PERA Transparency
One thing COST has learned is that transparency is much greater than finacial databases. Spending transparency is just one aspect of open government. For instance, we have exposed bad legislation that discourages transparency such as HB 1293, the secret sick tax.
Another area of great concern that deserves much more scrutiny is Colorado Public Employee Retirement Association (PERA). According to Independence Institute Senior Fellow Barry Poulson, PERA is in deep trouble and must be fixed right away.
If PERA were a private pension fund, it would be declared insolvent. Insolvency is the basis for restructuring pension plans in the private sector, including replacing defined benefit plans with defined contribution plans. But, because PERA is a public pension system it is ultimately the responsibility of Colorado taxpayers. Make no mistake, it is taxpayers who must make up the difference between assets and liabilities in PERA. Taxpayers are already on the hook for $24 billion in unfunded liabilities, and they will have to pay for any future unfunded liabilities incurred in the system.
PERA’s problems make Colorado’s current budget shortfall seem like pocket change. Because taxpayers will have to foot the bill, COST feels compelled to shine a light on PERA and bring some much needed transparency to the failing retirement program in hopes of educating Coloradans about possible reforms. Poulson does offer a solution in his project titled PERA Transparency.