§ 31-31-811 — Funding of death and disability benefits

Colorado § 31-31-811

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

Text

(1) Every employer in
this state, except those employers covering their employees under social security
and those described in section 31-31-802 (2)(b) and (2)(c) who have not elected to
be subject to the provisions of this part 8, shall be governed by the provisions of
this section. For members who die or are disabled on or after January 1, 1980, the
death and disability benefits provided to any member pursuant to this part 8 shall
be paid for by state moneys transferred to the fire and police members' benefit
investment fund created by section 31-31-301 (1)(a), subject to the limitations
imposed by this section. Moneys in the disability and death benefits trust fund
created by section 31-31-813 shall not be used for any purpose other than the
payment of the death and disability benefits established by this part 8.

(2) (a) The board shall submit an annual actuarial valuation report dated
January 1 of the year in which the report is submitted, regarding the benefit
liabilities accrued under this part 8 to the state auditor, the legislative audit
committee, and the joint budget committee of the general assembly, together with
any recommendations concerning such liabilities as accrued.

(b) (Deleted by amendment, L. 2020.)

(3) Repealed.

(3.5) (a) To ensure that there is sufficient money to pay death and disability
benefits for members hired before January 1, 1997, the state treasurer shall issue
warrants to the fire and police pension association on July 1, 2022, and July 1, 2023,
in an amount equal to six million six hundred fifty thousand dollars for each warrant
and on July 1, 2025, and every July 1 thereafter through July 1, 2059, in an amount
equal to two million fifty thousand dollars for each warrant. The warrant issued on
July 1, 2022, is to be paid from the general fund, and the remaining warrants are to
be paid from the death and disability payment cash fund created in subsection
(3.5)(b) of this section. The board shall deposit this money in the statewide death
and disability trust fund created in section 31-31-813.

(b) (I) The death and disability payment cash fund is hereby created in the
state treasury. The fund consists of money transferred to the fund in accordance
with subsections (3.5)(b)(II) and (3.5)(b)(III) of this section. In accordance with
section 24-36-114 (1), the state treasurer shall credit all interest and income derived
from the deposit and investment of money in the fund to the general fund. The state
treasurer shall use the money in the fund for the warrants issued on July 1, 2023,
July 1, 2025, and every July 1 thereafter through July 1, 2059, in accordance with
subsection (3.5)(a) of this section.

(II) On July 1, 2022, the state treasurer shall transfer six million six hundred
fifty thousand dollars from the general fund to the death and disability payment
cash fund created in subsection (3.5)(b)(I) of this section.

(III) On July 1, 2025, and every July 1 thereafter through July 1, 2059, the state
treasurer shall transfer two million fifty thousand dollars from the general fund to
the death and disability payment cash fund created in section (3.5)(b)(I) of this
section.

(4) For each member hired on or after January 1, 1997, who is eligible for the
death and disability coverage provided by this part 8, a contribution shall be made
to the death and disability account in the fund for the year 2021 in an amount not
greater than three percent of the member's salary. Thereafter, the board, based on
an annual actuarial valuation, may adjust the contribution rate every year, but in no
event may the adjustment for any one-year period exceed two-tenths of one
percent of the member's salary. Any employer and any local pension board or
authority shall provide such information as may be required by the board in order to
complete the annual actuarial valuations. The actuary appointed by the board may
utilize either the entry age-normal cost method or the aggregate cost method for
purposes of the study required by this subsection (4). Any unfunded accrued
liability shall be funded over a period not to exceed thirty years. The actuarial study
shall not include any consideration of a cost of living adjustment to benefits
awarded to members who are occupationally disabled. Payments shall be made by
the employer and are due no later than ten days following the date of payment of
salary to the member. The payments required by this section are subject to interest
if not submitted when due. Any decision regarding whether the contribution
required by this subsection (4) shall be assessed against the employer or the
member, or shall in some manner be assessed jointly against the employer and the
member, will be made at the local level utilizing the usual process for determining
employee benefits. If it is not already part of the usual process for determining
employee benefits, the employer shall confer with the employees or their
representative prior to making a determination on how the contribution will be
assessed.

Legislative History

Source: L. 96: Entire article added with relocations, p. 935, � 1, effective May 23; (2) and (3) amended and (4) added, pp. 1340, 1341, �� 5, 6, effective June 1. L. 2001: (2)(b)(II) and (4) amended and (2)(b)(III) added, p. 426, � 16, effective June 1. L. 2006: (1) amended, p. 197, � 23, effective March 31. L. 2007: (4) amended, p. 274, � 3, effective August 3. L. 2008: (2)(b)(III) amended, p. 1269, � 8, effective August 5. L. 2015: (4) amended, (SB 15-027), ch. 9, p. 21, � 5, effective August 5. L. 2020: (2) and (4) amended and (3) repealed, (HB 20-1044), ch. 105, p. 413, � 11, effective September 14. L. 2022: (3.5) added, (SB 22-036), ch. 262, p. 1923, � 1, effective May 27. L. 2024: (3.5)(a) and (3.5)(b)(I) amended and (3.5)(b)(III) added, (HB 24-1043), ch. 261, p. 1728, � 1, effective May 28.