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PERA News Archives (former Latest News items for
2007)
Colorado PERA Retiree
Indicted on Five Felony Counts for Manipulating Salary to
Increase PERA Benefit
The Boulder County District Attorney’s Office
has announced the indictment of Ann Leslie Kane, a retiree of
the Horizons Charter School in Boulder, on five felony counts
related to salary “spiking.” Kane, the former Lead Teacher
(principal) of the school, is alleged to have falsely reported
performance-based payments she received to intentionally
increase, or to “spike,” the salaries upon which her PERA
retirement benefit was calculated.
Kane initially attempted to characterize these
additional payments as experience and longevity pay. When this
action was rejected by PERA under a 1999 Board of Trustees
determination regarding the treatment of experience and
longevity pay, Kane then characterized the payments as
performance payments. Based upon Kane’s written representations,
the performance payments were approved as PERA-includable salary
under a policy adopted by the PERA Board for merit and
performance pay. When PERA later discovered that these payments
were not approved by the charter school board as performance
payments, PERA rescinded its approval and her benefit was
recalculated excluding the payments. Contributions made on these
payments were returned to her employer.
PERA staff reviews the salary history of all
members who apply for retirement benefits before processing a
retirement. In the case of Kane, documentation was submitted
that falsely reported her longevity pay as approved by the
charter school board as merit pay, which is considered salary,
when in fact, the charter school board had not taken such
action. When overpayment of benefits is detected by PERA staff,
PERA reduces the benefit being paid to collect the amount of
overpayment.
Colorado PERA staff has cooperated with the
Boulder County District Attorney’s Office in bringing charges
against Kane for knowingly falsifying her salary to increase her
PERA benefit.
Colorado PERA Changes Default
Investment Option
The Colorado PERA Board of Trustees changed
the default investment option for the PERA 401(k) and DC Plans.
The new default investment for contributions made to the
voluntary 401(k) Plan and mandatory PERA DC Plan after December
23, 2007, is the Dodge & Cox Balanced Fund. The default fund had
been the Northern Trust Short Term Fund.
A recent U.S. Department of Labor (DOL)
regulation determined that short-term funds such as the Northern
Trust Short Term Fund should not be used as default funds. Based
upon the DOL regulation, the Colorado PERA Board of Trustees
voted to change the default at its November meeting.
Participants who had not designated how their
investments in the 401(k) or DC Plan would be invested will have
all future contributions go to the Dodge & Cox Balanced fund.
PERA Cancels December 11 Meetings
Colorado PERA's meetings scheduled for
December 11 in Elizabeth, Greeley, and Golden have been canceled
due to adverse weather conditions.
Elizabeth: The Retirement Process
Meeting and PERACare Information Meeting scheduled for 4:30 p.m.
and 6:30 p.m. at the Elizabeth High School Library, 34427 County
Road 13, Elizabeth, Colorado.
Greeley: The Group Workshop and Benefit
Information Meeting scheduled for 4:30 p.m. and 6:30 p.m. at the
Island Grove Regional Park Events Center, 501 N. 14th Ave., Room
A, Greeley, Colorado.
Golden: The Benefit Information Meeting
and 401(k) Meeting scheduled for 5:00 p.m. and 7:30 p.m. at the
Jefferson County School District Board Room, 1829 Denver West
Dr., Bldg. 27, 5th Floor, Golden, Colorado.
The decision to cancel the meetings was made
in the best interest of the safety of Colorado PERA members and
staff who would have to travel to Elizabeth, Greeley, or Golden.
The National Weather Service is predicting additional daytime
snow accumulations and overnight temperatures below 10 degrees.
We regret any inconvenience that this may
cause PERA members. Every effort will be made to reschedule the
meetings in the near future. Information about rescheduled
meetings will be available from area employers and posted on the
PERA Web site.
For further details or information, contact
Dennis Gatlin, Field Education Manager, Colorado PERA at
303-832-9550 ext. 6188.
PERA Updates Scrutinized Companies List
for Sudan Divestment
PERA has updated the “Scrutinized Companies List” as required under Sudan divestment legislation passed by the
General Assembly and signed into law by Governor Ritter earlier
this year.
The law calls for the Board to create a list
of scrutinized companies every six months and to prohibit
investments in these companies going forward. The establishment
of the list requires PERA to engage the companies on the list to
warn them of potential divestment, and to encourage the
companies to change their activities in Sudan. PERA must also
engage the managers of indirect investments in companies on the
list and request removal of scrutinized companies or ask the
managers to create a similar fund that does not contain the
identified companies.
