Brace yourselves for trouble next summer. The Denver and Colorado pensions reported earnings though December of 2021 and appeared to be relatively stable. Other state and local pensions are giving more recent numbers, and according to the Wall Street Journal, we are seeing the worst year since 2009.
Those on PERA may see worse pensions for new employees, adjustments to the cost-of-living increase, and higher required contributions. Those on DERP may see a further rise in employee and employer contributions, changes to retirement benefits, and continuing the suspension of the cost-of-living adjustment.
We won’t know the full extent of the losses (if any) until the pensions make the annual reports available next summer.
Whatever happens, make sure you have a plan that is right for you. For most people, you will need savings outside of your pension fund. I can answer questions about your pension and ensure you have a suitable solution for you.