§ 31-30.5-802 — Exempt money purchase plan option

Colorado § 31-30.5-802

• Jurisdiction: Colorado
• Title 31: Government
• Art.: Fire - Police - Old Hire Pension Plans

Text

(1) Any employer that
has not elected to affiliate with the fire and police pension association relating to
an old hire plan established pursuant to this article may offer to the active old hire
members of such plan the option of converting to a money purchase plan.

(2) Such option shall be available on an individual basis such that any
member desiring to remain in the current defined benefit plan may do so.

(3) The money purchase plan offered may be a new plan established by the
employer or an existing plan maintained for the benefit of other members employed
in the same department.

(4) Any such money purchase plan shall be exempt from all provisions of
parts 3 to 7 of this article.

(5) The option may be offered only if approved by at least sixty-five percent
of all active old hire members. If approved, a deadline shall be set for electing
between the current plan and the money purchase plan. Prior to said deadline, the
employer shall provide to each active old hire member a disclosure statement
describing the differences between the current plan and the money purchase plan
and a statement as to the minimum beginning account balance for such employee
in the event of conversion to a money purchase plan.

(6) If any active old hire member elects to remain in the current plan, the
employer shall continue to fund such plan on an actuarially sound basis with any
unfunded liability being amortized over a period not to exceed twenty years after
January 1, 1989.

(7) Within ninety days after the election is made by each active old hire
member, the employer shall make the final determination as to whether to adopt
such option and shall be under no obligation to do so. In the event that the employer
determines that the option will not be adopted at that time, the employer may
reoffer the option at a later date in accordance with the provisions contained in this
section.

(8) No such option may be adopted which, in its application, would adversely
affect the pension benefits of retired old hire members.

(9) Nothing in this section shall be construed to prohibit an election by an
employer to affiliate its local plan with the fire and police pension association after
said employer has adopted a money purchase plan option pursuant to this section.
Any such affiliation shall be governed by the provisions of section 31-31-701.

Legislative History

Source: L. 96: Entire article added with relocations, p. 890, � 1, effective May 23.