Colorado § 24-51-401 - Employer and member contributions.

§ 24-51-401. Employer and member contributions.

(1) and (1.5) Repealed.

(1.6) For the purposes of sections 24-51-401 to 24-51-404 and sections 24-51-405.5, 24-51-409, and 24-51-411, the term "member" shall include DPS members and the term "retiree" shall include DPS retirees.

(1.7) (a) (I) Employers shall deliver a contribution report and the full amount of employer contributions, member contributions, and working retiree contributions to the association within five days after the date members and retirees are paid. Except as provided in this subsection (1.7)(a), subsection (7) of this section, and section 24-51-408.5, such contributions shall be based upon the rates for the appropriate division as set forth in the following table multiplied by the salary, as defined in section 24-51-101 (42), paid to members and retirees for the payroll period:

TABLE A

CONTRIBUTION RATES​

Division

Membership

Employer Rate

Member Rate

State

All Members

Except

10.15%

8.0%

State Troopers

12.85%

10.0%

School

All Members

10.15%

8.0%

Local Government

All Members

10.0%

8.0%

Judicial

All Members

13.66%

8.0%

DPS

All Members

10.15%

8.0%

(II) Effective July 1, 2019, subject to section 24-51-413, the employer and member contribution rates shall be based upon the rates for the appropriate division as set forth in the following table multiplied by the salary, as defined in section 24-51-101 (42), paid to members and retirees for the payroll period:

TABLE B

CONTRIBUTION RATES​

Division

Membership

Employer Rate

Member Rate

State

All Members

Except

10.4%

8.75%

State Troopers

13.1%

10.75%

School

All Members

10.4%

8.75%

Local Government

All Members

10.0%

8.0%

Judicial

All Members

13.91%

8.75%

DPS

All Members

10.4%

8.75%

(III) Effective July 1, 2020, except as provided in subsection (1.7)(g) of this section and subject to section 24-51-413, the employer and member contribution rates shall be based upon the rates for the appropriate division as set forth in the following table multiplied by the salary, as defined in section 24-51-101 (42), paid to members and retirees for the payroll period:​

TABLE C

CONTRIBUTION RATES

Division

Membership

Employer Rate

Member Rate

State

All Members

Except

10.4%

9.5%

State Troopers

13.1%

11.5%

School

All Members

10.4%

9.5%

Local Government

All Members

10.0%

8.0%

Judicial

All Members

13.91%

9.5%

DPS

All Members

10.4%

9.5%

(IV) Effective July 1, 2021, except as provided in subsection (1.7)(g) of this section and subject to section 24-51-413, the employer and member contribution rates shall be based upon the rates for the appropriate division as set forth in the following table multiplied by the salary, as defined in section 24-51-101 (42), paid to members and retirees for the payroll period:

TABLE D

CONTRIBUTION RATES

Division

Membership

Employer Rate

Member Rate

State

All Members

Except

10.4%

10.0%

State Troopers

13.1%

12.0%

School

All Members

10.4%

10.0%

Local Government

All Members

10.0%

8.0%

Judicial

All Members

13.91%

10.0%

DPS

All Members

10.4%

10.0%

(V) Effective July 1, 2025, subject to section 24-51-413, the employer and member contribution rates shall be based upon the rates for the appropriate division as set forth in the following table multiplied by the salary, as defined in section 24-51-101 (42), paid to members and retirees for the payroll period:

TABLE E

CONTRIBUTION RATES​

Division

Membership

Employer Rate

Member Rate

State

All Members

Except

10.4%

10.0%

State Troopers

13.1%

12.0%

School

All Members

10.4%

10.0%

Local Government

All Members

10.0%

8.0%

Judicial

All Members

13.91%

10.0%

DPS

All Members

7.4%

10.0%

(b) Contributions shall be calculated using the contribution rates that were in effect on the last day of the payroll period.

(c) Contributions for salary payments made to a member for unintentional nonrecurring adjustments or corrections that are paid separate from one of the employer's regular payroll cycles may be reported and paid to the association with the employer's next regular payroll cycle.

(d) If an employer makes payment to the association through an automated clearing house debit transaction, payment will be considered received on time if valid and executable automated clearing house instructions are received by the association by the date specified in paragraph (a) of this subsection (1.7).

(e) In recognition of the effort to equalize the funded status of the Denver public schools division and the association's school division as more fully provided in section 24-51-412, beginning January 1, 2015, and every fifth year thereafter, the association shall calculate a true-up to confirm the equalization status of the Denver public schools division and the association's school division, and, if necessary, the board shall recommend that the general assembly adjust the Denver public schools total employer rate to assure the equalization of the Denver public schools division's ratio of unfunded actuarial accrued liability over payroll to the association's school division's ratio of unfunded actuarial accrued liability over payroll at the end of the thirty-year period. The true-up shall be based on audited results of the association's school division's and the Denver public schools division's actual unfunded actuarial accrued liability and payroll experience at every point of true-up. If the ratios of unfunded actuarial accrued liability over payroll based on actual experience are not projected to equalize over the thirty-year period, the board shall recommend that the Denver public schools division total employer rate be adjusted by the general assembly.

(f) Repealed.

(g) (I) (A) Except as otherwise provided in subsection (1.7)(g)(II) of this section and subject to section 24-51-413, for the 2020-21 state fiscal year, the amount of employer and member contributions for employers and members in the judicial division of the association shall be based upon the rates as set forth in the following table multiplied by the salary, as defined in section 24-51-101 (42), paid to members and retirees for the payroll period:

TABLE C.5

CONTRIBUTION RATES​

Division

Membership

Employer Rate

Member Rate

Judicial

All Members

8.91%

14.5%

(B) Except as otherwise provided in subsection (1.7)(g)(II) of this section and subject to section 24-51-413, for the 2021-22 state fiscal year, the amount of employer and member contributions for employers and members in the judicial division of the association shall be based upon the rates as set forth in the following table multiplied by the salary, as defined in section 24-51-101 (42), paid to members and retirees for the payroll period:

TABLE D.5

CONTRIBUTION RATES​

Division

Membership

Employer Rate

Member Rate

Judicial

All Members

8.91%

15%

(II) Subsection (1.7)(g)(I) of this section does not apply to the employer or member contribution for judges employed by the Denver county court. For the 2020-21 and 2021-22 state fiscal years, the employer and member contribution rates for judges employed by the Denver county court shall be calculated pursuant to subsections (1.7)(a)(III) and (1.7)(a)(IV) of this section, as applicable, and subject to section 24-51-413.

(1.8) (Deleted by amendment, L. 2006, p. 1177, § 6, effective May 25, 2006.)

(2) Along with such contributions, the employer shall deliver to the association by the date established in subsection (1.7) of this section a contribution report containing any member information required by the board to properly credit money to the employer contribution reserve and the member contribution accounts in the member contribution reserve.

(3) The employer shall be assessed by the association, pursuant to rules adopted by the board, interest on the contributions, including working retiree contributions, if either contributions or member information is not submitted by the date established in subsection (1.7) of this section.

(4) and (5) (Deleted by amendment, L. 91, p. 876, § 9, effective, July 1, 1991.)

(6) For all members, contributions will be subject to any maximum limits imposed under federal income tax law including the limitations set forth in section 401 (a)(17) of the federal "Internal Revenue Code of 1986", as amended, and any other limit on the members' total gross salary that may be taken into account for purposes of determining member contributions.

(7) If a final judicial determination provides that an employer is obligated to pay damages to the association for unpaid contributions and the damages awarded are greater than the amounts provided pursuant to section 24-51-402, then the association shall reduce the employer contribution rate for the employer to a level that will offset the additional damages paid. If possible, the association shall set a rate of employer contributions that is sufficient to offset the additional damages over a twelve-month period. If the employer does not owe sufficient employer contributions to offset the additional damages over a twelve-month period, then the association shall eliminate the employer contributions for the employer until the excess damages are fully offset.

