§ 24-51-1723 — Option P2

Colorado § 24-51-1723

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

Text

(1) Option P2 is a modified joint survivorship annuity,
which is defined as a somewhat smaller sum of money than the amount that would
be payable under option A but that is the actuarial equivalent thereof, as calculated
under this retirement plan, payable monthly to an annuitant from the time of
retirement until the death of said annuitant, and, thereafter an amount equal to
one-half of the monthly amount paid to the annuitant is payable monthly to the
annuitant's designated co-annuitant until the death of that person. The designation
of the co-annuitant shall be effective upon the effective date of the member's
retirement and may not subsequently be changed except as provided in subsection
(2) of this section. Upon the death of the co-annuitant prior to the death of the
annuitant, the benefit payable to the annuitant thereafter shall be the original
option A amount increased by any increases in the basic retirement allowance
granted in accordance with the provisions of the DPS plan document and section
24-51-1732 subsequent to the annuitant's effective date of retirement. In addition
to designating a co-annuitant, the member shall designate a beneficiary and shall
have the exclusive right to change such designation of beneficiary at any time prior
to the annuitant's death. If, upon the death of both the annuitant and the co-annuitant, the total amount of retirement allowance that has been paid to them
does not exceed the member's accumulated contributions, then the difference
between said accumulated contributions and the total amount of retirement
allowance paid to such annuitant and co-annuitant shall be paid to the named
beneficiary of the annuitant, or, if no named beneficiary exists, to the estate of the
co-annuitant.

(2) In case of the death of the designated co-annuitant under option P2 after
the date of application for retirement and before the effective date of retirement,
the member may make a change of option or designate a new co-annuitant within
thirty days after the death of the previously designated co-annuitant and subject to
the appropriate recalculation of the retirement allowance.

(3) Notwithstanding any provision to the contrary, an annuitant may change
the co-annuitant that was named by such annuitant and designate a supplemental
needs trust as a co-annuitant in place of the previously named co-annuitant if:

(a) The beneficiary of the supplemental needs trust is the same person as
the previously named co-annuitant; and

(b) The retiree files an application and any required documents in a form as
designated by the association.

(4) If a supplemental needs trust is not established before or within ninety
days after the death of the annuitant, is determined to be invalid, or is terminated
on or after the death of the annuitant, the beneficiary that was named in the trust is
the co-annuitant.

Legislative History

Source: L. 2009: Entire part added, (SB 09-282), ch. 288, p. 1371, � 56, effective January 1, 2010. L. 2015: (3) and (4) added, (SB 15-097), ch. 111, p. 329, � 12, effective April 16.