CO Code § 31-31-405 (2021)
2021 Colorado Code|Title 31 - Government - Municipal|Article 31 - Fire - Police - New Hire Pension Plans|Part 4 - Statewide Defined Benefit Plan|§ 31-31-405. Stabilization Reserve Account and Separate Retirement Account - Creation - Allocation

  Within the new hire benefits account, created pursuant to section 31-31-402 (5), there shall be established two subaccounts:   An actuarial account, into which that portion of the new hire benefits account necessary to fund benefit liabilities accrued under sections 31-31-403 and 31-31-404 (2), as determined by the 1987 actuarial study, shall be deposited;    A stabilization reserve account, into which the remainder in the new hire benefits account, after allocation pursuant to subparagraph (a) of this subsection (1), may be deposited.       In each year after 2021, the board may allocate additional deposits to the new hire benefits account between the actuarial account and the stabilization reserve account based upon the actuarial study for the previous year. If in any year the total amount of additional deposits to the new hire benefits account exceeds the amount required to meet any increase in the benefit liabilities funded by the actuarial account, the board, in its sole discretion, may allocate all or any part of such excess to the stabilization reserve account.    The stabilization reserve account created by subsection (1) of this section shall consist of individual separate retirement accounts established in the name of each member covered by the statewide defined benefit plan established by this part 4. Funds allocated to the separate retirement accounts shall be in the nature of a defined contribution account and subject to self direction by the member. The board shall transfer the balances of the predecessor separate retirement accounts contained within the members benefit investment fund to defined contribution accounts on or about January 1, 2021. Members covered on a supplemental basis pursuant to section 31-31-704.5 shall be eligible for individual separate retirement accounts.    Such amount as may be allocated to the stabilization reserve account pursuant to subsection (1) of this section shall be further allocated to each member's separate retirement account based upon the difference between a member's employer and employee contributions to the new hire benefits account for each payroll period and the proportionate amount of such contributions that is allocated to the actuarial account pursuant to subsection (1) of this section.    Earnings or losses on the amount allocated to the member's separate retirement account while invested as part of the member's benefit investment fund shall be allocated at least monthly on a time-weighted basis as determined by the board until the account is exhausted. Earnings or losses on the amount allocated to the member's separate retirement account while invested as part of the members self-directed investment fund shall be allocated as determined by the record keeper.    Any amount allocated to a member's separate retirement account shall be subject to the vesting and distribution requirements under the plan.     History. Source: L. 96: Entire article added with relocations, p. 909, § 1, effective May 23. L. 2000: (4) amended, p. 76, § 1, effective August 2. L. 2001: (3) amended, p. 419, § 5, effective June 1. L. 2006: (1) amended, p. 101, § 1, effective March 27; entire section amended, p. 191, § 16, effective March 31. L. 2020: (2), (3), (5), and (6) amended,(HB 20-1044), ch. 105, p. 408, § 5, effective September 14.    Editor's note:    This section was formerly numbered as § 31-30-1017.    Amendments to subsection (1) by House Bill 06-1068 were relocated to subsection (3) due to its harmonization with amendments made to this section by House Bill 06-1059.