Posted on 10/20/2015 7:38:15 AM PDT by george76
Colorado’s pension plan is on track to be fully funded by 2055 — 14 years after the 2041 target date set by the Colorado Legislature in 2010.
Now, lawmakers will need to decide if they want to stick to the 2041 target date, or agree that it will take longer than they planned for the Colorado Public Employees’ Retirement Association to have the money to pay for the promised benefits to PERA’s 529,000.
The probability of the financial projections, as well as other variables, were discussed today with members of the Colorado Legislative Audit Committee, who heard the results of a mandated “Sensitivity Analysis”– a report meant to play out scenarios based on changes in the variables, including the number of people enrolled in PERA, the amount of contributions, the amount of benefits and the return on investment.
Projections show that although it may take longer to reach being fully funded, there is a 51 percent likelihood of the state division of PERA being 100 percent funded by 2055 if the investment returns are from 7.4 percent to 8.6 percent or more.
...
The unfunded liability will continue to grow now until about 2040, and then will begin to decrease. It will be a result of new members coming into the program and needing fewer benefits.
(Excerpt) Read more at bizjournals.com ...
Are the dominoes falling one by one?
And we need to keep TABOR in place so they don’t create taxes without voter consent.
My sympathy for folks retiring at 50 with 90% salary is pretty limited.....
Doubt that their project average investment return actually happens.
Government Unions are not our friend.
They take on a new full time job, bank the salary, and go fishing at 55.
A projection with all the credibility of global warming forecasts.
The Left operates as it always has, with 5-year plans, 10-year plans and (recently, from the global warmists) 200-year projections, none of which are even loosely tied to reality.
I doubt it, too...
CA....
“Projections show that although it may take longer to reach being fully funded, there is a 51 percent likelihood of the state division of PERA being 100 percent funded by 2055 if the investment returns are from 7.4 percent to 8.6 percent or more”
The growth rate is unattainable that’s why they are in trouble today. Even if they attain those rates, it’s only a 51% chance of being fully funded.
Just hit up another legal joint and feel good.
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