8 CCR 1502-1
RULE 1 DEFINITIONS Rule 1 defines certain terms used in the rules, and further defines certain terms defined In Article 51. Title 24, CRS.
Unless otherwise stated, the terms and phases contained In these rules shall have the same meaning as specified in Article 51-of-Title 24, CRS.
1.20 Terms Used in Rules
Terms used in the Rules shall have the meaning specified:
RULE 2 ADMINISTRATION Rule- 2 assigns affiliated employers to one of the three divisions, sets procedures for administrative review of Board decisions, describes the requirements for regular and special meetings of the Board of Trustees and general meetings of the Association, defines a quorum, describes the election of Board members and officers, and specifies the actuarial methods and assumptions used by the Association.
2.10 Affiliated Employers
Whenever any state agency, its political subdivisions, any school district, any public entity or court becomes affiliated with the Association, the Board shall assign it and its employees to either the State and School Division, the Municipal Division or the Judicial Division.
2.15 Employer Assignments
A. State and School Division The State and School Division shall consist of two categories: State employers and School employers.
Adams State College Otero Junior College Aims Community Pikes Peak Community College College Arapahoe Community Pueblo Vocational College Community College Auraria Higher Education Red Rocks Community Center College Colorado Mountain State Board for College Community Colleges and Occupational Education Colorado Northwestern The State Colleges in Community College Colorado Colorado School of Trinidad State Junior Mines College Colorado State University University of Colorado at Boulder Commission on Higher University of Colorado at Education Colorado Springs Denver Community University of Colorado at College Denver Fort Lewis College University of Colorado Front Range Community Health Sciences Center College Lamar Community University of Northern College Colorado Lowry Higher Education University of Southern Center Colorado Mesa State College Western State College Metropolitan State College of Denver Morgan Community College Northeastern Junior College
Colorado Association of State Historical Society School Boards Colorado Council on Arts Department of Regulatory Agencies Colorado High School Department of Revenue Activities Association Colorado Student Loan Department of State Program Colorado Water Department of Resources and Power Transportation Development Authority CoverColorado Department of the Treasury Department of Fire and Police Pension Agriculture Association Department of General Assembly Corrections Department of Education Joint Budget Committee Department of Health Judicial Department Care Policy and Financing Department of Human Legislative Council Services Department of Labor and Office of the District Employment Attorneys Department of Law Office of the Governor Department of Local Office of Legislative Affairs Legal Services Department of Military Office of the Lieutenant and Veterans Affairs Governor Department of Natural Pinnacol Assurance Resources Department of Personnel Public Employees' Retirement Association Department of Public School for the Deaf and Health and Environment the Blind Department of Public Special District Safety Association of Colorado State Auditor's Office State Historical Society
Adams County Chaffee County Adams County School Buena Vista School District 14 District R-31 Bennett School District Salida School District R- 29J 32(J)
Brighton School District 27J Mapleton School District Cheyenne County Northglenn-Thomton Cheyenne County School school District 12 District Re-5 Strasburg school District Kit Carson school District 31J R-1 Westminster School District 50 Clear Creek County Alamosa County Clear Creek School District RE-1 Alamosa County School District Re-11J Sangre de Cristo School Conejos County District Re-22J North Conejos school District RE1J Arapahoe County Sanford School District 6J Adams-Arapahoe School South Conejos School District 28J District RE 10 Byers School District 32J Cherry Creek school Costilla County District 5 Deer Trail school District Centennial School 26J District R-1 Englewood school Siena Grande School District 1 District R-30 Littleton School District 6 Sheridan School District Crowley County Crowley County School District RE-1 Archuleta County Archuleta County School Custer County District 50 Jt Custer County Consolidated School District C-l Baca County Delta County Campo School District Delta County School RE-6 District 50(J)
Pritchett School District RE-3 Springfield School Dolores County District RE-4 Vilas School District RE- Dolores County School 5 Distort Re No. 2 Walsh School District RE-1 Douglas County Bent County Douglas County School District Re 1 Las Animas School District RE-1 McClave School District Eagle County RE-2 Eagle County School District Re 50 Boulder County Boulder Valley School Elbert County District RE2 St. Vrain Valley School Agate school District 300 District RE1J Big Sandy school District Elbert School District 200 Elizabeth School District C-l Kiowa School District C- El Paso County Kit Carson County Academy School District Arriba-Flagler #20 Consolidated School District No. 20 Calhan School District Bethune School District RJ1 R-5 Cheyenne Mountain Burlington School School District 12 District Re-6J Colorado Springs School Hi-Plains School District District 11 R-23 Edison School District 54 Stratton School District Jt R-4 Ellicott School District 22 Falcon school District 49 Lake County Fountain school District 8 Lake County School Destrict R-1 Hanover School District La Plata County Harrison School District Bayfield School District 2 lOJt-R Lewis-Palmer School Durango School District District 38 9-R Manitou Springs School Ignacio School District 11 District 14 Jt Miami/Yoder School District 60 Jt Peyton School District 23 Larimer County Jt Widefield School District Park school District R-3 Poudre School District R- l Fremont County Thompson School District R-2J Canon City School District Re-1 Cotopaxi School District Las Animas County Re-3 Florence School District Aguilar Reorganized Re-2 School District 6 Branson Reorganized School District 82 Hoehne Reorganized School District 3 Kim Reorganized School District 88 Garfield County Primero Reorganized School District 2 Garfield School District Trinidad School District 1 Re-2 Garfield School District Roaring Fork School District Re-1 Lincoln County Gilpin County Genoa/Hugo School District C-113 Gilpn County School Karval school District Re Distort Re-1 23 Limon School District Re 4J Grand County East Grand School