(1) Beginning January 1,
2006, each employer shall deliver to the association an amortization equalization
disbursement and, beginning January 1, 2008, a supplemental amortization
equalization disbursement pursuant to the same procedures specified for employer
contributions in section 24-51-401 (1.7).
(2) For the calendar year beginning January 1, 2006, the amortization
equalization disbursement shall be one-half of one percent of the employer's total
payroll. The amortization equalization payment shall increase by one-half of one
percent of total payroll on January 1, 2007, and, subject to subsection (4) of this
section, shall increase by four-tenths of one percent of total payroll at the start of
each of the calendar years following 2007 through 2012. For purposes of this
section, the employer's total payroll shall be calculated by applying the definition
of salary, pursuant to section 24-51-101 (42), to the payroll for all employees
working for the employer who are members of the association, or who were eligible
to elect to become members of the association on or after January 1, 2006,
including any amounts paid in connection with the employment of a retiree by an
employer pursuant to section 24-51-1101 (2). Beginning January 1, 2010, employers
of the Denver public schools division shall pay the then-applicable accumulated
rate of amortization equalization disbursement and the escalating rate in
accordance with the provisions of this section.
(3) For the calendar year beginning January 1, 2013, for employers in the
school and Denver public schools divisions, the amortization equalization
disbursement payment shall increase by four-tenths of one percent of total payroll
at the start of each of the calendar years through 2015. For the calendar year 2016,
for employers in the school and Denver public schools divisions, the amortization
equalization disbursement payment shall increase by three-tenths of one percent
of total payroll at the start of the 2016 calendar year. For purposes of this section,
the employer's total payroll shall be calculated by applying the definition of salary,
pursuant to section 24-51-101 (42), to the payroll for all employees working for the
employer who are members of the association, or who were eligible to elect to
become members of the association on or after January 1, 2006, including any
amounts paid in connection with the employment of a retiree by an employer
pursuant to section 24-51-1101 (2).
(3.5) For the calendar year beginning January 1, 2013, for employers in the
state division, the amortization equalization disbursement payment shall increase
by four-tenths of one percent of total payroll at the start of each of the calendar
years through 2017. For purposes of this section, the employer's total payroll shall
be calculated by applying the definition of salary, pursuant to section 24-51-101
(42), to the payroll for all employees working for the employer who are members of
the association, or who were eligible to elect to become members of the association
on or after January 1, 2006, including any amounts paid in connection with the
employment of a retiree by an employer pursuant to section 24-51-1101 (2).
(4) For employers in the local government division and the judicial division,
the amortization equalization disbursement shall not exceed the 2010 calendar year
rates unless the rates are required to increase in accordance with subsection (4.5)
or (9) of this section.
(4.5) For the calendar year beginning January 1, 2019, for the employers in
the judicial division, the amortization equalization disbursement payment shall be
three and four-tenths percent of the employer's total payroll. The amortization
equalization disbursement payment for employers in the judicial division shall
increase by four-tenths of one percent of total payroll on January 1, 2020, and shall
increase by four-tenths of one percent of total payroll at the start of each of the
calendar years following 2020 through 2023. For purposes of this section, the
employer's total payroll shall be calculated by applying the definition of salary, as
defined in section 24-51-101 (42), to the payroll for all employees working for the
employer who are members of the association, including any amounts paid in
connection with the employment of a retiree by an employer pursuant to section
24-51-1101 (2).
(5) For the calendar year beginning January 1, 2008, the supplemental
amortization equalization disbursement shall be one-half of one percent of the
employer's total payroll. The supplemental amortization equalization disbursement,
subject to subsection (7) of this section, shall increase by one-half of one percent of
total payroll on January 1 of each year following 2008 through 2013. For purposes
of this section, the employer's total payroll shall be calculated by applying the
definition of salary, pursuant to section 24-51-101 (42), to the payroll for all
employees working for the employer who are members of the association, or who
were eligible to elect to become members of the association on or after January 1,
2006, including any amounts paid in connection with the employment of a retiree by
an employer pursuant to section 24-51-1101 (2). Beginning on January 1, 2010,
employers of the Denver public schools division shall pay the then-applicable
accumulated rate of supplemental amortization equalization disbursement and the
escalating rate in accordance with the provisions of this section.
(6) For the calendar year beginning January 1, 2014, for employers in the
school and Denver public schools divisions, the supplemental amortization
equalization disbursement payment shall increase by one-half of one percent of
total payroll at the start of each of the calendar years through 2018. For purposes
of this section, the employer's total payroll shall be calculated by applying the
definition of salary, pursuant to section 24-51-101 (42), to the payroll for all
employees working for the employer who are members of the association, or who
were eligible to elect to become members of the association on or after January 1,
2006, including any amounts paid in connection with the employment of a retiree by
an employer pursuant to section 24-51-1101 (2).
