PERA and DPS retirement benefits

Under certain circumstances, a portion of pension income paid by the Colorado Public Employees Retirement Association (PERA) or the Denver Public Schools (DPS) Retirement System and included in a taxpayer’s federal taxable income may qualify for subtraction. Most PERA and DPS retirement benefits will not qualify for subtraction. The subtraction is only allowed to retirees who made contributions to PERA or the DPS Retirement System between 1984 and 1986. For additional information, please see Department publication Income Tax Topics: Social Security, Pensions, and Annuities.