NOTE: The governor signed this measure on 5/29/2012.
      
      
      SENATE BILL 12-149
      
      
      BY SENATOR(S) Steadman, Aguilar;
      also REPRESENTATIVE(S) Priola, Brown, Fields, Kerr J., Labuda,
      Summers.
      
      
      Concerning the circumstances in which the board of a defined
           benefit plan or system created by a local government may
           modify retirement benefit provisions of the plan or system.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, 24-54-101, amend
      (2.7) as follows:
      
           24-54-101.  Authorization to establish and maintain retirement
      plan or system - definitions. (2.7)  For purposes of this article, unless the
      context otherwise requires:
      
           (a)  "County" means a county or a city and county, including any
      entity formed by such county or city and county.
      
           (b)  "Defined benefit plan or system" means any retirement
      plan or system that is not a defined contribution plan or system.
      
           (c)  "Defined contribution plan or system" means a
      retirement plan or system that provides for an individual account
      for each participant and the benefits of which are based solely on
      the amount contributed to the participant's account and that
      includes any income, expenses, gains, losses, or forfeitures of
      accounts of other participants that may be allocated to the
      participant's account.
      
           (b) (d)  "Municipality" means a city or a town and any entity formed
      by such city or town.
      
           (c) (e)  "Political subdivision" means any district, special district,
      improvement district, authority, council of governments, governmental
      entity formed by an intergovernmental agreement, or any other kind of
      municipal, quasi-municipal, or public corporation organized pursuant to
      law.
      
           SECTION 2.  In Colorado Revised Statutes, add 24-54-116 and
      24-54-117 as follows:
      
           24-54-116.  Modification of a defined benefit plan or system -
      legislative declaration. (1)  The general assembly declares that
      ensuring the sustainability of defined benefit plans or systems
      adopted pursuant to the provisions of this article serves a
      significant and legitimate public purpose justifying a modification
      of the benefits and the age and service requirements for any such
      plan or system by its board.
      
           (2)  The board of a defined benefit plan or system adopted
      pursuant to the provisions of this article may modify the benefits
      and the age and service requirements for the plan or system if the
      board determines that the modification is required to ensure the
      sustainability of the plan or system.
      
           (3)  Any modification pursuant to subsection (2) of this
      section shall not adversely affect vested benefits already
      accrued by members of such defined benefit plan or system,
      including, but not limited to, the pension benefits of retired
      members or members eligible to retire as of the effective date of
      the modification, unless otherwise permitted under or required by
      Colorado or federal law. This subsection (3) is not intended to
      limit the ability of the board of any defined benefit plan or system
      to modify future benefit accruals.
      
           (4)  This section is not intended to limit the ability of the
      board of any defined benefit plan or system to modify the
      provisions of such plan or system as permitted under or required
      by Colorado or federal law.
      
           (5)  This section is repealed, effective July 1, 2017.
      
           24-54-117.  Notice of possible change in benefits - ensuring
      sustainability. The board of any defined benefit plan or system
      adopted pursuant to the provisions of this article shall provide
      written notice to each member, inactive member, and beneficiary
      that the possibility of a reduction of benefits to ensure the
      sustainability of the defined benefit plan or system could occur
      in the future.
      
           SECTION 3.  Safety clause. The general assembly hereby finds,
      determines, and declares that this act is necessary for the immediate
      preservation of the public peace, health, and safety.
      
      
      
      
      ____________________________  ____________________________
      Brandon C. Shaffer                      Frank McNulty
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Cindi L. Markwell                      Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO