SENATE BILL 97021
BY SENATOR Powers;
also REPRESENTATIVES Tucker and Mace.
CONCERNING RETIREMENT SYSTEMS FOR COUNTY OFFICERS
AND EMPLOYEES.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 2454108
(2) (b), (2) (c), and (4), Colorado Revised Statutes, 1988
Repl. Vol., are amended to read:
2454108. Control and management
of plan. (2) Such retirement
board shall determine what type of retirement plan in which to
participate and shall select, on the basis of the most sound proposal:
(b) A noninsured trust retirement plan,
with a bank or trust company authorized to exercise trust powers
in this state as trustee, invested by the trustee pursuant to
the provisions of part 3 of article 1 of title 15, C.R.S., but
of the initial and subsequent sums of money available for investment,
the trustee shall invest not more
than fifty percent thereof in common and preferred stocks;
ONLY IN SUCH INVESTMENTS AS ARE SPECIFIED IN SECTION 2454112;
or
(c) A noninsured trust retirement plan,
invested by the treasurer of the plan in such securities as are
specified in section 2451206
2454112; or
(4) The treasurer of the most populous
county, municipality, or district shall be ex officio the treasurer
of any association formed pursuant to the provisions of section
2454106 and establishing a noninsured trustee retirement
plan. If any county
municipality or district alone adopts such a plan, the treasurer
thereof shall serve as the treasurer of such plan. No fee therefor
shall be charged by the treasurer pursuant to the provisions of
section 301102, C.R.S., or any other provision of
law.
SECTION 2. Article
54 of title 24, Colorado Revised Statutes, 1988 Repl. Vol., as
amended, is amended BY THE ADDITION OF A NEW SECTION to read:
2454108.5. Control and
management of individual county plan. (1) THE
RETIREMENT BOARD OF ANY INDIVIDUAL COUNTY RETIREMENT PLAN SHALL
HAVE FULL AND COMPLETE CONTROL AND MANAGEMENT OF ANY RETIREMENT
PLAN PROVIDED FOR AND AUTHORIZED BY THIS ARTICLE, OTHER THAN MATTERS
RELATING TO PARTICIPATION IN THE PUBLIC EMPLOYEES' RETIREMENT
ASSOCIATION. SUCH RETIREMENT BOARD SHALL MAKE ALL NECESSARY RULES
FOR MANAGING AND DISCHARGING ITS DUTIES, FOR ITS OWN GOVERNMENT
AND PROCEDURE IN SO DOING, AND FOR THE PRESERVATION AND PROTECTION
OF ANY FUND OR ANNUITY CONTRACT.
(2) THE RETIREMENT BOARD OF ANY INDIVIDUAL
COUNTY RETIREMENT PLAN SHALL DETERMINE WHAT TYPE OF RETIREMENT
PLAN IN WHICH TO PARTICIPATE AND SHALL SELECT, ON THE BASIS OF
THE MOST SOUND PROPOSAL:
(a) AN INSURANCE COMPANY QUALIFIED UNDER
SECTION 2454105 (1); OR
(b) A NONINSURED TRUST RETIREMENT PLAN,
WITH A BANK OR TRUST COMPANY AUTHORIZED TO EXERCISE TRUST POWERS
IN THIS STATE AS TRUSTEE, INVESTED BY THE TRUSTEE PURSUANT TO
THE PROVISIONS OF PART 3 OF ARTICLE 1 OF TITLE 15, C.R.S., BUT,
OF THE INITIAL AND SUBSEQUENT SUMS OF MONEY AVAILABLE FOR INVESTMENT,
THE TRUSTEE SHALL INVEST ONLY IN SUCH INVESTMENTS AS ARE SPECIFIED
IN SECTION 2454112; OR
(c) A NONINSURED TRUST RETIREMENT PLAN,
INVESTED BY THE TREASURER OF THE PLAN IN SUCH SECURITIES AS ARE
SPECIFIED IN SECTION 2454112; OR
(d) PARTICIPATION IN THE PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION, PURSUANT TO ARTICLE 51 OF THIS TITLE.
