1997
HOUSE BILL 971114
BY REPRESENTATIVES Kaufman, George, Snyder, Saliman, and S. Williams;
also SENATOR Schroeder.
CONCERNING THE PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 2451204
(5), Colorado Revised Statutes, 1988 Repl. Vol., is amended to
read:
2451204. Duties of the
board. (5) The board shall
adopt and promulgate such rules for the administration of the
association AND TO SPECIFY THE FACTORS TO BE USED IN ACTUARIAL
DETERMINATIONS OR CALCULATIONS REQUIRED BY THIS ARTICLE. ALL
RULES SHALL BE PROMULGATED in accordance with the provisions of
section 244103, and such rules shall be consistent
with the provisions of this article or other provisions of law.
SECTION 2. 2451211,
Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended
to read:
2451211. Amortization of
liabilities. An amortization period for
each of the state, school, municipal, and judicial division trust
funds shall be calculated separately. A maximum amortization
period of sixty
FORTY years shall be deemed actuarially sound. Upon recommendation
of the board, and with the advice of the actuary, the employer
or member contribution rates for the plan may be adjusted by the
general assembly when indicated by actuarial experience.
SECTION 3. 2451307
(1) (a), Colorado Revised Statutes, 1988 Repl. Vol., as amended,
is amended to read:
2451307. Elected
municipal officials. (1) (a) Any elected official
of a municipality which is affiliated with the association shall,
within thirty
SIXTY days after taking office, elect
MAKE A ONETIME, IRREVOCABLE WRITTEN ELECTION to become a
member or to be exempted from membership. In the absence of a
written exemption
ELECTION TO BE EXEMPTED FROM MEMBERSHIP, an elected municipal
official shall be considered
a member. An elected municipal official
who has elected to be exempt from membership may become a member
at any time during such official=s
term of office with the municipality.
SECTION 4. 2451308,
Colorado Revised Statutes, 1988 Repl. Vol., is amended to read:
2451308. City
managers and key management staff. Any municipality affiliated
with the association may authorize the city manager and key management
staff who report directly to the city council or city manager
to elect
MAKE A ONETIME, IRREVOCABLE ELECTION to be exempted from
membership. IF SO AUTHORIZED, THE CITY MANAGER AND KEY MANAGEMENT
STAFF SHALL MAKE A WRITTEN ELECTION TO BECOME A MEMBER OR TO BE
EXEMPTED FROM MEMBERSHIP WITHIN SIXTY DAYS AFTER BECOMING EMPLOYED
IN THE POSITION. IN THE ABSENCE OF A WRITTEN ELECTION, SUCH PERSON
SHALL BE A MEMBER. Any person specified
by this section who elects to be exempted from membership may
later become a member after one year from the time the association
receives notice of the intent of such person to begin membership.
SECTION 5. 2451316
(1) and (2), Colorado Revised Statutes, 1988 Repl. Vol., are amended
to read:
2451316. Inadequate
reserves excess reserves nonpayment. (1) In
the event that the amount of the reserves required pursuant to
the provisions of section 2451315 exceeds the amount
of the employer=s
share of the employer contribution reserve in the municipal division
trust fund as calculated by the actuary, then the employer shall
make an additional payment on
AS OF the effective date of termination of affiliation in an amount
equal to the difference between the amount of reserves required
and the amount of reserves on deposit.
(2) In the event that the amount of the
reserves on deposit in the municipal division trust fund as calculated
by the actuary for the employer requesting termination of affiliation
exceeds the amount of reserves required pursuant to the provisions
of section 2451315, such excess amount and the amount
required for the transfer of member contributions as provided
in section 2451317 shall be paid
TRANSFERRED BY A DIRECT TRUSTEETOTRUSTEE TRANSFER
to the employer on
ALTERNATE PENSION PLAN OR SYSTEM REQUIRED BY SECTION 2451319
AS OF the effective date of termination of affiliation. Any
excess reserves and member contributions paid to such employer
pursuant to the provisions of this subsection (2) shall be deposited
by the employer in the alternative pension plan or system required
by section 2451319.
SECTION 6. Part
4 of article 51 of title 24, Colorado Revised Statutes, 1988 Repl.
Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION
to read:
2451410. Anticipation of
forfeitures in determining plan cost. ANY
BENEFITS FORFEITED UPON A TERMINATION OF MEMBERSHIP IN THE ASSOCIATION
SHALL BE ANTICIPATED IN DETERMINING THE COST OF THE PLAN.
