8 Colo. Code Regs. § 1502-1-1
Current through Register Vol. 48, No. 1, January 10, 2025
Rule 8 CCR 1502-1-1 - DEFINITIONSRule 1 defines certain terms used in the Rules, and further defines certain terms defined in Article 51, Title 24, C.R.S. For the purposes of Rule 1, except Rule 1.20 G, which shall not apply to DPS members who are eligible to retire as of January 1, 2011, the term "member" shall include DPS members and the term "retiree" shall include DPS retirees.
Unless otherwise stated, the terms and phrases contained in these rules shall have the same meaning as specified in Article 51 of Title 24, C.R.S.
1.10Denver Public SchoolsA. Unless otherwise indicated in the Rules, the term "member" shall not include a DPS member as that term is defined in Section 24-51-101 (18.3) and the term "retiree" shall not include a DPS retiree as that term is defined in Section 24-51-101 (18.7).B. The benefits provided under Part 17 of Article 51 of Title 24, C.R.S., shall herein be referred to as the DPS benefit structure.1.20Terms Used in RulesTerms used in the Rules shall have the meaning specified:
A. Foreign employer means a person or an entity that is formed under the laws of a jurisdiction outside the United States or its Territories.B. Pay pattern means the frequency of periodic salary payments.(1) Academic pay pattern means salary is paid over a period of at least 8 months but less than 12 months.(2) Seasonal pay pattern means salary is paid over a period of 1 to 11 months as determined by work available.(3) Traditional pay pattern means salary is paid over a period of 12 months.C. Noncovered employment means public or private employment with an employer in the United States, its territories, or any foreign country for which no PERA service credit was earned. Qualified service and non-qualified service shall be determined in accordance with the Internal Revenue Code, and the Internal Revenue Service Rules and Regulations.D. Retroactive salary means salary for previous periods of employment for which payment was delayed or the rate of pay subsequently changed. Retroactive salary payments shall be considered earned in the months for which the salary should have been paid, had no delay or subsequent rate change occurred. For retroactive salary payments that are made pursuant to court orders or arbitration awards or litigation and grievance settlements, the PERA-includable salary cannot be greater than the rate of pay the member would have received had he or she been employed with the employer and/or paid at the time the services were performed. In the event that the retroactive salary payment is less than the rate of pay the member would have received had he or she been employed with the employer and/or paid at the time the services were performed, the Association shall provide partial service credit to the member by prorating the service credit in the same proportion to the salary that was actually paid versus the salary that would have been paid.E. Qualified Children (1) Natural children means those biological children of a member who are conceived prior to the date of death of the member and are born within the normal gestation period after the date of the death of the member.(2) Adopted children means those for whom a petition for adoption was filed in court prior to the date of the death of the member and such petition is diligently pursued to the entry of the final decree of adoption.(3) Qualified children shall not include natural or adopted children of a member or inactive member whose parental relationship to the child has been terminated or determined by a court not to exist prior to the death of the member or inactive member.(4) Qualified children shall not include natural children of a member or inactive member whose parental relationship to the child is determined by a court after the death of the member or inactive member.(5) Qualified children shall include natural or adopted children of a member or inactive member who are legally adopted by another parent after the death of the member or inactive member. This subsection (5) shall not apply to qualified children eligible for benefits pursuant to the provisions of Section 24-51-1737, C.R.S.(6) For purposes of the DPS benefit structure, qualified children means those children who are eligible to receive survivor benefits pursuant to Section 24-51-1737, C.R.S.F. Salary (1) Accrued Leave Payments (a) Payments by an employer in satisfaction of amounts owed for accrued but unused leave shall be treated as PERA salary pursuant to 24-51-101(42), C.R.S., if the following criteria are met: * The payment by the employer of the accrued leave is made in a lump sum at the termination of the member's employment or in periodic payments after severing employment not at the election of the member. Periodic payments must be made over consecutive pay periods and for a period not to exceed the amount of service credit awarded in association with the payment. In the event that periodic payments are made, a single benefit adjustment will be made at the end of the payment period;
* The accrued leave payments are paid at a rate not to exceed the member's most recent rate of pay; and
* The payment is for accrued leave earned by the member pursuant to an established employer policy or employment contract and not as a result of a retroactive grant or an award by the employer.
(b) If each of the above criteria are met, consistent with longstanding PERA practice, the accrued leave payment will be treated as salary in calculating service credit and Highest Average Salary for retirement by applying the payment over the number of months as determined by the member's most recent monthly rate of pay. Additional service credit for these months will be included in the retirement benefit calculation. These months may also be used in the highest average salary calculation.(c) Salary includes an annual lump sum payment of accrued leave, not at the election of the member, paid because the individual has accrued in excess of the maximum accumulation allowed by the employer's established leave policy.(d) Notwithstanding anything herein to the contrary, any payout of leave made for a year the member has reached any maximum limit imposed under federal income tax law, including the limitations set forth in section 401(a)(17) of the federal Internal Revenue Code of 1986, as amended, shall not be included in the member's salary or service credit for the year paid or any future year.(2) Cash Payments in lieu of Fringe Benefits Cash payments in lieu of fringe benefits paid by an employer will be treated as PERA salary pursuant to section 24-51-101(42), C.R.S., if the Association determines that the payment is includable pursuant to this Rule and is in no way designed to manipulate Highest Average Salary.
