Financial Recap 3

Colorado PERA Without DC plans In billions Beginning Balance January 1, 1985$4.5 Employer Contributions11.8 Member and other contributions11.9 Investment Income35.9 Benefit and refund payments(30.7) Administrative Expenses(0.5) Ending Balance December 31, 2009$32.9

Investment Asset Allocation December 14,

PERA Assets vs. Liabilities Market Value as of December 31 for each year 6

School Division Actuarial Projection December 31, 2009, Valuation Results 7

Senate Bill Shared Sacrifices Modifies annual increase or “COLA” Increases member/employer contribution rates Increases retirement age (Rule of 90 with minimum age 60 for new hires in 2017) Includes funding corridor between 90 percent and 103 percent Actuaries state that projections show full funding achieved under current assumptions 8

PERA’s Economic Engine $3 billion in benefits paid annually 93,000 retirees – 90 percent Colorado residents 2.7 percent of the State’s wage income 20,000 jobs created $2,885 average monthly benefit paid $186 million in State and local tax receipts $315 million in Colorado investments One in 13 Coloradans is a PERA member 9 Source: Pacey Economics Group

Benefit Recipients in Colorado December 31, 2009 –72,998 Moffat 194 Rio Blanco 154 Garfield 552 Mesa 2,926 Delta 702 Montrose 794 San Miguel 46 Dolores 33 Montezuma 457 La Plata 916 San Juan 8 Ouray 70 Routt 244 Jackson 31 Larimer 5,638 Weld 3,877 Logan 540 Sedgwick 69 Phillips 77 Morgan 590 Washington 105 Yuma 220 Adams 4,058 Arapahoe 6,319 Kit Carson 157 Cheyenne 39 Kiowa 39 Prowers 317 Bent 97 Baca 96 Las Animas 457 Lincoln 126 Elbert 276 El Paso 8,884 Pueblo 5,286 Otero 514 Crowley 85 Grand 223 Boulder 4,800 Eagle 202 Pitkin 86 Gunnison 280 Saguache 72 Archuleta 136 Conejos 225 Costilla 91 Huerfano 210 Custer 111 Alamosa 431 Rio Grande 294 Mineral 16 Hinsdale 10 Fremont 1,574 Park 192 Teller 367 Douglas 2,360 Chaffee 577 Lake 111 Summit 170 Clear Creek 175 Gilpin 64 Jefferson 8,961 Broomfield 739 Denver 5,209 10

PERA Recipient Payments as a Percentage of Wage Income Metro Denver: 1.9% Northern Colorado: 4.9% Eastern Colorado: 8.8% Pueblo/ Southern Mountains: 13.5% Southwest Mountain: 4.7% Western Colorado: 4.7% Mountain: 2.1% San Luis Valley: 11.6% Colorado Springs: 3.5% 11 State of Colorado Total: 2.7% Source: Pacey Economics Group, 2008 data

PERA’s DC Plans PlanWho’s EligibleParticipants (As of September 30, 2010) Assets (As of September 30, 2010) 401(k)All PERA members and retirees 74,350$1.78 billion PERA DCState employees hired in 2006 or later Community College employees hired in 2008 or later 3,355$47 million 457State employees and employees in some school districts 18,221$423 million 12