SECTION 7. 2451505
(1) (b), Colorado Revised Statutes, 1988 Repl. Vol., as amended,
is amended to read:
2451505. Purchase of service
credit relating to noncovered employment.
(1) Service credit may be purchased for any period
of previous employment with any public or private employer in
the United States or its territories, subject to the following
conditions:
(b) The member must provide certification
from the previous employer as to
DOCUMENTATION OF the dates of employment and the
A record of salary received; and
SECTION 8. 2451506
(1), Colorado Revised Statutes, 1988 Repl. Vol., as amended, is
amended to read:
2451506. Payments
for purchased service credit. (1) Service credit
purchases may be made by a lumpsum payment, or
by installment payments, OR BY A TRUSTEETOTRUSTEE
TRANSFER OR A DIRECT ROLLOVER FROM A QUALIFIED PLAN, AS DEFINED
BY THE FEDERAL "INTERNAL REVENUE CODE OF 1986", AS AMENDED,
INCLUDING BUT NOT LIMITED TO THE VOLUNTARY INVESTMENT PROGRAM
ESTABLISHED PURSUANT TO THE PROVISIONS OF PART 14 OF THIS ARTICLE
OR A CONDUIT INDIVIDUAL RETIREMENT ACCOUNT. Service credit purchases
shall be initiated and payment received in full during membership.
except that, a member may purchase
service credit with moneys distributed from the voluntary investment
program established pursuant to the provisions of part 14 of this
article no later than one hundred fifty days after termination
of membership if such member agrees prior to termination to make
such purchase of service credit.
SECTION 9. 2451611,
Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended
to read:
2451611. Maximum
limit under federal law. Notwithstanding any other provision
of this article, no benefit paid to any benefit recipient shall
exceed the maximum permitted for qualified retirement plans pursuant
to section 401 (a) (17) or section 415 of the federal AInternal
Revenue Code of 1986@,
as amended, INCLUDING BUT NOT LIMITED TO ALL COSTOFLIVING
ADJUSTMENTS PERMITTED BY SUCH CODE. NO CONTRIBUTION MADE PURSUANT
TO PART 4 OF THIS ARTICLE OR TO SECTION 2451606 (2)
SHALL CAUSE THE BENEFIT TO EXCEED THE MAXIMUM BENEFIT PERMITTED
PURSUANT TO SECTION 415 (b) OF THE FEDERAL AINTERNAL
REVENUE CODE OF 1986@,
AS AMENDED.
SECTION 10. 2451205
(3) and (6), Colorado Revised Statutes, 1988 Repl. Vol., as amended,
are amended to read:
24-51-205. General authority of the board.
(3) The board is authorized to recover, from
ineligible benefit recipients or persons who received moneys on
behalf of ineligible benefit recipients,
through legal process or benefit
offset, any AMOUNT PAID AS benefits, or
REFUNDS, SINGLE PAYMENTS, premium subsidies, paid
to them OR OTHER PAYMENTS, to which
they are
THE RECIPIENT IS not entitled, and
to assess interest on such moneys
WITH INTEREST, PLUS ATTORNEY FEES AND COSTS ASSOCIATED WITH SUCH
RECOVERY. IF IT IS DETERMINED THAT THE RECIPIENT WAS ENTITLED
TO THE AMOUNT PAID, THE RECIPIENT SHALL BE ENTITLED TO THE ATTORNEY
FEES AND COSTS THAT HE OR SHE INCURRED IN DEFENDING THE LEGAL
ACTION OR OFFSET INITIATED BY THE BOARD.
(6) (a) The board may delegate any
of its responsibilities, duties, and authorities as set forth
in this article to the executive director of the association or
to designated agents of the association. SUBJECT TO PARAGRAPH
(b) OF THIS SUBSECTION (6), THE EXECUTIVE DIRECTOR MAY CORRECT
AN ADMINISTRATIVE ERROR MADE BY THE BOARD, THE EXECUTIVE DIRECTOR,
OR THE EMPLOYEES OF THE ASSOCIATION, AND MAY MAKE ANY APPROPRIATE
CORRECTING ADJUSTMENTS UPON RECEIVING WRITTEN DOCUMENTATION OF
THE FOLLOWING:
(I) THAT THE ERROR WAS AN ADMINISTRATIVE
ERROR OF THE PLAN;
(II) THAT THE ERROR WAS NOT CAUSED OR
CONTRIBUTED TO IN WHOLE OR IN PART BY AN EMPLOYER, MEMBER, RETIREE,
OR OTHER PERSON ELIGIBLE TO RECEIVE PAYMENTS FROM THE ASSOCIATION;
AND
(III) THAT THE ERROR WAS DISCOVERED ON
OR AFTER JULY 1, 1997.
