§ 24-51-801 — Benefit options

Colorado § 24-51-801

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

Text

(1) Any member applying for service retirement
or disability retirement may elect to receive a monthly retirement benefit paid in
accordance with any one of the following options:

(a) Option 1. A single life benefit payable for the life of the retiree and, upon
the death of the retiree, the benefit ends. If, upon the death of the retiree, the total
amount of benefits that have been paid to the retiree does not exceed the amount
of moneys credited to the member contribution account, an amount equal to twice
the amount of any remaining moneys shall be paid to the named beneficiary of the
retiree or, if no named beneficiary exists, to the estate of the retiree.

(b) Option 2. A joint life benefit payable for the life of the retiree and, upon
the death of the retiree, one-half of the benefit becomes payable to the
cobeneficiary of said retiree for life. Upon the death of the cobeneficiary prior to the
death of the retiree, an option 1 benefit shall become payable to the retiree. If, upon
the death of both the retiree and the cobeneficiary, the total amount of benefits
that have been paid to them does not exceed the amount of moneys credited to the
member contribution account, an amount equal to twice the amount of any
remaining moneys shall be paid to the named beneficiary of the retiree or, if no
named beneficiary exists, to the estate of the person who survived the death of the
other.

(c) Option 3. A joint life benefit payable for the life of the retiree and, upon
the death of the retiree, the same benefit becomes payable to the cobeneficiary of
the retiree for life. Upon the death of the cobeneficiary prior to the death of the
retiree, an option 1 benefit shall become payable to the retiree. If, upon the death of
both the retiree and the cobeneficiary, the total amount of benefits that have been
paid to them does not exceed the amount of moneys credited to the member
contribution account, an amount equal to twice the amount of any remaining
moneys shall be paid to the named beneficiary of the retiree or, if no named
beneficiary exists, to the estate of the person who survived the death of the other.

(d) Repealed.

(2) Options 2 and 3 shall be the actuarial equivalent of option 1.

(3) If an option is not elected by a member prior to the effective date of
retirement, the member shall be deemed to have elected option 1.

(4) Benefits calculated pursuant to part 17 of this article shall be subject to
the benefit payment options provided in sections 24-51-1716 to 24-51-1725.

(5) (a) Upon the termination of a supplemental needs trust due to the death
of the beneficiary of such trust prior to the death of the retiree, an option 1 benefit
becomes payable to the retiree.

(b) If a supplemental needs trust is determined to be invalid or is terminated
during the life of the retiree, the beneficiary that was named in the trust is the
cobeneficiary.

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

Legislative History

Source: L. 87: Entire article R&RE, p. 1065, � 1, effective July 1. L. 88: (1)(b), (1)(c), and (2) amended and (1)(d) repealed, pp. 959, 963, �� 7, 20 (2), effective July 1. L. 2003: (1) amended, p. 2609, � 7, effective June 5. L. 2009: (4) added, (SB 09-282), ch. 288, p. 1346, � 35, effective January 1, 2010. L. 2015: (5) added, (SB 15-097), ch. 111, p. 326, � 3, effective April 16.