Friday, November 15, 2013
DENVER (AP) — The board that oversees Colorado's pension fund for state employees is lowering its expectations on investments.
Colorado's Public Employees' Retirement Association voted to lower its expected rate of return on investments to 7.5 percent, down from 8 percent.
The Denver Post reports that the fund has $23 billion in unfunded liability (http://bit.ly/1eWZNXz). That's money it owes to current and future retirees over the next 30 years but does not have in its account today.
State Treasurer Walker Stapleton has urged the board for three years to lower its rate of return, warning of an eventual collapse and bailout of the pension system for 300,000 teachers and state workers.
Stapleton estimated that Friday's vote means the pension fund's unfunded liability will increase by about $6 billion to $29 billion.
Information from: The Denver Post, http://www.denverpost.com