2023 Colorado Revised Statutes › Title 31 - GOVERNMENT - MUNICIPAL (§§ 31-1-101 — 31-35-712) › POWERS AND FUNCTIONS OF CITIES AND TOWNS (§§ 31-15-101 — 31-35-712) › Article 31.5 - FIRE AND POLICE PENSION ASSOCIATION OF COLORADO STATEWIDE RETIREMENT PLAN (§§ 31-31.5-101 — 31-31.5-601) › Part 5 - MONEY PURCHASE COMPONENT (§§ 31-31.5-501 — 31-31.5-504) › Section 31-31.5-503 - Individual accounts - investment and account administration

(1)
(a)
The board shall create and maintain adequate records to disclose the interest of each member and beneficiary with assets in the money purchase component of the plan. The records must be in the form of individual accounts, and credits and charges must be made to such accounts in the manner prescribed by the board through rulemaking.
(b)
The board shall designate a record keeper responsible for the administration of the individual accounts. The maintenance of individual accounts is only for accounting purposes, and a segregation of the assets of the trust fund to each account is not required.
(c)
Distribution and withdrawals made from an account must be charged to the accounts as of the date payment is made. Earnings or losses on the amount allocated to the member's individual account while invested as part of the members self-directed investment fund must be allocated as determined by the record keeper.
(2)
(a)
The board may create and offer to each member with an individual account in the money purchase component various investment options, including at least three alternatives that allow a member a broad range of investments, diversification, and a meaningful choice between risk and return in the investment of the member's account.
(b)
(I)
One hundred percent of each individual account may be invested as directed by the member in any one or a combination of the investment options. If a member or designated beneficiary does not have a valid investment election on file for any portion of the amount in that member's accounts, that portion of the member's accounts shall be invested in the investment option selected by the board as the default option. In such event, the member or designated beneficiary is deemed to have directed that investment option for investment of that portion of the member's accounts.
(II)
Upon the death of the member, the designated beneficiary may elect to allocate the investment of the member's individual account as provided for in this section. If no notice of reallocation is received from the designated beneficiary, the member's individual account remains invested as previously allocated during the member's lifetime.
(III)
The board may establish one or more default options based upon various factors, including but not limited to market risk, stability, and rate of return. If the board has properly exercised its fiduciary duty in selecting a default option, it has no liability for any loss sustained by a member or designated beneficiary whose accounts in whole or in part are invested in the default option.
(c)
Members may redirect the investment of their account at any time and may reallocate money in existing funds as allowed by the association. The board may also bring a suit or take such other action as it deems appropriate if questions involving investment directions arise.
(3)
The accounts of members, designated beneficiaries, and alternate payees shall be adjusted in accordance with the following:
(a)
The balance of each account must be adjusted daily to reflect any distribution and all interest, dividends, account charges, and changes of market value resulting from the investment of the member's individual account.
(b)
Contributions must be allocated to the individual account of each eligible member not less frequently than monthly, according to the amount that is actually contributed on behalf of each member. In all cases, deposits of contributions shall be treated as actually made only as of the date the contributions are accepted as in good order by the record keeper.
(c)
The expenses of the money purchase component of the plan must first be paid from forfeitures, penalties received, settlement proceeds, and other sources of revenue received, and then must be allocated to and deducted from the members' accounts. Notwithstanding the foregoing, any revenue credits derived from the investments offered by the money purchase component may instead be distributed to participants. Expenses that are incurred as a direct result of the investments held in the money purchase component account must be deducted from the interest, dividends, and net income of the appropriate investment. General expenses must be deducted from the accounts of each member according to the member's time-weighted pro-rata share of the money purchase component account. The board may also assess a record keeping fee and an administrative fee for costs associated with the administration of the money purchase component.
Added by 2022 Ch. 61,§1, eff. 8/10/2022.
2022 Ch. 61, was passed without a safety clause. See Colo. Const. art. V, § 1(3).