Logan County District 2 West Grand School Buffalo School District District 1 Re-4 Gunnison Country Frenchman School District Re-3 Gunnison Watershed Plateau School District School District Re 1J Re-5 Valley School District Re-1 Hinsdale County Hinsdale County School Mesa County District Re-1 De Beque School District 49 Jt Huerfano County Mesa County Valley School District 51 Huerfano School District Plateau Valley School Re-1 District 50 La Veta School District Re-2 Mineral County Jackson County Creede Consolidated School District 1 North Park School District R-1 Moffat County Jefferson County Moffat County School District Re No. 1 Jefferson County School District R-1 Montezuma County Kiowa County Dolores School District RE 4A Eads School District Re-1 Mancos School District Re-6 Plainview School District Montezuma-Cortez Re-2 School District Re 1 Montrose County Saguache County Montrose County School Center Consolidated District Re-1J School District 26 Jt West End School District Moffat School District 2 Re-2 Mountain Valley School District Re 1 Morgan County Brush School District Re- San Juan County 2 (J)
Fort Morgan School Silverton School District District Re-3 1 Weldon Valley School District Re-20 (J)
Wiggins School District San Miguel County Re-50(J)
Alamosa Housing Northeast Colorado Authority Health Department Arkansas Valley Regional Library Service System Aurora Housing Northeast Colorado Authority Association of Baca Grande Water and Local Governments Sanitation District Beulah Water Works Park Center Water District District Black Hawk-Central City Pine Drive Water District Sanitation District Blanca-Fort Garland Plains and Peaks Metropolitan District Regional Library Boxelder Sanitation Services System District Brush Housing Authority Pueblo City-County Health Department Carbon Valley Park & Pueblo Library District Recreation District Castle Pines Metropolitan Rampart Regional District Library District Castle Pines North Rangely Regional Library Metropolitan District District Centennial Soil Red Feather Mountain Conservation District Library District Center Housing Authority Red, White & Blue Fire City of Alamosa Protection District City of Boulder Rifle Fire Protection District City of Colorado Springs Rio Blanco Fire Protection District City of Fort Morgan Rio Blanco Water Conservancy District City of Manitou Springs Routt County Soil Conservation District City of Pueblo Sable-Altura Fire Protection District City of Wray San Luis Valley Development City of Yuma Resources Group Collbran Conservancy San Luis Valley Water District Conservancy Colorado District District Attorneys' Council Colorado Housing and San Miguel County Finance Authority Public Library Colorado School Districts San Miguel Regional & Telluride Self-Insurance Pool Housing Authority Colorado Springs Utilities Scientific and Cultural Facilities Columbine Knolls-Grove District Metropolitan Recreation District Sheridan Sanitation District #1 Costilla Housing Authority Cunningham Fire Protection District Douglas Public Library Soldier Canyon Filter District Plant Durango Fire and Rescue Authority East Cheyenne Southwest Regional Groundwater Library Management District Steamboat II Water and Sanitation East Larimer County District Water District Eastern Rio Blanco Parks Steamboat Springs Rural & Recreation Fire District Protection District Eaton Housing Authority St. Vrain Sanitation District Elbert County Library Three Rivers Regional District Library System Estes Valley Public Town of Bayfield Library District Forest Lakes Town of Crawford Metropolitan District Fremont Sanitation Town of Dinosaur District Fremont Soil Town of Eckley Conservation District Garfield County Housing Town of Estes Park Authority Grand Valley Fire Town of Firestone Protection District Green Mountain Water Town of Lake City and Sanitation District Town of Mountain Village Housing Authority of Town of Platteville Arriba Housing Authority of the Town of Rico City of Boulder Housing Authority of the Town of Rye County of Adams Housing Authority of the Town of Seibert County of Saguache Town of Silver Plume Housing Authority of the Tri-County Health Town of Limon Department Lamar Housing Authority Upper Colorado Environmental Lamar Utilities Board Plant Center Left Hand Water District Upper Colorado Environmental Plant Center Longmont Housing Washington-Yuma Authority Counties Longs Peak Water Combined District Communications Center Louisville Fire Protection Weld County Health District Department Meeker Regional Library West Greeley Soil District Conservation Memorial Hospital - District Colorado Springs Montrose Fire Protection Western Rio Blanco District Metropolitan Montrose Recreation Recreation & Park District District Monument Sanitation Windsor-Severance District Library District Morgan Soil Yuma Housing Authority Conservation District Mountain View Fire Protection District Mountain Village Metropolitan District Mountain Water and Sanitation District Niwot Sanitation District North Chaffee County Regional Library
2.20 Administrative Review
A. Request for Administrative Hearing A written request for administrative hearing, including specifics, must be received by the Association within 45 days after the date on which the notice of the initial decision is mailed. The initial decision shall be made by PERA's executive director or the executive director's designee, and written notice of the initial decision shall be sent by certified mail.
B. Notification of Scheduled Administrative Hearing The person for whom the hearing is being conducted or their attorney, if represented, and the person representing the PERA administration will be notified by certified mail of the time, date and place of the of the hearing no less than 45 days prior to the date of the hearing.
C. Submission of Information Prior to the Hearing
D. Burden of Proof The person who requested the hearing shall bear the burden of proof by a preponderance of the evidence at the hearing.
E. Administrative Hearing
F. Final Board Action
A. Any member of the Association may become a candidate for election to the Board as a representative from his or her division or category of membership, by submitting a petition containing the required signatures, and a biographical summary of 150 words or less. The petition and the biographical summary must be received by the association office by the first working day of March of the election year.
B. For candidacy to represent members in either the State or School category of the State and School Division, or the Municipal Division, a candidate must submit a petition signed by no less than 100 members in the category or Division for which candidacy is declared.
