Colorado § 24-51-704 - Calculation of disability retirement benefit.

§ 24-51-704. Calculation of disability retirement benefit.

Except as otherwise provided in this section, the disability retirement benefit shall be equal to the amount of the benefit payable pursuant to the provisions of section 24-51-603 which would have been payable upon reaching sixty-five years of age. Such calculation shall include earned and purchased service credit accumulated up to the date of disability plus projected service credit up to sixty-five years of age but not to exceed a total of twenty years of service credit. In no case shall the amount of any disability retirement benefit exceed fifty percent of the highest average salary of said member unless the member has earned and purchased service credit in excess of twenty years which entitles the member to receive the benefit provided pursuant to the provisions of section 24-51-603, based on the actual service credit of said member.

Source: L. 97: Entire part R&RE, p. 777, § 12, effective January 1, 1999.

Editor's note: This section is similar to former § 24-51-704 as it existed prior to 1997.

ANNOTATION

Annotator's note. The following annotations include a case decided under this section as it existed prior to its 1997 repeal and reenactment.

The offset to a claimant's temporary and permanent disability pension benefits should continue so long as the disability benefits continue and should not automatically terminate based upon claimant's achieving 65 years of age. State Penitentiary v. Toothaker, 832 P.2d 1009 (Colo. App. 1991).

The offset afforded by § 8-42-103 should continue so long as PERA disability benefits continue, and should not automatically terminate based upon claimant achieving 65 years of age where statutes provide and testimony before ALJ indicated that part of the PERA disability retirement benefit payable to the claimant was directly attributable to the fact that she was permanently disabled and that such disability benefit would, after age 65, be paid for the rest of her life regardless of her recovery or her work status, subject to certain limitations. State Penitentiary v. Toothaker, 832 P.2d 1009 (Colo. App. 1991).

PERA disability benefit prior to age 65 replaces future earnings and does not constitute marital property. In re Hansen, 62 P.3d 1066 (Colo. App. 2002).

When disabled employee reaches the age of 65, the portion of PERA benefits attributable to years of service before disability constitutes marital property, and the balance remains separate property. Regardless of employee's recovery or work status, the benefits, excluding the unearned service credit projected until age 65, are more akin to retirement benefits. In re Hansen, 62 P.3d 1066 (Colo. App. 2002).