State Teacher Plans for Colorado

Many teachers do not have access to low-cost choices in their 403(b) plans. Of the 19 district 403(b) plans that we have graded so far in Colorado, 4 districts have an A rating, 2 districts have a B rating, 11 districts have a C rating, 1 district has a D rating, and 1 district has an F rating.

If you are a teacher in Colorado, here are the state teacher plan options that are available to you.

Colorado PERA

Most states still offer a traditional formula-based pension. Under this type of arrangement an educator would receive a percentage of their final year's salary until death that is based on some combination of years worked, age, and salary. Some states have made pension plans less generous to new hires, and some states have replaced traditional pensions with 401(k)-type plans.

More information about the Colorado PERA plan is available directly from the pension website, and Karl Fisch's book on the Colorado pension is available here. Pension plan information for other states is also available for reference through this state pension search tool. This data is shared with us by Karl Fisch, and it is current as of January 1, 2025.

Applicable to All Teachers

Social Security

Colorado teachers do not pay into Social Security

Administrative Fee for Supplemental Plans

0.03% + $12 per year for 401k and 457

New Teachers Hired On or After 1/1/2024

Defined Benefit

Employee: 11%; Employer: 21.4; State: $225 million annually

Multiplier

2.5%

Average Salary

Highest 5 consecutive 12 months

Normal Retirement

Age 50 with 35 years of service
Age 60 with 30 years of service
Age 65 with 5 years of service

Cost-of-Living Adjustment (COLA)

3 year waiting period

Veteran Teachers Hired Prior to 1/1/2001

There are 6 additional benefit tiers between the new teacher and veteran teacher tiers compared here. The exact transition dates between these tiers are not relevant to this comparison.

Defined Benefit

Employee: 11%; Employer: 21.4%; State: $225 million annually

Multiplier

2.5%

Average Salary

Highest 3 consecutive 12 months

Normal Retirement

Age 50 with 30 years of service
Age 60 with 20 years of service
Age 65 with 5 years of service

Cost-of-Living Adjustment (COLA)

3 year waiting period

Colorado PERAPlus 457 457(b)

Every state operates a 457(b) plan that serves governmental workers like police, fire, and state government officials. These plans are generally excellent, and in many cases they are superior to the 403(b) offerings available in school district plans. Most states allow educators to participate in these plans; unfortunately, about a dozen do not.

Find out more about how we rate state 457(b) plans and view plans in other states.

Green Colorado

Colorado PERAPlus 457 teachers are eligible to contribute to this plan.

Fees

0.02% admin fee, $12 account fee, and a low index fee

Record Keeper

Empower

Target Date Fund

Custom CITs

NOTE: Available to educators but district must opt in.

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