Source: L. 87: Entire article R&RE, p. 1055, § 1, effective July 1; (1) amended and (4) added, p. 1097, § 4, effective July 1; (1) amended and (5) added, p. 1094, § 1, effective July 14. L. 89: (1) amended, p. 1069, § 1, effective July 1. L. 90: (6) added, p. 1248, § 6, effective April 5. L. 91: Entire section amended, p. 876, § 9, effective July 1. L. 92: (1) amended and (1.5) and (1.7) added, p. 1132, § 1, effective May 1; (1) repealed, p. 1132, § 1, effective July 1. L. 95: (1.7) amended and (7) added, p. 557, § 18, effective May 22; (6) amended, p. 262, § 2, effective December 31. L. 97: (1.7), (2), and (3) amended, p. 773, § 10, effective July 1. L. 98: (1.7) amended, p. 660, § 1, effective July 1. L. 99: (1.7) amended, p. 337, § 2, effective July 1. L. 2000: (1.7) amended, p. 780, § 4, effective July 1. L. 2003: IP(1.7) amended, p. 2657, § 4, effective June 5. L. 2004: (1.7) and (2) amended and (1.8) added, p. 696, § 3, effective July 1; (1.7) and (2) amended and (1.8) added, p. 1942, § 16, July 1, 2005; (1.7)(a) amended, p. 1943, § 17, January 1, 2006. L. 2006: (1.7)(a) and (1.8) amended, p. 1177, § 6, effective May 25. L. 2009: (1.6) and (1.7)(e) added and (1.7)(a) amended, (SB 09-282), ch. 288, p. 1339, §§ 16, 17, effective January 1, 2010. L. 2010: (1.7)(a) amended and (1.7)(f) added, (SB 10-146), ch. 65, p. 228, § 1, effective March 31; (1.7)(a) and (3) amended, (SB 10-001), ch. 2, p. 6, § 6, effective January 1, 2011. L. 2011: (1.7)(f) amended, (SB 11-076), ch. 204, p. 870, § 1, effective May 23. L. 2015: (1.7)(a) amended, (HB 15-1391), ch. 265, p. 1033, § 1, effective January 1. L. 2018: (1.7)(a) amended and (1.7)(f) repealed, (SB 18-200), ch. 370, p. 2241, § 11, effective June 4. L. 2019: (1.7)(a)(II), (1.7)(a)(III), and (1.7)(a)(IV) amended, (HB 19-1217), ch. 240, p. 2366, § 1, effective May 20. L. 2020: (1.7)(a)(III) and (1.7)(a)(IV) amended and (1.7)(g) added, (HB 20-1394), ch. 175, p. 803, § 1, effective June 29. L. 2025: (1.7)(a)(V) added, (HB 25-1105), ch. 238, p. 1202 § 1, effective July 1.

Editor's note: (1) The provisions of this section are similar to provisions of several former sections as they existed prior to 1987. For a detailed comparison, see the comparative tables located in the back of the index.

(2) Subsection (1.5)(b) provided for the repeal of subsection (1.5), effective July 1, 1993. (See L. 92, p. 1132.)

(3) Although section 19 of chapter 175, Session Laws of Colorado 1992, provided that section 1 of said chapter amending this section was to take effect May 1, 1992, the governor did not approve the act until May 19, 1992.

(4) Amendments to subsection (1) by Senate Bill 87-061 and Senate Bill 87-239 were harmonized. Amendments to subsection (1.7) by Senate Bill 04-132 were harmonized with section 16 of Senate Bill 04-257, effective July 1, 2005, and with section 17 of Senate Bill 04-257, effective January 1, 2006.

(5) Amendments to subsection (1.7)(a) by Senate Bill 10-001 and Senate Bill 10-146 were harmonized.

(6) Section 2 of chapter 265 (HB 15-1391), Session Laws of Colorado 2015, provides that the act amending subsection (1.7)(a) takes effect January 1, 2015, but the governor did not approve the act until June 3, 2015.

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

ANNOTATION

Annotator's note. (1) Since § 24-51-401 is similar to §§ 24-51-104, 24-51-106, and 24-51-109 as they existed prior to the 1987 repeal and reenactment of this article, relevant cases construing those provisions have been included in the annotations to this section.

(2) For holding that a spouse's interest in a vested but unmatured employer-supported pension plan, to the extent such plan has been funded by employee and/or employer contributions during the course of a marriage, is marital property subject to equitable distribution in a dissolution proceeding, see In re Grubb, 745 P.2d 661 (Colo. 1987).

Rights in the fund are fully vested and are not subject to divestment. In re Pope, 37 Colo. App. 237, 544 P.2d 639 (1975).

Accumulated deductions are treated as marital property. The public employees' retirement association system treats the accumulated deductions in a husband's account in a manner which makes them marital property. In re Pope, 37 Colo. App. 237, 544 P.2d 639 (1975).

Payments from retirement fund deemed payments from "employer fund" under unemployment benefits provision. Payments from the public employees' retirement association fund are payments from a fund contributed to by an employer under § 8-73-110 (3)(a)(I), which deals with unemployment benefits. Johnson v. Div. of Emp., 191 Colo. 38, 550 P.2d 334 (1976).

For former provision governing making of deposits in lieu of salary deductions, see Annear v. McKelvey, 100 Colo. 213, 66 P.2d 536 (1937).

Applied in Pub. Employees' Retirement Ass'n v. Johnson, 153 Colo. 239, 385 P.2d 415 (1963); Johnson v. Div. of Emp., 191 Colo. 38, 550 P.2d 334 (1976).