Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0527.01 Gregg Fraser x4325 HOUSE BILL 12-1142 HOUSE SPONSORSHIP DelGrosso, SENATE SPONSORSHIP (None), House Committees Senate Committees Finance A BILL FOR AN ACT Concerning the choice of all members of the public employees' retirement association to participate in a defined contribution plan established by the association. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) In addition to its defined benefit plan, the public employees' retirement association (PERA) administers a defined contribution retirement plan. The law currently allows only specified state employees to participate in PERA's defined contribution plan. The bill would allow all employees who are members of PERA to participate as well. Newly eligible employees would be given an initial period to elect to join the defined contribution plan. Thereafter, the existing law governing participation and termination of membership in the defined benefit and contribution plans would control. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 24-51-1501, amend (1), (2) (a) (I), and (4) as follows: 24-51-1501. Defined contribution plan - establishment - creation of fund - definitions. (1) The board is hereby authorized to establish and administer a defined contribution plan for eligible state employees as provided in this part 15. The board shall establish the terms and conditions of the association's defined contribution plan offered to eligible state employees. The assets of the plan shall be held in a separate trust fund of the association created for such purpose. (2) (a) Effective July 1, 2009: (I) The state defined contribution plan established pursuant to part 2 of article 52 of this title, as said part 2 existed prior to its repeal in 2009, shall be merged into the association's defined contribution plan for eligible state employees established under this part 15, and all the assets of the state defined contribution plan and the trust fund shall be transferred via trustee-to-trustee transfer to the defined contribution plan trust fund established pursuant to section 24-51-208 (1) (i); (4) For purposes of this part 15, "employer" means the state, the general assembly, the office of a district attorney in a judicial district, any state department that employs an eligible employee, and any community college governed by the state board for community colleges and occupational education. "Employer" shall not include any state college or university as defined in section 24-54.5-102 (7), any institution under the control of the board of regents of the university of Colorado, or an institution governed pursuant to part 5 of article 21 of title 23, C.R.S. has the same meaning as set forth in section 24-51-101 (20). SECTION 2. In Colorado Revised Statutes, 24-51-1502, add (4) as follows: 24-51-1502. New employees - election - definitions. (4) Notwithstanding any other provision of this part 15, an employee who first becomes an eligible employee on the effective date of this subsection (4) as a result of the eligibility changes made pursuant to House Bill 12-____, enacted in 2012, may make a written election to become a member of the association's defined contribution plan on or before December 31, 2012. Thereafter, such employees are subject to the provisions governing membership and termination of membership in the association's defined benefit plan and defined contribution plan as set forth in this part 15. In the absence of such written election, the employee shall be a member of the association's defined benefit plan. SECTION 3. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 7, 2012, if adjournment sine die is on May 9, 2012); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2012 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.