PERA is contacting its managers in the defined
benefit plan as well as managers of funds within the Colorado
PERA 401(k) Plan regarding the Scrutinized Companies List.
Board of Trustees Election
Slated - Candidates Sought
In May 2008, Colorado PERA will hold an
election for seats on the Board of Trustees for the following
positions:
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One State Division position
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One School Division position
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Candidacy packets will be available January 2,
2008, and may be obtained by writing to:
Colorado PERA
Internal Audit Director
1300 Logan Street
Denver, CO 80203-2386
To be placed on the ballot, a candidate must
fulfill the requirements explained in the candidacy packet.
Requests for candidacy packets should include the name, Social
Security number, PERA Division of membership, mailing address,
daytime telephone number, and signature of the candidate.
Members from the State Division who are interested in being a
candidate should also indicate whether they are a member of the
PERA Defined Benefit Plan or the PERA Defined Contribution Plan.
The Board of Trustees meets at least five
times per year and is responsible for adopting the rules and
policies for the administration of PERA. Elected Board members
serve without pay, but are reimbursed for necessary expenses.
PERA members from the State and School
Divisions will be sent ballots in early May. Returned ballots
must be postmarked by May 31, 2008.
PERA will be holding elections for the seats
currently held by Tammy Long from the State Division and Amy
Nichols from the School Division, whose terms expire June 30,
2008.
Colorado PERA Adds Socially
Responsible Investment Option to its 401(k) and DC Plans
The Colorado PERA Board of Trustees has approved the addition of
a Socially Responsible Investment (SRI) option to the PERA
401(k) Plan and PERA DC Plan. Beginning in January 2008,
participants will be able to invest in the PAX World Balanced
Institutional Fund (Ticker symbol: PAXIX).
PERA selected the PAX World Balanced Institutional Fund to make
available to participants an investment alternative which avoids
investment not only in companies active in Sudan but in a more
comprehensive array of social issues as well. The fund does not
invest in companies significantly involved in the manufacture of
weapons or weapons-related products, the manufacture of tobacco
products, companies that are involved in gambling as a main line
of business, or those that engage in unethical business
practices.
PERA's action was, in part, responsive to the legislation policy
established in House Bill, 07-1184 and in part due to plan
participant requests.
Since the PAX World Balanced Institutional Fund is a balanced
fund, participants may elect this option as their only
investment fund and be diversified in their 401(k) and DC Plan
portfolio.
“We are proud to offer this choice for our members who are
interested in directing their investment dollars to impact
social issues when saving for retirement,” said Meredith
Williams, PERA’s executive director.
Colorado PERA Reaches $15.5
Million Settlement with Qwest
Colorado PERA announced today that it reached a $15.5 million settlement with
Qwest, the Denver-based telecommunications company. A class
action settlement with Qwest was announced on January 5, 2006,
but citing excessive attorney fees and an inadequate recovery,
PERA elected to forego the class recovery and pursue its own
action against Qwest. PERA General Counsel Greg Smith stated,
“the recovery in the class action amounted to less than one cent
on the dollar of damages caused by Qwest’s massive financial
fraud. The strength of our case warranted a more substantial
recovery on behalf of our members and beneficiaries.” Retirement
systems from the states of Alaska, Florida, New York, and Texas
joined with Colorado PERA in initiating this successful separate
proceeding.
By participating in the separate proceeding,
PERA recovered an amount 38 times greater than it would have if
it had remained a part of the class action lawsuit. PERA’s
approximate recovery as a part of the class would have been only
$400,000.
The law firm of Entwistle & Cappucci LLP of
New York, which was used by the pension systems in the separate
proceeding, charged a fee of only 5 percent of the recovery
while the legal counsel to the class ultimately had their
requested fee of 24 percent reduced by the Court to 15 percent
of the class recovery.
Colorado PERA has been on the forefront in
shareholder rights and corporate governance issues and actively
participates in securities litigation brought against companies
that have defrauded their investors. In 2006, PERA was the lead
plaintiff in the Royal Ahold securities class action and
attained a settlement of $1.1 billion, which was at the time,
the largest international securities class action recovery in
history.
Colorado PERA Trustee and State Treasurer Cary
Kennedy stated, “Colorado’s public employees should take comfort
in the fact that PERA continues to be vigilant in protecting
their retirement and securing their financial future.” She
further noted that “PERA has been a leader in actions that
protect the retirement investments made on behalf of the state’s
public employees.”
