Digest of Bills - 1996

GOVERNMENT - MUNICIPAL

S.B. 96-11 Fire and police pension law - recodification. Relocates the law governing "old hire" and "new hire" fire and police pension plans to newly-created articles, with amendments.

Old hire pension plans.

        Relocates, with amendments, the provisions on old hire pension plans for police officers and firefighters hired before April 8, 1978, and, specifically, the provisions of the four types of such plans: Police officers' old hire pension funds in cities under 100,000 in population; firefighters' old hire pension funds in cities under 100,000; firefighters' old hire pension funds in cities over 100,000 in population; and police officers' old hire pension funds in cities over 100,000.

        Incorporates general provisions requiring employers to provide applicable pension benefits to members hired on or before April 7, 1978, and to certain members hired after that date but before January 1, 1980, and exempting certain members from coverage who are covered by an exempt pension plan, the statewide defined benefit plan, or social security.

        Combines the provisions establishing firefighters' old hire pension funds in cities under 100,000 and in cities over 100,000 and renames that type of fund a "firefighters' old hire pension fund". Combines the provisions establishing police officers' old hire pension funds in cities under 100,000 and in cities over 100,000 and renames that type of fund a "police officers' old hire pension fund".

        Merges similar provisions on administration of the four types of old hire pension funds into a single provision on each of the following:

        Relocates, with amendments, the former "Policemen's and Firemen's Pension Reform Act" pertaining to the funding of state-assisted old hire police officers' and firefighters' pension plans. Includes the following changes and provisions:

        Conforms the amount of the annual transfer to the fund with section 5 of Senate Bill 95-228 by changing the amount from $26,000,600 to $26,600,000.

        Consolidates and relocates the provisions on funding nonstate assisted plans, including the following:

        Specifies that an employer that has affiliated its old hire police officers' or firefighters' pension fund with the fire and police pension association and that is not receiving state contributions shall annually contribute a specified amount approved by the board of the association.

        Relocates, with amendments, the following provisions on investments and insurance:

        Consolidates and relocates provisions on disability and survivor benefits for old hire members who died or became disabled prior to January 1, 1980, as follows:

        Deletes obsolete language on certain employees applying for a disability benefit prior to April 5, 1945.

        Relocates and combines similar provisions on exempt alternative programs for old hire pension plans established prior to January 1, 1980, thereby covering all plans, regardless of the size of the municipality or district. Authorizes employers of new hire firefighters and police officers to withdraw from the statewide defined benefit plan upon establishment of a money purchase plan and provides that old hire members may join such a plan. Relocates provisions covering the exempt money purchase plan option for old hire members and on the investment authority for exempt alternative plans that are not affiliated with the fire and police pension association. Specifies the standard for investments for such plans.

New hire pension plans.

        Incorporates general provisions by relocating certain definitions previously contained in the law relating to benefits provided under the pension plans for police officers and firefighters. Defines "retired member".

        Relocates, with amendments, the following provisions on administration:

        Relocates the provisions on the creation and organization of the fire and police pension association and specifies that all board members are appointed for a 4-year term.

        Combines the provisions on the creation of the fire and police members' benefit fund and the establishment of accounts therein, including the new hire benefits account, with the provisions relating to the creation of two subaccounts within the new hire benefits account. Specifies that the fund must consist of assets from particular benefit plans. Consolidates into a single section the provisions relating to the management and investment of the fire and police members' benefit fund.

        Relocates the following provisions on the statewide defined benefit plan:

        Relocates the provisions on the applicability of the statewide defined benefit plan, with amendments, and clarifies which employers are exempt from providing such plan.

        Relocates the following provisions on the statewide money purchase plan:

        Relocates the provisions on withdrawn local alternative pension plans concerning the withdrawal from and reentry into the statewide defined benefit plan. Specifies the investment authority for local alternative pension plans.

        Relocates the following provisions on affiliation of plans with the fire and police pension association:

        Relocates, with amendments, the provisions on employer affiliation with the association by an old hire fire or police pension plan and changes the reference of a "local" plan to an "old hire" plan. Relocates the provisions on affiliation by employers covering members under the federal "Social Security Act". Eliminates the eligibility of an affiliating social security employer for state contributions on the basis of accrued unfunded liabilities. Authorizes employer affiliation by exempt defined benefit pension plans.

        Relocates the following provisions on disability and survivor benefits:

        Relocates the provisions on disability benefits for total and occupational disabilities and specifies the options available to a member who subsequently marries. Establishes that disability benefits are eligible for cost of living adjustments. Combines the provisions relating to employer liability for disability benefits and for survivor benefits into a single section. Combines the provisions pertaining to state funding of death and disability benefits into a single section, with amendments, and eliminates the transfer of certain moneys to fund such benefits and to assist local pension funds. Prohibits the use of state funds to pay for death and disability benefits.

