8 Colo. Code Regs. § 1502-1-11

Current through Register Vol. 48, No. 1, January 10, 2025

Rule 8 CCR 1502-1-11 - EMPLOYMENT AFTER RETIREMENT

Rule 11 describes conditions under which retirees may be employed with and without a reduction or suspension of benefits, describes the conditions under which employer contributions must be paid on retirees performing services after retirement for a PERA employer and describes the conditions for recalculation of benefits upon termination of employment after retirement. Unless otherwise indicated, for the purposes of Rule 11, the term "member" shall include DPS members and the term "retiree" shall include DPS retirees.

11.05Employment During the Effective Month of Retirement

A. A day of work during the effective month of retirement is defined as any time worked for a PERA affiliated employer regardless of the number of hours worked per day.

B. Employment by a retiree during the month of the effective date of retirement shall count toward the working after retirement limits specified in 24-51-1101(1), C.R.S.

11.10Employment After Service Retirement

A retiree receiving a service retirement or reduced service retirement benefit may be employed, under certain conditions, without reduction in benefits.

A. Employment with an Affiliated Employer

(1) For a service retiree employed in a position subject to limits on employment after service retirement, employment of more than four hours per day shall be considered one day.

(2) Employment after service retirement shall include all of the time during which a retiree renders any paid service.

B. Employment with a Non-Affiliated Employer

A retiree receiving a service retirement or reduced service retirement benefit may be employed with a non-affiliated employer without a reduction in or suspension of benefits.

C. Employment of Benefit Recipients

Other Than Retirees Cobeneficiaries and survivors are not subject to employment limitations.

D. Employment Pursuant to Section 24-51-1101 (1.8) and (1.9), C.R.S.

(1) For the purposes of Section 24-51-1101 (1.8), C.R.S., an "employer" is defined to be an entire school district and the charter schools of the district. Charter schools are not separate employers for purposes of Section 24-51-1101 (1.8), C.R.S.

(2) A service retiree who is working for an employer pursuant to Section 24-51-1101 (1.8) or (1.9), C.R.S., may also work for one or more employers during the calendar year. Once the service retiree reaches one hundred ten days or seven hundred twenty hours in a calendar year, whichever is applicable, the retiree may only work any remaining days or hours, without a reduction in benefits, for the employer that designated that service retiree pursuant to Section 24-51-1101 (1.8) or (1.9), C.R.S. Any employment with another employer will subject the retiree to a reduction in benefits pursuant to Section 24-51-1102, C.R.S.

(3) For purposes of Section 24-51-1101 (1.8) and (1.9), the employer must provide the Association with a list of any and all service retirees employed by the employer no later than March 31st of the applicable calendar year. The list must be updated with each service retiree who is hired that year.

(4) For purposes of Section 24-51-1101 (1.8) and (1.9), C.R.S., an employer is not required to designate all ten service retirees by March 31st of the applicable calendar year. However, once ten service retirees have been designated during a calendar year pursuant to Section 24-51-1101 (1.8), C.R.S., no additional service retirees may be designated even if one or more of the designated service retirees ceases work for that employer.

E. Employment as an Instructor at a State College or University

(1) An instructor at a state college or university may, but is not required to, determine hours worked for purposes of the limit in Section 24-51-1101(1) or (1.8), C.R.S., as applicable, by deeming each one credit hour taught per semester to equal three hours worked per week in that semester. An instructor who determines hours worked using this method may not exceed seven hundred twenty or nine hundred sixteen hours worked in the calendar year, or the daily equivalent if combining the hourly employment limit with other daily employment.

(2) For the purposes of this Rule, "state college or university" has the same definition as 24-51-1101 (1.8)(e)(l), C.R.S.

