§ 31-31.5-501 — Vesting

Colorado § 31-31.5-501

• Jurisdiction: Colorado
• Title 31: Government
• Art.: Fire and Police Pension Association of Colorado Statewide Retirement Plan

Text

(1) A member is one hundred percent vested in the
individual account in the money purchase benefit account pursuant to section 31-31.5-503.

(2) Employer contributions made to the statewide retirement plan that are
credited to the money purchase component account are subject to the following
vesting rules:

(a) In the event of permanent occupational or total disability retirement or an
award of a survivor benefit due to a death of an active member pursuant to part 8 of
article 31 of this title 31, a member shall be one hundred percent vested in the
employer contributions made to the money purchase component account.

(b) A member shall be one hundred percent vested in the employer's
contributions made to the money purchase component account upon attaining
normal retirement age if employed by the employer on or after that date.

(c) Except as provided in subsections (2)(a) and (2)(b) of this section, a
member is vested in the employer contributions made to the money purchase
component account in the amount of twenty percent for each full year of service
performed for a covered department. Upon attaining five full years of service, a
member is one hundred percent vested. Vesting also applies to employer
contributions allocated pursuant to section 31-31.5-301 (3) or allocated under the
predecessor statewide defined benefit plan pursuant to section 31-31-405, as it
existed prior to its repeal.

(3) Upon distribution, the portion of the member's employer contributions to
the money purchase component account that is not vested shall be treated as a
forfeiture.

(4) (a) Years of service in the money purchase component for purposes of
this section cannot be purchased by the member or the employer.

(b) A member who only participates in the money purchase component does
not receive service credit for purposes of the lifetime benefit components.

(c) For members who participate in both the lifetime benefit components and
the money purchase component concurrently, years of service include all years of
service with the employer while in the plan or a predecessor plan, regardless of
whether contributions were made to the money purchase component for each year.

(5) A member who is restored to active service after a disability ceases to
exist receives credit for years of service in the money purchase component with the
employer prior to the disability as well as time while out on disability.

(6) Subject to rules adopted by the board, years of service of a member who
is employed by successive employers may be aggregated for determining eligibility
and benefits provided by the money purchase component of the statewide
retirement plan if the service for each employer was rendered while the employer
covered its members under the statewide retirement plan, the predecessor
statewide defined benefit plan, or the predecessor statewide hybrid plan.

Legislative History

Source: Entire article added, (HB 22-1034), ch. 61, p. 295, � 1, effective August 10. L. 2024: (2)(c) amended, (HB 24-1042), ch. 15, p. 40, � 13, effective March 6.