(3) THE RETIREMENT BOARD OF ANY INDIVIDUAL
COUNTY RETIREMENT PLAN SHALL HEAR AND DECIDE ALL APPLICATIONS
FOR RELIEF, PENSIONS, ANNUITIES, RETIREMENT, OR OTHER BENEFITS
PURSUANT TO THE PLAN OR SYSTEM ADOPTED. A RECORD OF SUCH ACTION
AND ALL OTHER MATTERS PROPERLY COMING BEFORE SAID RETIREMENT BOARD
SHALL BE KEPT AND PRESERVED.
(4) THE COUNTY TREASURER SHALL SERVE AS
THE TREASURER OF THE INDIVIDUAL COUNTY RETIREMENT PLAN. NO FEE
THEREFOR SHALL BE CHARGED BY THE TREASURER PURSUANT TO THE PROVISIONS
OF SECTION 301102, C.R.S., OR ANY OTHER PROVISION
OF LAW.
SECTION 3. Article
54 of title 24, Colorado Revised Statutes, 1988 Repl. Vol., as
amended, is amended BY THE ADDITION OF A NEW SECTION to read:
2454112. Investments.
(1) THE RETIREMENT BOARD SHALL HAVE COMPLETE CONTROL
AND AUTHORITY TO INVEST THE FUNDS OF THE PLAN.
(2) INVESTMENTS MAY BE MADE WITHOUT LIMITATION
IN THE FOLLOWING:
(a) OBLIGATIONS OF THE UNITED STATES GOVERNMENT;
(b) OBLIGATIONS FULLY GUARANTEED AS TO
PRINCIPAL AND INTEREST BY THE UNITED STATES GOVERNMENT;
(c) STATE AND MUNICIPAL BONDS;
(d) NOTES, BONDS, AND DEBENTURES, WHETHER
OR NOT CONVERTIBLE;
(e) RAILROAD EQUIPMENT TRUST CERTIFICATES;
(f) REAL PROPERTY; EXCEPT THAT, ON OR
AFTER JULY 1, 2002, THE AGGREGATE AMOUNT OF MONEYS INVESTED IN
REAL PROPERTY SHALL NOT EXCEED TEN PERCENT OF THE THEN BOOK VALUE
OF THE PLAN;
(g) LOANS SECURED BY FIRST OR SECOND MORTGAGES
OR DEEDS OF TRUST ON REAL PROPERTY; EXCEPT THAT THE ORIGINATION
OF MORTGAGES OR DEEDS OF TRUST ON RESIDENTIAL REAL PROPERTY IS
PROHIBITED. FOR THE PURPOSES OF THIS PARAGRAPH (g), "RESIDENTIAL
REAL PROPERTY" MEANS ANY REAL PROPERTY UPON WHICH THERE IS
OR WILL BE PLACED A STRUCTURE DESIGNED PRINCIPALLY FOR THE OCCUPANCY
OF NO MORE THAN FOUR FAMILIES, A MOBILE HOME, OR A CONDOMINIUM
UNIT OR COOPERATIVE UNIT DESIGNED PRINCIPALLY FOR THE OCCUPANCY
OF NO MORE THAN FOUR FAMILIES.
(h) INVESTMENTS IN STOCKS OR BENEFICIAL
INTERESTS IN ENTITIES FORMED FOR THE OWNERSHIP OF REAL PROPERTY
BY TAXEXEMPT ORGANIZATIONS PURSUANT TO SECTION 501 (c) (25)
OF THE FEDERAL "INTERNAL REVENUE CODE OF 1986", AS AMENDED;
EXCEPT THAT THE PERCENTAGE OF ANY ENTITY'S OUTSTANDING STOCKS
OR BONDS OWNED BY THE PLAN SHALL NOT BE LIMITED BY THE PROVISIONS
OF PARAGRAPH (b) OF SUBSECTION (3) OF THIS SECTION;
(i) PARTICIPATION AGREEMENTS WITH LIFE
INSURANCE COMPANIES; AND
(j) ANY OTHER TYPE OF INVESTMENT AGREEMENTS.