Mark Anderson, Chair of the PERA Board of
Trustees, said “the PERA Board and staff take fulfilling their
fiduciary responsibility to PERA’s members and retirees very
seriously; being involved in cases such as the separate
proceeding against Qwest demonstrates our ongoing commitment to
protecting the benefits of our current and future retirees.”
Colorado PERA Board Adopts
Statement of Funding Policy
At the November 16, 2007, Board of Trustees
meeting the PERA Board adopted the following Statement of
Funding Policy.
Colorado PERA Outperforms Peers in
Customer Service and Cost Containment
PERA outperformed similar pension agencies in
customer service and cost containment, according to an analysis
by CEM Benchmarking, a global company that analyzes pension fund
performance.
The analysis, which was presented to the PERA
Board of Trustees on November 15, compared PERA’s performance in
customer service areas such as telephone service, Web site
capabilities, and initiation of pension payments at retirement.
PERA scored well in each of these areas.
PERA accomplished this improved performance
while containing costs, which decreased from a per-member cost
of $65 in 2005 to $62 in 2006. This per-member cost was well
below the median pension plan cost of $86 per member.
The analysis noted that “[PERA] scored higher
than the peer average in key member services such as a higher
percentage of good call outcomes, lower call wait time,
excellent online capability, and 100 percent of pensions
incepted without a cash flow interruption to the retiring
member.”
Customer service performance and costs were
compared to results from other leading pension systems around
the world and broken into results by peer group. Colorado PERA
results were compared directly to 16 other U.S. public pension
systems of similar size.
PERA saw its customer service improve from
2005 to 2006, while on average, most pension funds saw their
customer service capabilities remain static in that timeframe.
CEM also identified the Information Technology
capabilities of PERA as the second highest among 63 leading
pension systems in the world.
“We are committed to serving the needs of our
members and retirees,” said Meredith Williams, executive
director of Colorado PERA. “We’re pleased that the CEM analysis
confirmed that our customer service is outstanding. We
constantly strive to improve the experiences of our members and
retirees and this lets us know that we are on the right track.”
“Our ability to meet the needs of our members
and retirees, while controlling costs, further demonstrates our
commitment to protecting the promise of a secure retirement,”
Williams added. “We have a strong customer service process
supported by state-of-the-art technology in place, but we are
always mindful of the need to be fiscally prudent as a
retirement association so that we can put our members’
contributions to work and continue to build retirement security
over time.”
Colorado PERA Responds to
Global Custodian and Securities Lending RFP Questions
PERA announced today that responses to written
questions regarding the RFP for global custodian and securities
lending services will be e-mailed to the RFP respondents.
PERA Updates Scrutinized
Companies List for Sudan Divestment
PERA has updated the “Scrutinized Companies List” as required under Sudan divestment legislation passed by the
General Assembly and signed into law by Governor Ritter earlier
this year.
The law calls for the Board to create a list
of scrutinized companies every six months and to prohibit
investments in these companies going forward. The establishment
of the list requires PERA to engage the companies on the list to
warn them of potential divestment, and to encourage the
companies to change their activities in Sudan. PERA must also
engage the managers of indirect investments in companies on the
list and request removal of scrutinized companies or ask the
managers to create a similar fund that does not contain the
identified companies.
PERA is contacting its managers in the defined
benefit plan as well as managers of funds within the Colorado
PERA 401(k) Plan regarding the Scrutinized Companies List.
Colorado PERA Issues Global
Custodian and Securities Lending RFP
Colorado PERA has issued an RFP for global
custodian and securities lending services. Those
interested in submitting an RFP should refer to the information
below:
Request For Proposals
Word
version of the Request For Proposals
Appendix A: Internal and External Manager List
Appendix B: Statement of Investment Policy
Appendix C: 401(k) Voluntary Investment Program Statement of
Investment Policy
Appendix D: Letter of Intent Form
Appendix E: Response Authorization
Appendix F: Performance Indicies by Portfolio
Appendix G: Securities Lending Guidelines
2006 Comprehensive Annual Financial Report
PERA Law
PERA Rules
Proposed Rule Changes
CitiStreet to Conduct 401(k)/DC Plans
Survey
CitiStreet, the service provider for Colorado
PERA's 401(k) and DC Plans, will be conducting a survey to gauge
participant satisfaction with the Plans. Beginning in early
October, you may be contacted by TNS Intersearch, an independent
research firm, hired to collect and measure feedback regarding
your satisfaction with the services provided by CitiStreet. The
phone interviews will be brief and calls will be directed to
your home phone number, occurring in the evening or on Saturday.
