Rule 6 defines service retirement eligibility, provides for cancellation of retirement applications, further defines effective date of retirement, identifies the transition from member to retiree, describes benefits payable upon the death of an applicant and describes requirements for direct payments in lieu of contributions. For the purposes of Rule 6, except for Rule 6.50 and Rule 6.60 , the term "member" shall include DPS members and the term "retiree" shall include DPS retirees.
6.10
Service Retirement Eligibility
A. In addition to the eligibility requirements specified in 24-51-602, C.R.S., for members who have service credit as a State Trooper for which a higher contribution rate was required, eligibility for service retirement shall be determined by weighting the State Trooper service credit according to the eligibility requirements for State Troopers.
B. In addition to the eligibility requirements specified in 24-51-604, C.R.S., for members who have service credit as a State Trooper, as defined in 24-51-101(46), C.R.S., and as a non-State Trooper, eligibility for reduced service retirement shall be determined by weighting the State Trooper or non-State Trooper service credit, as appropriate, according to the reduced eligibility requirements for State Troopers and non-State Troopers.
C. If a member is eligible for a reduced service retirement benefit pursuant to Rule 6.10B, the weighted service credit will be utilized in the calculation of the reduced service retirement benefit pursuant to 24-51-605, C.R.S.
6.15
Division From Which a Member Retires
A retiree who had membership in multiple divisions in the month immediately preceding retirement shall be considered a retiree of the division in which the retiree has the greater salary postings in the month immediately preceding the effective date of retirement. If the retiree had the same amount of salary postings in more than one division in the month immediately preceding the effective date of retirement, the Association shall look to the prior month or months until there is a month that the retiree has greater salary postings from one of the divisions, and the retiree shall be considered a retiree of the division with the greater amount of salary.
6.20
Service Retirement Application
Application for service retirement shall be made with the form(s) prescribed by the Association.
6.25
Cancellation of Retirement Application
Applicants for service retirement may cancel the application anytime prior to the earlier of (1) the issuance of the initial benefit or (2) the use of any Health Care Benefit pursuant to 24-51-1201
et seq., C.R.S. Requests for cancellation must be made to the Association in writing.
6.30
Effective Date of Retirement
Retirement shall be effective on the first day of a month.
A. For members who have met the requirement for service retirement or reduced service retirement, the effective date of retirement shall be no earlier than the first day of the month following the last day of employment exclusive of any payment for accumulated annual leave for which service credit is earned, or extension of service credit for members employed on an academic year basis.
B. For vested, inactive members, service retirement or reduced service retirement shall be effective no earlier than the first day of the month in which the age and service requirements are met.
C. For elected officials who retire at the completion of their term of office who have met the requirements for service retirement or reduced service retirement, the effective date of retirement shall be the first of the month in which the term of office ends.
6.40
Member Becomes Service Retiree
The member shall become a retiree on the effective date of retirement.
6.50
Death Before Effective Date of Retirement
If a member who has applied for retirement dies before the effective date of retirement, the survivor benefits or single payment shall be payable as described in 24-51-908, C.R.S.
6.60
Direct Payments by Vested, Inactive Members
A vested, inactive member who terminated membership before July 1, 2003, may make direct payments in lieu of contributions to acquire eligibility for service retirement or reduced service retirement.
A. Lump-Sum Payments
(1) Lump-sum payments, except for retroactive payments described in Rule 6.60 B (2), shall not be subject to interest.
(2) Lump-sum payments, except those preceding the initiation of installment payments, shall not be refunded unless the member contribution account is refunded. Lump-sum payments preceding the initiation of installment payments shall not be refunded after installment payments have been completed.
B. Installment Payments
For vested, inactive members who elect to make direct payments in installments, certain requirements shall apply:
(1) Installment payments must begin no later than the last day of the month following the month in which employment is terminated, except as specified in Rule 6.60 B (2).
(2) For installment payments which begin later than the last day of the first full month following termination of employment, a lump-sum payment, retroactive to the date of termination will be required before installment payments can begin.
(3) Installment payments are due without notice on the last day of each month, and shall become delinquent on the 10th calendar day of the following month.
(4) Any eligibility purchased and payments made shall be refunded if more than two consecutive monthly payments become delinquent.
(5) Payments may be discontinued at any time prior to receipt by the Association of the final payment. Upon discontinuation of payments, all direct payments made shall be refunded and any eligibility purchased shall be negated.
6.70
Replacement Benefit Arrangement
The Association is authorized to establish one or more arrangements under Section 415(m) of the Internal Revenue Code to restore to members the portion of their benefits affected by Code Section 415, in accordance with 24-51-611, C.R.S.
6.80
Maximum Limit Under Federal Law
The cost of living adjustments under section 415(d) of the Internal Revenue Code of 1986, as amended ("the Code"), to the limits under section 415(b)(1)(A) of the Code are hereby incorporated by reference and shall continue to apply after the member's termination of membership, as provided in Treasury Regulations section 1.415 -1(d)(3)(v). Pursuant to Treasury Regulations section 1.415 -1 (c)(5), in no event shall the amount payable to a member in any limitation year under the form of benefit elected (taking into account annual cost-of-living increases in Part 10 of Article 51 of Title 24) be greater than the Code section 415(b)(1)(A) limit applicable at the annuity starting date, as increased in subsequent years pursuant to section 415(d) of the Code and Treasury Regulations section 1.415(d)-1.
Notes
8 CCR 1502-1-6
38 CR 23, December 10, 2015, effective 1/1/2016
39 CR 23, December 10, 2016, effective 1/1/2017
40 CR 04, February 25, 2017, effective 4/1/2017
40 CR 24, December 25, 2017, effective 2/1/2018
41 CR 14, July 25, 2018, effective 9/1/2018
41 CR 20, October 25, 2018, effective 1/1/2019
42 CR 20, October 25, 2019, effective 1/1/2020
43 CR 21, November 10, 2020, effective 1/1/2021
44 CR 20, October 25, 2021, effective 1/1/2022
