(1) The trustees of the board shall be held to the standard of conduct of a fiduciary specified in subsection (2) of this section in the discharge of their functions. Their functions shall include any duty, obligation, power, authority, responsibility, right, privilege, activity, or program specified in this article in connection with the association.
(2) (a) As fiduciaries, such trustees shall carry out their functions solely in the interest of the members and benefit recipients and for the exclusive purpose of providing benefits and defraying reasonable expenses incurred in performing such duties as required by law. The trustees shall act in accordance with the provisions of this article and with the care, skill, prudence, and diligence in light of the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims by diversifying the investments of the association so as to minimize the risk of large losses, unless in light of such circumstances it is clearly prudent not to do so.
Notwithstanding the provisions of paragraph (a) of this subsection (2), the mere settlement or compromise of any dispute by the board pursuant to the authority granted under section 24-51-205 (3.5) is not per se a violation of the fiduciary duties of any trustee.
Notwithstanding the provisions of paragraph (a) of this subsection (2), the consolidation or merger of a plan created under part 2 of article 64 of title 22, C.R.S., prior to its repeal in 2010, into the association and the board's administration of that division following the effective date of the merger shall not be considered a breach of the board's duties or standards of conduct. No claims shall lie against the board, association, or the trustees arising from the consolidation or merger or the specific terms imposed by law.
The trustees of the board shall not engage in any activities which might result in aconflict of interest with their functions as fiduciaries for the association.
The trustees of the board, the executive director, the deputy executive directors, andany employee of the association who is in a fiduciary position shall be subject to and shall make financial disclosures pursuant to the provisions of section 24-6-202.
Any person who is in a fiduciary position with the association and who is adjudicatedof violating any provisions of this article shall be personally liable to pay to the association an amount equal to any losses resulting from such violation and shall be subject to such equitable or remedial relief as the court deems appropriate. The court may enjoin any act or practice which violates any provision of this article.
Source: L. 87: Entire article R&RE, p. 1049, § 1, effective July 1. L. 95: (2) amended, p. 557, § 17, effective May 22. L. 2009: (2)(c) added, (SB 09-282), ch. 288, p. 1335, § 6, effective May 21.
Editor's note: This section is similar to former § 24-51-107 as it existed prior to 1987. 24-51-208. Allocation of moneys. (1) The moneys of the association shall be divided into several trust funds, including, but not limited to:
(a) The state division trust fund, which consists of contributions, payments, and interest paid by members and employers of the state division, in addition to a proportional share of investment income earned thereon;
(a.5) The school division trust fund, which consists of contributions, payments, and interest paid by members and employers of the school division, in addition to a proportional share of investment income earned thereon;
(Deleted by amendment, L. 97, p. 772, § 7, effective July 1, 1997.)
The local government division trust fund, which consists of contributions, payments,and interest paid by members and employers of the local government division, in addition to a proportional share of investment income earned thereon;
The judicial division trust fund, which consists of contributions, payments, and interest paid by members and employers of the judicial division, in addition to a proportional share of investment income earned thereon;
(d.5) The Denver public schools division trust fund, which consists of contributions, payments, and interest paid by members, DPS members, and employers of the Denver public schools division, in addition to the proportional share of investment income earned thereon and the assets of the DPS plan trust funds as of January 1, 2010; (e) Repealed.
(f) The health care trust fund, created pursuant to the provisions of section 24-51-1201 (1), which consists of a portion of the employer contributions equal to one and two onehundredths percent of member salaries; a portion of the amount paid by members to purchase service credit relating to noncovered employment as determined pursuant to section 24-51-505 (7); thirty percent of the amount of any reduction in the employer contribution rates as determined in section 24-51-408.5 (5) to amortize any overfunding in each division's trust fund; deductions of premium amounts from monthly benefits of participating benefit recipients; premiums paid directly to the trust fund by participating benefit recipients, members, and dependents; monthly payments made by employers on behalf of participating benefit recipients, members, and dependents; and interest; in addition to a proportional share of investment income earned thereon;
(f.5) The Denver public schools division health care trust fund, created pursuant to the provisions of section 24-51-1201 (2), which consists of a portion of the employer contributions equal to one and two one-hundredths percent of member salaries; a portion of the amount paid by members to purchase service credit relating to noncovered employment as determined pursuant to section 24-51-505 (7); deductions of premium amounts from monthly benefits of participating benefit recipients; premiums paid directly to the trust fund by participating benefit recipients, members, and dependents; monthly payments made by employers on behalf of participating benefit recipients, members, and dependents; and interest; in addition to a proportional share of investment income earned thereon;
The voluntary investment program trust fund, which consists of voluntary contributions made pursuant to 26 U.S.C. sec. 401 (k), as amended, and part 14 of this article and any investment income earned thereon;
The common operating fund, which consists of proportional allocations of moneyfrom the division trust funds and allocations from the other trust funds to meet the budget set by the board and any investment income earned thereon;
The association's defined contribution plan trust fund pursuant to part 15 of this article and any investment income earned thereon;
The deferred compensation plan trust fund, which shall hold assets of the plan established under 26 U.S.C. sec. 457 (b), as amended, and part 16 of this article and any investment income earned thereon.
(2) Within each of the state division, school division, local government division, judicial division, and Denver public schools division trust funds, the following reserves shall exist:
Member contribution reserve;
Employer contribution reserve;
Retirement benefits reserve; and
(Deleted by amendment, L. 2006, p. 1176, § 3, effective May 25, 2006.) (e) Survivor benefits reserve.
(f) (Deleted by amendment, L. 2006, p. 1176, § 3, effective May 25, 2006.)
(2.5) Within each of the state division, school division, local government division, and judicial division trust funds, an annual increase reserve shall exist on and after January 1, 2007, and within the Denver public schools division trust fund, an annual increase reserve shall exist on and after January 1, 2010.
Within the member contribution reserve, there shall exist individual member contribution accounts.
At the time a benefit is paid, the association shall transfer to the retirement benefitsreserve or survivor benefits reserve of the division from which the benefit is paid, whichever is applicable, one hundred percent of the present value of the actuarially determined liability of such benefit. Each division in which the account has contributions shall fund its proportionate share of the benefit liability based on the percentage of the member contribution account balance from that division as it relates to the total member contribution account balance.
Source: L. 87: Entire article R&RE, p. 1050, § 1, effective July 1. L. 93: (1)(e) repealed,
p. 479, § 10, effective March 1, 1994. L. 97: (1)(a), (1)(b), and IP(2) amended, p. 772, § 7, effective July 1. L. 99: (1)(f) amended, p. 337, § 1, effective July 1. L. 2000: (1)(f) amended, p. 780, § 3, effective January 1, 2001. L. 2003: (1)(f) amended, p. 2608, § 3, effective November 1.
L. 2004: (1)(f) amended, p. 699, § 7, effective July 1; (1)(a), (1)(c), and IP(2) amended and (1)(a.5) added, p. 1940, § 6, effective January 1, 2006. L. 2006: (2)(d) and (2)(f) amended and
(2.5) added, p. 1176, § 3, effective May 25. L. 2009: (1)(g) amended and (1)(i) and (1)(j) added, (SB 09-066), ch. 73, p. 255, § 16, effective March 31; (1)(d.5), (1)(f.5), and (4) added and (1)(f), IP(2), and (2.5) amended, (SB 09-282), ch. 288, pp. 1335, 1336, §§ 7, 8, effective January 1, 2010.
Editor's note: The provisions of this section are similar to provisions of several former sections as they existed prior to 1987. For a detailed comparison, see the comparative tables located in the back of the index.