Understanding the Colorado PERA DC Plan Retirement System

The Colorado PERA DC Plan is a defined contribution (DC) plan that offers a unique retirement savings option for eligible Colorado public employees. The plan is designed to provide a predictable benefit at retirement, regardless of investment performance.

Here's how it works: contributions are made by both the employee and the employer, and the funds are invested in a variety of options. The plan's assets are held in a trust, and the benefit is based on the account balance at retirement.

One of the key features of the PERA DC Plan is that the benefit is portable, meaning employees can take their account balance with them if they leave their job. This is a significant advantage over traditional pension plans, which often require employees to remain with the same employer for a certain number of years to vest in the plan.

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If you're unsure what your job classification is, you can find it on your offer letter or contact your supervisor or the Employee Services Benefits office.

Classified Staff are eligible for the PERA DC plan, but only if they have no prior PERA-covered employment. In this case, they have 60 days to choose between the PERA DB or PERA DC plan.

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.

Faculty and University Staff, on the other hand, are not eligible for PERA DC. They will need to follow the Mandatory Retirement Plan Placement Guide for Faculty and University Staff.

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Employee Retirement Plans are a crucial benefit for many workers, particularly in states like Colorado.

The Colorado PERA DC Plan offers a defined contribution (DC) plan, which is different from a pension plan.

In a DC plan, employees contribute a portion of their salary to their retirement account, and the employer may also contribute a matching amount.

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To apply for an employee retirement plan, you'll need to start by reviewing your company's plan documents, which outline the eligibility requirements and enrollment process.

Many employers automatically enroll new employees in their retirement plan, so you may not need to take any action at all.

Check your company's plan documents to see if this is the case, and what the default contribution rate is if you are automatically enrolled.

If you're not automatically enrolled, you'll need to submit an application to join the plan and choose your contribution rate.

You can usually find the application form on your company's HR website or by contacting the HR department directly.

Keep in mind that there may be a waiting period before you can start contributing to the plan, which is typically 30 days to 90 days.

Once you've submitted your application, you'll need to complete any necessary paperwork and review the plan's investment options.

Some plans may offer a range of investment portfolios, while others may have a more limited selection.

Take some time to review the investment options and choose the one that best fits your financial goals and risk tolerance.

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There are two main types of retirement plans: PERA DB and PERA DC.

Classified Staff have the option to choose between these two plans, but Faculty and University Staff are not eligible for PERA DC.

If you're a Classified Staff member with no prior PERA-covered employment, you have 60 days to choose between PERA DB and PERA DC.

For Classified Staff with prior PERA-covered employment, you'll default into the plan you were previously enrolled in unless you haven't contributed to that plan in the previous 12 months.

The Colorado PERA DC Plan is a defined contribution plan that provides a retirement income option for certain PERA members.

This plan is designed to provide a predictable benefit amount at retirement, with the benefit amount based on the account balance at retirement.

The plan is funded by employee contributions, which are matched by the state.

Contributions to the plan are made on a pre-tax basis, and the money grows tax-deferred until withdrawal.

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The plan allows for a variety of investment options, giving members the flexibility to choose how their contributions are invested.

Members can also take loans from their account balance, subject to certain rules and limits.

The plan's benefit amount is calculated based on the account balance at retirement, with a guaranteed minimum benefit amount of 5% of the account balance.

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