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YOUR PERA BENEFITS
PERACHOICE PROVISIONS
PERA DC PLAN MEMBERSHIP
»» Red Rocks Community College
As a State employee hired on or after
January 1, 2006, or a community college
employee hired on or after January 1, 2008, at
one of the institutions listed below, you had the
opportunity to enroll in either PERA’s Defined
Benefit (DB) Plan or PERA’s Defined Contribution
(DC) Plan. If you were a State DC Plan participant
prior to July 1, 2009, your DC account was
transferred to the PERA DC Plan.
»» Trinidad State Junior College
PERA’s DB Plan benefits are the same as
explained in Your PERA Benefits, except as noted
in this insert. PERA’s DC Plan benefits are detailed
in this insert and in the PERAChoice brochure.
You must set how your PERA DC Plan
contributions will initially be invested. To do
this, go to www.copera.org and select “Defined
Contribution (DC) Plan Information” from
the “Members” menu. Then, click “Determine
how your PERA DC Plan contributions will be
invested.” You’ll then choose how to invest
among the PERAdvantage investment options.
The following community colleges are eligible to
participate in the PERA DC Plan:
»» Arapahoe Community College
PERA DC PLAN CONTRIBUTIONS AND
INVESTMENT OPTIONS
In PERA’s DC Plan, your contribution of
8 percent (10 percent for State Troopers) and
your employer’s contribution (10.15 percent or
12.85 percent for State Troopers) are invested
according to your investment elections.
»» Colorado Community College System
PERADVANTAGE INVESTMENT OPTIONS
»» Colorado Northwestern Community College
You may invest in the following funds:
»» Community College of Aurora
»» 10 PERAdvantage Target Retirement Date Funds
»» Community College of Denver
»» PERAdvantage Capital Preservation Fund
»» Front Range Community College
»» PERAdvantage Fixed Income Fund
»» Lamar Community College
»» PERAdvantage Real Return Fund
»» Morgan Community College
»» PERAdvantage U.S. Large Cap Stock Fund
»» Northeastern Junior College
»» PERAdvantage International Stock Fund
»» Otero Junior College
»» PERAdvantage U.S. Small and Mid Cap Stock Fund
»» Pikes Peak Community College
»» PERAdvantage SRI Fund
»» Pueblo Community College
Continued on next page
July 2015
Colorado Public Employees’ Retirement Association
1301 Pennsylvania Street • Denver, Colorado 80203 • 1-800-759-PERA (7372) • www.copera.org
YOUR PERA BENEFITS
PERACHOICE PROVISIONS
If you did not make an initial investment election, you will
be automatically invested in the Plan’s Qualified Default
Investment Alternative (QDIA), the PERAdvantage Target
Retirement Date fund based on your date of birth and
expected retirement at age 65 (see table below). You can
change your investment elections at any time.
Fund
Date of Birth Range
PERAdvantage Income Fund
December 31, 1952, or earlier
PERAdvantage 2020 Fund
January 1, 1953–December 31, 1957
PERAdvantage 2025 Fund
January 1, 1958–December 31, 1962
PERAdvantage 2030 Fund
January 1, 1963–December 31, 1967
PERAdvantage 2035 Fund
January 1, 1968–December 31, 1972
PERAdvantage 2040 Fund
January 1, 1973–December 31, 1977
PERAdvantage 2045 Fund
January 1, 1978–December 31, 1982
PERAdvantage 2050 Fund
January 1, 1983–December 31, 1987
PERAdvantage 2055 Fund
January 1, 1988–December 31, 1992
PERAdvantage 2060 Fund
January 1, 1993, or later
VESTING SCHEDULE
The vesting schedule is determined by number of years
of participation, not PERA service credit. One year of
participation equals 12 months of contributions.
Your Contributions: 100% immediately*
Your Employer’s Contributions:
»» 50 percent immediately*
»» 60 percent at the end of your first year of participation*
»» 70 percent at the end of two years of participation*
SWITCHING BETWEEN PERA DC AND PERA DB
After 12 months of participation, you are eligible to make a
one-time, irrevocable switch from the PERA DC Plan to the
PERA DB Plan or from the PERA DB Plan to the PERA DC
Plan. After 72 months of participation, you will no longer
be eligible to switch between the two Plans. If you wish to
switch between the two Plans, complete the PERAChoice
Years 2–5 Change/Transfer Form. (If you were previously
a member of one of the State’s DC Plans and were
transferred to PERA in 2009, you do not have the option to
switch plans.)
For details on DB Plan provisions, such as survivor and
disability benefits, see the Your PERA Benefits booklet.
PURCHASING SERVICE CREDIT
If you switch from the PERA DC Plan to the PERA DB Plan,
you begin to earn service credit in the PERA DB Plan on
the day the switch is effective. You may use your PERA DC
account to purchase service credit for the time you were
in the PERA DC Plan once you have one year of earned
service credit in the PERA DB Plan.
The cost to purchase service credit is based on the actuarial
cost of providing the future benefit resulting from the
purchase. The actuarial cost is determined by your age at the
time of purchase, salary, and the division of your membership.
See the Purchasing Service Credit booklet
for more information.
»» 80 percent at the end of three years of participation*
»» 90 percent at the end of four years of participation*
»» 100 percent at the end of five years of participation*
* Plus/minus investment gains/losses, minus fees.
If you were previously a member of one of the State’s DC
Plans and were transferred to PERA in 2009, you retained
100 percent vesting in employer contributions. If you either
take a distribution of your entire account or have a break
in employment that is 12 months or longer, any future
employer contributions to the PERA DC Plan will vest in
accordance with the schedule above.