CitiStreet values your feedback and encourages you to respond to
this confidential and important survey.
If you have any questions about the survey or
your 401(k) or DC accounts, please call 1-800-759-7372 and
select the 401(k)/DC Plan option.
Upcoming Hearing on Colorado PERA
Rules
Each year, Colorado PERA has the opportunity
to update the administrative regulations that guide how PERA law
is applied in practice. The process for updating the Rules
provides for public comment on the proposed changes. The Public
Hearing on PERA’s proposed changes to its Rules will take place
at 11:00 a.m. on October 19, 2007, during the monthly PERA Board
of Trustees Meeting held at 1300 Logan Street in Denver. If you
would like to comment on these proposed Rules changes, please
plan on attending the hearing on October 19. You can review
information on attending Board meetings on the Board of Trustee meeting page.
Summary of Proposed Rules
Colorado PERA Shareholder
Presentation
If you were unable to attend one of the
Shareholder meetings scheduled in your area, a copy of the
presentation is below.
2007 Shareholder Presentation
Colorado PERA Issues Joint News
Release with Attorney General's Office
The Colorado Attorney General’s Office
announced today that the Statewide Grand Jury has indicted
Gordon Robert Moore (DOB 04/11/1977) of Longmont for his role in
soliciting improper distributions from the Colorado PERA 401(k)
Plan to AXA Advisors, LLC.
John Suthers announced that Mr. Moore, a
former employee of AXA Advisors, was indicted on 45 counts that
include Theft, Forgery, and Computer Crimes.
The Special Prosecutions Unit of the Attorney
General’s Office sought the indictment against Mr. Moore as a
result of the discovery by Colorado PERA officials that improper
distributions from the PERA 401(k) Plan had occurred. The
investigation was a joint effort between Colorado PERA staff and
investigators with the AG’s Office. PERA’s General Counsel
Gregory Smith said, “Colorado PERA works to ensure the integrity
of all its programs, and this is an effort that demonstrates
PERA’s commitment to providing safe and secure retirements to
our members.”
The Internal Revenue Code requires that a
“distributable event” occur before participants in a 401(k) plan
may rollover their accounts to another plan or receive their
account as a refund. A distributable event requires, among other
things, that an employee be no longer employed before a roll
over or refund can happen. In this case, Mr. Moore is alleged to
have told PERA 401(k) Plan participants that they could roll
over their accounts to AXA Advisors even though the employees
were still working. The employer was not aware that PERA 401(k)
accounts were being rolled over and distribution forms are
required to be signed by the employer to verify that the
employee is no longer working and qualifies for a distribution.
Mr. Moore is alleged to have falsified the employer’s
verification of termination of employment on the rollover form.
View the indictment.
Colorado PERA Board of
Trustees' Statement on Divestment
We start from the premise that there are
occurrences of violence in today’s world that are and should be
intolerable in any civilized community. In addition, there are
causes being pursued by interest groups that could greatly
affect such critical issues as our environment, public health,
the working conditions of persons throughout the world and even
the global threat of terrorism. As individual Americans we all
enjoy the political and philosophical freedom to speak out
against the atrocities and join in those causes which align with
our personal beliefs. As an organization, however, PERA serves
the singular purpose of operating the retirement system serving
more than 400,000 current and former public servants. PERA does
not have the authority to determine social policy, foreign
policy, economic policy, or any other policy beyond the
operation of the retirement system.
It is commendable that the Colorado General
Assembly would consider adding its voice to those striving to
address complex issues in today’s world. PERA cannot and does
not quarrel with that body’s laudable goals. However, in
considering issues of divestment, the General Assembly must also
be cognizant of the following:
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First, in meeting its fiduciary
responsibilities, PERA seeks to maximize long term
risk-adjusted investment returns while incorporating the
fund's liability characteristics. A central component in
managing investment risk is diversification. Security
prices usually reflect and are dependent upon many
factors, including economic, political, environmental,
industry and company specific risks. PERA does not make
investment decisions based on any one singular factor.
Consideration, when applicable, is given to business
presence in sensitive geopolitical areas, environmental
compliance risks, sanction risks, and other economic,
financial and company specific risks. Every day PERA and
its investment managers prudently assume investment risk
in seeking to maximize long term investment returns
while incorporating the fund’s liability requirements,
in an ongoing effort to secure the retirement benefits
promised to public servants throughout Colorado.
