In a nutshell, the PERA DB plan is a pension retirement plan. No matter how much money an employee contributes to the plan during their career, they will receive retirement benefits for life upon retirement. The amount of benefit they receive each month will depend on their years in PERA service, age at retirement and highest average salary.

Both the employee and CU contribute to the account.

First, you need to know your job type. For retirement plan purposes, CU has two types of staff: Faculty and University Staff or Classified Staff. If you’re unsure what your job classification is, you can find it on your offer letter or you can contact your supervisor or the Employee Services Benefits office.

Classified Staff

For Classified Staff with no prior PERA-covered employment, you have 60 days to choose between the PERA DB or PERA DC plan. Once you’ve chosen, this selection cannot be reversed.

For Classified Staff with prior PERA-covered employment, you will default into whichever plan you were previously enrolled in unless you have not contributed to that plan in the previous 12 months. If you have not contributed to your PERA plan in at least 12 months, you will have 60 days to choose which type of PERA plan to enroll in. 

For placement details, see the Classified Staff Placement Guide [3].

Faculty and University Staff

Faculty and University Staff are only eligible for PERA DB if they previously worked for a PERA employer and have a PERA DB plan. These employees have 30 days to choose between the PERA DB or the CU 401(a) plan. If employees who are eligible to choose fail to make a selection within their designated time frame, they will default irrevocably into the PERA DB plan.

Faculty and University Staff are not eligible for PERA DC.

For placement details, see the Mandatory Retirement Plan Placement Guide for Faculty and University Staff [4].