The University of Colorado aims to empower all employees to secure their financial stability in retirement. All eligible employees must participate in one of three mandatory plans, and as a state employer, some CU employees are eligible to participate in a Public Employees’ Retirement Association (PERA) plan.
PERA offers two plan options, a Defined Benefit (DB) plan and a Defined Contribution (DC) plan. This page covers the Defined Contribution plan, but you can read more about the Defined Benefit (DB) plan.
What is the PERA DC Retirement Plan?
Who is eligible for a PERA DC plan?
Plan resources
- Mandatory Retirement Plan Placement Guide for Classified Staff
- PERA Defined Contribution Mandatory Retirement Plan Guide
Use your account
PERA DC Plan at-a-glance | |
Plan administrator |
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Who can participate? |
Eligible Classified Staff |
Employee contributions |
11% of PERA includable salary (gross income less any IRS Section 125 plan deductions, based upon your PERA membership) Employee contributions are not subject to Social Security taxes, and they are tax-deferred, which means they are not considered taxable income for federal and state income tax purposes until they are withdrawn. |
Employer contributions |
In 2025, 11.63% of gross salary to employee's account. The university will also contribute 5.0% to PERA AED, plus 5.0% PERA Supplemental AED, which equals 21.63% of an employee's PERA-includable salary for 2025. |
Salary Limitation |
The annual compensation limit that can be considered for contributions is $350,000 for calendar year 2025. |
Vesting |
The vesting schedule is determined by number of years of participation, not PERA service credit.
**Plus/minus investment gains/losses, minus fees |
Investments |
Employees can choose their investments by going to the PERA website Defined Contribution (DC) Plan Information page. From there, click on the “Log into your PERA DC Plan Account" to determine how your contributions will be invested. |
Fees |
This plan includes administrative fees. Please contact PERA for more details. |