C. For candidacy to represent members in the Judicial Division, the candidate must submit a petition signed by no less than 10 members in the Judicial Division, D. For candidacy as a retiree, the candidate must submit a petition signed by no less than 50 retirees. A retiree may not become a candidate in an election if the retiree's election would result in both retiree Trustees having retired from the same Division or category of membership.
E. Petitions must include the signature and legible printed name of each member or retiree who signs. The signer must also provide either their legible address or their legible social security number.
2.35 State Category Candidates
A. Within the State category of the State and School Division, at least one of the members elected to the Board shall be an employee or an employer designated in Rule 2.15 A (1) (A) as an Institution of Higher Education, and at least one of the members elected shall be an employee of a State employer designated in Rule 2.15 A (1) (B) as an Agency or Instrumentality.
B. Should a State category candidate who receives the highest number of votes be an employee of one of the employers within the same group as all other current Board members from the State category, the candidate who receives the most votes and who is employed by an employer from the State category not represented on the Board shall be declared elected.
2.40 Ballots for Board Election
Board electron shall be held by mall ballot according to procedures approved by the Board. All returned ballots must be postmarked no later than May 31 of the election year.
2.45 Assumption of Office
Members and retirees elected or appointed to the Board shall assume office at the first regular Board meeting held after July 1 of the year In which they were elected, or at the first regular meeting following certification of election or appointment, whichever is later.
2.50 Election of Officers
The Board shall elect by secret ballot from its members a Chairman and Vice Chairman. They shall be elected at the first regular meeting held after July 1 and shall serve for terms of two years. No member may serve continuously as chairman for more than two consecutive terms. All officers shall be elected by a majority of those present and voting.
2.55 Duties of Officers
A. The chairman shall preside at all meetings of the Board. In the absence of the chairman, the vice chairman shall assume the duties of the chairman.
B. Should the chairman be unable to complete the term as chairman, the vice chairman shall serve as chairman until the Board elects a new chairman.
2.60 Standing Committees
Members of standing committees of the Board shall be recommended by the chairman and subject to approval by the Board.
2.70 Board Meetings
A. Regular meetings shall be held not less than quarterly according to an annual schedule adopted by the Board and published in the minutes of the Board. Time and location for such meetings shall be determined by the Board. The annual schedule may be modified by the Board as necessary.
B. Special meetings may be called by the chairman or any four members of the Board by providing three days notice to each member of the Board. A call for a special meeting must state the business to be considered, and the time, date, and place of such meeting.
C. A majority of the Board shall constitute a quorum.
2.80 General Meeting
A general meeting of the Association may be called by the Board at any time and shall be called upon receipt of a petition signed by not less than 3% of the Association's membership.
2.85 General Meeting Notice
Notice of a general meeting shall be mailed to each member not less than 10 days prior to the meeting, and shall state the time, place, and purpose of the meeting. Only matters which have been specified in the purpose of the meeting shall be considered. No proxy voting shall be permitted.
2.90 Actuarial Assumptions
A. Funding Method The funding method used by the Association is the entry age actuarial cost method.
B. Asset Valuation Method The asset valuation method used by the Association results in a “smoothed” market value of assets. The difference between actual market value actuarial gains from investment experience and the expected actuarial gains from investment experience is recognized over a four-year period.
C. Actuarial Investment Assumption Rate The actuarial investment assumption rate is 8.50 percent per year compounded annually, net after administrative expenses.
D. Other Assumptions Other actuarial assumptions set by the Board include the mortality table, and the probabilities of age and service retirement, withdrawal from service, disability, and death-in-service. These assumptions shall be displayed in the Association's comprehensive annual financial report.
E. Actuarial Equivalent Benefits Pursuant to 24-51-801(2), C.R.S., benefits paid under options 2 and 3 shall be the actuarial equivalent of option 1, Pursuant to 24-51-605.5, C.R.S., a money purchase retirement benefit shall be actuarially determined. For these calculations the actuarial investment assumption rate and the mortality table shall be used.
RULE 3MEMBERSHIP Rule 3 describes continuation of membership, information required from employers and members and determination of member status by the Board.
3.15 Continuation of Membership
A. Membership rights continue during an employer-certified leave of absence without pay.
B. Membership rights continue during an absence due to work stoppage from the date work is halted through the date a court order is Issued for return to work.
C. Membership rights continue during periods in which pay has ceased due to seasonal or special nature of work requiring regularly recurring periods of more than 90 days during which no pay is received.
3.20 Municipal Employer Termination
Except for the rights of individuals who become vested, inactive members, membership rights for Municipal Division members terminate on the effective date of their employer's termination of affiliation with PERA.
3.25 Member Records
The Association shall require such information as may be necessary to determine membership status or benefit eligibility including, but not limited to:
3.30 Determination of Member Status
If existing Association records are incomplete or in question, and no acceptable documentation can be provided by the employer or the member, the Board shall determine benefit eligibility and benefit payments based on the information available.
AMENDMENTS TO PERA RULES Adopted by PERA Board on August 22 Effective October 1,1997 RULE 4 CONTRIBUTIONS Rule 4 requires the Association to prescribe the form in which the monthly Contributions Report is submitted, describes procedures for correction of reporting errors, specifies the due date for reports and contributions, determines the calculation of interest due if either is delinquent, contains provisions regarding payment of unpaid contributions, describes the use of contributions for benefit payments and describes procedures for refunds.
4.10 Monthly Contribution Report
The Association shall prescribe the form in which the monthly Contributions Report shall be submitted.
A. Correction of Errors An incorrectly reported employer or member contribution amount may be corrected through an adjustment on the next monthly Contributions Report. No interest shall be charged for such corrections.