11.12Employer Contributions and Working Retiree Contributions on Retiree Service

A. A PERA employer that receives the services of a retiree, other than as a volunteer, under the conditions specified in this Rule, shall remit employer contributions to the Association in the manner specified in 24-51-401, C.R.S. and this Rule. Working retiree contributions shall also be due on such a retiree in accordance with the provisions of Rule 4.60 and paragraph (F) of this Rule. Employer contributions and working retiree contributions shall be due to the Association only if a retiree is the individual performing services for a PERA employer. Employer contributions and working retiree contributions shall not be due to the Association for a retiree if no services are provided to a PERA employer by the retiree. Employer contributions and working retiree contributions shall not be due to the Association for a retiree who provides products or goods to a PERA employer rather than services.

B. Ownership of up to 5 percent of a publicly traded company registered on a national securities exchange by a retiree shall not constitute ownership of the company or cause the company to be an affiliated party of the retiree for purposes of 24-51-1101(2), C.R.S. Any other form or degree of ownership in an entity providing services to a PERA affiliated employer shall constitute ownership or operation of the entity for purposes of 24-51-1101(2), C.R.S.

C. For purposes of 24-51-1101(2), C.R.S. an affiliated party shall include:

(1) any person who is the named beneficiary or cobeneficiary on the PERA account of the retiree,

(2) any person who is a relative of the retiree by blood or adoption to and including parents, siblings, half-siblings, children, and grandchildren,

(3) any person who is a relative of the retiree by marriage or civil union to and including spouse, spouse's parents, step-parents, step-children, step-siblings, and spouse's siblings, and

(4) any person or entity with whom the retiree has an agreement to share or otherwise profit from the performance of services for a PERA employer by the retiree other than the retiree's regular salary or compensation.

D. When employer contributions or working retiree contributions are due to the Association as a result of services provided by a retiree, the amount of contributions shall be based on the following:

(1) If the services provided to a PERA employer by the retiree are the specific subject of an agreement with the PERA employer, the employer shall report the salary to PERA and remit the appropriate contributions. Working retiree contributions shall be based on the amount received by the retiree as specified in the agreement which, if paid directly by a PERA employer, would constitute salary under 24-51-101(42), C.R.S.

(2) If the services provided to a PERA employer by a retiree are not the specific subject of an agreement with the PERA employer, then the retiree shall disclose the amount of compensation received by the retiree for services the retiree is providing to the PERA employer. Retiree shall report monthly to the Association and the PERA employer the amount received for the services provided to the PERA employer and shall specify the amount of compensation received which, if paid directly by a PERA employer, would constitute salary under 24-51-101(42), C.R.S. The monthly report to the Association by the retiree shall be in the form specified by the Association. The PERA employer shall remit employer contributions to the Association within 30 days after receipt of the retiree's disclosure. Working retiree contributions shall also be due in accordance with the provisions of Rule 4.60 and paragraph (F) of this Rule.

(3) If a retiree fails to report the compensation required under subsection D.(2) then the retiree shall be responsible to pay the employer contribution required by 24-51-1101(2), C.R.S. together with interest on the employer contribution and the working retiree contribution at PERA's actuarial investment assumption rate. Any amounts due under this subsection D.(3) shall be collected via an offset of the retirement benefit of the retiree.

(4) For purposes of this Rule 11.12 D., "specific subject of an agreement" means that an agreement between the retiree and the PERA employer, whether written or otherwise, contemplates services to be provided by the retiree. If the retiree is receiving compensation reported to the IRS under the retiree's own social security number or the PERA employer has knowledge of retiree status, the employer shall report under subsection D.(1).

E. Regular salary or compensation received by the retiree as an employee of an entity which is not owned or operated by the retiree or any affiliated party shall not be subject to employer contributions or working retiree contributions.

F. Working retiree contributions for independent contractors shall be collected via an offset of the retiree's retirement benefit to the point that the full benefit is offset.

11.15Reduction/Offset in Benefits

A. Any reduction in benefits due to working in the month of effective date of retirement or due to exceeding the working after retirement limits for an affiliated employer shall take place in the month immediately following the month such work occurs or is reported to PERA. If such benefit reduction cannot completely occur in this month, it shall be applied to future months until the amount due is recovered.

