By Brian Eason | The Colorado Sun
Colorado’s public employee pension system generated strong investment returns in 2023 — but its finances still deteriorated for the second time in five years as it struggles to bounce back from a miserable 2022.
The Colorado Public Employees’ Retirement Association’s investments grew by 13.4% in 2023, according to its annual financial report released Friday. That matches its 13.4% loss from a year earlier.
But because the pension has to average 7.25% returns a year to meet its funding targets, the net result was a step backward for the chronically underfunded pension.
PERA’s unfunded debt to members grew by $1.2 billion to $27.5 billion, the report shows. Its funding ratio — the amount of money it has in the bank relative to the benefits it owes current and future retirees — fell slightly to 69.6% from 69.9%. Under state law, its target is to be 100% funded by 2038.