Senate Bill 10-001, the legislative package to put Colorado PERA back on track to being fully funded, was signed by Governor Bill Ritter on February 23, 2010.
Information About 2010 Annual Increase
A major component of Senate Bill 10-001 is the change to the amount of the annual increase to benefits. The legislation provides that the amount of the annual increase applied to benefits in 2010 will be the lesser of 2 percent or the average of the CPI-W for the months in the 2009 calendar year. The CPI-W for this period actually was negative which means benefit recipients will not receive an increase to benefits in 2010. Beginning in 2011, the amount of the annual increase will be 2 percent per year unless PERA has a negative investment year, at which point the annual increase for the three years following that negative return will be the lesser of the average of the monthly CPI-W for the preceding calendar year or 2 percent.
For most benefit recipients, currently the annual increase is paid in March of every year. Under the provisions of SB1, payment of the annual increase will now occur in July.
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