C.R.S.
Section 24-51-101
Definitions
(1)
“Actuarial equivalent” means an amount equal to a specified benefit based on an assumed interest rate and life expectancy.(2)
“Actuarial investment assumption rate” means the assumed rate of return from investments as set by the board with the advice of the actuary.(3)
“Actuarial valuation” means the determination, as of a valuation date, of the normal cost, actuarial accrued liability, actuarial value of assets, and related actuarial present values of the plan.(4)
“Actuary” or “actuaries” means the professional consultants retained by the board to review statistics and make periodic evaluations of the finances needed for the payment of future retirement benefits, survivor benefits, and health-care subsidies.(5)
“Amortization period” means the number of years which is required to gradually extinguish the unfunded actuarial accrued liabilities of the plan if future actuarial experience exactly matches the assumptions set by the board.(6)
“Association” means the public employees’ retirement association created pursuant to the provisions of section 24-51-201.(6.5)
“Base benefit” means the initial benefit for a benefit that becomes effective after March 1, 2009. For a benefit that became effective on or before March 1, 2009, “base benefit” means the total benefit payable as of June 30, 2010, including the sum of the initial benefit, accumulated annual increases, and cost of living increases.(7)
“Benefit” means the monthly payment for service retirement, disability retirement, or survivor benefits. A refund pursuant to the provisions of section 24-51-405 or a single payment to a survivor is not a “benefit”.(8)
“Benefit recipient” means a retiree, spouse, cobeneficiary, qualified child, or dependent parent receiving monthly service retirement, disability retirement, or survivor benefits. “Benefit recipient” does not include a person who has received a refund pursuant to the provisions of section 24-51-405 or a single payment.(9)
“Board” means the board of trustees created pursuant to the provisions of section 24-51-202 which has such duties and powers authorized by this article for the management of the association.(10)
“Cobeneficiary” means:(a)
The person or supplemental needs trust selected by the member or ordered by court decree prior to retirement to be the person selected under option 2 or 3 pursuant to the provisions of section 24-51-801 to receive a continuing benefit upon the retiree’s death; or(b)
The person or supplemental needs trust designated by a member eligible for service retirement or ordered by a court decree prior to retirement to be the person selected to receive option 3 upon the member’s death pursuant to the provisions of section 24-51-906.(11)
Repealed.(13.5)
“Deferred compensation plan” means an eligible deferred compensation plan established and administered pursuant to the provisions of 26 U.S.C. sec. 457 (b), as amended.(14)
“Dependent parents” means, for survivor benefits purposes, parents who received fifty percent or more of their support from the member at the time of the member’s death. “Dependent parents” also means parents who receive fifty percent or more of their support from a benefit recipient at the time they request eligibility for the health care program.(15)
“Dependents” means the spouse, qualified children, and dependent parents of a benefit recipient.(16)
“Disability” means mental or physical incapacitation as determined pursuant to part 7 of this article.(17)
“Disabled” means mentally or physically incapacitated as determined pursuant to part 7 of this article.(18)
“Division” means the state, school, local government, judicial, or Denver public schools division, each of which is identified by a separate trust fund, amortization period, and membership.(18.2)
“DPS” means Denver public schools.(18.3)
“DPS member” means any person who has an existing member account in the DPS plan on December 31, 2009, or has an existing member account based on service performed prior to January 1, 2010, for which such member received compensation on or after January 1, 2010.(18.5)
“DPS plan” means the Denver public schools retirement system retirement and benefit plan enacted by the Denver public schools board of education pursuant to section 22-64-202, C.R.S., and governed by article 64 of title 22 and related plan documents, as amended, from inception to the repeal of said article. After May 21, 2009, the DPS plan may be amended solely for the purposes of complying with the federal “Internal Revenue Code of 1986”, as amended, and such amendments shall be included in the DPS plan.(18.7)
“DPS retiree” means a person who is receiving a service retirement or disability benefit from the association pursuant to part 17 of this article.(19)
“Effective date of retirement” means the date after termination of employment on which the member becomes eligible for benefits.(20)
“Employer” means the state of Colorado, the general assembly, any state department, board, commission, bureau, agency, or institution, the Colorado association of school boards, the Colorado high school activities association, the Colorado association of school executives, the fire and police pension association, the special districts association, the Colorado water resources and power development authority, the public employees’ retirement association, the Colorado consortium for earth and space science education, all school districts in Colorado, and any political subdivision, city, municipality, county, housing authority, special district, library district, regional planning commission, public hospital, county or district public health agency, state university, state college, state local district college, or other public entity that is affiliated with the plan.(21)
“Employer contribution” means the money paid by an employer to the association pursuant to the provisions of section 24-51-401 (1.7) for all member salaries paid and other required employer contributions made pursuant to the provisions of section 24-51-402.(21.5)