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PERAPLUS 401(K) AND 457 PLANS
PERA encourages you to save toward your retirement
needs in addition to your PERA DC account. The PERAPlus
401(k) and 457 Plans allow you to obtain additional,
voluntary tax savings, and retirement income. Note: You
are eligible to participate in the PERAPlus 457 Plan only if
you work for a PERA employer who is affiliated with the
PERAPlus 457 Plan.
The PERAPlus Plans offer the same investment options
available in the PERA DC Plan. A Roth option is also
available in the PERAPlus 401(k) and 457 Plans if your
employer has adopted it.
YOUR PERA BENEFITS
PERACHOICE PROVISIONS
PERAPlus 401(k) and 457 Plans have loan and hardship/
unforeseeable emergency withdrawal provisions. The IRS
permits rollovers of money into both the PERAPlus 401(k)
and 457 Plans from certain other qualified plans. Pre-tax
funds from the PERAPlus 401(k) and 457 Plans may be used
to purchase PERA service credit under certain conditions.
DISTRIBUTION OPTIONS
For more information about the PERAPlus 401(k) or 457
Plans, log on to PERA’s website at www.copera.org and
click on the “PERAPlus 401(k)/457 and PERA DC Plan
Information” link under the “Programs” menu.
»» You can request installment payments.
ROLLOVERS
As a PERA DC Plan participant, you may roll over a PERA DB
member contribution account (member contributions and
interest only) to the PERA DC Plan.
For PERAPlus 401(k)/457 Plan rollover information, see the
Plan websites, accessible through www.copera.org.
MAKING PERA DC PLAN CHANGES
You may move money between investment options or
move money across all investment options (reallocate
your balances) any time by calling 1-800-759-7372 and
selecting the PERAPlus/DC Plan option. Participant Services
Representatives are available Monday through Friday from
6:00 a.m. to 6:00 p.m. (Mountain time), excluding New
York Stock Exchange holidays. To make changes online,
log on to your account through www.copera.org using
your User ID and password, then choose “PERA DC Plan
Account Access.”
TERMINATING PERA-COVERED EMPLOYMENT
UNDER THE PERA DC PLAN
If you leave PERA-covered employment and are a participant
in the PERA DC Plan, you may leave your PERA DC Plan
account or you may roll over the balance to another
qualified retirement plan. You may not roll over your PERA
DC Plan account to the PERAPlus 401(k) or 457 Plan.
If you return to PERA-covered employment for an employer
offering PERAChoice within 12 months of terminating, you
are required to return to the PERA DC Plan.
If you refund your PERA DC account, you will be subject to
the vesting schedule in place at the time of your return to
the PERA DC Plan.
When you terminate PERA-covered employment, you
have several choices regarding the money in your DC
Plan account. You may do one of the following with
your account:
»» You can leave the money in the Plan.
»» You can roll over the balance to another qualified plan,
403(b), governmental 457 plan, or an IRA.
»» You can take the money in cash, called a lump-sum
distribution.
»» You may request a lifetime annuity which is available
through an outside provider.
Note: You must start distributions once you reach age 70½.
If you take a rollover/refund of your account, you will
receive 100 percent of your member contributions and a
percentage of your employer contributions based on the
PERA DC Plan vesting schedule, plus/minus investment
gains/losses and minus fees (see page 2).
You will want to contact a tax adviser about the tax
consequences of withdrawing your PERA DC Plan account.
If you are interested in withdrawing your PERA DC Plan
account, call 1-800-759-7372 and select the PERAPlus/DC
Plan option.
See the Your PERA Benefits and Refund/
Rollover booklets for more information.
PERACARE
PERACare, PERA’s Health Benefits Program, is only available
to PERA DC Plan participants who purchase a lifetime
annuity upon termination of PERA-covered employment.
There is no PERACare subsidy available to PERA DC Plan
participants because PERA DC Plan contributions are not
allocated to the Health Care Trust Fund.
SURVIVOR BENEFITS
In the event of your death before retirement, there are no
continuing monthly benefits available to your qualified
survivors. The balance in your PERA DC Plan account will
be distributed to your named beneficiary(ies) in a lump-sum
distribution. No further benefits are payable.
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YOUR PERA BENEFITS
PERACHOICE PROVISIONS
DISABILITY BENEFITS
There are no disability benefits associated with the PERA
DC Plan. If you terminate PERA-covered employment
because you became disabled, you have several options
regarding the money in your account (see “Terminating
PERA-Covered Employment Under the PERA DC Plan” on
page 3). No further benefits are payable.
LIFE INSURANCE
Through PERA, you may purchase group, decreasing-term
life insurance. You may purchase this insurance without
evidence of good health when you first become a PERA
member or during the annual open enrollment period, or
at other times with evidence of good health. However,
you may not begin coverage after you retire. Coverage
for your spouse and dependent children is included with
your coverage. If you leave PERA employment and leave
your member contribution account(s) with PERA, you may
continue participation in the life insurance program.
Information about the life insurance program is sent to
all new members and to all members not enrolled in the
program during the annual open enrollment.
This insert provides information about benefits specific to PERAChoice participants. Your rights, benefits, and obligations as a PERA member are governed by Title 24, Article 51 of
the Colorado Revised Statutes and the Rules of the Colorado Public Employees’ Retirement Association, which take precedence over any interpretations in this insert.
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