(6.5) For the calendar year beginning January 1, 2014, for employers in the
state division, the supplemental amortization equalization disbursement payment
shall increase by one-half of one percent of total payroll at the start of each of the
calendar years through 2017. For purposes of this section, the employer's total
payroll shall be calculated by applying the definition of salary, pursuant to section
24-51-101 (42), to the payroll for all employees working for the employer who are
members of the association, or who were eligible to elect to become members of
the association on or after January 1, 2006, including any amounts paid in
connection with the employment of a retiree by an employer pursuant to section
24-51-1101 (2).
(7) For employers in the local government division and the judicial division,
the supplemental amortization equalization disbursement shall not exceed the 2010
calendar year rates unless the rates are required to increase in accordance with
subsection (7.5) or (9) of this section.
(7.5) For the calendar year beginning January 1, 2019, for the employers in
the judicial division, the supplemental amortization equalization disbursement
payment shall be three and four-tenths percent of the employer's total payroll. The
supplemental amortization equalization disbursement payment for employers in the
judicial division shall increase by four-tenths of one percent of total payroll on
January 1, 2020, and shall increase by four-tenths of one percent of total payroll at
the start of each of the calendar years following 2020 through 2023. For purposes
of this section, the employer's total payroll shall be calculated by applying the
definition of salary, as defined in section 24-51-101 (42), to the payroll for all
employees working for the employer who are members of the association, including
any amounts paid in connection with the employment of a retiree by an employer
pursuant to section 24-51-1101 (2).
(8) The amortization equalization disbursement and the supplemental
amortization equalization disbursement payments by employers in the state, school,
and Denver public schools divisions shall continue at the rate specified in
subsections (3), (3.5), (6), and (6.5) of this section until adjusted pursuant to this
subsection (8). When the actuarial funded ratio of the state, school, or Denver
public schools division of the association, based on the actuarial value of assets, is
at or above one hundred three percent as determined in the annual actuarial study
of the association, the amount of the amortization equalization disbursement and
supplemental amortization equalization disbursement shall be reduced, in equal
parts, for that particular division by one-half of one percent each. If the actuarial
funded ratio of the division based on the actuarial value of assets reaches one
hundred three percent and subsequently the actuarial funded ratio of the division is
below ninety percent, the amortization equalization disbursement and
supplemental amortization equalization disbursement shall be increased by one-half of one percent each; except that, at no time shall the amortization equalization
disbursement for the school and Denver public schools divisions exceed four and
one-half percent or for the state division exceed five percent nor shall the
supplemental amortization equalization disbursement for the school and Denver
public schools divisions exceed five and one-half percent each or for the state
division exceed five percent.
(9) The amortization equalization disbursement and the supplemental
amortization equalization disbursement payments by employers in the local
government division shall continue at the rate specified in subsections (4) and (7) of
this section until adjusted pursuant to this subsection (9). The amortization
equalization disbursement and the supplemental amortization equalization
disbursement payments by employers in the judicial division shall continue at the
rates specified in subsections (4), (4.5), (7), and (7.5) of this section until adjusted
pursuant to this subsection (9). When the actuarial funded ratio of the local
government division or judicial division of the association, based on the actuarial
value of the assets, is at or above one hundred three percent as determined in the
annual actuarial study of the association, the amount of the amortization
equalization disbursement and supplemental amortization equalization
disbursement shall be reduced for employers in that particular division by one-half
of one percent each. If the actuarial funded ratio of the division based on the
actuarial value of the assets reaches ninety percent and subsequently the actuarial
funded ratio of the division is below ninety percent, the amortization equalization
disbursement and supplemental amortization equalization disbursement shall be
increased by one-half of one percent each; except that, at no time shall the
amortization equalization disbursement or the supplemental amortization
equalization disbursement exceed five percent each.
(10) For state employers in the state division, for the 2007-08 state fiscal
year and for each fiscal year through the 2016-17 state fiscal year, from the amount
of changes to state employees' salaries and any adjustments to the annual general
appropriation act pursuant to section 24-50-104, an amount equal to one-half of
one percent of total salary shall be deducted and such amount shall be utilized by
the employer to fund the supplemental amortization equalization disbursement. For
the school, local government, judicial, and Denver public schools divisions, and the
remaining employers in the state division who are not state employers, the
supplemental amortization equalization disbursement shall, to the extent permitted
by law, be funded by allocation of funds otherwise available for use as employee
compensation increases prior to award as salary or other compensation to
employees.
(11) Moneys made available due to any reduction in the supplemental
amortization equalization disbursement pursuant to subsection (8) or (9) of this
section, whichever is applicable, shall, to the extent permitted by law, be allocated
to employee compensation increases to the extent such source was originally used
by an employer to fund the supplemental amortization equalization disbursement.