January 17, 2014

CU’s PERA contributions to increase in 2014

The University of Colorado will pay a rate 0.90 percentage points higher this year than it did in 2013 toward supporting the Public Employees’ Retirement Association (PERA).

For the fifth consecutive year, the University of Colorado is contributing an increased amount to PERA, on behalf of its 7,900 CU employee members. The increase is the result of two Colorado laws aimed at ensuring PERA’s financial future. To do so, it requires employers who offer PERA to make two types of contributions that gradually increase each year, Amortization Equalization Disbursements (AED) and Supplemental Amortization Equalization Disbursements (SAED).

The university—not university employees—makes these contributions.

 

The amount of money CU contributes to PERA is a percentage of the total pay earned by three groups: CU employees who are active PERA members; PERA retirees who work for the university; and CU employees who were eligible to participate in PERA with the university but opted out.