Divestment, by its nature, adversely affects
diversification.
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Second, ordering divestment comes with
significant associated costs. Those costs include the
cost to search for and certify those entities that may
have the characteristics or affiliations targeted by a
divestment effort; the transaction costs that will be
incurred in selling or disposing of securities; the cost
of researching and conducting due diligence for any
replacement securities or funds; the lost opportunity
cost; the cost of reduced investment return; and the
cost of creating investment strategies that exclude such
entities.
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Third, the money administered by PERA,
whether received through investment returns, employee
contributions, or employer contributions immediately
becomes part of a trust fund. This means that money
transferred to PERA is no longer “public money” or
“state money.” Such money is paid as compensation
pursuant to employment contracts and agreements between
employers and employees and is considered earned at the
time of transfer, just as employees who invest in
defined contribution retirement plans retain ownership
over the funds they have invested. Thus any divestment
directive affects money that is not the property of the
state or any other public employer, and in the case of
the employee’s contributions and investment returns,
never was.
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Fourth, the trust fund must be
administered by the PERA trustees, who have a fiduciary
duty to invest and expend those funds for the sole and
exclusive benefit of the members and beneficiaries.
Trustees cannot allow financial decisions that would
undermine the funded status of the plan. In order to
protect and preserve members’ assets, state dollars
should be used to reimburse PERA for the initial and
ongoing costs and potential losses of any mandated
divestment effort. Such an approach would spread the
cost to all Colorado taxpayers, and would add the voice
of the entire state’s citizenry to the call for action.
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Fifth, the activities of a company
that trigger a divestment mandate may constitute a very
small fraction of the company’s total global operations.
Frequently the companies in question are multinational
with primary headquarters in friendly foreign nations
and significant operations in the United States, and
even here in Colorado. Divestment mandates are designed
to impose economic hardship on the subject companies but
there is no assurance where the impact of that pressure
will be felt. Widespread divestment could (and is
intended to) impair the economic resources required for
a company to operate, potentially resulting in an array
of unintended consequences.
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The variety of issues facing our world today
are not easily separated in to gradations of severity or
importance. Consensus as to the priority of these types of
issues and the proper recourse are difficult to achieve. As a
result, once a divestment mandate is imposed to address one
issue, the resulting “slippery slope” makes differentiation
among the remaining issues contentious and divisive.
In a rare display of virtual unanimity on
these types of issues, the General Assembly during the 2007
session adopted HB 07-1184 which imposes targeted divestment
from companies with active business operations in the Sudan. The
rationale for this step, unique in PERA’s 76-year history, was
the first recognized campaign of genocide in the new millennium.
The Governor, the General Assembly and the PERA Board of
Trustees were in agreement that the standard for triggering
divestment is genocide. The passage of this landmark legislation
in Colorado has sent a strong message to the international
business community and the Sudanese government. Adoption of
additional divestment mandates which do not meet the genocide
standard adopted in HB 07-1184 will most certainly detract from
the message to Sudan and the offending companies.
For the above reasons, PERA will generally
oppose any mandated divestment effort that does not meet the
genocide criteria and that fails to account for these stated
concerns.
Colorado PERA Hires New Director of
Fixed Income
Colorado PERA named Maruti Moré as its
Director of Fixed Income investments. He began his new
responsibilities in July.
Most recently, Moré was the senior vice
president and director of fixed income for institutional clients
at Smith Graham & Company Investment Advisors, LP in Houston. He
has more than 30 years of experience in areas including
investment research and management in fixed income, equities,
and derivatives.
Moré holds two master’s degrees, one in
finance from Oklahoma City University and one in economics from
the University of Bombay in India. He also earned a bachelor’s
degree in law from the University of Bombay. Moré is a Chartered
Financial Analyst (CFA) and a member of the CFA Institute.
“I am looking forward to serving the
membership by leading a well-established fixed income team to
provide superior investment performance,” said Moré.
Moré replaces Bill Koski who became PERA’s
Senior Opportunities Manager earlier this year.
PERA Board Adopts Scrutinized Companies List
for Sudan Divestment
At the July 20, 2007, Board of Trustees
meeting the PERA Board adopted a “Scrutinized Companies List” as required under Sudan
divestment legislation passed by the General Assembly and signed
into law by Governor Ritter earlier this year. The list fulfills
a mandate in Colorado law related to Sudan divestment by certain
Colorado public pension funds.