B. Delinquent Reports or Contributions Failure by an employer to submit the monthly Contributions Report or contributions as required shall make the employer responsible for payment of the contribution amount plus interest computed on a daily rate on the contribution amount from the due date to the day that both the required report and contributions are received. However, the Association, in its sole discretion, may waive the interest so computed if only the monthly report is delinquent and the delinquency is non-recurring.
4.15 Payment of Unpaid Contributions
Unpaid contributions shall be paid to the Association pursuant to 24-51-402, C.R.S.
A. Retiree A person who retired before the Association first notified the employer of a claim for unpaid contributions shall be treated as an inactive member for determining the amount due the Association, and for all other purposes of 24-51-402(3) through (5), C.R.S.
B. Non-member The cost to purchase service for an individual who was not a member or inactive member when the association first notified the employer of a claim for unpaid contributions shall be the amount of member contributions which would have been paid, had the individual been properly covered as a member, plus interest accrued from the last date the individual was paid but not properly covered to completion of purchase.
C. Member or Inactive Member For an individual who was a member or inactive member at the time the Association first notified the employer of a claim:
4.20 Contributions on Retroactive Salary Payments
Contributions with interest must be made in a lump sum on retroactive salary paid.
4.30 Use of Contributions for Payment of Benefits
For purposes of payment of benefits, money credited to the member contribution account is used first.
4.40 Refunds
A. Any member who terminates membership is entitled to a refund of the member contribution account and the amount of matching employer contributions upon request, except that a retiree who returns to membership and earns one year of service credit will have the benefit recalculated instead of receiving a refund.
B. No refund will be made prior to receipt of employer certification of date of termination of employment, unless membership has been terminated and no contributions have been received for a period of 90 days.
C. No refund will be made prior to the date of termination of employment.
D. Member contributions and interest are subject to garnishment for child support purposes as provided in 24-51-212, C.R.S., only if the membership has terminated and the member is not vested.
E. Upon termination of affiliation by a Municipal Division employer, contributions of members employed by a terminating employer shall automatically be transferred to the alternative pension plan of the employer, except that contributions of members who have five or more years of service shall not be transferred if they have elected to become vested, inactive members. RULE 5 SERVICE CREDIT Rule 5 describes the determination and recording of earned service credit, type of purchased service credit and methods of payment for purchased service credit.
5.10 Earned Service Credit
A. Employment Pattern of Less Than 12 Months A member who is employed in a position in which the employment pattern covers at least 8 months but less than 12 months per year shall have service credit for each month based on:
B. Combinations of Employment Patterns Service credit for any combination of traditional, academic year or seasonal employment patterns occurring within one year will be calculated separately and. combined for the annual total Service credit for any period of twelve consecutive months may not exceed one year except for overlaps which occur due to changes in employment patterns.
5.20 Purchased Service Credit
Purchased service credit may qualify a member for earlier service retirement, earlier reduced service retirement or increased benefits.
A. Repayment of Refund A member may purchase all or part of a period associated with a refunded account.
B. Sabbatical Leaves
C. Non-covered Employment
(ABOVE AMENDMENT TO RULE 5.20 C(2) BECOMES EFFECTIVE FEB. 1,1996)
5.30 Payments for Purchased Service Credit
Lump-sum payments and installment payments must be completed during membership.
A. Lump-Sum Payments Lump-sum payments made more than 30 days later than the date on which the payment was due will be subject to interest from the date on which payment was due to the date on which payment was received. Failure to make the required interest payment by the date specified on the notice of interest due shall result in cancellation of the service credit purchased and refund of all the payments made.
B. Installment Payments Installment payments for purchased service credit must be made directly to the Association.
5.40 Interest Rate
The interest rate shall be the actuarial investment assumption rate as set by the Board in effect during the period for which interest is charged.
(ABOVE AMENDMENT TO RULE 5.40 BECOMES EFFECTIVE FEB. 1,1996) RULE 6 SERVICE RETIREMENT Rule 6 defines service retirement eligibility, provides for cancellation of retirement applications, further defines effective date of retirement, identifies the transition from member to retiree, describes benefits payable upon the death of an applicant and describes requirements for direct payments in lieu of contributions.
6.10 Service Retirement Eligibility
In addition to the eligibility requirements specified in 24-51-602, C.R.S., for members who have service credit as a State Trooper for which a higher contribution rate was required, eligibility for service retirement shall be determined by weighting the State Trooper service credit according to the eligibility requirements for State Troopers.
6.20 Service Retirement Application
Application for service retirement shall be made with the form(s) prescribed by the Association.
6.25 Cancellation of Retirement Application
Applicants for service retirement may cancel the application anytime prior to the effective date of retirement. Requests for cancellation must be made to the Association in writing. 30 Effective Date of Retirement Retirement shall be effective on the first day of a month. A For members who have met the requirement for service retirement or reduced service retirement, the effective date of retirement shall be no earlier than the first day of the month following the last day of employment exclusive of any payment for accumulated annual leave for which service credit is earned, or extension of service credit for members employed on an academic year basis.
B. For vested, inactive members service retirement or reduced service retirement shall be effective no earlier than the first day of the month in which the age and service requirements are met.
C. For elected officials who retire at the completion of their term of office who have met the requirements for service retirement or reduced service retirement, the effective date of retirement shall be the first of the month in which the term of office ends.
6.40 Member Becomes Service Retiree
The member shall become a retiree on the effective date of retirement.
6.50 Death Before Effective Date of Retirement
If a member who has applied for retirement dies before the effective date of retirement, the survivor benefits or single payment shall be payable as described in 24-51-908, CRS.
6.60 Direct Payments by Vested, Inactive Members
A vested Inactive member may make direct payments 1n lieu of contributions to acquire eligibility for service retirement or reduced service retirement.
