§ 24-51-1505 — Contributions - vesting - definition

Colorado § 24-51-1505

• Jurisdiction: Colorado
• Title 24: Government
• Art.: Public Employees' Retirement Association

Text

(1) Contribution rates by
the employer and by members of the defined contribution plan established
pursuant to this part 15 shall be the same as the rates that would be payable by the
employer and the member pursuant to section 24-51-401. The individual's
participant account shall receive the full member contribution amount in effect
under section 24-51-401. The individual's participant account shall receive a portion
of the employer contribution equal to the amount in table A in section 24-51-401
(1.7)(a). Any portion of the employer contribution above the amount in table A in 24-51-401 (1.7)(a) shall be paid to the employer's division trust fund.

(2) Consistent with section 24-51-401 (1.7)(b), (1.7)(c), and (1.7)(d), the
employer shall deliver all contributions within five days after the date members are
paid.

(3) Except as otherwise provided in subsection (4) of this section, members
of the association's defined contribution plan shall be immediately and fully vested
in their own contributions to the plan, together with accumulated investment gains
or losses. Members shall be immediately vested in fifty percent of the employer's
contribution to the defined contribution plan, together with accumulated
investment gains or losses on that vested portion. For each full year of membership
in the defined contribution plan, the vesting percentage shall increase by ten
percent. The vesting percentage in the employer's contribution, with accumulated
earnings or losses, shall be one hundred percent for all members with five or more
years of membership in the defined contribution plan. If an individual becomes a
member of the defined contribution plan without an existing account balance or
after a twelve-month break in service, the individual shall begin a new vesting
schedule with regard to future employer contributions in accordance with this
subsection (3).

(4) A member of the association's defined contribution plan with an accrued
balance in the plan who became a member of the plan pursuant to section 24-51-1501 (2) or 24-51-1503 (3), shall be fully vested in one hundred percent of the
state's past and future contributions to the plan, together with accumulated
investment gains or losses on that vested portion. If an individual becomes a
member of the association's defined contribution plan without an existing account
balance or after a twelve-month break in service, the individual shall begin a new
vesting schedule with regard to vesting of future employer contributions in
accordance with subsection (3) of this section.

Legislative History

Source: L. 2004: Entire part added, p. 1948, � 23, effective January 1, 2006. L. 2007: Entire section amended, p. 2013, � 5, effective January 1, 2008. L. 2009: Entire section amended, (SB 09-066), ch. 73, p. 251, � 9, effective March 31. L. 2018: (1), (2), and (3) amended, (SB 18-200), ch. 370, p. 2258, � 25, effective June 4.