“Erroneous contribution” means an amount contributed in error to a member contribution account based on compensation that is not salary as defined in subsection (42) of this section.(22)
“Former member” means an individual who received a refund upon termination of employment pursuant to the provisions of section 24-51-405.(23)
“Fund” means the total assets of the association which are credited to the various trust funds established and invested by the association pursuant to the provisions of this article.(24)
“Health care” means the program provided for in part 12 of this article.(25)
Intentionally left blank —Ed.(a)
“Highest average salary” means:(I)
Intentionally left blank —Ed.(A)
For a member or inactive member who has five years of service credit on December 31, 2019, or a retiree who was retired on December 31, 2019, one-twelfth of the average of the highest annual salaries upon which contributions were paid, whether earned from one or more employers, that are associated with three periods of twelve consecutive months of service credit;(B)
For a member or inactive member who does not have five years of service credit on December 31, 2019, or a member who was not a member, inactive member, or retiree on December 31, 2019, one-twelfth of the average of the highest annual salaries upon which contributions were paid, whether earned from one or more employers, that are associated with five periods of twelve consecutive months of service credit;(II)
For a member who does not have the requisite years of service credit, one-twelfth of the average of the total annual salaries earned during membership upon which contributions were paid;(III)
For benefits that become effective on or after January 1, 1982, where the individual earned less than one year of service credit after December 31, 1980, one-twelfth of the average of the highest annual salaries upon which contributions were paid which were associated with five consecutive years of service credit;(IV)
Notwithstanding any other provision of this subsection (25)(a) to the contrary, for members of the judicial division who have five years of service credit on December 31, 2019, retiring on or after July 1, 1997, one-twelfth of the highest annual salary upon which contributions were paid for twelve consecutive months; or(V)
Notwithstanding any other provision of this subsection (25)(a) to the contrary, for members of the judicial division who do not have five years of service credit on December 31, 2019, or for members of the judicial division who were not members, inactive members, or retirees on December 31, 2019, one-twelfth of the average of the highest annual salaries upon which contributions were paid that are associated with three periods of twelve consecutive months of service credit.(b)
Intentionally left blank —Ed.(I)
In calculating highest average salary pursuant to subparagraph (I) of paragraph (a) of this subsection (25), for a member who was a member, inactive member, or retiree on December 31, 2006, and who has an effective date of retirement before January 1, 2009, if any annual salary used in said calculation was associated with service credit earned during the last three years of membership, each annual salary increase shall be limited to fifteen percent. This limitation shall not apply to salary decreases.(II)
In calculating highest average salary pursuant to subparagraph (I) of paragraph (a) of this subsection (25), for a member who was a member, inactive member, or retiree on December 31, 2006, and who has an effective date of retirement before January 1, 2009, if all annual salaries used in said calculation were associated with service credit earned prior to the last three years of membership, no fifteen percent limit shall be applied to the salary differences.(III)
In calculating highest average salary for a member who was a member, inactive member, or retiree on December 31, 2006, and who has an effective date of retirement on or after January 1, 2009, the association shall determine the highest annual salaries associated with four periods of twelve consecutive months of service credit. The lowest of such annual salaries shall be the base salary. The first annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred fifteen percent of the base salary. The second annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred fifteen percent of the first annual salary used in the highest average salary calculation. The third annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred fifteen percent of the second annual salary used in the highest average salary calculation.(IV)
In calculating highest average salary for a member who was not a member, inactive member, or retiree on December 31, 2006, the association shall determine the highest annual salaries associated with four periods of twelve consecutive months of service credit. The lowest of such annual salaries shall be the base salary. The first annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the base salary. The second annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the first annual salary used in the highest average salary calculation. The third annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the second annual salary used in the highest average salary calculation.(V)
Notwithstanding any other provision of this subsection (25)(b), in calculating highest average salary for a member or inactive member not eligible for service or reduced service retirement on January 1, 2011, and who was a member or inactive member with five years of service credit on December 31, 2019, or a retiree on December 31, 2019, the association shall determine the highest annual salaries associated with four periods of twelve consecutive months of service credit. The lowest of such annual salaries shall be the base salary. The first annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the base salary. The second annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the first annual salary used in the highest average salary calculation. The third annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the second annual salary used in the highest average salary calculation. This subsection (25)(b)(V) shall not apply to members of the judicial division, except for DPS members of the judicial division who have exercised portability pursuant to section 24-51-1747 and selected the Denver public schools benefit structure. This subsection (25)(b)(V) shall apply to DPS members in accordance with section 24-51-1702 (17).(VI)
