§ 24-51-315 — Termination of affiliation - reserves requirement

Colorado § 24-51-315

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

Text

(1) The board
has the authority to determine the amount of reserves required as of the effective
date of termination of affiliation to:

(a) Maintain current benefits payable by the association to benefit recipients
and to preserve the vested rights of inactive members; and

(b) Fully fund the liability for benefits payable by the association from the
health care trust fund created by section 24-51-1201(1) to current and future benefit
recipients pursuant to part 12 of this article 51.

(2) The amount of reserves required under subsections (1)(a) and (1)(b) of this
section shall be determined by the board utilizing certified actuarial reports
prepared by the actuary. The actuarial study shall be conducted using assumptions
approved by the board. The actuarial report shall also certify that the termination of
affiliation shall not have an adverse financial impact on the actuarial soundness of
the local government division trust fund. If the actuary determines, in accordance
with accepted actuarial principles, that the termination of affiliation shall have an
adverse financial impact on the actuarial soundness of the local government
division trust fund, the applicant shall not be permitted to terminate affiliation. On
the effective date of termination of affiliation, the actuarial reports prepared
pursuant to this subsection (2) shall be updated to finalize the amount of reserves
required for the purposes specified in this subsection (2). The employer making the
application and the employees of such employer who are members shall not be
required to make any contributions to the association subsequent to the effective
date of termination.

(3) The expenses incurred by the board for the actuarial reports prepared as
a result of an application for termination of affiliation shall be paid by the employer
making such application.

(4) The board shall provide any information contained in such actuarial
reports upon request of the employer making the application for termination of
affiliation.

(5) The discount rate used for determining the amount of reserves in
subsection (1) of this section shall be the actuarial investment assumption rate as
set by the board pursuant to sections 24-51-101 (2) and 24-51-204 (5) minus two
hundred basis points.

(6) Determinations made by the board in this section and sections 24-51-313
and 24-51-316 shall be appealed through the administrative review procedures set
forth in the board rules. Such final decision by the board shall be subject only to
review by proper court action.

Legislative History

Source: L. 88: Entire section added, p. 966, � 1, effective April 28. L. 2004: (1) amended, p. 1941, � 13, effective January 1, 2006. L. 2018: (1) and (2) amended and (5) and (6) added, (SB 18-200), ch. 370, p. 2239, � 7, effective June 4.