C.R.S.
Section 31-31.5-601
Modification of plan by the board
(1)
Subject to the requirements set forth in subsection (2) of this section and notwithstanding any other provision of this article 31.5, the board may modify the statewide retirement plan as follows:(a)
To modify the multiplier, retirement age, or service requirements for pension benefits set forth in part 4 of this article 31.5 with respect to the members of the defined benefit components if the modification does not require an increase in the employer and member contribution rates established pursuant to part 3 of this article 31.5 and if the board determines that the modification will maintain or enhance the actuarial soundness, as specified in section 31-31.5-101 (5)(a); and(b)
To increase the member contribution rate above the rates established pursuant to part 3 of this article 31.5 with respect to the members of the statewide retirement plan if the increase does not require an increase in the employer contribution rate established pursuant to part 3 of this article 31.5. Any such increase in the member contribution rate is not subject to negotiation for payment by the employer.(c)
To increase the contribution rates above the rates established pursuant to part 3 of this article 31.5 with respect to the members and employers of the statewide retirement plan if the rate of increase for the member and for the employer is equal.(2)
Before modifying the plan pursuant to subsection (1) of this section, the board must find that:(a)
The modification does not adversely affect the plan’s status as a qualified plan pursuant to the federal “Internal Revenue Code of 1986”, as amended;(b)
The modification has been approved by sixty-five percent of the active members of the statewide retirement plan who are affected by the modification and who vote in an election proposing the modification;(c)
The modification has been approved by more than fifty percent of the employers having active members covered by the statewide retirement plan that vote in the election proposing the modification, each employer to be assigned one vote; except that employers having both active police and active fire members in the plan shall be assigned two votes; and(d)
The modification does not adversely affect the pension benefits of retired members.(3)
Any increase in the member contribution rate established pursuant to this section shall be paid from a member’s salary and otherwise be treated in the same manner specified in part 3 of this article 31.5 for required minimum member contributions for purposes of the federal “Internal Revenue Code of 1986”, as amended.(4)
The board may eliminate an increase in the member or the member and employer contribution rate increases established pursuant to this part 6 so long as the requirements for an increase set forth in subsection (2) of this section are met.(5)
The board shall not adopt a modification that reduces the statewide retirement plan’s age for normal retirement below that permitted by section 31-31.5-401 (2).(6)
The board shall adopt rules setting forth the procedures for the elections required by subsections (2)(b) and (2)(c) of this section. Each employer having members in the statewide retirement plan shall comply with the procedures established by the board and shall certify the results of any member election to the board as prescribed by the board’s rules.(7)
A written copy of the language of any modifications to the statewide defined benefit plan or an increase in the member contribution rate adopted by the board pursuant to this section shall be kept and maintained by the board at its offices and be made available for copying and inspection by any interested party.(8)
If at any time the cost of any modification adopted by the board pursuant to subsection (1)(a) of this section would require an increase in employer and member contributions made pursuant to part 3 of this article 31.5 or any higher member contribution rate established pursuant to subsection (1)(b) of this section, the board shall revoke the modification as it applies to active members of the statewide retirement plan pursuant to section 31-31.5-402. The board may reinstitute the modification at a later date, in its discretion, if reinstituting the modification would not require an increase in the employer and member contributions made pursuant to part 3 of this article 31.5.
Source:
Section 31-31.5-601 — Modification of plan by the board, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-31.pdf (accessed Oct. 20, 2023).
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