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Breaking News!

CSPERA has added a NEW periodic bulletin, Breaking News!  Due to postal cost and budget, most issues of Breaking News!  will be sent just to those members for whom CSPERA has an email address, so be sure to make our office aware of your email contact so as to receive ALL of our communications (contact us via 1-800-748-2846, 303-326-1808 or cspera@aps.k12.co.us).  The quarterly Newsletter will certainly still be sent to ALL members via email and hard copy postal mail to those members with no email address.  Click below to read recent editions of Breaking News! 


September 23, 2014

Colorado PERA and the City of Colorado Springs Announce Agreement on Memorial Health System Issue

DENVER–Today, the Colorado PERA Board of Trustees announced an agreement with the City of Colorado Springs to resolve the lawsuit between the City and PERA over the amount due to PERA to ensure that Memorial Health System’s departure from PERA does not negatively impact the 146 employers and 11,954 members in PERA’s Local Government Division Trust Fund. The agreement provides for the City of Colorado Springs to pay PERA $190 million for the liabilities associated with the retirement and health care benefits already earned by 7,380 Memorial employees for the work that they performed before Memorial ceased to be a PERA employer. The employees of Memorial were covered by PERA until Memorial was leased to the University of Colorado Hospital Authority on October 1, 2012.

"This agreement ensures that Memorial’s decision to exit PERA will not negatively impact the other employers and members of the Local Government Division," said Gregory W. Smith, PERA’s Executive Director. "We are happy to reach closure on this issue and believe this is an appropriate result for PERA members, beneficiaries and employers," he concluded.

This agreement restores the funded status of the Local Government Division trust fund which will return the trust to fully funded status approximately eight years sooner than is currently estimated. This payment enhances the long term sustainability and retirement security for the 30,000 local government employees, retirees and their employers who participate in Colorado PERA.

Colorado PERA’s General Counsel Adam L. Franklin added, "This agreement adheres to the law that no PERA employer can leave the financial obligations they owe to their employees and retirees for other PERA employers and members to cover. It helps maintain the integrity of one of Colorado’s best investments."

Background

In 2012, the University of Colorado Hospital Authority assumed management of Memorial Health System which is owned by the City of Colorado Springs. At that time, Memorial Health System unilaterally terminated its affiliation with Colorado PERA to provide retirement benefits and services in lieu of Social Security to more than 7,380 Memorial Health System’s current, former, and retired employees.

In dispute was the employer portion of the contribution owed by Memorial Health System to PERA to cover the cost of providing retirement and health care to its former employees and retirees. In a February 2014 legal proceeding, a District Court judge ruled the City of Colorado Springs was liable under Colorado law to pay PERA for the employer portion of the contribution, and a trial regarding the amount owed was set for October 2014. Now that the parties have an

agreement on the amount the City of Colorado Springs owes, the October 2014 trial date will be vacated pending approval of the agreement by the Judge.

Colorado PERA provides retirement and other benefits to more than 500,000 current and former teachers, state troopers, snowplow drivers, corrections officers, and other public employees who provide valuable service to all of Colorado. PERA is a vital and stable contributor to Colorado’s economy, distributing $3.8 billion in 2013 to retirees who live in Colorado which helps sustain nearly 26,000 jobs. PERA manages $47 billion in defined benefit and defined contribution assets and has a 30-year, 9.5 percent annualized return, making it one of Colorado’s best investments.

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About CSPERA
CSPERA is the statewide organization that represents over 6,000 retired school and state employees in the state of Colorado.  Eligibility for membership in the association includes all retired and active school, state and public employees and their spouses who fulfill their financial obligations, all PERA annuitants, as well as other individuals interested in education and public welfare. The association was organized in 1950 to promote and protect the economic well-being and quality of life for all retired school employees. In 2007, the Board voted to expand membership to include all retired public employees who pay into PERA, including state, DOW, CDOT, corrections, judicial, parks, etc.

 

Our efforts in legislation, health issues, retirement seminars, membership workshops, leadership training, volunteerism and communications are geared toward maintaining a high standard of living for Colorado retirees.

 

The Colorado School and Public Employees Retirement Association was founded in 1950 as a means of addressing the concerns of all retired school employees in Colorado. With expanded membership, our current mission is to promote the personal, social, educational interests and economic security of retired PERA employees.



 


 
Click here to read the new
August 2014 CSPERA Newsletter


Newsletter Archive

2014 June Newsletter

2014 March Newsletter

2013 December Newsletter

2013 September Newsletter

2013 July Newsletter

2013 March Newsletter

2012 December Newsletter

2012 September Newsletter

2012 June Newsletter

2012 March Newsletter

2011 Winter Newsletter

2011 August Newsletter

2011 Summer Newsletter

  2011 Winter/Spring Newsletter

 

 

 

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