Notwithstanding any other provision of this subsection (25)(b), in calculating highest average salary for a member or inactive member who does not have five years of service credit on December 31, 2019, or who was not a member, inactive member, or retiree on December 31, 2019, the association shall determine the highest annual salaries associated with six periods of twelve consecutive months of service credit. The lowest of such annual salaries shall be the base salary. The first annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the base salary. The second annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the first annual salary used in the highest average salary calculation. The third annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the second annual salary used in the highest average salary calculation. The fourth annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the third annual salary used in the highest average salary calculation. The fifth annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the fourth annual salary used in the highest average salary calculation. This subsection (25)(b)(VI) does not apply to members of the judicial division, except for DPS members of the judicial division who have exercised portability pursuant to section 24-51-1747 and selected the DPS benefit structure. This subsection (25)(b)(VI) applies to DPS members in accordance with section 24-51-1702 (17).(VII)
Notwithstanding any other provision of this subsection (25)(b), for members of the judicial division who do not have five years of service credit on December 31, 2019, or for members of the judicial division who were not members, inactive members, or retirees on December 31, 2019, the association shall determine the highest annual salaries associated with four periods of twelve consecutive months of service credit. The lowest of such annual salaries shall be the base salary. The first annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the base salary. The second annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the first annual salary used in the highest average salary calculation. The third annual salary to be used in the highest average salary calculation shall be the actual salary reported up to one hundred eight percent of the second annual salary used in the highest average salary calculation.(c)
For retirements on or before January 1, 1989, if a member had a rate of pay reduction occur within any calendar year used in the calculation of highest average salary, the calculation shall be the average of the highest three periods of twelve consecutive months of salary if this results in a higher average salary.(d)
Intentionally left blank —Ed.(I)
If a member has a rate of pay reduction resulting from the furloughing of such member during the 2002-03 or 2003-04 state fiscal years and the reduction occurs during any period of twelve consecutive months used to calculate the member’s highest average salary, the member may pay during the three months prior to the effective date of retirement the full member contribution upon and be credited with an amount equal to any such reduction for the period used in the calculation of highest average salary. If a member pays the member contribution pursuant to this paragraph (d), the employer shall forward to the association the full amount of the employer contribution on the amount of pay reduction within ten business days following notice by the association of the amount due. The rate of employer and employee contributions shall be as set forth in section 24-51-401 (1.7).(II)
Each employer shall forward to the association a list of its retired employees who had a furlough from July 1, 2002, through June 30, 2003. The list shall show the amount of pay reduction that resulted from the furlough of such employee for each month during that period. The retiree may pay the member contribution on such amount in full within thirty days of the date the association notifies the retiree of the amount due. If the employee pays that contribution, then the employer shall forward to the association the full amount of the employer contribution on the amount of pay reduction within ten business days following notice by the association of the amount due pursuant to subparagraph (I) of this paragraph (d). Upon receipt of both contributions, the association shall include the amount of pay reduction that resulted from the furlough for the period used in the calculation of highest average salary.(26)
“Inactive member” means a person who has terminated membership and is not making member contributions but who has money in a member contribution account. “Inactive member” includes persons making continuing payments in lieu of member contributions pursuant to the provisions of section 24-51-606 (2). Inactive members are not “members” as defined in subsection (29) of this section.(27)
“Initial benefit” means the first full monthly benefit paid to the benefit recipient or the first full monthly benefit paid to a benefit recipient after recalculation of the benefit pursuant to the provisions of sections 24-51-1103 and 24-51-1104.(28)
“Interest” means:(a)
The actuarial investment assumption rate compounded annually for any interest charged to a member or benefit recipient pursuant to the provisions of this article;(b)
