PERA in a fix, and how to fix it
Thursday, September 15th, 2005By Brian Ochsner baochsner@aol.com
Colorado’s state employee pension plan, PERA, is in big trouble, according to this recent story — and in need of serious repair, as prescribed in this story today.
The analysts’ weather report, in brief, finds that over-optimistic estimates of investment returns, sharp increases in benefits, and a stock market downturn converged to create the “perfect financial storm.” To understand why PERA is almost set up to fail, you need to go back about 25 years. (more…)