Over the past 20 years, PERA’s debt (unfunded lisbilities – Ed) has soared by $31.6 billion. The actual reasons are different from you might have heard from PERA.

Congrats Colorado citizens, you get to bail these guys out. Secure Futures Colorado | What causes PERA pension debt?

Just so you know…

But the Pension Integrity Project 20-year analysis finds that changes to assumptions, methods, and provisions is actually the smallest factor in PERA’s debt growth.

The largest factor has been underperforming investment returns, accounting for $8.4 billion of PERA’s unfunded liability since 1996. PERA’s assets have consistently returned less than assumed, leading to growth in pension debt.

The second biggest cause of higher pension debt has been a disconnect between PERA’s long-term assumptions about returns and actual year-to-year returns of PERA’s various divisions.This has accounted for $7.7 billion of the increased debt.

The third largest cause has been interest on PERA’s debt, accounting for about $6 billion in new debt.

And the fourth largest cause has been insufficient employer and employee contributions, adding $4.6 billion in debt since 1996.

Glad I can move! Just need to be careful where I move too.