NOTICE OF HEARING
PROPOSED AMENDMENTS AND ADDITIONS TO THE RULES
OF THE PUBLIC EMPLOYEES’ RETIREMENT ASSOCIATION

The Board of Trustees of the Public Employees’ Retirement Association (PERA) will hold a hearing on proposed amendments and additions to the Rules of PERA on Friday, October 20, 2006.  The hearing will begin at 11:00 a.m. in the PERA Board Room, located at 1300 Logan Street, Denver, Colorado 80203.  The Board’s authority to adopt and revise the Rules is set forth in C.R.S. § 24-51-204(5).

A copy of the Rules and proposed amendments and additions may be obtained from PERA at 1300 Logan Street, Denver, Colorado 80203. Individuals who wish to comment are encouraged to do so at least five days prior to the hearing. 

 

STATEMENT OF BASIS AND PURPOSE
Adoption of Amendments and Addition to Rules of the
Public Employees’ Retirement Association
October 20, 2006

1.	Rule 1.20 G. is being adopted to clarify how Highest Average Salary will be calculated. 

2.	Amendments to Rule 2.15 (employer assignments) are being adopted to reflect additional employer affiliations and the correct name of all employers affiliated with PERA.

3.	Rule 2.43 A. is being added to clarify the process for gubernatorial appointed trustees to assume office after January 1, 2007.

4.	Rule 2.43 B. is being added to define the amount of compensation gubernatorial appointed trustees will receive.

5.	The Amendment to Rule 5.10 is being adopted to clarify that service credit for a period of 12 months can exceed one year if there is an overlap in employment contracts. 

6.	Rule 5.25 G. is being added to specify which Highest Average Salary calculation will be used in calculating the cost to purchase service credit for existing members.

7.	Rule 5.35 is being added to specify that the additional cost to purchase forfeited service credit for members who were not members, inactive members, or retirees on December 31, 2006, will not become part of the member contribution account and never be refundable to the member.

8.	The Amendment to Rule 6.25 is being adopted to clarify when a member may cancel his or her retirement application.

9.	Rules 10.10 A. and B. are being amended to specify that only survivor benefit recipients and retirees who were members, inactive members, or retirees on December 31, 2006 will be eligible to receive retroactive annual increases if the effective date of the benefit is retroactive.  

10.	  Rule 10.20 is being added to clarify when cobeneficiaries will be eligible to receive an annual increase if his or her benefit is based on the account of a retiree who was not a member, inactive member, or retiree on December 31, 2006.

11.	  Rule 11.05 A. is being added to clarify C.R.S. § 24-51-1102(2) and define what a day of work means for the month of the effective date of retirement.

12.	  Rule 11.05 B. is being added to specify that any work during the month of the effective date of retirement will apply toward the working after retirement limits.

13.	  Rule 11.12 is being added to further clarify employer contributions on retiree services.

14.	  Rule 11.20 is being amended to clarify the amount of matching employer contributions that will be paid to a suspended retiree who refunds after earning less than one year of service credit.

15.	  Rule 12.10 B. is being amended to clarify that persons eligible to enroll in PERA’s health care program may enroll within 30 days after loss of any other coverage. 

*** Other changes are being proposed to correct punctuation and other inconsistencies in the Rules.