The law calls for the Board to create a list
of scrutinized companies every six months and to prohibit
investments in these companies going forward. The establishment
of the list requires PERA to engage the companies on the list to
warn them of potential divestment, and to encourage the
companies to change their activities in Sudan. PERA must also
engage the managers of indirect investments in companies on the
list and request removal of scrutinized companies or ask the
managers to create a similar fund that does not contain the
identified companies.
PERA is contacting its managers in the defined
benefit plan as well as managers of funds within the Colorado
PERA 401(k) Plan regarding the Scrutinized Companies List.
Colorado PERA is required to file a publicly
available report with the General Assembly and the Attorney
General by August 19.
Current estimates of Colorado PERA’s
investments in companies on the list are not available at this
time.
Upcoming Shareholder
Meetings
As a PERA member or retiree, you are also a
“shareholder” of PERA, which means you need to know about the
state of your retirement plan. To help you learn and understand
more about your retirement plan, PERA will travel throughout
Colorado later this summer to inform members about some of the
issues facing PERA.
Shareholder Meetings Schedule
Colorado PERA Announces 2006
Investment Results
Strong investment returns over the past
several years have resulted in positive gains in Colorado Public
Employees’ Retirement Association's (PERA) funded status. PERA
posted a 15.7 percent return for 2006, reaching $38.8 billion in
assets on December 31, 2006.
Five of the fund’s six asset categories posted
double-digit returns for the one-year period ending December 31,
2006: U.S. equity (up 14.8 percent), international equity (up
27.3 percent), real estate (up 24.1 percent), alternative
investments (up 24.3 percent), fixed income (up 4.9 percent),
and timber (up 15.3 percent). Returns for 3-, 5-, and 10-year
periods were 13.2 percent, 9.6 percent, and 9.2 percent,
respectively, outpacing the actuarial assumed rate of return of
8.5 percent.
PERA’s overall funded status at the end of
2006 was 74 percent, up a percentage from the previous year’s
funded ratio of 73 percent.
PERA’s actuaries state, “the current funding
is sufficient to pay benefit payments through the projected
actuarial period of 30 years. Recent contribution changes under
SB 06-235 are expected to stabilize the funding levels of the
Local Government and Judicial Division trust funds by attaining
a 30-year amortization period…The recent contribution changes
combined with the benefit changes of SB 06-235 are expected to
stabilize the State and School Division trust funds by attaining
a 30-year amortization within the projected actuarial period.”
Meredith Williams, PERA’s executive director,
said, “These returns and actuarial results demonstrate that PERA
is indeed headed in the right direction and on the path to being
fully funded. The efforts of many that resulted in the passage
of legislation in 2006 will come to fruition over the next
several years.”
Colorado PERA Announces Board
Election Results
Colorado PERA retirees re-elected Sara Alt to
the Retiree Division seat of the 15-member Board of Trustees.
She will serve a four-year term.
One seat was uncontested and the Board
approved not holding an election for that seat. Jim Casebolt was
re-appointed to a four-year term in the Judicial Division.
Additionally, the terms of Trustees F.
Elizabeth Friot from the State Division (Higher Education),
Patricia Kelly from the Local Government Division, and Marcus
Pennell from the School Division will expire on June 30 and
their seats will be replaced with three trustees appointed by
the Governor and confirmed by the Senate.
In the election, a total of 10,024 votes were
cast. Alt received 5,593 or 55.8 percent of the votes cast.
Other candidates included Tom Hadden, who received 2,070 or 20.7
percent of the votes, Luis D. Rovira, who received 1,612 votes
or 16.1 percent of the votes, and Harlen Ray Ainscough, who
received 749 or 7.5 percent of the votes.
Alt has been a Board member since 2003.
Previously, Alt worked for the State of Colorado for more than
22 years, including 14 years as a legislative liaison for the
Department of Personnel and Administration and 12 years as
Stateline editor.
“I am grateful for this vote of confidence
from retired public employees. These are people who have devoted
their lives to serving the citizens of Colorado, and they
deserve a safe and secure retirement. I have done my best as a
fiduciary for all Colorado PERA members and retirees for the
last four years, and I appreciate the opportunity to continue.”
Casebolt is a judge with the Colorado Court of
Appeals. He has served on the Board since 1999 and previously
held both the Chair and Vice-Chair positions.
By state law, the management of the Public
Employees’ Retirement Association is vested in the Board of
Trustees while the General Assembly sets contribution rates and
benefit levels. The Board is composed of 15 Trustees, including
the State Treasurer who serves as a voting ex-officio member of
the Board.