A. Lump Sum Payments
B. Installment Payments For vested, inactive members who elect to make direct payments in installments, certain requirements shall apply:
6.70 Replacement Benefit Arrangement
The Association is authorized to establish one or more arrangements under Section 415(m) of the Internal Revenue Code to restore to members the portion of their benefits affected by Code Section 415, in accordance with 24-51-611, C.R.S.
RULE 7 DISABILITY RETIREMENT
7.10 Disability Application
A. The disability application, using the prescribed form, is to be submitted to the Association.
B. An applicant may cancel the application prior to the first payment, but the request to cancel must be submitted to the Association in writing.
C An applicant may qualify for short-term disability, disability retirement, or neither. The same applicant shall not be paid both short-term disability and disability retirement for the same day.
7.12 Determination and Appeal
A. The Association shall determine eligibility as defined in 24-51-701(1) and (3), C.R.S., salary as defined in 24-51-101(42), C.R.S., service credit as defined in 24-51-101(43), C.R.S., the amount payable as disability retirement benefits, the provisions pertaining to the earned income reduction in 24- 51-707, C.R.S., and the appropriate division in 24-51-708, C.R.S. Any appeal of the determinations made by the Association shall be to the Association in accordance with Rule 2.20.
B. The disability program administrator shall determine ail disability matters other than those specified in Rule 7.12(A), including, but not limited to, whether the applicant satisfies the medical standards in Rules 7.45 and 7.70. Matters determined by the disability program administrator shall be appealable only to the disability program administrator, not to the Association. The appeal process used by the disability program administrator shall include, as one level, if requested by the applicant, review of a medical determination by a panel of independent experts, qualified based on their expertise and experience and not involved in the original decision. The appeal process also shall comply with applicable statutory and regulatory requirements.
7.15 Examinations, Records, and Other Information
A. An applicant is required to undergo reasonable examination by physicians, rehabilitation experts, vocational experts, or other experts selected by the disability program administrator.
B. An applicant is required to provide medical records, other medical information, employment information, financial information, and any other information reasonably requested by the disability program administrator.
C. An applicant, any current employer, and any former employer is required to provide the job description, job duties, essential functions, job site conditions, possible accommodation, payroll records, attendance records, return-to-work information, and any other employment-related information reasonably requested by the disability program administrator.
D. Failure to undergo a reasonable examination or re-examination, failure to co- operate with the examiner or the disability program administrator, or failure to provide requested information within 60 days may cause the application to be cancelled and any payment, if started, to cease.
7.25 No Voluntary Suspension
After payment for short-term disability or disability retirement has started, voluntary suspension is not permitted.
7.30 Performance of Disability Program Administrator
A. The Association shall monitor the performance of the disability program administrator periodically. For this purpose, the disability program administrator shall provide periodic reports to the Association.
B. The Board shall receive a report on the disability program administrator's performance at least annually.
SHORT-TERM DISABILITY:
7.40 Contract with Disability Program Administrator
A. The contract with the disability program administrator, in addition to the applicable statutes and rules, shall govern short-term disability. As soon as administratively feasible following the receipt of employer contributions, the Association shall segregate as a separate fund the portion of the contributions necessary to fund the short-term disability program.
B. The contract with the disability program administrator begins January 1, 1999. The applicant's disability must exist on or after that date, and the applicant's waiting period must occur entirely on or after that date.
C. The contract with the disability program administrator may be amended from time to time.
7.45 Medical Standard for Short-Term Disability
For short-term disability, the applicant, because of the applicant's medical condition, must not be able to perform the essential functions of the applicant's job with reasonable accommodation as required by federal law.
A. The medical condition causing the disability must be physical or mental or a combination of both. The medical condition must be under ongoing appropriate treatment by a physician with the appropriate specialty.
B. The disability must exist prior to termination of employment as defined in 24-51- 101(49), C.R.S.
C. The applicant must not be totally and permanently mentally or physically incapacitated from regular and substantial gainful employment as defined in Rule 7.70.
D. The applicant is not disabled for this purpose if the applicant is medically able to do the types of material duties which the applicant was regularly performing prior to disability and which cannot be reasonably modified or omitted, whether or not the applicant does so.
E. The applicant is not disabled for this purpose if the applicant is medically able to perform any job, based on the applicant's existing education, training, and experience, that earns at least 75% of the applicant's predisability earnings from PERA-covered employment as defined in Rule 7.50(B) (1), whether or not the applicant does so.
7.50 Payment
A. The disability program administrator shall determine the amount payable for short-term disability, if any, and shall pay it.
B. Short-term disability may provide certain income replacement and reasonable rehabilitation as specified in the contract with the disability program administrator.
7.60 Termination
A. Payment of short-term disability shall not be made under any of the following circumstances:
B. The applicant shall notify the disability program administrator immediately in writing as soon as the applicant no longer qualifies for payment. In the case of the applicant's death, the applicant's estate or relative is to provide such notice within 30 days.
C. The amount of any overpayment is to be recovered through repayment or offset.
7.65 Terms
A. Short-term disability shall not be a “benefit” as defined in 24-51-101(7), C.R.S. A person receiving short-term disability shall not be a “benefit recipient” as defined in 24-51-101(8), C.R.S.
B. Short-term disability payments shall not be “salary” as defined in 24-51-101(42), C.R.S., shall not be subject to PERA contributions, and shall not result in service credit for PERA purposes.
C. Short-term disability payments shall not reduce the applicant's member contribution account as defined in 24-51-101(31), C.R.S. Any future payment by the Association, after short-term disability, such as a refund, retirement benefits, survivor benefits, or otherwise shall be governed by the applicable provisions of 24-51-101et seq., C.R.S. DISABILITY RETIREMENT:
7.70 Medical Standard for Disability Retirement
For disability retirement, the applicant, because of the applicant's medical condition, must be totally and permanently mentally or physically incapacitated from regular and substantial gainful employment.
