Welcome

Friends of PERA welcomes your involvement in our effort to ensure that Colorado PERA continues to be a strong, well-managed defined benefit plan for public employees. Sign up for e-mails here.

Why Do We Need FOP?

FOP works to ensure that PERA is:

FOP Passes Resolution Against Iran Divestment

More...

General FOP Membership Meeting

Wednesday, Jan. 16, 2008
10 a.m. - 12:00 pm
Columbine Rm.
CEA Building
Corner of Grant St. &
Colfax Ave.

All are invited.

Good time to meet with your legislators
after the meeting; make arrangements
ahead of time.

Media? Contact
Friends of PERA
spokespersons:
Sandy Green
303-424-7193 or
Don Schaefer
303-987-0523

Site Updated:

Visits since 11/21/07:

Links

Colorado General Assembly Web site

Colorado PERA Legislative Action Center

Colorado PERA

FoP Enrollment Form

In the News

Social Security Issues

On Sept. 24, 2007, the U.S. Treasury Dept released the first in a series of issue briefs that discuss Social Security reform. (more) The first paper covers the nature of the problem and aspects of reform that the Department believes have broad support. “By focusing first on areas of agreement, I hope these issue briefs will narrow the divide and spur further discussions of reform,” Paulson said.

Despite Paulson’s efforts to find common ground, senior administration officials continued to reject any form of benefit cut or tax increase to deal with Social Security’s looming deficits, and still advocated the addition of personal investment accounts to the program—something that Republicans never even brought to a vote during their reign as the majority party in Congress. The current Democratic majority has dismissed individual accounts as a nonstarter.

Observers say Social Security reform, long reported to be dead, is still dead. They say don’t expect to see a pulse until after the 2008 elections.

more...

 

Highlands Ranch Herald - January 10, 2008: Local legislators propose divestment

FoP Concerns


Latest News - Jan. 23, 2008: The approval of an investment policy regarding Iran by the PERA Board made the news today after the Governor announced that a compromise had been reached. However, if you read the stories...you will see different views of what was said. In one, it is fully clear that the Governor expects the PERA Board to divest. The Governor's comments are bothersome. We need to be watchful; our work is over.

Grand Junction Sentinel: Jan. 23, 2008 - PERA checks investments for Iran ties

Grand Junction Sentinel: Jan. 21, 2008 - Retirees' fund to pull assets from Iran

Colorado Daily, Jan. 23, 2008: Iran Divestment Too

Politics West, Jan. 23, 2008: Governor Announces Divestment Plan

Denver Business Journal: Jan. 22, 2008 - Ritter Supports PERA's Iran Ban

All American Patriots.com eb site: Jan. 23, 2008 - Colorado Governor Ritter Lauds Pera Iran Divestment Policy

Rocky Mountain News: Jan. 23, 2008 - PERA Compromines on Iran Divest Plan

Colorado Springs Gazette: Jan. 23, 2008 - State Fund Backs Iran Divestment

Rocky Mountain News: Jan. 22, 2008 - PERA Adopts Policy on Iran Divestment

cbs4.com Jan. 23, 2008 - Colorado state retirement fund checks investments for Iranian ties

PERA Board of Trestees Statement & Iran-Related Investment Policy - Adopted January 18, 2008

Divestment from Companies Operating in Iran

Status: Several legislators via newspaper articles and e-mail reports have indicated they will introduce a bill in the 2008 General Assembly to require PERA to sell its investments in companies that do business in Iran. The exact wording of the bill has not been released as of Jan. 8, 2008.

FOP opposes this proposal.

  1. Divestment is ineffective. Selling shares from PERA to another investor does not make any impact on the companies involved or on the Iranian leadership. more...
  2. The State Legislature in 2007 set genocide as the standard for divestment. The current divestment initiative does not meet this standard. Iran is no Sudan! If this divestment passes, what country will be next? It is a slippery slope! We will see proposals to divest from other countries or for other “social” causes. more...
  3. Some of the companies that operate in Iran also have operations in Colorado including Shell and Total. These two companies operate in 130 countries; their operations in Iran are but a very small portion of their total investments. By excluding these as companies in which PERA may invest, the Legislators are limiting PERA’s rate of return in a very beneficial market. 
  4. The PERA trust funds are not public funds or state property. Rather, they belong to the PERA membership. The PERA Trustees are the fiduciaries of the fund and are responsible by state law for investing solely in the interests of the PERA membership. The Legislature may limit investment risk by asset categories but should not make specific investment decisions. more...
  5. By forcing PERA to divest, the Legislature makes a political statement using only public employees. No other Colorado citizen is impacted. It is unfair and discriminatory to only make public employees pay the price of the Legislature’s action. more...
  6. Divestment interferes in the federal government’s ability to conduct foreign policy. The National Foreign Trade Council opposes divestment because it hurts relationships with countries in which these companies are domiciled, e.g. France, Britain, Netherlands, etc. The Supreme Court has ruled that it is unconstitutional because it interferes in foreign policy. The State Department and the President have stated similar concerns even though the President signed the Sudan Divestment bill recently. 
    7. Divestment is costly – research, transaction expenses, and the lost potential income gain will result in a negative financial impact on the pension fund.

PERA Board Statement - posted on www.copera.org August 24, 2007

News Articles Regarding PERA Divestment

Rocky Mtn Chronicle: Jan. 10, 2008 - Legislator wrestle with Iran divestment

Rocky Mtn News: Dec. 12, 2007 - Legislators want pension fund to cut ties to Iran

Rocky Mtn News: Aug. 8, 2007 - A gray area for divestiture

Rocky Mtn News: Sept. 9, 2007 - Don't let divestment bills become a habit

Denver Post Editorial: Sept. 8, 2007 - Pass on PC Pitch for PERA

Other News Articles

AP Texas News: Jan. 9, 2008- (Texas) Pension funds name Sudan-tied holdings
Jewish Daily Forward: Dec. 4, 2007 - Netanyahu Meets With Clinton, Thompson on Iran Divestment
Austin American-Statesman: Nov. 28, 2007 - TX Gov's Iran Divest Push
Pension & Investments: Aug. 6, 2007 - Divestment is the wrong answer
Newsweek: Activists have brought issues like Darfur into living rooms.
Pensions & Investments: Sept. 19, 2007 - Florida Iran divestment begins
Harvard Crimson, Oct. 5, 2007: No State Funds in Myanmar
Houston Chronicle: July 18,2007 – Texas Gov wants Pension Funds out of Iran

What's Happening In Other States

US district judge voids Illinois law barring Sudan investments
State by State Update on Iran Divestment Legislation

What has the federal government done about divestment?

» More on Divestment



Other Information Not Associated with Divestment

PERA Rate of Return

15.7% in 2006. More...

Getting it Right

The National Association of State Retirement Administrators and the National Council on Teacher Retirement have teamed up to conduct an educational campaign called “Getting it Right” and to form the National Institute for Retirement Security. The campaign, designed to tell the success of governmental defined benefit plans, is primarily geared towards Congress but may be adapted to educate state and local officeholders and plan participants. Download the "Getting it Right" document (PDF).

Chamber of Commerce reports retirement cost of 14.25%

A Chamber Employee Benefits Study shows that in 2005 businesses contributed 14.25 percent of pay towards retirement benefits (including profit sharing, stock bonus, ESOP) for their employees. Compare that to the contribution the state and school districts made to PERA's pension trust fund of 9.13 percent of pay. CC employers contributed 56% more to retirement for its employees. (The CC figures excludes retiree health care so the 1.02% PERA employers contribute to retiree health care is excluded from the contribution figure.)