The Board structure beginning July 1, 2007,
includes 11 Trustees elected by mail ballot by their respective
Division members to serve on the Board for four-year terms. Four
members are elected from the School Division, three from the
State Division, one from the Local Government Division, and one
from the Judicial Division. Two members are elected by retirees.
The State Treasurer serves in an ex-officio capacity.
Election Ballots Mailed
Ballots for the 2007 Colorado PERA Board of
Trustees election will be mailed on May 1, 2007, to retirees
from the State, Local Government, and Judicial Divisions.
If you lose or do not receive a ballot, the
deadline for requesting a duplicate ballot is May 24, 2007. Such
requests must be in writing and directed to the Colorado PERA
Internal Auditor at 1300 Logan Street, Denver, CO 80203. Written
requests must include name, address, Social Security number, and
reason for the request.
Ballots must be postmarked by May 31, 2007.
April 24 Meetings Canceled
in Woodland Park
Colorado PERA's meetings scheduled for April 24 in Woodland
Park have been canceled due to adverse weather conditions and
the closure of Woodland Park School District RE-2.
The Colorado PERA Benefit Information Meeting and 401(k)
Meeting were scheduled for 5 p.m. and 7:30 p.m. at the Eagle
Fire Lodge and Conference Center, 777 East US Highway 24,
Woodland Park, Colorado.
The decision to cancel the meetings was made in the best
interest of the safety of Colorado PERA members and staff who
would have to travel to Woodland Park. The National Weather
Service is predicting daytime snow accumulations up to 12 inches
and an additional 5 inches are possible tonight.
We regret any inconvenience that this may cause Colorado
PERA members. Every effort will be made to reschedule the
meetings in the near future. Information about rescheduled
meetings will be available from area Colorado PERA employers and
posted on the Colorado PERA Web site.
For further details or information, please feel free to
contact Dennis Gatlin, Field Education Manager, Colorado PERA at 303-832-9550 ext. 6188.
Colorado
PERA Hires New Director of Alternative Investments
Colorado PERA named Tim Moore as its Director
of Alternative Investments. He began his new responsibilities in
February.
Moore has been a PERA staff member since 1996
and has worked in Alternative Investments since 1999, most
recently as a Senior Portfolio Manager. Prior to coming to PERA,
he worked at Kidder Peabody & Co. and the Janus Funds.
Moore earned his bachelor’s degree in
economics from Stanford University in 1993 and a master’s degree
in business administration from the University of Colorado in
2000. He is a member of the Institutional Limited Partners
Association (ILPA).
“After 10 years at Colorado PERA, I am excited
to accept the Director of Alternative Investments position,”
said Moore. “This is a great organization with a very talented
investment team. I look forward to further enhancing the
Alternative Investments portfolio and serving the membership in
my new capacity.”
Moore replaces Christopher Reilly who left
PERA in late 2006.
Colorado PERA
Recognized for Commitment to Accurate Financial Reporting for
21st Consecutive Year
For the 21st straight year, the Colorado
Public Employees’ Retirement Association (Colorado PERA) has
been awarded the Certificate of Achievement for Excellence in
Financial Reporting by the Government Finance Officers
Association of the United States and Canada (GFOA).
The Certificate of Achievement is the highest
form of recognition in the area of public employee retirement
system accounting and financial reporting. It recognizes PERA’s
2005 Comprehensive Annual Financial Report (CAFR) for meeting
the high standards of the program including demonstrating a
constructive “spirit of full disclosure” to clearly communicate
its financial story and motivate potential users and user groups
to read the CAFR.
PERA also received the GFOA Award for
Outstanding Achievement in Popular Annual Financial Reporting
for its 2005 Popular Annual Financial Report (PAFR), a summary
of the CAFR that is mailed to members and benefit recipients. To
receive the award for the PAFR, the content had to meet program
standards of creativity, presentation, understandability, and
reader appeal.
Meredith Williams, Colorado PERA’s executive
director who accepted the awards, said “We are proud that the GFOA continues to recognize PERA’s unwavering commitment to
provide a clear, accurate, and easy to understand look at our
financial situation.”
The GFOA is a nonprofit professional
association serving approximately 16,000 government finance
professionals with offices in Chicago and Washington, D.C.
Colorado PERA Board of Trustees Endorse Sudan Divestment
Legislation
The Board of the Colorado Public Employees’
Retirement Association (Colorado PERA) have unanimously endorsed
legislation introduced as House Bill 07-1184 regarding
divestment of companies financially involved with the government
of Sudan.
