BY SENATORS Coffman and Tebedo;
also REPRESENTATIVE Pfiffner.
CONCERNING THE STATE DEFERRED COMPENSATION PLAN.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 2452102
(1) (a), (1) (d) (I), (1) (f), (2) (a), (3), and (5), Colorado
Revised Statutes, are amended to read:
2452102. Deferred compensation
plan state deferred compensation committee.
(1) (a) (I) (A) THIRTY DAYS AFTER THE
DATE THAT IS THE EFFECTIVE DATE OF THIS PARAGRAPH (a), AS AMENDED,
THE EXISTING STATE DEFERRED COMPENSATION COMMITTEE IS ABOLISHED,
AND, EXCEPT AS OTHERWISE PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH (a), THE TERMS OF THE MEMBERS OF THE COMMITTEE THEN
SERVING ARE TERMINATED.
(B) THIRTY DAYS AFTER THE DATE THAT IS
THE EFFECTIVE DATE OF THIS PARAGRAPH (a), AS AMENDED, there is
hereby created the state deferred compensation committee consisting
of the following nine members: The state treasurer, the state
controller, or their designees; four employees who are participants
in the plan and who are elected by participants in the plan; an
employee A PARTICIPANT IN THE PLAN
WHO SHALL BE appointed by the governor; and two members of the
general assembly, one a senator, OR FORMER SENATOR WHO IS NO LONGER
SERVING IN THE GENERAL ASSEMBLY AT THE TIME OF APPOINTMENT AND
WHO IS A PARTICIPANT IN THE PLAN, to be appointed by the president
of the senate and one a representative, OR FORMER REPRESENTATIVE
WHO IS NO LONGER SERVING IN THE GENERAL ASSEMBLY AND WHO IS A
PARTICIPANT IN THE PLAN, to be appointed by the speaker of the
house of representatives. Each member who is a state official
or the member's designee shall serve on the committee for the
duration of the member's elected or appointed term of office.
and the
Members who are members of the general assembly shall serve on
the committee for the duration of their elected terms of office
as members of the general assembly; except that A FORMER SENATOR
OR REPRESENTATIVE WHO WAS NOT SERVING IN THE GENERAL ASSEMBLY
AT THE TIME OF APPOINTMENT SHALL SERVE AT THE PLEASURE OF THE
OFFICIAL WHO APPOINTED SUCH INDIVIDUAL TO THE COMMITTEE AND the
employee
PARTICIPANT IN THE PLAN appointed by the governor shall serve
at the pleasure of the governor.
(II) On and
after July 1, 1996, THIRTY DAYS AFTER
THE DATE THAT IS THE EFFECTIVE DATE OF THIS PARAGRAPH (a), AS
AMENDED, the committee members representing
the ELECTED BY PARTICIPANTS IN THE
plan participants
shall be elected for terms of four years; except that of
the two members elected for terms commencing July 1, 1996, one
member shall serve for a term of four years and one member shall
serve for a term of three years ELECTED
MEMBERS WHO REPRESENTED PLAN PARTICIPANTS ON THE STATE DEFERRED
COMPENSATION COMMITTEE ABOLISHED PURSUANT TO SUBSUBPARAGRAPH
(A) OF SUBPARAGRAPH (I) OF THIS PARAGRAPH (a) AT THE TIME SUCH
COMMITTEE WAS ABOLISHED SHALL SERVE ON THE COMMITTEE CREATED IN
SUBSUBPARAGRAPH (B) OF SUBPARAGRAPH (I) OF THIS PARAGRAPH
(a) AS THE MEMBERS ELECTED BY PARTICIPANTS IN THE PLAN FOR TERMS
ENDING ON THE DATE THAT THEIR TERMS ON THE ABOLISHED COMMITTEE
WERE SCHEDULED TO EXPIRE. The procedure for the election of the
committee members representing
ELECTED BY PARTICIPANTS IN THE plan participants
shall be established by the committee. Vacancies of elected committee
members representing
ELECTED BY PARTICIPANTS IN THE plan participants
shall be filled by election for the unexpired term.
(d) (I) The committee shall exercise
its functions over which it has substantial discretion solely
in the interest of the benefit recipients
of the plan PARTICIPANTS AND THEIR
BENEFICIARIES and for the exclusive purpose of providing benefits
and defraying reasonable expenses incurred in administering the
plan. The committee shall act in accordance with the provisions
of this article and with the care, skill, and diligence in light
of the circumstances then prevailing that a person acting in a
like capacity and familiar with such matters would use in the
conduct of an enterprise of like character and with like aims.
