§ 24-51-606 — Vested inactive member rights

Colorado § 24-51-606

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

Text

(1) Any member who was a
member, inactive member, or retiree on December 31, 2006, who has earned at
least five years of service credit and who terminates membership and does not
elect to receive a refund pursuant to the provisions of section 24-51-405 shall be
eligible for a benefit to become effective upon reaching the age specified in table B
in section 24-51-602 for a service retirement or in table C in section 24-51-604 for a
reduced service retirement.

(1.5) Any member who was not a member, inactive member, or retiree on
December 31, 2006, who has earned at least five years of service credit and who
terminates membership and does not elect to receive a refund pursuant to section
24-51-405 shall be eligible for a benefit to become effective upon written
application and approval by the board and upon reaching the age specified in table
B.05, B.07, B.1, B.2, B.3, B.4, B.5, or B.6 of section 24-51-602, as applicable, for a
service retirement or in table C or C.1 of section 24-51-604 for a reduced service
retirement. Notwithstanding the provisions of this subsection (1.5), for such a
member who applies for retirement within ninety days after the member attains age
and service eligibility, the effective date of retirement shall be the date the member
attains such age and service eligibility.

(2) (a) A vested inactive member may make direct payments to the
association in lieu of member contributions in order to acquire eligibility for
retirement pursuant to the provisions of section 24-51-602 or 24-51-604. Said
payments do not purchase service credit for benefit calculation purposes pursuant
to the provisions of section 24-51-603 or 24-51-605.

(b) Direct payments in lieu of member contributions are calculated at the
applicable member contribution rates pursuant to section 24-51-401 (1.7), multiplied
by the most recent full-time monthly salary paid for the position previously held by
the vested inactive member.

(c) Direct payments may be made by a lump-sum payment or by monthly
installments. Lump-sum payments shall not cause the benefit to become payable
earlier than the first eligible date for reduced service retirement.

(d) Retroactive lump-sum payments shall include interest assessed from the
date of termination of membership until the date on which direct payments begin.

(e) Installment payments, if made, shall be made from the date of
termination of membership until the first date of eligibility for service retirement or
reduced service retirement, as elected by the vested inactive member.

(f) Installment payments shall become due without notice on the tenth
calendar day of each month. Failure to make timely installment payments shall
cause all such payments to be refunded to the vested inactive member, and
eligibility for retirement which was to be acquired by such payments shall be
negated.

(g) Upon the death of a vested inactive member prior to the conclusion of
direct payments in lieu of member contributions as authorized pursuant to the
provisions of this section and prior to retirement, payments made up to the date of
death shall be refunded to the person eligible to receive survivor benefits.

(h) Eligibility to make direct payments in lieu of member contributions shall
be limited to vested inactive members who terminate membership before July 1,
2003, and make payments as specified in this section.

Legislative History

Source: L. 87: Entire article R&RE, p. 1061, � 1, effective July 1. L. 95: (1) amended, p. 555, � 9, effective July 1. L. 2003: (2)(h) added, p. 2609, � 6, effective July 1. L. 2006: (1) amended and (1.5) added, p. 1183, � 15, effective May 25. L. 2018: (1.5) and (2)(b) amended, (SB 18-200), ch. 370, p. 2250, � 16, effective June 4.