        Relocates the provisions on supplemental programs, including deferred compensation plans and group life insurance plans. Relocates the provisions on group health insurance plans and prohibits the association from paying premium subsidies under such plans.

        Relocates the provisions governing the police officers' and firefighters' pension reform commission.

APPROVED by Governor May 23, 1996        
EFFECTIVE May 23, 1996

H.B. 96-1016 Fire and police pensions - statewide death and disability plan - separation of on-duty and off-duty disability retirement. In making a determination of disability, authorizes the board of directors of the fire and police pension association to:

        Requires the board to promulgate rules establishing standards for determining whether a disability is on-duty and designating methods of reviewing existing disability awards. Specifies the on-duty disability benefits for both total and occupational disabilities. Specifies the type of evidence the board must consider in reviewing existing disability awards.

APPROVED by Governor April 16, 1996        
EFFECTIVE See Note

NOTE: This act was passed without a safety clause. See section 9 of this act for the possible effective dates.

H.B. 96-1119 Municipal land use controls - joint participation under intergovernmental agreement with county. Authorizes the governing body of a municipality to enter into an intergovernmental agreement with any county in which it is located to jointly participate in land use planning, subdivision procedures, and zoning for a designated area. Specifies that any action under the intergovernmental agreement pertaining to land within a municipality is subject to approval of the governing body of the municipality.

APPROVED by Governor April 25, 1996        
EFFECTIVE April 25, 1996

H.B. 96-1358 Annexation - enclaves - signatures for petitions - annexation agreements - flagpole annexations. Specifies that no enclave may be annexed if any part of the territory surrounding the enclave was annexed since December 19, 1980, without an election or petition as required by the constitution. Clarifies that a petition for annexation or for an annexation election must be signed by current landowners and that signatures on such petitions of any person other than a current landowner are invalid.

        If an annexation agreement or similar instrument for any area proposed to be annexed was entered into at least 10 years prior to the proposed annexation and if any of the current landowners in the area proposed to be annexed are not the landowners that entered into the agreement or instrument, provides that the signature of an official of the annexing municipality or a compelled signature of a current landowner shall be sufficient only for a petition for an annexation election. Allows the current landowners of the area proposed to be annexed under such annexation agreement or similar instrument to voluntarily waive their right to an annexation election if the waiver satisfies certain requirements.

        For municipalities located in whole or in part in a county with a population of at least 300,000, prohibits the contiguity required for annexation to be established by use of any boundary of a previously annexed area if the area, at the time of its annexation, was not contiguous at any point with the boundary of the municipality and was not otherwise in compliance with statutory requirements or by use of any boundary of territory that is subsequently annexed directly to or that is indirectly connected through subsequent annexations to such area.

VETOED by Governor June 5, 1996

H.B. 96-1370 Fire and police pensions - statewide death and disability plan - state funding - final contribution - appropriation. Allows an employer to withdraw from the disability and survivor benefit provisions of the fire and police pension law in order to establish and maintain its own exempt locally financed alternative disability and survivor benefit program. Describes the procedure for such withdrawal and the minimum benefit requirements under the alternative program. Provides for a payment by the fire and police pension association to a withdrawn employer of that employer's share of the state contribution for death and disability benefits made on January 31, 1997, as determined by the rules of the association. Provides for reentry into the disability and survivor benefit plan under certain conditions. Prohibits certain employers from withdrawing from the disability and survivor benefit plan.

        Reduces the disability benefits of a member who receives payments from a separate retirement account. Reduces the survivor benefits payable to a surviving spouse and dependent children who receive payments from a separate retirement account.

        Specifies the method for computing the redetermination of total disability benefits.

        Requires the board to submit an annual actuarial valuation report regarding the disability and survivor benefit plan. Specifies that, through January 1, 1996, the amount of the state contribution to the fire and police members' benefit fund must be based on that valuation. Provides that thereafter, the board shall submit a biennial actuarial valuation report for purposes related to the death and disability account.

        Transfers $39 million on January 31, 1997, for state funding of death and disability benefits for members hired before January 1, 1997, to the fire and police members' benefit fund for allocation to the death and disability account in such fund. Prohibits additional transfers of any amounts for that purpose after January 31, 1997. Requires a contribution in a specified amount based on the member's salary to the death and disability account in the fund for members hired on or after January 1, 1997. Provides for a determination at the local level of whether the contribution is assessed against the employer or member.

        Provides for treatment of payments of amounts from a member's separate retirement account in the event the member is retired for disability, returns to work, or dies prior to termination.

        Appropriates $39 million to the department of the treasury for the final contribution of state funding of death and disability benefits.

APPROVED by Governor June 1, 1996        
EFFECTIVE June 1, 1996

 

Session Laws of Colorado Digest of Bills General Assembly State of Colorado


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