(3) INVESTMENTS MAY ALSO BE MADE IN EITHER
COMMON OR PREFERRED STOCK WITH THE FOLLOWING LIMITATIONS:
(a) THE AGGREGATE AMOUNT OF MONEYS INVESTED
IN CORPORATE STOCKS OR CORPORATE BONDS, NOTES, OR DEBENTURES THAT
ARE CONVERTIBLE INTO CORPORATE STOCK OR INVESTMENT TRUST SHARES
SHALL NOT EXCEED SIXTYFIVE PERCENT OF THE THEN BOOK VALUE
OF THE PLAN.
(b) NO INVESTMENT OF THE PLAN IN COMMON
OR PREFERRED STOCKS, OR BOTH, OF ANY SINGLE CORPORATION SHALL
BE IN AN AMOUNT THAT EXCEEDS FIVE PERCENT OF THE THEN BOOK VALUE
OF THE PLAN, AND THE PLAN SHALL NOT ACQUIRE MORE THAN TWELVE PERCENT
OF THE OUTSTANDING STOCKS OR BONDS OF ANY SINGLE CORPORATION.
(c) THE LIMITATIONS SPECIFIED IN SUBSECTION
(2) OF THIS SECTION AND THIS SUBSECTION (3) SHALL NOT APPLY TO
INVESTMENTS SELFDIRECTED BY PARTICIPANTS IN THE PLAN.
SECTION 4. 2454101
(5), Colorado Revised Statutes, 1988 Repl. Vol., is amended, and
the said 2454101 is further amended BY THE ADDITION
OF THE FOLLOWING NEW SUBSECTIONS, to read:
2454101. Authorization
to establish and maintain retirement system.
(2.5) ANY PENSION PLAN OR SYSTEM OF RETIREMENT BENEFITS
ESTABLISHED BY A COUNTY OR COUNTIES MAY INCLUDE PARTICIPATING
COUNTY DEPARTMENTS OF HEALTH AND SOCIAL SERVICES, LIBRARY DISTRICTS
ORGANIZED OR EXISTING PURSUANT TO PART 1 OF ARTICLE 90 OF THIS
TITLE LOCATED IN WHOLE OR IN PART WITHIN THOSE COUNTIES, AND THE
DISTRICT ATTORNEYS' OFFICES SERVING THOSE COUNTIES.
(5) Any county, municipality, or
district, OR OTHER PARTICIPATING ENTITY not participating in the
social security system pursuant to the provisions of article 53
of this title shall also have the authority to establish a plan
extending benefits to its employees in lieu of those benefits
provided by the social security act, as defined in section 2453101.
(6) THE BOARD OF ANY RETIREMENT PLAN ESTABLISHED
IN ACCORDANCE WITH SUBSECTIONS (1), (2), AND (2.5) OF THIS SECTION
MAY ALLOW ITS EMPLOYEES TO PARTICIPATE AS MEMBERS OF SUCH PLAN.
SECTION 5. 2454103,
Colorado Revised Statutes, 1988 Repl. Vol., is amended to read:
2454103. Prior service
benefits. Employees of a county,
municipality, or
district, OR OTHER PARTICIPATING ENTITY which
THAT adopts a retirement plan or system may receive prior service
benefits not to exceed five years to be funded entirely by the
county, municipality, or
district, OR OTHER PARTICIPATING ENTITY; but prior service benefits
in excess of five years may be allowed if funded entirely by the
employee.
SECTION 6. 2454104,
Colorado Revised Statutes, 1988 Repl. Vol., is amended to read:
2454104. Funds for plan
or system additional contribution.
(1) Except as otherwise provided in this section, any
plan or system adopted pursuant to the provisions of this article
shall require participants to contribute a percentage of their
salaries toward the cost thereof, such rate of contribution to
be not less than that made by the county, municipality, or
district, OR OTHER PARTICIPATING ENTITY, and the employee contributions
pursuant to any such plan shall be not more than six percent of
said employee's basic salary or wage. Participation in the public
employees' retirement association shall be as provided by article
51 of this title.
(2) At such time as the county, municipality,
or district,
OR OTHER PARTICIPATING ENTITY and the employee each contributes
six percent of the basic salary or wage of the employee, the county,
municipality, or
district, OR OTHER PARTICIPATING ENTITY may elect to make an additional
contribution out of federal revenuesharing funds not otherwise
appropriated of not more than two percent of said basic salary
or wage, but such additional contribution shall be contingent
upon an additional contribution by the employee of an equal amount.
(3) When a plan in lieu of social security
benefits is established pursuant to the provisions of section
2454101 (5), such plan may require additional contributions
from the county, municipality, or
district, OR OTHER PARTICIPATING ENTITY and its employees, and
said contributions shall be set at a rate not to exceed the total
contribution required by the county, municipality, or
district, OR OTHER PARTICIPATING ENTITY and its employees pursuant
to the "Federal Insurance Contributions Act", as defined
in section 2453101.
(4) Any plan or system adopted pursuant
to this article may, pursuant to the provisions of section 414
(h) (2) of the federal "Internal Revenue Code of 1986",
as amended, provide that the county, municipality, or
district, OR OTHER PARTICIPATING ENTITY may elect to pick up the
contributions of employee or elected official participants required
in this section.
SECTION 7. 2454106,
Colorado Revised Statutes, 1988 Repl. Vol., is amended to read:
2454106. Association shall
be formed. Any county, or group
of counties, any municipality or group of municipalities, or
any district or group of districts, OR ANY OTHER PARTICIPATING
ENTITY OR GROUP OF PARTICIPATING ENTITIES adopting a retirement
plan or system pursuant to the provisions of this article shall
form and maintain an association for the purchase, establishment,
or procurement of a group annuity retirement plan or a noninsured
trust retirement plan. Any such association so formed shall be
an instrumentality of the members thereof. The cost and expenses
incident to the formation and maintenance of such an association
and the consideration paid by any county, any municipality, or
any district, OR ANY OTHER PARTICIPATING ENTITY as an employer
pursuant to any such plan are proper charges against the county,
the municipality, or
the district, OR ANY OTHER PARTICIPATING ENTITY comprising the
association.
SECTION 8. 2454107,
Colorado Revised Statutes, 1988 Repl. Vol., is amended BY THE
ADDITION OF A NEW SUBSECTION to read:
2454107. Boards of retirement.
(4) THE MANAGEMENT OF A COUNTY RETIREMENT SYSTEM UNDER
SECTION 2454101 (2.5) SHALL BE VESTED IN A COUNTY
BOARD OF RETIREMENT CONSISTING OF FIVE MEMBERS, ONE OF WHOM SHALL
BE THE COUNTY TREASURER OF THE COUNTY IN THE SYSTEM OR FROM THE
COUNTY WITH THE LARGEST POPULATION IF TWO OR MORE COUNTIES ARE
INVOLVED, TWO OF WHOM SHALL BE NONELECTED EMPLOYEES OF THE PLAN'S
PARTICIPATING EMPLOYERS ELECTED BY THE PLAN'S PARTICIPATING EMPLOYEES
WITHIN THIRTY DAYS AFTER THE RETIREMENT SYSTEM BECOMES OPERATIVE,
AND TWO OF WHOM SHALL BE REGISTERED ELECTORS OF THE COUNTY CHOSEN
BY THE BOARD OF COUNTY COMMISSIONERS OF SUCH COUNTY. THE COUNTY
BOARD OF RETIREMENT SHALL ESTABLISH, BY ITS OWN RULES, STAGGERED
FOURYEAR TERMS FOR ITS BOARD MEMBERS.
SECTION 9. 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.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Joan M. Albi Judith M. Rodrigue
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE OF COLORADO