Colorado § 24-51-1505 - Contributions - vesting - definition.

§ 24-51-1505. Contributions - vesting - definition.

(1) Contribution rates by the employer and by members of the defined contribution plan established pursuant to this part 15 shall be the same as the rates that would be payable by the employer and the member pursuant to section 24-51-401. The individual's participant account shall receive the full member contribution amount in effect under section 24-51-401. The individual's participant account shall receive a portion of the employer contribution equal to the amount in table A in section 24-51-401 (1.7)(a). Any portion of the employer contribution above the amount in table A in 24-51-401 (1.7)(a) shall be paid to the employer's division trust fund.

(2) Consistent with section 24-51-401 (1.7)(b), (1.7)(c), and (1.7)(d), the employer shall deliver all contributions within five days after the date members are paid.

(3) Except as otherwise provided in subsection (4) of this section, members of the association's defined contribution plan shall be immediately and fully vested in their own contributions to the plan, together with accumulated investment gains or losses. Members shall be immediately vested in fifty percent of the employer's contribution to the defined contribution plan, together with accumulated investment gains or losses on that vested portion. For each full year of membership in the defined contribution plan, the vesting percentage shall increase by ten percent. The vesting percentage in the employer's contribution, with accumulated earnings or losses, shall be one hundred percent for all members with five or more years of membership in the defined contribution plan. If an individual becomes a member of the defined contribution plan without an existing account balance or after a twelve-month break in service, the individual shall begin a new vesting schedule with regard to future employer contributions in accordance with this subsection (3).

(4) A member of the association's defined contribution plan with an accrued balance in the plan who became a member of the plan pursuant to section 24-51-1501 (2) or 24-51-1503 (3), shall be fully vested in one hundred percent of the state's past and future contributions to the plan, together with accumulated investment gains or losses on that vested portion. If an individual becomes a member of the association's defined contribution plan without an existing account balance or after a twelve-month break in service, the individual shall begin a new vesting schedule with regard to vesting of future employer contributions in accordance with subsection (3) of this section.

Source: L. 2004: Entire part added, p. 1948, § 23, effective January 1, 2006. L. 2007: Entire section amended, p. 2013, § 5, effective January 1, 2008. L. 2009: Entire section amended, (SB 09-066), ch. 73, p. 251, § 9, effective March 31. L. 2018: (1), (2), and (3) amended, (SB 18-200), ch. 370, p. 2258, § 25, effective June 4.

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