THE COMMITTEE SHALL BE THE TRUSTEE OF ANY TRUST ESTABLISHED PURSUANT
TO THE PROVISIONS OF THIS ARTICLE.
(f) (I) The committee, IN ITS CAPACITY
AS COMMITTEE AND TRUSTEE, shall be considered a public entity
for purposes of the "Colorado Governmental Immunity Act",
article 10 of this title, and shall be included in the coverage
provided by the risk management fund pursuant to the provisions
of section 24301510.
(II) The committee, IN ITS CAPACITY AS
COMMITTEE AND TRUSTEE, may obtain, and the plan shall pay for,
insurance or shall selfinsure against liability which may
arise out of, or is in connection with, the performance of duties
by any member of the committee or employee of the plan.
(2) (a) The administrator may establish
and administer a deferred compensation plan for employees in addition
to any retirement, pension, benefit, or other deferred compensation
plans established by the state or a political subdivision. ALL
ASSETS AND INCOME OF THE PLAN SHALL BE HELD IN TRUST FOR THE EXCLUSIVE
BENEFIT OF PLAN PARTICIPANTS AND THEIR BENEFICIARIES AND TO PAY
PLAN EXPENSES IN ACCORDANCE WITH SECTION 457 (g) OF THE FEDERAL
"INTERNAL REVENUE CODE OF 1986", AS AMENDED. THE PLAN,
INCLUDING ANY ASSOCIATED TRUST, SHALL BE AN ELIGIBLE DEFERRED
COMPENSATION PLAN AS DEFINED IN SECTION 457 (b) OF THE FEDERAL
"INTERNAL REVENUE CODE OF 1986", AS AMENDED.
(3) An employee may enter into a written
agreement with the state or a political subdivision to defer any
part of his
THE EMPLOYEE'S compensation for investment as provided by this
article. The total annual amount deferred shall not exceed the
employee's annual salary under applicable salary schedules or
compensation plans AND SHALL NOT EXCEED ANY LIMITS IMPOSED UNDER
THE PLAN.
(5) (a) The administrator
COMMITTEE may assess each participating
employee STATE PARTICIPANT a fee
for administering the fund
STATE DEFERRED COMPENSATION PLAN which shall be automatically
deducted and which shall not exceed one percent of the participating
employee's assets in the STATE deferred compensation plan. All
fees collected pursuant to this subsection (5) shall be transmitted
to the state treasurer, who shall credit the same to the deferred
compensation ADMINISTRATION fund, which fund is hereby created.
ALL INVESTMENT INCOME DERIVED FROM MONEYS IN THE FUND SHALL BE
CREDITED TO THE FUND. AT THE END OF ANY FISCAL YEAR, ALL UNEXPENDED
AND UNENCUMBERED MONEYS IN THE FUND SHALL REMAIN THEREIN AND SHALL
NOT BE CREDITED OR TRANSFERRED TO THE GENERAL FUND OR ANY OTHER
FUND. The general assembly shall make annual appropriations from
such fund for the direct and indirect costs of administration
of the plan under this article. Any fees OR OTHER MONEYS in excess
of expenditures shall be used to reduce PLAN participants' annual
fees in the following year
SUBSEQUENT YEARS.
(b) COMPENSATION DEFERRED BY PARTICIPANTS
IN THE STATE DEFERRED COMPENSATION PLAN SHALL BE CREDITED TO THE
DEFERRED COMPENSATION PLAN ASSET FUND, WHICH FUND IS HEREBY CREATED.
ALL INVESTMENT INCOME DERIVED FROM COMPENSATION DEFERRED BY PLAN
PARTICIPANTS PRIOR TO THE TRANSMITTAL OF SUCH DEFERRALS TO THE
PLAN SHALL BE CREDITED TO THE STATE DEFERRED COMPENSATION ADMINISTRATION
FUND CREATED IN PARAGRAPH (a) OF THIS SUBSECTION (5) FOR THE PURPOSE
OF REDUCING THE ADMINISTRATIVE FEES OF PLAN PARTICIPANTS.
SECTION 2. 2452103
(2), Colorado Revised Statutes, is amended to read:
2452103. Deferred compensation
investment. (2) ASSETS
AND INCOME OF THE STATE DEFERRED COMPENSATION PLAN SHALL NOT BE
GENERAL ASSETS OF THE STATE AND, THEREFORE, investments made pursuant
to this section shall not be construed to be a prohibited use
of the general assets of the state.
SECTION 3. 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.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Patricia K. Dicks Judith M. Rodrigue
ASSISTANT SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO