First Regular Session
Sixty-first General Assembly
LLS NO. 970750.01D GWF
SENATE BILL 97229
STATE OF COLORADO
BY SENATORS Mutzebaugh and Congrove;
also REPRESENTATIVE Lamborn. STATE, VETERANS &
A BILL FOR AN ACT
CONCERNING THE REFUNDING OF MATCHING EMPLOYER CONTRIBUTIONS
PAID TO THE PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION ON BEHALF
OF SPECIFIED MEMBERS OF THE STATE DIVISION OF THE ASSOCIATION.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments which may be subsequently
Provides that members of the public employees' retirement
association (PERA) who were state officials or who were parttime,
temporary, or seasonal employees of the state may, upon terminating
membership with PERA, receive repayment of all matching employer
contributions paid on their behalf to PERA while they were state
officials, parttime, temporary, or seasonal employees, plus
interest at a specified rate. Allows state officials and parttime,
temporary, and seasonal employees to receive refunds of PERA member
accounts and repayments of matching employer contributions directly
or to have any such amounts transferred to a qualified plan or
account pursuant to federal law.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. The general assembly hereby finds, determines, and declares that the payment of matching employer contributions to the public employees' retirement association (PERA) on behalf of state officials and other employees of the state promotes the hiring and retention of qualified public officials and employees and encourages prudent and responsible retirement planning. The general assembly further finds, however, that because of the imposition of term limits for elected officials, certain state officials are more likely to request a refund of their contributions and repayment of matching employer contributions upon terminating membership with PERA and, therefore, not receive pension benefits from PERA. Similarly, it is unlikely that many parttime, temporary, and seasonal employees of the state will ever accumulate sufficient service credit to receive a pension benefit from PERA. Accordingly, the general assembly finds that allowing PERA to retain matching employer contributions from certain state officials and employees inhibits the ability of the state to attract and retain the most qualified state officials and employees, restricts the ability of certain state officials and employees to plan prudently for retirement, and provides an unearned benefit to PERA and its members from the compensation of certain state officials and employees who never receive a retirement benefit from PERA. The general assembly further finds that the state will be better able to attract the most qualified state officials and employees, that such officials and employees will be better able to plan for retirement, and that the financial stability of PERA will not be jeopardized by allowing certain state officials and employees, upon terminating their membership with PERA, to receive a refund of all employee contributions as well as all employer matching contributions paid to PERA on their behalf, plus interest.
SECTION 2. 2451101, Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SUBSECTION to read:
2451101. Definitions. (45.5) "STATE OFFICIAL" MEANS A MEMBER OF THE GENERAL ASSEMBLY, ANY OTHER ELECTED STATE OFFICIAL, THE DEPUTY SECRETARY OF STATE, THE DEPUTY STATE TREASURER, AND MEMBERS OF THE PUBLIC UTILITIES COMMISSION.
SECTION 3. 2451408, Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SUBSECTION to read:
2451408. Matching employer contributions. (3) (a) FOR MEMBERS WHO WERE STATE OFFICIALS OR WHO WERE PARTTIME, TEMPORARY, OR SEASONAL EMPLOYEES OF THE STATE AND THOSE WHO CHOOSE TO ROLLOVER PURSUANT TO SUBSECTION (b) OF THIS SECTION, ON OR AFTER THE EFFECTIVE DATE OF THIS ACT MATCHING EMPLOYER CONTRIBUTIONS SHALL BE EQUAL TO THE TOTAL AMOUNT OF ALL MATCHING EMPLOYER CONTRIBUTIONS FORWARDED TO THE ASSOCIATION FOR THE MEMBER PURSUANT TO SECTION 2451401 FOR SUCH TIME AS THE MEMBER SERVED AS A STATE OFFICIAL OR AS A PARTTIME, TEMPORARY, OR SEASONAL EMPLOYEE OF THE STATE, PLUS INTEREST, COMPOUNDED ANNUALLY AT THE FOLLOWING RATE:
(I) FOR MATCHING EMPLOYER CONTRIBUTIONS FORWARDED TO THE ASSOCIATION PRIOR TO THE EFFECTIVE DATE OF THIS ACT SIX AND EIGHTTENTHS PERCENT.
(II) FOR MATCHING EMPLOYER CONTRIBUTIONS FORWARDED TO THE ASSOCIATION ON OR AFTER THE EFFECTIVE DATE OF THIS ACT EIGHTY PERCENT OF THE ACTUARIAL INVESTMENT ASSUMPTION RATE FOR INTEREST ON MEMBER CONTRIBUTIONS.
(b) THE AMOUNT OF MATCHING EMPLOYER CONTRIBUTIONS PAID PURSUANT TO THIS SUBSECTION (3), ALONG WITH ANY REFUND OF ANY OTHER MONEYS CREDITED TO THE MEMBER CONTRIBUTION ACCOUNT OF A STATE OFFICIAL OR A PARTTIME, TEMPORARY, OR SEASONAL EMPLOYEE OF THE STATE PURSUANT TO 2451405, MAY BE ROLLED OVER OR OTHERWISE TRANSFERRED CONSISTENT WITH FEDERAL LAW TO ANOTHER QUALIFIED PLAN OR ACCOUNT.
SECTION 4. Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninetyday period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.