It was heartening to pick up this morning’s Denver Post and see the lead story focused on Colorado PERA’s funding woes, with a special focus on the small judicial division, which is irretrievably under water.
We particularly enjoyed this quote from State Treasurer (and ex officio PERA board member) Walker Stapleton:
“State governments have waited for a crisis or catastrophe to ensue before actually doing something about it. And I think that’s the trajectory we’re on. … What we should do is get to a realistic rate of return, and not assume lollipops and rainbows like everybody else.”
Also notable was PERA Executive Director Greg Smith’s promise to conduct a “statewide listening tour in light of the financial situation.” What this means is anybody’s guess, but we shall keep you posted as we learn more.
On a related topic, if public sector pension plan managers believe this new age of higher interest rates will be their salvation, then this story from Reuters might put a dent in their faith.