C.R.S. Section 24-51-402
Unpaid contributions for any member

  • legislative declaration

(1)

The general assembly hereby finds and declares that:

(a)

The litigation of disputes regarding the payment of contributions by employers to the public employees’ retirement association represents an inappropriate allocation of public moneys. Courts already suffer from overcrowded dockets, and the use of judicial resources to resolve such disputes means that taxpayers foot the bill for plaintiffs, defendants, and judges alike. Once all appropriate benefits have been accorded to members or inactive members of the association, any dispute then remaining is solely between governmental entities. The general assembly finds that the litigation of these disputes is an inappropriate use of the limited resources of the association, public employers, and the courts because it is possible to establish reasonable and fair rules for the resolution of such disputes without any need for judicial involvement. The general assembly therefore intends to resolve any current disputes and to clearly delineate the responsibilities of governmental entities so that future disputes do not require any litigation or unnecessary expenditure of state moneys.

(b)

Fairness requires that the general assembly prescribe uniform results in every circumstance, a goal that is not obtainable when varying results arise from litigation of contributions disputes in the courts;

(c)

Under the provisions of this section, members and inactive members will receive the full benefits promised by law and, therefore, there is no question regarding the equal treatment of any individual;

(d)

In order to minimize the risk of future litigation between the public employees’ retirement association and other governmental entities, it is appropriate to clarify under sections 24-51-205 (3.5) and 24-51-207 (2) that the board of trustees of the association may reasonably settle or compromise disputes without violating any principle of fiduciary responsibility;

(e)

Should any judicial determination regarding an employer’s liability for contributions be contrary to the results provided under this section, the association will be required under section 24-51-401 (7) to accept a reduced employer contribution level to offset all excess damages above the level of contributions the general assembly has established. The general assembly further finds that the establishment of a proper rate of contributions is clearly a legislative function and that it is appropriate for the general assembly to modify the level of employer contributions when necessary to offset the results of judicial awards that are contrary to the amounts established by the general assembly. The general assembly declares that it is its express intent to overrule any judicial decision entered prior to May 22, 1995, that is contrary to the provisions of this section.

(2)

The provisions of this section and sections 13-80-103.5 (1)(d) and 13-80-108 (13), C.R.S., apply to the following:

(a)

Any cause of action accruing on or after May 22, 1995;

(b)

Any unresolved cause of action accruing prior to May 22, 1995; and

(c)

Intentionally left blank —Ed.

(I)

Any cause of action resolved on or after July 1, 1994, but prior to May 22, 1995. The following shall govern the application of this section to the causes of action specified in this paragraph (c):

(A)

This section shall affect only the total amount of the payments in any cause of action specified by this paragraph (c). Such total amount of payments shall not exceed the amount specified under subsection (3)(a) or (3)(b)(I) of this section, whichever is applicable. The association shall refund, or shall not collect, any difference between the amount paid, agreed to be paid, or awarded in any such cause of action and the amount specified under subsection (3)(a) or (3)(b)(I) of this section. Subsection (3)(b)(II) of this section shall not affect the allocation of payments pursuant to an agreement, settlement agreement, or judgment resolving a cause of action specified by this paragraph (c).

(B)

This section shall not require any member or inactive member to make any payment of unpaid contributions with respect to any cause of action specified by this paragraph (c) if such member or inactive member is not required to make such payment under the agreement, settlement agreement, or judgment resolving the cause of action.

(C)

This section shall not affect any benefits provided to individuals as the result of the payment of unpaid contributions with respect to any cause of action specified by this paragraph (c).

(II)

For the purposes of this paragraph (c), a cause of action is resolved if there is an agreement to make payment under the cause of action, whether or not the full payment has been made, if there is a settlement agreement in a lawsuit between the parties, whether or not the full payment under the settlement agreement has been made, or if there is a final judgment entered, whether or not the judgment has been fully paid or collected.

(3)

If an employer fails to provide membership in the association to an individual so entitled pursuant to the provisions of this article or fails to provide the required level of employer contributions for an individual pursuant to the provisions of this article, the following payment shall be made to the association:

(a)

If the individual is not a member or inactive member at the time the association first notifies the employer of its claim for unpaid contributions, the employer shall pay the unpaid employer contributions on behalf of the individual for the period contributions should have been made at the contribution rate applicable during such period, plus the amortization equalization disbursement in effect pursuant to section 24-51-411 for the period contributions should have been made, plus interest on such employer contributions and the amortization equalization disbursement at the applicable actuarial investment assumption rate, as such interest rate is from time to time adjusted, until such contributions are paid. If an employer pays contributions pursuant to this paragraph (a) on behalf of an individual who was not a member or inactive member when the association first notifies the employer and such individual subsequently becomes a member and completes one year of earned service credit, the member may purchase service credit for the appropriate period by paying the unpaid member contributions for the period for which contributions should have been made at the contribution rate applicable during such period, plus interest on such member contributions at the applicable actuarial investment assumption rate, as such interest rate is from time to time adjusted, until such contributions are paid.

(b)

Intentionally left blank —Ed.

(I)

If the individual is a member or inactive member at the time the association first notifies the employer of its claim for unpaid contributions, the payment equals the lesser of the following amounts:

(A)

For a member, the cost to purchase the appropriate amount of service credit at the rate established pursuant to section 24-51-505, plus the amortization equalization disbursement in effect pursuant to section 24-51-411 for the period contributions should have been made; and, for an inactive member, the cost to purchase the appropriate amount of service credit at the rate established pursuant to section 24-51-505, based upon the salary at the date of last employment, plus the amortization equalization disbursement that should have been made, plus interest at the applicable actuarial investment assumption rate, as such interest rate is from time to time adjusted, from the date of last employment until the date contributions are paid; or

(B)

The unpaid employer and member contributions and amortization equalization disbursement for the period contributions should have been made, plus interest on such employer and member contributions and the amortization equalization disbursement at the applicable actuarial investment assumption rate, as such interest rate is from time to time adjusted, until such contributions are paid.

(II)

The amounts paid to the association shall be allocated and collected in the following order until the full amount that is owed under subparagraph (I) of this paragraph (b) is reached:

(A)

The employer shall first pay the unpaid employer contributions and amortization equalization disbursement on behalf of the member or inactive member for the period contributions should have been made, plus interest on such employer contributions and amortization equalization disbursement at the applicable actuarial investment assumption rate, as such interest rate is from time to time adjusted, until such contributions are paid;

(B)

The member or inactive member shall next pay the unpaid employee contributions for the period contributions should have been made, without interest; and

(C)

The employer shall next pay interest on the unpaid employee contributions for the period contributions should have been made at the applicable actuarial investment assumption rate, as such interest rate is from time to time adjusted, until such contributions are paid; except that the employer is only required to pay interest on the amount of employee contributions owed by the member or inactive member under sub-subparagraph (B) of this subparagraph (II) that the member or inactive member actually pays.

(III)

If the full amount owed pursuant to the provisions of this paragraph (b) is not paid because the member or inactive member pays less than the full amount of employee contributions, then:

(A)

If the member or inactive member was not provided membership during the applicable time period, the association shall provide partial service credit to the member or inactive member in the same proportion to the total amount of service credit that would have been earned if contributions had been made as the amount actually paid to the association bears to the amount that was owed to the association; and

(B)

If the member or inactive member was provided membership during the applicable time period, the association shall provide a partial increase in the highest average salary of the member or inactive member in the same proportion to the increase in highest average salary that would have been earned if contributions had been paid as the amount actually paid to the association bears to the amount that was owed to the association.

(4)

Within ninety days after the time the association first notifies an employer of its claim for unpaid contributions, the association shall attempt to notify all members and inactive members regarding their rights to pay unpaid employee contributions pursuant to subsection (3)(b)(II)(B) of this section. Any member or inactive member who elects to pay all or any portion of unpaid employee contributions shall notify the association of such election within one year after the date the employer pays the unpaid employer contributions pursuant to subsection (3)(b)(II)(A) of this section. If a member or inactive member fails to notify the association of the member’s or inactive member’s intent to pay as allowed under this subsection (4), the association may elect to treat the member or inactive member as having forfeited the right to make such contributions. Any member or inactive member who elects to pay all or any portion of unpaid employee contributions may pay employee contributions in installment payments over a period not to exceed sixty months or over a period equal to the amount of service credit that would have been earned if contributions had been made, whichever period is shorter.

(5)

If an individual for whom contributions are being claimed is not a member of the association at the time the association first notifies an employer of its claim for unpaid contributions, an action to collect unpaid contributions is subject to the limitations provided in section 13-80-103.5 (1)(d), C.R.S. If an individual for whom contributions are being claimed is a member or inactive member at the time the association first notifies an employer of its claim for unpaid contributions, an action to collect unpaid contributions is not subject to any limitation under article 80 of title 13, C.R.S.

Source: Section 24-51-402 — Unpaid contributions for any member - legislative declaration, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-24.­pdf (accessed Oct. 20, 2023).

24‑51‑101
Definitions 24‑51‑201
Public employees’ retirement association - creation 24‑51‑202
Board of trustees - creation 24‑51‑203
Board - composition and election 24‑51‑204
Duties of the board 24‑51‑205
General authority of the board 24‑51‑206
Investments 24‑51‑207
Standard of conduct 24‑51‑208
Allocation of moneys 24‑51‑209
Disbursements 24‑51‑210
Allocation of assets and liabilities 24‑51‑211
Amortization of liabilities 24‑51‑211.5
Notice of possible change in benefits - actuarial necessity 24‑51‑212
Funds not subject to legal process 24‑51‑213
Confidentiality 24‑51‑214
Benefits not offset by workers’ compensation benefits 24‑51‑215
Insurance and banking laws not applicable 24‑51‑216
Legal adviser 24‑51‑217
Termination 24‑51‑218
Unclaimed money 24‑51‑220
Reporting to general assembly - inclusion of climate risk assessment in annual stewardship report 24‑51‑221
Information provided to employer - salary definition 24‑51‑301
Required membership 24‑51‑303
Members of the general assembly 24‑51‑305
District attorneys 24‑51‑305.5
Employees of district attorneys 24‑51‑307
Elected municipal officials 24‑51‑308
City managers and key management staff 24‑51‑309
Affiliation by public entities 24‑51‑310
Persons not eligible for membership 24‑51‑311
Continuation of membership 24‑51‑312
Payment of contributions 24‑51‑313
Termination of affiliation - employer assigned to local government division - requirements 24‑51‑314
Termination of affiliation - rights of benefit recipients and inactive members 24‑51‑315
Termination of affiliation - reserves requirement 24‑51‑316
Inadequate reserves - excess reserves - nonpayment 24‑51‑317
Termination of affiliation - member contributions 24‑51‑318
Purchase of forfeited service credit 24‑51‑319
Retirement plan - creation and use 24‑51‑320
Reaffiliation of a public entity 24‑51‑321
No state liability - political subdivision pension plans 24‑51‑401
Employer and member contributions 24‑51‑402
Unpaid contributions for any member - legislative declaration 24‑51‑403
Contributions assumed and paid by the employer 24‑51‑404
Combining member contributions 24‑51‑405
Refund of the member contribution account 24‑51‑405.5
Direct rollovers 24‑51‑406
Payments from the judicial division 24‑51‑407
Interest 24‑51‑408
Matching employer contributions 24‑51‑408.5
Matching employer contribution on voluntary contributions made by members to tax-deferred retirement programs 24‑51‑409
Refund of erroneous member contribution 24‑51‑410
Anticipation of forfeitures in determining plan cost 24‑51‑411
Amortization equalization disbursement 24‑51‑412
Denver public schools district - contributions and disbursements - legislative declaration 24‑51‑413
Contribution and annual increase amount changes - definitions 24‑51‑414
Direct distribution 24‑51‑415
Defined contribution supplement 24‑51‑501
Earned service credit 24‑51‑502
Purchased service credit 24‑51‑503
Purchase of service credit relating to a refunded member contribution account 24‑51‑504
Purchase of service credit relating to a paid sabbatical leave 24‑51‑505
Purchase of service credit relating to noncovered employment 24‑51‑506
Payments for purchased service credit 24‑51‑507
Uniformed service credit 24‑51‑508
Leave of absence for uniformed service 24‑51‑509
Combining service credit 24‑51‑601
Retirement benefit reserve 24‑51‑602
Service retirement eligibility 24‑51‑603
Benefit formula for service retirement 24‑51‑604
Reduced service retirement eligibility 24‑51‑605
Benefit formula for reduced service retirement 24‑51‑605.5
Benefit calculation for money purchase retirement benefit 24‑51‑606
Vested inactive member rights 24‑51‑606.5
Indexation of benefits for vested inactive members 24‑51‑607
Benefit formula for service retirement or reduced service retirement involving direct payments 24‑51‑609
Service credit exceeding twenty years 24‑51‑610
Division from which a member retires 24‑51‑611
Maximum limit under federal law 24‑51‑612
Required benefit commencement date 24‑51‑615
Distribution of benefits 24‑51‑701
Eligibility to apply for short-term disability program payments and disability retirement 24‑51‑702
Disability programs 24‑51‑703
Disability program design and administration 24‑51‑704
Calculation of disability retirement benefit 24‑51‑705
Ineligibility 24‑51‑706
Disability determination for members of the judicial division 24‑51‑707
Continuation of disability retirement benefits - reduction based on earned income - applications made prior to January 1, 1999 24‑51‑708
Division from which a disabled member retires 24‑51‑801
Benefit options 24‑51‑802
Change in option or cobeneficiary 24‑51‑803
Determination of option 2 or 3 benefits 24‑51‑901
Survivor benefits reserve 24‑51‑902
Modification of named beneficiaries 24‑51‑903
Distribution to named beneficiaries 24‑51‑904
Survivor benefits - eligibility - “member” defined 24‑51‑905
Deceased member who was not eligible for service or reduced service retirement 24‑51‑906
Deceased member who was eligible for service or reduced service retirement 24‑51‑907
Form of survivor benefits and single payments 24‑51‑908
Survivor benefits 24‑51‑909
Surviving spouse’s benefits 24‑51‑910
Option 3 benefits 24‑51‑911
Commencement of survivor benefits or single payment 24‑51‑912
Termination of survivor benefits 24‑51‑913
Payment upon termination of survivor benefits 24‑51‑1001
Types of benefit increases 24‑51‑1002
Annual percentages to be used 24‑51‑1003
Annual increases in the base benefit 24‑51‑1009
Annual increase reserve - creation 24‑51‑1009.5
Annual increase amount changes 24‑51‑1010
Increase in benefits - actuarial assessment required 24‑51‑1101
Employment after service retirement - report - definitions - repeal 24‑51‑1102
Reduction of a service retirement benefit - disclosure of service agreements by employers - definitions 24‑51‑1103
Contributions for a retiree who returns to membership - benefit calculation upon subsequent retirement - survivor benefit rights - disability retirement benefits 24‑51‑1104
Employment after disability retirement 24‑51‑1105
Retirees from the judicial division 24‑51‑1201
Health care trust fund 24‑51‑1202
Health care program - design 24‑51‑1203
Authority to contract and to self-insure 24‑51‑1204
Health care program - eligibility 24‑51‑1205
Enrollment 24‑51‑1206
Premium subsidy 24‑51‑1206.5
Health care trust fund subsidy funding 24‑51‑1206.7
Denver public schools division premium subsidy 24‑51‑1207
Cancellation of enrollment 24‑51‑1208
Long-term care insurance 24‑51‑1301
Plan sponsored group life insurance 24‑51‑1302
Premiums for group life insurance 24‑51‑1303
Life insurance beneficiary 24‑51‑1304
Life insurance for certain retired state employees 24‑51‑1401
Voluntary investment program established and fund created 24‑51‑1402
Contributions to the voluntary investment program 24‑51‑1403
Expenses of the voluntary investment program 24‑51‑1404
Investments of the voluntary investment program 24‑51‑1500.2
Legislative declaration 24‑51‑1501
Defined contribution plan - establishment - creation of fund - definitions 24‑51‑1502
New eligible employees - election - definitions 24‑51‑1503
Defined contribution plan option 24‑51‑1504
Investments 24‑51‑1505
Contributions - vesting - definition 24‑51‑1506
Additional choices within first five years 24‑51‑1506.5
Additional choices for employees who were eligible employees before January 1, 2006 24‑51‑1507
Transfer or rollover into plan 24‑51‑1508
Distribution options 24‑51‑1509
Rights of defined contribution plan members 24‑51‑1510
Report to members 24‑51‑1511
Limitation on actions by eligible employees 24‑51‑1601
Deferred compensation plan and trust fund 24‑51‑1602
Affiliation with the deferred compensation plan 24‑51‑1603
Contributions to the deferred compensation plan 24‑51‑1604
Expenses of the deferred compensation plan 24‑51‑1605
Investments of the deferred compensation plan 24‑51‑1701
Legislative declaration 24‑51‑1702
Definitions 24‑51‑1703
Denver public schools division - consolidation 24‑51‑1704
Service credit 24‑51‑1705
Purchase of service credit relating to a refunded member contribution account and noncovered employment 24‑51‑1706
Accreditation of casual employment and qualifiable leave 24‑51‑1707
Affiliate membership 24‑51‑1708
Unclaimed moneys 24‑51‑1709
Arrearages 24‑51‑1710
Earned service 24‑51‑1711
Contributions - refunds 24‑51‑1712
Application for retirement benefits 24‑51‑1713
Eligibility - retirements without actuarial reduction 24‑51‑1714
Eligibility - retirements requiring actuarial reduction 24‑51‑1715
Benefits 24‑51‑1716
Optional forms of allowance 24‑51‑1717
Option A 24‑51‑1718
Option B 24‑51‑1719
Option C 24‑51‑1720
Option D 24‑51‑1721
Option E 24‑51‑1722
Additional optional forms of allowance beginning December 31, 2004 24‑51‑1723
Option P2 24‑51‑1724
Option P3 24‑51‑1725
Determination of option P2 or P3 benefits 24‑51‑1726
Minimum benefits - contributing members and affiliate members 24‑51‑1726.5
Contributions for a retiree who returns to membership - benefit calculation upon subsequent retirement - survivor benefit rights 24‑51‑1727
Eligibility for deferred members 24‑51‑1728
Accredited service - deferred members 24‑51‑1729
Benefits - deferred members 24‑51‑1730
Deferred member death 24‑51‑1731
Benefits for deferred members determined upon date of termination 24‑51‑1732
Benefit increases - annual retirement allowance adjustment - contributing members - affiliate members - deferred members - survivors (2001 and 2005) 24‑51‑1733
Domestic relations order 24‑51‑1734
Disability retirement 24‑51‑1735
Survivor benefits - refund 24‑51‑1736
Eligibility for survivor benefits 24‑51‑1737
Eligible beneficiaries 24‑51‑1738
Survivors of members who died between 1974 and 1984 24‑51‑1739
Survivors of members who died between 1984 and 1988 24‑51‑1740
Survivors of members who die in 1988 or later 24‑51‑1741
Effective date of survivor benefits 24‑51‑1742
Election by designated beneficiary 24‑51‑1743
When election becomes irrevocable 24‑51‑1744
Fund transfer 24‑51‑1745
Payment in good faith 24‑51‑1746
Waive appointment of guardian 24‑51‑1747
Portability between the Denver public schools division and the other four divisions within the association - definitions 24‑51‑1748
Staff members of the Denver public schools retirement system
Green check means up to date. Up to date

Current through Fall 2024

§ 24-51-402’s source at colorado​.gov