Colorado § 24-51-1002 - Annual percentages to be used.

§ 24-51-1002. Annual percentages to be used.

(1) For benefit recipients whose benefits are based on the account of a member who was a member, inactive member, or retiree on December 31, 2006, or for benefit recipients whose benefits are based on the account of a DPS member or DPS retiree, the increase applied to benefits for the year 2010 shall be the lesser of two percent or the average of the annual increases determined for each month, to the nearest one-tenth of a percent, as calculated by the United States department of labor, in the national consumer price index for urban wage earners and clerical workers for each of the months in the 2009 calendar year.

(1.5) Notwithstanding any other provision of this section, for the years 2018 and 2019, the annual increase awarded shall be zero percent.

(2) Beginning on June 4, 2018, subject to section 24-51-1009.5, for benefit recipients whose benefits are based on the account of a member who was a member, inactive member, or retiree on December 31, 2006, or for benefit recipients whose benefits are based on the account of a DPS member or DPS retiree, the increase applied to benefits paid shall be one and one-half percent unless adjusted pursuant to section 24-51-413. The increase applied to such benefits shall be recalculated annually as of July 1 and shall be the compounded annual percentage of the annual increases applied to such benefits. In the first year that the benefit recipient is eligible to receive an annual increase pursuant to section 24-51-1001, the annual increase shall be prorated.

(3) Benefits for vested inactive members with at least twenty-five years of service credit and benefits for survivors of deceased vested inactive members who had at least twenty-five years of service credit shall be increased by the annual increase specified in this section and sections 24-51-1001 and 24-51-1003 under prior law from the date of termination of membership or July 1, 1993, whichever is later, to March 1, 2009, or the date benefits commence, whichever is earlier. This subsection (3) shall only apply to members and inactive members who are eligible to receive a retirement benefit as of January 1, 2011.

(4) Notwithstanding the provisions of subsection (1) of this section, the increase, if any, applied to the benefits of persons whose benefits are based on the account of a member who was not a member, inactive member, or retiree on December 31, 2006, will be calculated and paid in accordance with section 24-51-1009.

Source: L. 87: Entire article R&RE, p. 1071, § 1, effective July 1. L. 88: (2)(a) amended, p. 971, § 9, effective July 1. L. 92: Entire section amended, p. 1136, § 7, effective July 1. L. 93: Entire section amended, p. 478, § 7, effective March 1, 1994. L. 2000: (1) amended, p. 782, § 7, effective March 1, 2001. L. 2004: (1)(a.5) added, p. 700, § 9, effective July 1, 2005. L. 2005: (1)(a.5)(III) added, p. 528, § 7, effective May 24. L. 2006: (1), (3)(a), and (3)(b) amended and (4) added, p. 1185, § 20, effective May 25; (1)(a.5) repealed and (3) added, p. 1502, §§ 40, 41, effective June 1. L. 2007: (4) amended, p. 2039, § 59, effective June 1. L. 2009: (3)(c)(I) and (3)(c)(II) amended and (3)(c)(III) repealed, (SB 09-282), ch. 288, pp. 1398, 1347, §§ 62, 41, effective January 1, 2010. L. 2010: Entire section R&RE, (SB 10-001), ch. 2, p. 20, § 20, effective February 23. L. 2018: (1.5) added and (2) amended, (SB 18-200), ch. 370, p. 2255, § 18, effective June 4.

Editor's note: (1) This section is similar to former §§ 24-51-135, 24-51-225, and 24-51-614 as they existed prior to 1987. For a detailed comparison, see the comparative tables located in the back of the index.

(2) Amendments to subsections (1)(a.5)(I) and (1)(a.5)(II) by Senate Bill 06-235 were harmonized with Senate Bill 06-1391 and relocated to subsections (3)(a) and (3)(b), respectively.

(3) Subsection (4) was originally numbered as (3) in Senate Bill 06-235 but has been renumbered on revision for ease of location.

Cross references: For the legislative declaration in SB 18-200, see section 1 of chapter 370, Session Laws of Colorado 2018.

ANNOTATION

The public employees' retirement association (PERA) legislation providing for cost of living adjustments (COLAs) does not establish any contract between PERA and its members entitling them to perpetual receipt of the specific COLA formula in place on the date each became eligible for retirement or on the date each actually retires. There is no contractual or durational language stating or suggesting clear legislative intent to bind itself, in perpetuity, to paying PERA members a specific COLA formula. Justus v. People, 2014 CO 75, 336 P.3d 202.

The general assembly's latest modification of the COLA for retirees of PERA under this section is consistent with the PERA legislation's historical base pension benefit and changeable COLA structure. Senate Bill 10-1001's reformulation did not violate the contract clauses of the Colorado or United States Constitutions. Justus v. People, 2014 CO 75, 336 P.3d 202.