A. The medical condition causing the disability must be physical or mental or a combination of both. The medical condition must be under appropriate treatment by a physician with the appropriate specialty.
B. This determination shall be based on whether the applicant is disabled as of termination of employment as defined in 24-51-101(49), C.R.S.
C. To be mentally or physically incapacitated from regular and substantial gainful employment, the applicant's medical condition must prevent the applicant from engaging in any work from which the applicant could earn at least 75% of the applicant's predisability earnings from PERA-covered employment.
D. If the applicant does not satisfy this medical standard for disability retirement, the applicant may instead qualify for short-term disability.
7.75 Effective Date of Disability Retirement
A. Disability retirement shall be effective on the first day of a month. The effective date of disability retirement shall be no earlier than the first day of the month following termination of employment as defined in 24-51-101(49), C.R.S., without consideration of any lump-sum payment for accumulated annual leave for which service credit is earned or of any extension of service credit for members employed on an academic year basis.
B. An applicant must terminate employment with all PERA-covered employers no later than the last day of the month following the determination that the applicant qualifies for disability retirement. If the applicant fails to terminate by that date, the application shall be cancelled.
C. If an applicant is changing from short-term disability to disability retirement, the effective date for the disability retirement shall be the later of (i) the date specified in Rule 7.75(A) or (ii) the first day of the month in which the applicant's short-term disability ends. If the applicant receives any short- term disability after the effective date for disability retirement, the amount of short-term disability paid for that month shall reduce the amount paid as disability retirement for the same month.
D. If the applicant dies prior to the effective date of disability retirement or dies prior to a determination that the applicant qualifies for disability retirement, the Association shall not pay disability retirement, but shall pay survivor benefits or a single payment as specified in 24-51-905, C.R.S.
7.77 Payment
A. The Association shall determine the amount payable as the monthly disability retirement benefit, if any, and shall pay it. The amount payable shall be governed by the applicable provisions of 24-51-701 et seq., C.R.S.
B. If the applicant receives any amount by litigation, compromise, settlement, or other method that resolves a claim for back pay for PERA-covered employment, the applicant shall not be permitted to retain or receive any disability retirement for the same period as the claim.
7.80 Termination
A. If the applicant is no longer disabled based on the medical standard in Rule 7.70 or otherwise is not qualified for disability retirement for any reason other than the applicant's death, the applicant may receive disability retirement benefits for a maximum of three calendar months immediately following the month in which the determination is made that the applicant no longer qualifies for disability retirement.
B. If payment to the applicant for disability retirement terminates for any reason other than the applicant's death, future payment may occur under the following circumstances:
C. If the applicant dies while receiving disability retirement, future payment, if any, is governed by 24-51- 801, C.R.S.
D. The applicant shall notify the Association immediately in writing as soon as the applicant no longer qualifies for disability retirement. In the case of the applicant's death, the applicant's estate or relative is to provide such notice within 30 days.
E. The amount of any overpayment is to be recovered through repayment or offset.
7.85 Terms
A. Disability retirement shall be a “benefit” as defined in 24-51-101(7), C.R.S. A person receiving disability retirement shall be a “benefit recipient” as defined in 24-51-101(8), C.R.S., and a “retiree” as defined in 24-51-101(39), C.R.S. An applicant shall first become a disability retiree as of the effective date of disability retirement.
B. In accordance with Rule 4.30, disability retirement benefits shall reduce the applicant's member contribution account as defined in 24-51-101(31), C.R.S. Rule 8 Benefit Options Rule 8 describes the requirements for election of an option and designation of a named beneficiary or cobeneficiary.
8.10 Election of Options
The election of a benefit option shall be made In writing and shall contain the signature of the member or the signature of the Individuals) appointed to represent the member.
8.20 Designation of Named Beneficiary or Cobeneficiary
Designation of named beneficiary or a cobeneficiary shall be made in Writing and Shall contain the signature of the member or the signature of the individual (s) appointed to represent the member. Such designation shall take effect upon receipt by the Association.
A. Named Beneficiary The member or retiree may designate more than one named beneficiary. If more than one named beneficiary survives the member, the single payment of the balance remaining from the total of the member contribution account and the amount of matching employer contributions shall be shared equally. If more than one named beneficiary survives the retiree, the single payment of the balance remaining in the member contribution account shall be shared equally. Designation of named beneficiary may be changed by the member or retiree at any time prior to death.
B. Cobeneficiary Only one cobeneficiary can be designated to receive benefits under the provisions of Options 2 or 3. RULE 9 SURVIVOR BENEFITS Rule 9 describes the requirements for designation of named beneficiaries, defines job-Incurred death, specifies the date on which survivor benefits become payable and the date on which survivor benefits terminate.
9.10 Designation of Named Beneficiary
Designation of a named beneficiary or named beneficiaries shall be made 1n writing, and shall contain the signature of the member or the signature of the Individual(s) appointed to represent the member. Such designation shall take effect upon receipt by the Association.
9.20 Job-Incurred Death
The member's death shall be considered job-Incurred If the Illness or Injury which caused the death resulted from the performance of job duties.
9.30 Survivor Benefit Application
Application for survivor benefits shall be made with the form(s) prescribed by the Association. Eligibility of applicants to receive survivor benefits shall be determined from documentation establishing age of applicant, relationship of applicant to deceased member, unmarried status, disability status, and full-time enrollment in school for children over age 18 and under age 23.
9.40 Commencement of Survivor Benefits
Survivor benefits shall become payable on the first day of a month.
A. Benefits Payable at the Death of the Member Survivor benefits payable at the death of the member shall be payable on the first day of the month following the month in which the death occurred.