The PERA Trustees condemned the genocide
occurring in Sudan at their meeting in January, and have agreed
to support Sudan divestment legislation. In a statement from the
January meeting, the Board strongly condemned the acts and
omissions of the government of Sudan, the Janjaweed, and the
various militia-type groups that have perpetrated and continue
to perpetrate genocide upon the population of that country. The
Colorado PERA Board joined in voicing universal condemnation of
these horrific acts and the Board supported the Colorado General
Assembly’s laudable goal of prohibiting investment in Sudan.
Colorado PERA estimates that approximately
$137 million invested in companies covered by the legislation
would be impacted.
Colorado PERA worked successfully with House
Speaker Andrew Romanoff to accomplish the goal of divestment
while protecting the security of PERA retirements. Colorado PERA
staff will testify in favor of the bill before the House Finance
Committee later this week. PERA staff will review plans for
implementation of the provisions of the bill and ask legislators
to consider reimbursing Colorado PERA members and benefit
recipients for the costs associated with divestment activities.
“We are anxious to get to work implementing
this legislation, and on behalf of our membership, Colorado PERA
is proud to add our voice to this cause,” said Meredith
Williams, PERA’s executive director.
Colorado
PERA Mails 1099-Rs
Colorado PERA mailed 1099-Rs to benefit
recipients and to those individuals who withdrew their PERA
accounts in 2006 on January 26, 2007. For more information,
please refer to the 1099-R overview to help you better understand the
information on your 1099-R.
Colorado
PERA Board of Trustees' Statement on Sudan Investments
We start from the premise that the occurrences
documented by the United States government and various
humanitarian groups are and should be intolerable in any
civilized community. We strongly condemn the acts and omissions
of the Government of Sudan, the Janjaweed, and the various other
militia–type groups that have perpetrated and continue to
perpetrate genocide upon the population of that country. No
right-thinking individual or organization could countenance or
approve such practices, and Colorado PERA joins in voicing
universal condemnation thereof.
It is commendable that the Colorado General
Assembly would consider adding its voice to those striving to
expose and attempting to remedy the situation in the Sudan. PERA
cannot and does not quarrel with that body’s laudable
goal. However, in considering the issue of divestment, the
General Assembly must also be cognizant of the following:
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First, the money that is transferred
to PERA immediately becomes part of a trust fund. This
means that money transferred to PERA is no longer
“public money.” Such money is transferred pursuant to
employment contracts and agreements between employers
and employees and is considered earned at the time of
transfer just as employees who invest in defined
contribution retirement plans retain ownership over the
funds they have invested. PERA receives employer
contributions from 400 employers, including school
districts, state government, local government entities,
special districts, and others. Thus any divestment
directive affects money that is not the property of the
state or any other employer, and in the case of the
employee’s contribution, never was.
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Second, ordering divestment comes with
associated costs. Those costs include the cost to search
for and certify those entities that may have contacts or
ties with the Sudanese government; the transaction costs
that will be incurred in selling or disposing of
securities; the cost of researching and conducting due
diligence for any replacement securities or funds; the
lost opportunity cost; the cost of reduced investment
return; and the cost of creating investment strategies
that exclude such entities. PERA estimates the initial
costs to be in seven figures with ongoing costs
approaching seven figures on an annual basis.
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Third, the trust fund money must be
administered by the PERA trustees who have a fiduciary
duty to the members and beneficiaries of the fund to
invest and expend those funds for the sole and exclusive
benefit of members and beneficiaries. The fiduciary
responsibility of the trustee is placed at risk if
trustees allow for financial decisions that could affect
the actuarial solvency of the trust fund. In order to
protect and preserve members’ assets, legislators should
consider the efficiency of indemnifying PERA for the
initial and ongoing costs and potential losses of any
mandated divestment effort with State dollars. Such an
approach would spread the cost to all Colorado
taxpayers, and would add the voice of the entire state’s
citizenry to the call for action. Moreover, the
contribution would employ public funds, not simply those
of public employees.
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Fourth, a divestment directive
mandates that an investor “vote with his feet” by
exiting the investment. Such a sale or transfer will
terminate any voice that the investor had to exercise
its proxy to change company operations or policies,
resulting in the loss of the voice for change. |
The Board
directs staff to communicate these concerns to the General
Assembly and to continue to work with supporters of the
divestment legislation to seek a cost effective approach to help
end the suffering in Darfur.
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