Colorado PERA Board Reviewed Staff Pay Policies
The state pension board assessed compensation structures following consultant recommendations for potential salary increases.
Updated on Oct. 1, 2026 in Retirement Planning
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In September 2026, the Colorado Public Employees' Retirement Association board reviewed compensation practices for its investment staff. The board is weighing recommendations from Aon for potential pay hikes of up to 27%.
Why it matters
The review highlights efforts by Colorado PERA to remain competitive with larger national pension funds when recruiting top investment talent. Executive director Andrew Roth maintains that the fund must compete for the same investment managers as funds managing significantly more assets.
Colorado PERA currently manages $75 billion in assets, compared to the $170 billion median managed by its peer group. Investment staff receive average annual bonuses of $300,000, with maximum potential incentives ranging from 75% to 225% of base salary.
The players
Colorado Public Employees' Retirement Association
This is the state-run entity that manages retirement benefits for Colorado public employees.
Andrew Roth
He serves as the executive director of the Colorado Public Employees' Retirement Association.
Aon
This is a global professional services firm that provides risk, retirement, and health consulting.
The details
The board assesses staff pay against a peer group comprised of 75% public pension funds and 25% private firms, including entities like CalPERS and CalSTRS. Following a 2018 review, the board previously authorized a 128% increase in the staff incentive budget and removed its authority to defer performance bonuses.
Timeline
In 2018, the board last reviewed compensation and authorized a budget increase.
During 2025, the fund paid 17% less than its peer group median.
In September 2026, the board held a planning retreat to review compensation.
In November 2026, the board is scheduled to receive formal compensation recommendations.
Market Dynamics
This compensation review aligns with the 2018 Colorado PERA compensation review that significantly expanded the fund's incentive capacity. It reflects broader institutional efforts to align public pension pay structures with the aggressive compensation models used by private equity and large-scale asset managers.
The potential approval of pay increases for investment staff may influence the overall operational expenses charged to the fund managed for Colorado retirees. Shareholders and beneficiaries can monitor these board decisions to see how they impact the fund's long-term administrative overhead.
The takeaway
Pension funds are increasingly competing with private sector firms for top-tier investment talent to manage large asset pools. Investors should note that these compensation strategies are designed to influence long-term investment performance by aligning staff incentives with market benchmarks.
What happens next
The Colorado PERA board is expected to consider and potentially vote on the consultant's compensation recommendations during its meeting in November 2026.
Further reading
For additional context on local pension oversight, read more about Retirement Planning in Colorado.
Source note: This article includes information reported by The Colorado Sun.
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