B. Benefits Payable to Child Upon Enrollment In School Survivor benefits which become payable to a qualified child upon full-time enrollment in school within six months of the date of death of the member shall be payable on the first day of the month In which full-time enrollment begins.
C Surviving Spouse's Benefits Surviving spouse's benefits shall become payable on the first day of the month in which the surviving spouse becomes eligible for a benefit
9.50 Termination of Benefits
Survivor benefits shall be terminated on the date the survivor dies or is no longer qualified to receive such benefits.
A. Qualified Children's Benefits Qualified children's survivor benefits shall terminate on the date of marriage of the child, on the date the Board finds that the child is no longer incapacitated, on the last day of the school term in which the child's full-time enrollment ceases, or, for disabled children age 23 or older, on the first day of the month in which the surviving spouse becomes eligible for a benefit. Benefits shall continue during annual vacation months for which the child is not enrolled in school if the child certifies within 30 days after the end of the prior term that they are enrolled for the following term.
B. Dependent Parent's Benefits Dependent parent's benefits shall terminate on the date the parent remarries.
C. Dependent Parent's Benefits Dependent parent's benefits shall terminate on the date the parent remarries.
9.60 Resumption of Survivor Benefits Payments
A. Survivor benefits which have been terminated due to a child's ineligibility may be reinstated, upon receipt by the Association, of verification of unmarried status, and school attendance or disability status. Benefits will be terminated for any other benefit recipients who had become eligible, during the child's period of ineligibility, effective the first of the month in which documentation needed for reinstatement is received.
B. Survivor benefits which have been terminated due to marriage shall be reinstated upon receipt, by the Association, of a court order declaring the marriage invalid.
C. Reinstated benefits shall become payable-the. first day of the month of renewed eligibility, provided that no other benefit has been paid on the account for the same time period to which a retroactive payment might apply. If another benefit has been paid, the reinstated benefit shall become payable on the first of the month eligibility is verified. RULE 10 INCREASES IN BENEFITS
10.30 Retroactive Effective Date of Retirement or Survivor Benefit
If the effective date of a benefit is prior to the date the Association approves the benefit, then increases in the benefit shall be determined by considering the benefit to have been paid from the effective date. RULE 11 EMPLOYMENT AFTER RETIREMENT Rule 11 describes conditions under which retires may be employed with and without a reduction or suspension of benefits, and describes the conditions for recalculation of benefits upon termination of employment after retirement-
11.10 Employment After Service Retirement
A retiree receiving a service retirement or reduced service retirement benefit may be employed, under certain conditions, without reduction in benefits.
11.20 Termination of Employment After Retirement
A. Employment of Less Than One Tear A retiree who earns less than one year of service credit, following suspension of benefits and resumption of employment in a position subject to membership, shall receive a refund of member contributions made during the period of membership together with the amount of matching employer contributions, upon resumption of benefit payments.
B. Employment of One Year or More A retiree who earns at least one year of service credit following suspension of benefits and resumption of employment in a position subject to membership shall, upon subsequent retirement, receive a recalculated benefits which reflects the additional service credit earned during the period of membership and any increase in the highest average salary.
11.30 Employment After Disability Retirement
11.40 Commencement of Employment After Retirement
Employment after retirement may begin no earlier than the first day of the month following the month in which the effective date of retirement occurred. If employment begins earlier than such date, the benefit of the retiree shall be reduced by five percent per day worked during the month of the effective date of retirement RULE 12 HEALTH CARE PROGRAM Rule 12 describes requirements for enrollment and payment of premiums for the Health Care Program.
12.10 Enrollment
Enrollment in the Health Care Program is subject to receipt by the Association of the prescribed enrollment form(s).
A. Enrollment When First Eligible
B. Enrollment Upon Loss of Other Coverage Benefit recipients and others eligible for coverage who are not enrolled in the Health Care Program may enroll within 30 days after other continuous group health care coverage has been lost, or during open enrollment periods.
C. Enrollment Upon Reaching 65th Birthday
D. Open Enrollment A period of open enrollment shall be held annually. Benefit recipients may enroll themselves and their eligible dependents during the annual open enrollment period.
12.20 Payment of Health Care Premiums by Benefit Recipients
Premium payments made by benefit recipients shall be made through deduction from the benefit payment or by direct payment.
A. Deductions from Benefit Payments The portion of the monthly premium paid by the benefit recipient shall be deducted from the benefit payment unless the portion of the premium to be paid by the benefit recipient exceeds the amount of the benefit payment.
B. Direct Payment If the portion of the premium to be paid by the benefit recipient exceeds the amount of the benefit payment, the benefit recipient shall make direct payments.
12.25 Conditions for Direct Payment of Health Care Premiums
Direct payment of premium amounts may be made on a monthly or quarterly basis. The Association shall bill the benefit recipient, the surviving spouse, or the divorced spouse for the direct payments.
A. Requirements for Timely Payments Direct payments are due by the first day of the month for which coverage 1s being purchased, and shall become delinquent on the tenth day of the month.
B. Cancellation Due to Nonpayment Payments not made within 30 days of delinquency notification by certified mall shall result in cancellation of coverage effective at the end of the last month for which premium payments were made. RULE 13 LIFE INSURANCE PROGRAM Rule 13 describes conditions for enrollment for group life insurance coverage, provides for direct payment of premiums, and specifies requirements for designation of beneficiaries.
13.10 Enrollment
Life insurance coverage shall be available to members who voluntarily subscribe.
A. Enrollment Upon Becoming a Member A member may enroll within 90 days after becoming a member without proof of insurability.
B. Open Enrollment
13.20 Direct Payment of Premiums for Group Life Insurance
A. Members may pay life insurance premiums directly to the Association. Inactive members may continue coverage after termination of employment by paying life insurance premiums directly to the Association, provided they have not received a refund of their account.
