Politics

More contribution increases and benefit cuts may be needed to close a $ 4.5 billion hole in the Colorado-Colorado Sun.

This lively news comes on the heels of PERA’s June report on its best fiscal year in decades – a high watermark that state pension officials have warned that it could make the pension’s financial position better on paper than it really is. At that time, the effects of the Coronavirus and the study of the trial were not taken into account.

The last time PERA did a similar study four years ago, it flipped the pension Full crunch, Which ultimately led to the 2018 Retirement Bill, Senate Bill 200. The fact that no one on the PERA board is calling for another legislative bailout this time highlights the financial resilience of past reforms, which were designed to keep the system on the fiscal track even if the economy collapses.

On the other hand, PERA quickly consumes the financial cushion it has created for itself. If the automatic adjustment clause is implemented next year as expected, PERA will have consumed half of the fiscal lifeline that lawmakers put in the repairs. If the system’s finances remain in trouble at that point, further legislation will be required.

Meanwhile, state government finances remain on shaky ground. Lawmakers last year slashed the required $ 225 million for the pension. The rise in coronavirus cases threatens the country’s economic recovery. Colorado voters approved conflicting fiscal ballot measures this fall that could limit the amount of money available to the state to pay off unfunded PERA debt.

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