(3) Performance or Merit Payments Performance or merit payments are payments which are in addition to regular salary or which replace regular salary increases in recognition of sustained employee performance over the evaluation period. In order for performance or merit payments to be treated as PERA salary pursuant to 24-51-101(42), C.R.S., the Association must have determined that the payment is includable pursuant to this Rule and is in no way designed to manipulate Highest Average Salary. All payments shall be considered earned in the month in which the performance payment is made, except that payments to DPS members who were eligible to retire as of January 1, 2011, shall be considered earned in the months for which the performance payment was based.
(4) Contributions Under Internal Revenue Code Section 125 and 132(a) For members who were members, inactive members, or retirees on June 30, 2019, salary shall not include amounts excluded from gross income under a cafeteria plan defined in Internal Revenue Code Section 125, or under a qualified transportation fringe benefit program defined in Internal Revenue Code Section 132(f)(4), so long as such deductions are made in equal periodic deductions through the year.(b) For members who were not members, inactive members, or retirees on June 30, 2019, salary shall include amounts excluded from gross income under a cafeteria plan defined in Internal Revenue Code Section 125, or under a qualified transportation fringe benefit program defined in Internal Revenue Code Section 132(f)(4).(5) Payments made by an employer for differential pay, as defined in section 414(u)(12) of the Internal Revenue Code of 1986, as amended, shall be treated as PERA salary pursuant to 24-51-101(42), C.R.S.(6) Tips Tips received by a member for services rendered in connection with his or her employment by an employer shall be salary pursuant to section 24-51-101(42), C.R.S.
(7) One-time payments PERA employers pay one-time, non-base building payments to their employees as compensation for services rendered. Under section 24-51-101(42), C.R.S., payments made to employees that are actually for services rendered can be PERA salary, but honorariums, cash awards, bonuses, and other payments enumerated in sections 24-51-101(42)(a)(ll) and (b)(ll), C.R.S., are not PERA salary. One-time, non-performance, and non-merit based payments paid by an employer shall be treated as PERA salary pursuant to section 24-51-101(42), C.R.S. if the employer demonstrates its intent that the payment is a salary payment rather than a bonus, and the Association determines that the payment is includable pursuant to this Rule and is in no way designed to manipulate Highest Average Salary.
G. Highest Average Salary (1) In calculating Highest Average Salary, the Association shall sort the three or five periods of twelve consecutive months of service credit in chronological order.(2) For a member who was a member, inactive member, or retiree on December 31, 2006, and who has an effective date of retirement on or after January 1, 2009 and has more than 36 months of earned service credit and less than 48 months of earned service credit, the Highest Average Salary shall be calculated using the highest annual salaries associated with three periods of twelve consecutive months of service credit and no annual base salary shall be used.(3) For a member who was not a member, inactive member or retiree on December 31, 2006, and who has five years of service credit on December 31, 2019, or a member of the judicial division who does not have five years of service credit on December 31, 2019, or a member of the judicial division who was not a member, inactive member, or retiree on December 31, 2019, and who has more than 36 months of earned service credit and less than 48 months of earned service credit, the Highest Average Salary shall be calculated using the highest annual salaries associated with three periods of twelve consecutive months of service credit and no annual base salary shall be used.(4) For a member or inactive member who does not have five years of service credit on December 31, 2019, or a member who was not a member, inactive member, or retiree on December 31, 2019, who has more than 60 months of earned service credit and less than 72 months of earned service credit, the Highest Average Salary shall be calculated using the highest annual salaries associated with five periods of twelve consecutive months of service credit and no annual base salary shall be used.(5) For purposes of section 24-51-101(25), C.R.S., and this Rule 1.20G, the term "highest annual salaries" shall mean the salaries associated with four or six periods of twelve consecutive months of service credit that when summed together achieve the highest cumulative value. The salaries associated with each individual twelve month period of service credit shall not be considered separately from the four- or six-year cumulative total for purposes of determining which periods yield the "highest annual salaries."(6) This Rule 1.20G shall not apply to DPS members who are eligible to retire as of January 1,2011.38 CR 23, December 10, 2015, effective 1/1/201639 CR 23, December 10, 2016, effective 1/1/201740 CR 04, February 25, 2017, effective 4/1/201740 CR 24, December 25, 2017, effective 2/1/201841 CR 14, July 25, 2018, effective 9/1/201841 CR 20, October 25, 2018, effective 1/1/201942 CR 20, October 25, 2019, effective 1/1/202043 CR 21, November 10, 2020, effective 1/1/202144 CR 20, October 25, 2021, effective 1/1/2022