De­fined-con­tri­bu­tion is now the only way to save PERA

The Denver Post - - OPINION -

Re: “Put PERA on a path to­ward sol­vency,” July 5 ed­i­to­rial.

Your ed­i­to­rial on a cer­tain path to sol­vency for the Pub­lic Em­ploy­ees’ Re­tire­ment As­so­ci­a­tion is wish­ful think­ing. PERA not only has an un­funded li­a­bil­ity of $32 bil­lion, but also and un­fund­able li­a­bil­ity for that amount. The in­her­ent lack of knowl­edge about ben­e­fi­ciary longevity and investment re­turns en­sure said un­fund­abil­ity.

The state leg­is­la­ture had the op­por­tu­nity in 2010 to change PERA to a de­fined-con­tri­bu­tion pro­gram, which would have slowed and ul­ti­mately stopped the fi­nan­cial bleed­ing. De­fined-con­tri­bu­tion is now the only al­ter­na­tive. David Wy­man, En­gle­wood

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