Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0521.01 Gregg Fraser x4325 SENATE BILL 12-082 SENATE SPONSORSHIP Harvey, HOUSE SPONSORSHIP (None), Senate Committees House Committees Finance A BILL FOR AN ACT Concerning the eligibility of a person to receive a retirement benefit from the public employees' retirement association upon reaching the same age required to receive a social security retirement benefit. 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.) A person's qualification to receive a retirement benefit from social security is based upon the person's age. Currently, the age requirement is between the ages of 65 and 67, depending on the person's birth date, for full retirement and 62 for reduced retirement. A person's qualification to receive a retirement benefit from the public employees' retirement association (PERA) is currently based on the person's age, when the person started employment with a PERA employer, and the number of years of service credit the person has earned. For a new PERA employee hired on or after January 1, 2013, the bill makes the eligibility requirement to receive a PERA retirement benefit the same as the requirement to receive a retirement benefit from social security at the time the employee commences employment. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 24-51-602, add (6) as follows: 24-51-602. Service retirement eligibility. (6) Notwithstanding any other provision of this section to the contrary, any person who was not a member, inactive member, or retiree on December 31, 2012, shall receive service retirement benefits pursuant to the benefit formula set forth in section 24-51-603 (1) (a), (2), and (3), only if the person has attained his or her full retirement age for purposes of receiving federal social security benefits as provided by the federal "Social Security Act" as it existed at the time the person commenced employment. SECTION 2. In Colorado Revised Statutes, amend 24-51-604 as follows: 24-51-604. Reduced service retirement eligibility. (1) DPS members with less than five years of service credit as of January 1, 2011, and members who have met the age and service credit requirements stated in the following table and who do not meet the requirements of section 24-51-602 shall, upon written application and approval of the board, receive reduced service retirement benefits pursuant to the benefit formula set forth in section 24-51-605: TABLE C REDUCED SERVICE RETIREMENT ELIGIBILITY Age Requirement Service Credit Requirement (years) (years) 50 25 50 State Troopers only 20 55 20 60 5 (2) Notwithstanding any other provision of this section to the contrary, any person who was not a member, inactive member, or retiree on December 31, 2012, shall, upon written application and approval of the board, receive reduced service retirement benefits pursuant to the benefit formula set forth in section 24-51-605, only if the person has attained the age at which he or she is eligible to receive reduced federal social security benefits as provided by the federal "Social Security Act" as it existed at the time the person commenced employment. 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.