WASHINGTON — People in the state’s retirement plan feel the crisis on Wall Street, the attorney for the Colorado Public Employees’ Retirement System told a House panel Monday.
“Every man or woman with a 401(k), an IRA or a retirement plan of any kind is feeling the effects of the collapse and is facing life-changing adjustments to his or her financial planning,” Gregory W. Smith, general counsel for CoPERA said in a written statement for the House Committee on Oversight and Government Reform.
The committee held a hearing examining the causes and effects of the collapse of Lehman Brothers.
The retirement plan, Smith told lawmakers, represents the retirement money of 420,000 people including judges, state troopers, teachers and many employees of local units of government.
He did not specifically address what effect the market downturn has had on the plan’s assets.
The retirement plan, he said, depends upon the “strength, efficiency and transparency” of the financial markets.
“The most fundamental tool used in the investment process is the independently verified financial statements of a company,” Smith said. “The accuracy and thoroughness of the financial disclosures are the critical foundation for sound financial analysis.”
