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?

PERA Mandatory Plan and Retirement Resources Course

PERA DB Retirement Plans Course - Click Image to Watch

Conceptos Basicos de PERA
 

PERA DB Retirement Plans Course - Click Image to Watch

 

 

Plan resources

Use your account

 

PERA DC Plan at-a-glance

Plan administrator

Public Employees’ Retirement Association (PERA)

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which means they are not considered taxable income for federal and state income tax purposes until they are withdrawn.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.

  • Employee Contributions: 100% immediately
  • Employer’s Contributions:
    • 50% immediately**
    • 60% at the end of 1 year of participation**
    • 70% at the end of 2 years of participation**
    • 80% at the end of 3 years of participation**
    • 90% at the end of 4 years of participation**
    • 100% at the end of 5 years of participation**

**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.

Default investment: If you do not select investments options, your money will automatically be placed into a Target Retirement Date fund based on your date of birth and an expected retirement date. PERA follows industry standard and assumes the expected retirement age is 65. 

Fees

This plan includes administrative fees. Please contact PERA for more details.