B. Members on a leave without pay may make payments for the life insurance premiums to their employer, who shall report the payments on the monthly contribution report.
C. Retirees whose benefits have been suspended may make direct payment of the life insurance premiums which had been deducted from the monthly benefit payments prior to suspension.
13.30 Designation of Beneficiary for Life Insurance
Designation of a beneficiary shall be made in writing and must contain the signature of the member or the signature of the member or retiree or the signature of the individual(s) appointed to represent the member or retiree, and the date. Such designation shall take effect upon receipt by the Association. RULE 14 VOLUNTARY INVESTMENT PROGRAM Rule 14 establishes requirements for enrollment, changes to participation, suspension and resumption of contributions, submission of monthly contributions report and withdrawal. The Voluntary Investment Program is a 401(k) plan, known as PERA s 401(k) Plan, established pursuant to Section 401(k) of the Internal Revenue Code of 1986. as amended.
14.10 Enrollment in the 401(k) Plan
Any member or retiree employed by an affiliated employer may enroll in the 401(k) Plan. Enrollment shall be effective upon receipt by the Plan of contributions or a rollover for the member.
14.15 Changes in 401(k) Plan Participation
Requests for changes in the amount of contributions, the percent of contributions assigned to each fund, or the total amount in each fund may be made each month and must be submitted to the Association in accordance with the timeline as determined by the Board.
14.20 Suspension of Participation
C. A member or retiree may stop contributions to the 401 (k) Plan upon request. D A member or retiree may resume contributions at the beginning of any calendar month, except that contributions may not be resumed within six months after receipt of a hardship withdrawal.
14.30 Monthly Contribution Report
A. The employer shall forward all 401(k) Plan contributions, along with the required monthly report, to the Association by the due date in Rule 4.10 B. If either the report or contributions are delinquent, interest shall be assessed and paid as specified in Rule 4.10 B. Such interest collected from the employer shall be credited proportionately to the 401(k) Plan accounts of the affected participants.
B. The Association shall prescribe the form in which 401 (k) Plan contributions shall be reported.
14.40 Withdrawal
D. Upon Termination of Employment A member or retiree may withdraw the balance in the 401(k) account upon termination of employment.
E. Upon Attaining Age 59½ A member or retiree who has attained 59½ years of age may withdraw monies from the 401(k) account prior to termination of employment.
F. Due to Hardship
14.50 Loans
All eligible 401(k) participants may borrow monies from the 401(k) account subject to loan provisions established by the Board.
14.65 Compliance with Internal Revenue Service Code
Compliance with the Internal Revenue Service code regarding maximum allowable contributions is the responsibility of the member or retiree. The Association shall not be responsible for individual compliance with the restrictions set forth in the Code.
RULE 15 DOMESTIC RELATIONS ORDERS (“DROs”)
Rule 15 requires that the standardized form be used by the parties to a domestic relations order, as well as by the court, and includes other rules for administration of domestic relations orders.
15.05 Definitions
A DRO for the PERA defined benefit plan and/or the PERA 401(k) plan shall consist of (1) the written agreement for a DRO pursuant to 14-10-113(6), C.R.S. (hereinafter “Agreement”) and (2) the domestic relations order (hereinafter “Order”).
15.10 Standardized Forms
As specified in 14-10-113(6)(d), C.R.S., the standardized Agreement and Order forms provided by PERA must be used by the parties and by the court for the Agreement and Order to be valid with respect to PERA. The standardized forms must be executed voluntarily by both parties and properly completed to be a valid DRO with respect to PERA, with no changes or alterations to the provisions of the standardized forms.
15.20 Type of Plan
PERA's required plan is a “defined benefit plan” as defined in 14-10-113(6)(b)(II), C.R.S., and all payments from the plan shall be considered payments from a defined benefit plan. PERA's voluntary plan, the 401(k) plan, is a “defined contribution plan” as defined in 14-10-113(6)(b)(III), C.R.S.
15.25 DRO Submission Requirements
A. The parties shall submit the Agreement to PERA within 90 days after entry of the decree and the permanent orders regarding property distribution in a proceeding for dissolution of marriage, legal separation or invalidity of marriage. For the Agreement to be valid with respect to PERA, the Agreement and Order shall be entered by the court upon or before entry of any decree of dissolution of marriage, decree of legal separation, or declaration of invalidity of marriage or within 90 days after entry of the decree and permanent orders regarding property distribution in a proceeding for dissolution of marriage, legal separation or declaration of invalidity of marriage. Certified copies of the Agreement and Order should be submitted to and received by PERA within 90 days after entry of the Agreement and Order, but must be received by PERA at least 30 days before PERA shall make its first payment pursuant to the DRO.
B. An existing DRO that is valid with respect to PERA may be modified only by written agreement of the parties to the DRO and approved by the Court. The standardized forms provided by PERA must be used by the parties to modify a DRO. Certified copies of the Agreement and Order shall be submitted to and received by PERA at least 30 days before PERA shall make its first payment pursuant to the modified DRO.
15.30 Application by Alternate Payee
An alternate payee must make application for payment with the forms prescribed by PERA. No payment shall be made by PERA to the alternate payee until after all of the necessary forms have been completed and received by PERA and all other statutory, regulatory, and rule requirements for payment are satisfied.
15.40 Participant's Account
The member contribution account for the defined benefit plan and the member's account for the 401(k) Plan shall be reduced by payments made to the alternate payee.
15.50 Review of DRO Issues
Any issue pertaining to PERA and what PERA can or cannot do pursuant to a DRO (including, but not limited to, the validity of any DRO with respect to PERA, whether PERA can make any payment pursuant to any DRO, and what the amount and timing of any payment by PERA can be) shall be resolved through PERA's administrative review process pursuant to Rule 2.20.