(1) (a) In the event that the amount of the reserves required pursuant to section 24-51-315 (1)(a) exceeds the amount of the employer's share of the employer contribution reserve in the local government division trust fund as calculated by the actuary, then the employer shall make an additional payment as of the effective date of termination of affiliation in an amount equal to the difference between the amount of reserves required and the amount of reserves on deposit.
In the event that the reserves required pursuant to section 24-51-315 (1)(b) for thehealth care trust fund created by section 24-51-1201 (1) exceeds the market value of assets attributable to the employer in the health care trust fund, the employer shall make an additional payment as of the effective date of termination of affiliation in an amount equal to the difference between the amount of reserves required and the amount of reserves on deposit.
If the actuary determines, in accordance with accepted actuarial principles, that thetermination of affiliation of the employer shall have an adverse financial impact on the funding of the health care trust fund created by section 24-51-1201 (1), the employer shall make any additional payment necessary to ensure that the impact on the funding of the health care trust fund remains unchanged upon the employer's termination of affiliation.
In the event that the amount of the reserves on deposit in the local government division trust fund as calculated by the actuary for the employer requesting termination of affiliation exceeds the amount of reserves required pursuant to section 24-51-315 (1), such excess amount and the amount required for the transfer of member contributions as provided in section 24-51-317 shall be transferred by a direct trustee-to-trustee transfer to the alternate pension plan or system required by section 24-51-319 as of the effective date of termination of affiliation.
If any payment required pursuant to subsection (1) or (2) of this section is not made,interest shall be assessed on the amount due at the rate specified for employers in section 24-51101 (28). Interest shall be calculated from the effective date of termination until such amount is paid in full.
Source: L. 88: Entire section added, p. 966, § 1, effective April 28. L. 97: (1) and (2) amended, p. 64, § 5, effective July 1. L. 2004: (1) and (2) amended, p. 1942, § 14, effective January 1, 2006. L. 2018: Entire section amended, (SB 18-200), ch. 370, p. 2240, § 8, effective June 4.
Cross references: For the legislative declaration in SB 18-200, see section 1 of chapter 370, Session Laws of Colorado 2018.