B. For disability retirees who exceed the earnings limit for employment after disability retirement, the benefit offset shall take place in the month immediately following the month such work occurs or is reported to PERA. If such benefit offset cannot completely occur in this month, it shall be applied to future month's benefits. In no case shall the benefit offset exceed the total benefit paid on the retiree account. This paragraph (B) shall not apply to DPS disability retirees whose application was received prior to January 1, 2010.

C. For retirees who have multiple benefit segments pursuant to Section 24-51-1103 or 24-51-1726.5, C.R.S., all benefit segments shall be offset by any reduction in benefits due to working in the month of effective date of retirement or due to exceeding the working after retirement limits for an affiliated employer.

D. Retirees who exceed the working after retirement limits shall report the excess hours or days worked to PERA no later than March 31^st of the following year. If the retiree fails to timely report the excess hours or days, interest at PERA's actuarial investment assumption rate shall be applied to the amount owed pursuant to Section 24-51-1102, C.R.S. Interest shall be calculated retroactively to April 1^st of the year in which the reporting was due. The reduction in benefit and any interest due under this subsection D. shall be collected via an offset of the retirement benefit of the retiree.

11.16Suspension of Service Retirement

A. A service retiree may prospectively suspend receipt of retirement benefits and return to membership. A retiree must return to membership in order to suspend receipt of retirement benefits. No retroactive suspension of benefits is allowed.

B. If a retiree suspends receipt of retirement benefits pursuant to 24-51-1103, C.R.S., and returns to work in a different division from which he or she retired, when the retiree resumes receipt of benefits due to re-retirement, the retiree shall remain retired from the division from which he or she originally retired. This Rule shall not apply to retirees who suspend receipt of retirement benefits on or after January 1, 2011.

11.20Termination of Employment After Retirement

A. PERA Retirees Who Suspend Benefits Before January 1, 2011

(1) Employment of Less Than One Year

A retiree who earns less than one year of service credit, following suspension of benefits and resumption of employment in a position subject to membership, shall receive a refund of member contributions made during the period of membership together with the amount of matching employer contributions, upon resumption of benefit payments. The amount of matching contributions shall be determined based on the service credit earned during the period of suspension and the age of the retiree.

(2) Employment of One Year or More

A retiree who earns at least one year of service credit following suspension of benefits and resumption of employment in a position subject to membership shall, upon subsequent retirement, receive a recalculated benefit which reflects the additional service credit earned during the period of membership and any change to the Highest Average Salary.

B. PERA Retirees Who Suspend Benefits on or After January 1, 2011 and DPS Retirees

(1) Employment of Less Than One Year

(2) Employment of One Year or More

A retiree who earns at least one year of service credit following suspension of benefits and resumption of employment in a position subject to membership shall build a new benefit segment. Upon termination of employment, the retiree shall have the option to either refund the account pursuant to Section 24-51-1103 or 24-51-1711, C.R.S., whichever is applicable, or elect to receive a second benefit based upon the plan provisions that governed the retiree's initial retirement benefit. The retiree will be immediately eligible for a second benefit upon termination of employment, regardless of the retiree's age. Regardless of total years of service credit earned during the second benefit period, the sum of the option 1 benefit or option A benefit, whichever is applicable, calculated pursuant to Part 6 of Article 51 of Title 24, C.R.S., shall not exceed one hundred percent of the largest highest average salary earned in any one benefit segment.

11.30Employment After Disability Retirement

A retiree receiving a disability retirement benefit may be employed in a position subject to membership under the same conditions applied to service or reduced service retirement. A disability retirement benefit may be suspended following resumption of employment under the conditions specified in 24-51-707, C.R.S. This Rule 11.30 shall not apply to DPS retirees receiving a disability benefit whose disability application was received on or before December 31, 2009.

11.40Commencement of Employment After Retirement

Employment after retirement may begin no earlier than the second business day of the month in which retirement is effective. If employment begins in the month in which retirement is effective, the benefit of the retiree shall be reduced by 5 percent per day worked during the month of the effective date of retirement.

8 CCR 1502-1-11

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