The applicable actuarial investment assumption rate compounded annually for any interest charged to an employer pursuant to the provisions of this article; and(c)
The rate established by the board for each calendar year pursuant to the provisions of section 24-51-407 for interest on member contributions.(28.5)
“Matching employer contributions” means:(a)
The portion of employer contributions used together with the member contribution account to determine the amount of a member’s money purchase retirement benefit pursuant to the provisions of sections 24-51-408 (1) and 24-51-605.5 (2); and(b)
The portion of employer contributions paid together with the refund of the member contribution account to members who have terminated membership pursuant to the provisions of sections 24-51-405 and 24-51-408 (2).(29)
“Member” means any employee of an employer defined in subsection (20) of this section who works in a position which is subject to membership in the association and for whom contributions are made. “Member” includes such employee during leaves of absence without pay during which the employer-employee relationship continues if the period of leave is certified to the association by the employer. “Member” also includes any person hired by an employer affiliated with the Denver public schools division who is not a DPS member, unless otherwise indicated. “Member” does not include persons who have terminated employment or died.(30)
“Member contribution” means the money paid to the association that equals a percentage of the member’s salary as determined pursuant to the provisions of section 24-51-401 (1.7). “Member contribution” does not include working retiree contributions as defined in subsection (53) of this section.(31)
“Member contribution account” means an account maintained for each member in the member contribution reserve to which member contributions, interest on member contributions, payments in lieu of member contributions, and payments and interest made for purchases of service credit are credited.(32)
“Members of the judicial division” means justices of the supreme court and judges of the court of appeals, district courts, county courts, probate courts, and juvenile courts.(33)
“Named beneficiary” means any person designated in writing by a member to receive a single payment upon the death of the member when survivor benefits are not payable.(34)
“Plan” means the design of the association which is established for the purpose of providing employers, members, and cobeneficiaries and named beneficiaries of such members, such rights, obligations, and duties as provided for in the provisions of this article.(34.5)
“Portability” means the provisions of section 24-51-1747.(35)
“Premium” means the total amount charged by a life insurer, health insurer, health maintenance organization, health-care provider, or by the association for each participant and shall be equal to the total of the amount paid by the participant and the premium subsidy, if any, paid by the plan.(36)
“Projected service credit” means the service credit which would have been earned if the retiree receiving disability retirement benefits had continued membership until reaching sixty-five years of age; except that a member’s service credit, including any projected service credit, cannot exceed twenty years.(37)
“Qualified children” means natural or adopted children of a member who are unmarried and under eighteen years of age or who are unmarried and eighteen years of age or older but under twenty-three years of age if enrolled full time in an accredited school within six months after the date of death of such member. “Qualified children” includes any children who become mentally or physically incapacitated prior to attaining such age or marital status which precludes them from obtaining gainful employment, and such children shall continue to be considered qualified children so long as such disability continues.(38)
Repealed.(39)
“Retiree” means a person who is receiving a service or disability retirement benefit from the association pursuant to part 6 or 7 of this article.(40)
“Retirement” means the time when the retiree is receiving retirement benefits pursuant to part 6 or 7 of this article.(41)
“Retirement benefit” means the monthly service retirement benefit or the disability retirement benefit provided for in this article.(II)
For members who were members, inactive members, or retirees of the association on June 30, 2019, “salary” does not include: Commissions; compensation for unused sick, annual, vacation, administrative, or other accumulated paid leave contributed to a health savings account as defined in 26 U.S.C. sec. 223, as amended, or a retirement health savings program; housing allowances; uniform allowances; automobile usage; insurance premiums; dependent care assistance; reimbursement for expenses incurred; tuition or any other fringe benefits, regardless of federal taxation; bonuses for services not actually rendered, including, but not limited to, early retirement inducements, Christmas bonuses, cash awards, honorariums and severance pay, damages, except for retroactive salary payments paid pursuant to court orders or arbitration awards or litigation and grievance settlements, or payments beyond the date of a member’s death.(b)
Intentionally left blank —Ed.(I)
“Salary” means, for members who were not members, inactive members, or retirees of the association on June 30, 2019, compensation for services rendered to an employer and includes: Regular salary or pay; any pay for administrative, sabbatical, annual, sick, vacation, or personal leave and compensation for unused leave converted to cash payments; pay for compensatory time or holidays; payments by an employer from grants; amounts deducted from pay pursuant to tax-sheltered savings or retirement programs; amounts deducted from pay for a health savings account as defined in 26 U.S.C. sec. 223, as amended, or any other type of retirement health savings account program; amounts deducted from pay pursuant to a cafeteria plan as defined in 26 U.S.C. sec. 125, as amended; a qualified transportation fringe benefit plan as defined in 26 U.S.C. sec. 132, as amended; performance or merit payments, if approved by the board; special pay for work-related injuries paid by the employer prior to termination of membership; and retroactive salary payments pursuant to court orders, arbitration awards, or litigation and grievance settlements.(II)
