PERA Defined Benefit (DB) Plan [1]
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 Benefit plan, but you can read more about the Defined Contribution (DC) plan [2].
What is the PERA DB Retirement Plan?
Who is eligible for a PERA DB plan?
Plan resources
- Mandatory Retirement Plan Placement Guide for Faculty and University Staff [4]
- Mandatory Retirement Plan Placement Guide for Classified Staff [3]
- PERA Defined Benefit Mandatory Retirement Plan Guide [7]
Use your account
- PERA member website [8]
- PERA calculators [9]
- PERA webinars [10]
PERA DB Plan at-a-glance | |
Plan administrator |
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Who can participate? |
Most Classified Staff and some University Staff and Faculty. Please see the Classified Staff and Faculty & University Staff placement guides [12]. |
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which means they are not considered taxable income for federal and state income tax purposes until they are withdrawn.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 Supplemnetal AED, which equals 21.63% of an employee's PERA-includable salary for 2025. |
Salary Limits |
The annual compensation limit that can be considered for contributions is $350,000 for calendar year 2025. |
Vesting |
Employee contributions are always 100% vested. Employer contributions are vested upon completion of five (5) PERA years of service. |
Investments |
A staff of investment professionals, under the direction of the PERA Board of Trustees, has the responsibility for the investment of PERA’s funds. |
Fees |
This plan includes administrative fees. Please contact PERA for more details. |