§ 24-51-1724 — Option P3

(1) Option P3 is a 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 to the annuitant's
designated spouse or any one individual, so long as said designated spouse or
individual shall live; except that, if the co-annuitant is not a designated spouse, the
calculation of the payments to the annuitant and co-annuitant will be made in
accordance with the further provisions of subsection (2) of this section. 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 (4) 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 such named beneficiary exists, to the estate of
the co-annuitant.

(2) If the designated co-annuitant is not the annuitant's designated spouse
or a former spouse of the annuitant under the circumstances stated in subsection
(3) of this section, the co-annuitant's benefit shall be calculated in accordance with
the treasury regulations under section 401(a)(9) of the federal Internal Revenue
Code of 1986, as amended, but, as so calculated, the benefits to the annuitant, the
co-annuitant, and any beneficiary or to the estate of the co-annuitant, as provided
for in option P3, shall be the actuarial equivalent of the amount that would be
payable under option A as calculated under this retirement plan.

(3) If the designated co-annuitant is a former spouse, and if pursuant to a
properly executed and filed agreement under section 14-10-113, C.R.S., the
designated co-annuitant may, upon the prior death of the annuitant, and for the life
of the co-annuitant, receive a monthly payment equal to that otherwise payable to
the annuitant.

(4) In case of the death of the designated co-annuitant under option P3 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.

(5) 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.

(6) 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: (5) and (6) added, (SB 15-097), ch. 111, p. 329, � 13, effective April 16.