Colorado § 24-51-802 - Change in option or cobeneficiary.

§ 24-51-802. Change in option or cobeneficiary.

(1) Except as otherwise provided in this part 8, the election of an option and the designation of a cobeneficiary for options 2 and 3 shall not be changed after sixty days have elapsed from issuance of the initial benefit payment.

(2) The election of an option or the designation of a cobeneficiary may be changed if the retiree returns to membership and thereafter earns one year of service credit; however, a member whose retirement or reduced service retirement benefits are in separate benefit segments pursuant to section 24-51-1103 (1.5) shall elect the same option and designate the same cobeneficiary for all of his or her separate benefit segments.

(3) A retiree who was not married on the effective date of retirement may elect option 2 or 3 upon marriage and designate the spouse as cobeneficiary. If a retiree is married on the effective date of retirement and the spouse on said date subsequently dies, the retiree may elect option 2 or 3 upon remarriage and designate the spouse as cobeneficiary.

(3.5) In any dissolution of marriage action in any district court of the state, the court shall have the jurisdiction to order or allow a retiree who is a petitioner or respondent in such action to change the cobeneficiary that was named by such retiree at retirement.

(3.8) In any dissolution of marriage action in any district court of the state that becomes final on or after July 1, 2003, in which the retiree retired on or after July 1, 1988, and elected to receive an option 2 or 3 benefit and designated his or her spouse as cobeneficiary, the court shall have the jurisdiction to order or allow a retiree who is a petitioner or respondent in such action to remove the spouse that was named cobeneficiary by the retiree at retirement, in which case an option 1 benefit shall become payable. The retiree may elect option 2 or 3 upon remarriage and designate the spouse as cobeneficiary.

(4) Designation by a member of a cobeneficiary to receive an option 3 benefit pursuant to the provisions of part 9 of this article may be changed or omitted by said member at any time prior to the date of death.

(5) Notwithstanding any provision to the contrary, a retiree may change the cobeneficiary that was named by such retiree and designate a supplemental needs trust as a cobeneficiary in place of the previously named cobeneficiary if:

(a) The beneficiary of the supplemental needs trust is the same person as the previously named cobeneficiary; and

(b) The retiree files an application and any required documents in a form as designated by the association.

Source: L. 87: Entire article R&RE, p. 1066, § 1, effective July 1. L. 88: (1) amended, (3) R&RE, and (4) added, p. 960, §§ 8, 9, effective July 1. L. 90: (1) amended, p. 1249, § 8, effective April 5. L. 92: (3.5) added, p. 1140, § 16, effective May 1. L. 2003: (3.8) added, p. 2610, § 8, effective July 1. L. 2010: (2) amended, (SB 10-001), ch. 2, p. 17, § 17, effective January 1, 2011. L. 2015: (5) added, (SB 15-097), ch. 111, p. 326, § 4, effective April 16.

Editor's note: (1) This section is similar to former §§ 24-51-112, 24-51-125, 24-51-212, and 24-51-608 as they existed prior to 1987. For a detailed comparison, see the comparative tables located in the back of the index.

(2) Although section 19 of chapter 175, Session Laws of Colorado 1992, provided that section 16 of said chapter amending this section was to take effect May 1, 1992, the governor did not approve the act until May 19, 1992.

Cross references: For the legislative declaration in SB 15-097, see section 1 of chapter 111, Session Laws of Colorado 2015.

ANNOTATION

Subsection (3.8) vests the trial court, not the retiree, with the authority to remove the former spouse as cobeneficiary and facilitate a conversion to an option 1 single life benefit. In re Mack, 2022 CO 17, 507 P.3d 524.

In a dissolution of marriage action, a court has jurisdiction to order or allow a retiree receiving public employees' retirement association benefits to convert their option 2 or option 3 benefits to option 1 benefits, but is not required to permit the conversion. In re Mack, 2022 CO 17, 507 P.3d 524.