For members who were not members, inactive members, or retirees of the association on June 30, 2019,“salary” does not include: Commissions; compensation for unused sick, annual, vacation, administrative, or other accumulated paid leave contributed to a health savings account as defined in 26 U.S.C. sec. 223, as amended, or a retirement health savings program; housing allowances; uniform allowances; automobile usage; insurance premiums paid by employers; reimbursement for expenses incurred; tuition or any other fringe benefits, regardless of federal taxation; bonuses for services not actually rendered, including, but not limited to, early retirement inducements, Christmas bonuses, cash awards, honorariums and severance pay, damages, except for retroactive salary payments paid pursuant to court orders or arbitration awards or litigation and grievance settlements, or payments beyond the date of a member’s death.(c)
Compensation received by DPS members on or before December 31, 2009, shall be governed by part 17 of this article for purposes of determining includable salary. On and after January 1, 2010, compensation received by DPS members shall be governed by paragraphs (a) and (b) of this subsection (42) for purposes of determining includable salary. Any adjustments to compensation shall be governed by the provisions in effect for the period for which the adjustment applied.(43)
“Service credit” means the total of all earned, purchased, projected, and uniformed service credit; however, it does not necessarily equal the number of years employed.(44)
“Service credit purchase agreement” means the agreement between the member and the association with regard to the service credit eligible for purchase, the cost of the purchase, the date the payment is to begin and end, and the method of payment.(45)
“Single payment” means the one-time payment of the moneys credited to the member contribution account of a deceased member or deceased inactive member, together with matching employer contributions. A “single payment” is not a benefit.(46)
“State trooper” means an employee of the Colorado state patrol, Colorado bureau of investigation, or successors to these agencies, who is vested with the powers of peace officers as provided for in section 24-33.5-409. In addition, for members who were not members, inactive members, or retirees on December 31, 2019, “state trooper” includes a county sheriff, undersheriff, deputy sheriff, noncertified deputy sheriff, or detention officer hired by a local government division employer on or after January 1, 2020, and a corrections officer classified as I through IV hired by a state division employer on or after January 1, 2020. Beginning July 1, 2020, “state trooper” also includes an employee of the division of fire prevention and control in the department of public safety who is classified in the firefighter I through firefighter VII class titles. Beginning July 1, 2023, “state trooper” also includes a wildlife officer as defined in section 16-2.5-116 (1), and a parks and recreation officer as defined in section 16-2.5-117 (1), who is employed by the division of parks and wildlife in the department of natural resources and was hired on or after January 1, 2011.(46.5)
“Supplemental needs trust” means a valid third-party special needs trust established for a member’s or retiree’s child as the beneficiary of the trust that complies with the “Colorado Medical Assistance Act”, articles 4 to 6 of title 25.5, C.R.S., and the federal “Social Security Act”, as amended. The department of health care policy and financing shall review any trust established during the determination or redetermination of an individual’s eligibility for medical assistance and specifically as to the effect of any trust on such eligibility for medical assistance. The trust must be for the benefit of a single beneficiary and must be coterminous with the lifetime of such beneficiary.(47)
“Surviving spouse” means the surviving spouse of a deceased member or a deceased inactive member and includes a widow and a widower.(48)
“Survivor benefits” means the monthly benefit payable pursuant to part 9 of this article upon the death of a member or inactive member prior to retirement but does not include a single payment made upon the death of a member or inactive member.(49)
“Termination of employment” means the last day of employment for which a member receives compensation on which contributions are remitted, including payment for accumulated sick or annual leave, or the last day of a period of unpaid leave of absence, whichever is later.(50)
“Termination of membership” means the loss of membership which occurs on the date the member terminates employment, retires, or dies.(51)
“Vested benefit” means an entitlement to a future monthly benefit which is earned upon completion of five years of service credit.(52)
“Voluntary investment program” means a voluntary tax-deferred investment program established and administered pursuant to the provisions of 26 U.S.C. sec. 401 (k), as amended.(53)
“Working retiree contributions” means an amount paid to the association that equals the percentage of salary that would be paid as member contributions pursuant to section 24-51-401 (1.7)(a); except that working retiree contributions shall not be considered member contributions and shall not be deposited in the member contribution account.
Source:
Section 24-51-101 — Definitions, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-24.pdf (accessed Oct. 20, 2023).
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