Rocky Mountain Retirement High
July 1, 2026
Colorado has the mountains, the ski resorts, the beer, and thanks to new legislation, perhaps the best state-wide teacher supplemental retirement plans in the country. HB26-1026 was signed into law on June 3, 2026. It improves teacher retirement outcomes in three ways...
- New option for purchasing PERA (Public Employees' Retirement Association) Service Credit which takes into account time out of the workforce.
- Starting January 1, 2027 all districts must offer the excellent PERA 401(k) plan in both the pre-tax and Roth versions. Previously only the pre-tax version was required.
- Starting January 1, 2027 all districts must also offer the excellent PERA 457(b) plan in both pre-tax and Roth versions.
As author, financial writer and retired teacher Karl Fisch points out in a review of the new law there is no reason to contribute to a substandard 403(b) in the state of Colorado anymore. The new law doesn't preclude anyone from contributing to a 403(b), but unless you have a green-rated vendor it makes no sense.
This new directive is a win-win-win for PERA, educators and the state. How? PERA gets more assets under management which will ultimately drive down operating and investing costs. Educators can rest assured they have two vetted, quality supplemental retirement plans. The state has one more tool to promote teacher recruitment and retention.
Colorado is Now 457bwiser
As followers of 403bwise know, we recently launched a new site — 457bwiser.org — and a new initiative: get districts to focus on a single, quality 457(b) plan. You can learn more about our reasoning here. Colorado is in prime position to acheive this in every district. This is not to say that all Colorado districts will only offer the PERA 457(b) but it's also to point out: why wouldn't all districts only offer the PERA 457(b) and the PERA 401(k)?
Hey 49 other states: Are you listening?
Stay wise and urge your state to get 457bwiser.