(b) THE EXECUTIVE DIRECTOR SHALL FILE
A REPORT MONTHLY WITH THE BOARD SETTING FORTH THE ADMINISTRATIVE
ERRORS CORRECTED PURSUANT TO PARAGRAPH (a) OF THIS SUBSECTION
(6). SUCH CORRECTIONS SHALL BE SUBJECT TO BOARD REVIEW AFTER WHICH
THE BOARD MAY TAKE ANY ACTION IT DEEMS APPROPRIATE WITH REGARD
TO SUCH ERRORS.
SECTION 11. 2451212,
Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended
to read:
2451212. Funds not subject
to legal process. Except for FEDERAL
TAX LIENS ON DISTRIBUTIONS PAYABLE BY THE ASSOCIATION, AND EXCEPT
FOR assignments for child support purposes as provided for in
sections 1410118 (1) and 1414107, C.R.S.,
as they existed prior to July 1, 1996, and except for income assignments
for child support purposes pursuant to section 1414111.5,
C.R.S., for writs of garnishment that are the result of a judgment
taken for arrearages for child support or for child support debt,
and for payments from the association in compliance with a properly
executed court order approving a written agreement entered into
pursuant to section 1410113 (6), C.R.S., none of the
moneys, trust funds, reserves, accounts, contributions pursuant
to parts 4 and 5 of this article, or benefits referred to in this
article shall be assignable either in law or in equity or be subject
to execution, levy, attachment, garnishment, bankruptcy proceedings,
or other legal process. Member contributions are subject to garnishment
resulting from a judgment taken for arrearages for child support
or for child support debt only if the membership has terminated
and the member is not vested.
SECTION 12. The introductory portion to 2451905 (1), Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended to read:
2451905. Deceased
member who was not eligible for service or reduced service retirement.
(1) In accordance with the provisions of this part
9, if a member met the service credit requirements specified in
section 2451904 (1) (a) (I) or (1) (a) (II) but did
not meet the age and service credit requirements for service retirement
as of the date of death, pursuant to the provisions of section
2451602 OR 2451604, survivor benefits
or a single payment shall be payable in the following order:
SECTION 13. The
introductory portion to 2451906 (1), Colorado Revised
Statutes, 1988 Repl. Vol., is amended to read:
2451906. Deceased member
who was eligible for service or reduced service retirement.
(1) In accordance with the provisions of this part
9, if a member met the age and service credit requirements for
service retirement as of the date of death, pursuant to the provisions
of section 2451602 OR 2451604, survivor
benefits or a single payment shall be payable in the following
order:
SECTION 14. 2451912
(4), Colorado Revised Statutes, 1988 Repl. Vol., is amended to
read:
2451912. Termination of
survivor benefits. (4) IN
THE EVENT THAT A SURVIVING SPOUSE REMARRIES PRIOR TO JULY 1, 1997,
survivor benefits paid as surviving spouse=s
benefits pursuant to the provisions of section 2451909
shall terminate upon the remarriage of such spouse.
SECTION 15. 24511205
(3), Colorado Revised Statutes, 1988 Repl. Vol., is repealed as
follows:
24511205. Enrollment.
(3) Enrollment of an eligible
person in the health care program at any time other than when
first eligible shall subject such person to a limitation in coverage
for medical conditions which existed prior to enrollment.
SECTION 16. Part
12 of article 51 of title 24, Colorado Revised Statutes, 1988
Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION
to read:
24511208. Longterm
care insurance. THE BOARD IS AUTHORIZED
TO IDENTIFY AND DESIGNATE ONE OR MORE INSURANCE PROVIDERS TO OFFER
LONGTERM CARE INSURANCE TO MEMBERS OR RETIREES, OR BOTH.
LONGTERM CARE INSURANCE OFFERED PURSUANT TO THIS SECTION
SHALL BE FUNDED SOLELY THROUGH PREMIUM PAYMENTS BY MEMBERS OR
RETIREES ELECTING TO CONTRACT FOR SUCH INSURANCE.
SECTION 17. Effective date.
This act shall take effect July 1, 1997.
SECTION 18. 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.
____________________________ ____________________________
Charles E. Berry Tom Norton
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Judith M. Rodrigue Joan M. Albi
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO