C.R.S. Section 31-30.5-209
Idle funds


(1)

If the governing body of a municipality, by resolution, finds that no person named in this article is, and no such person can become, eligible for payment of a benefit from the municipality’s police officers’ old hire pension fund established pursuant to section 31-30.5-201 (2), it may authorize use of the money in the fund to make contributions to the defined benefit system trust fund pursuant to section 31-31-402 (2), to make contributions to a police benefit fund established pursuant to section 31-31-601 (1)(b), or to make contributions under the federal social security laws if the municipality’s police officers are covered by the social security laws. To the extent that money in the fund exceeds three times the present yearly employer contribution to any of the preceding benefit funds on behalf of the municipality’s current police officers, such excess may be used for any law-enforcement-related purpose. If the municipality does not employ any police officer, the governing body may authorize use of the money in the fund for any law-enforcement-related purpose. In addition, any money in the fund that is attributable to contributions by the municipality and to interest on such contributions may be used for any police-related purpose and, if no such police-related need exists, then for any purpose as decided by the governing body of the municipality. For the purposes of this subsection (1), contracting with the county or county sheriff for law enforcement service shall not be considered employment of a police officer.

(2)

If the governing body of a municipality, fire protection district, or county improvement district, by resolution, finds that no person named in this article is, and no such person can become, eligible for payment of a benefit from the employer’s firefighters’ old hire pension fund, it may authorize use of the money in the fund to make contributions to the defined benefit system trust fund pursuant to section 31-31-402 (2) or to make contributions under the federal social security laws if the employer’s firefighters are covered by the social security laws. In addition, any money in the fund that is attributable to contributions by the municipality or district and to interest on such contributions may be used for any fire-related purpose and, if no such fire-related need exists, for any purpose as decided by the governing body of the municipality or district.

(3)

Intentionally left blank —Ed.

(a)

At least sixty days before adoption of a resolution permitted by subsection (1) or (2) of this section, the governing body of the municipality or district shall publish one notice in a newspaper having general circulation within the municipality or district and shall provide a copy of such published notice to the board of directors of the state fire and police pension association established pursuant to section 31-31-201 (1). The notice shall state the intent of the governing body to use the money in the fund for the purposes permitted in this section. The notice shall state that persons who believe they are or may be entitled to benefit payments from the fund shall have fifty days from the date of the notice in which to file an objection, in writing, with the governing body regarding its proposed use of the fund. If any such written objection is received, the governing body shall hold a public hearing before adoption of any resolution under this section with prior published notice of the time and place of the hearing as well as written notice of such hearing mailed, by certified mail, to each person filing a written objection.

(b)

If, within one year after adoption of a resolution pursuant to this section, any person establishes a claim to a benefit from the fund, the municipality or district shall repay to the fund any money expended from such fund pursuant to this section, and no such additional expenditures shall be made from the fund.
(4)(a)(I) Notwithstanding the provisions of subsections (1) and (2) of this section and subject to the provisions of paragraph (c) of this subsection (4), if no members are active participants in an employer’s old hire pension plan established under this article, the governing body of the employer, by resolution, may authorize the use of the excess balance in the plan fund for the purposes permitted in subsections (1) and (2) of this section. If a governing body authorizes the use of the excess balance under this subsection (4), the employer shall maintain the plan fund at a level equal to at least two times the amount necessary to fund the benefit liabilities of any persons continuing to receive benefits from the plan fund.

(II)

For purposes of this paragraph (a), “excess balance” means the amount in an old hire plan fund in excess of two times the amount necessary to fund the benefit liabilities of persons continuing to receive benefits from the plan fund, as determined by the plan’s actuary. In determining the excess balance in an old hire plan fund, the actuary shall utilize the assumptions approved by the board of directors of the fire and police pension association pursuant to section 31-30.5-306 (2)(b).

(b)

Notwithstanding the provisions of subsections (1) and (2) of this section and paragraph (a) of this subsection (4) and subject to the provisions of paragraph (c) of this subsection (4), if no members are active participants in an employer’s old hire pension plan established under this article and the plan provides no rank escalation benefit to persons receiving benefits from the plan fund, the board, after disclosure to the affected retirees, is authorized to use the assets in the plan fund for the purpose of purchasing annuities in amounts sufficient to pay any required benefits, including nondiscretionary cost-of-living adjustments required under the plan, to those persons who continue to receive benefits from the plan fund. If the board purchases annuities for such persons, the governing body of the employer, by resolution, may authorize the use of any additional funds that remain in the plan fund after purchasing such annuities for the purposes permitted in subsections (1) and (2) of this section. Annuities may be purchased pursuant to this paragraph (b) only from insurance companies rated at least A+ by the A.M. Best company or rated at least AA by Standard & Poors Corporation. If there is a default on the payment of benefits resulting from an annuity purchased under this paragraph (b), the employer remains liable to make any required benefit payments to persons for whom the annuities were purchased.

(c)

Moneys in the plan fund in excess of the amount required to purchase annuities as provided in paragraph (b) of this subsection (4), if any, may be used to purchase additional benefits or may be treated as an excess balance as provided in paragraph (a) of this subsection (4).

Source: Section 31-30.5-209 — Idle funds, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-31.­pdf (accessed Oct. 20, 2023).

31‑30.5‑101
Legislative declaration
31‑30.5‑102
Definitions
31‑30.5‑103
Applicability
31‑30.5‑201
Funds created
31‑30.5‑202
Board of trustees - firefighters’ old hire pension fund
31‑30.5‑203
Board of trustees - police officers’ old hire pension fund
31‑30.5‑204
Powers and duties of the board
31‑30.5‑205
Attorneys to advise
31‑30.5‑206
Warrants drawn
31‑30.5‑207
Method of payment
31‑30.5‑208
Fund not subject to levy
31‑30.5‑209
Idle funds
31‑30.5‑210
Plan amendment
31‑30.5‑211
Affiliation with the fire and police pension association
31‑30.5‑212
Qualification requirements - internal revenue code - definitions
31‑30.5‑213
Dissolution of fire departments
31‑30.5‑301
Legislative declaration
31‑30.5‑302
Definitions
31‑30.5‑304
Limitation on existing funds - procedures
31‑30.5‑305
No change in employer obligation
31‑30.5‑306
Actuarial studies
31‑30.5‑307
State contribution
31‑30.5‑401
Sources of revenue for fund
31‑30.5‑402
Municipalities under fifty thousand - limit of contributions to old hire police officers’ pension plans
31‑30.5‑403
Employers under one hundred thousand - limit of contributions to old hire firefighter pension plans
31‑30.5‑404
Plans affiliated with the fire and police pension association
31‑30.5‑501
Old hire pension fund - investments
31‑30.5‑502
Insurance - investment by banks and trust companies
31‑30.5‑503
Alternative investment authority
31‑30.5‑601
Police officers’ old hire pension plans - municipalities under one hundred thousand in population
31‑30.5‑602
Firefighters’ old hire pension plans - municipalities and districts under one hundred thousand in population
31‑30.5‑603
Police officers’ old hire pension plans - municipalities of at least one hundred thousand in population
31‑30.5‑604
Firefighters’ old hire pension plans - municipalities of at least one hundred thousand in population
31‑30.5‑701
Coverage
31‑30.5‑702
Police officers’ old hire pension plans - municipalities under one hundred thousand in population
31‑30.5‑703
Firefighters’ old hire pension plans - municipalities and districts under one hundred thousand in population
31‑30.5‑704
Police officers’ old hire pension plans - municipalities of at least one hundred thousand in population
31‑30.5‑705
Firefighters’ old hire pension plans - municipalities of at least one hundred thousand in population
31‑30.5‑801
Exempt alternative programs authorized
31‑30.5‑802
Exempt money purchase plan option
31‑30.5‑803
Investment authority
Green check means up to date. Up to date

Current through Fall 2024

§ 31-30.5-209’s source at colorado​.gov