101.01. Accumulated vacation leave pay means pay received at termination of employment as compensation for vacation leave which was earned but not used.

101.02. Accumulated sick leave pay means pay received at termination of employment as compensation for sick leave which was earned but not used.

101.03. Actuarial equivalent means equality in value of the aggregate amount expected to be received under different forms of payment, based on the actuarial assumptions stated herein.

101.04. Actuarial present value of accrued benefits means the value of the aggregate amount of the accrued benefit expected to be received by an individual based on service rendered prior to a specific date and the actuarial assumptions stated herein.

101.05. Base salary means the total base rate of pay including Member contributions to the statewide defined benefit plan or statewide money purchase plan which are "picked up" by the employer, and shall also include longevity pay, sick leave pay taken in the normal course of employment, vacation leave pay taken in the normal course of employment, shift differential, and mandatory overtime that is part of the Member’s fixed, periodic compensation. Accumulated vacation leave pay will also be included if a Member completes his/her service requirement for purposes of normal retirement while exhausting accumulated vacation leave. Base salary shall not include overtime pay (except as noted in the preceding sentence), uniform allowances, accumulated sick leave pay, accumulated vacation leave pay (except as noted in the preceding sentence), and other forms of extra pay (including Member contributions which are paid by the employer and not deducted from the Member's salary). In the event an employer has established or does establish a deferred compensation plan, the amount of the Member's salary that is deferred shall be included in the Member's base salary. Any amounts voluntarily contributed to an Internal Revenue Code Section 125 "Cafeteria Plan" shall be included in the Member's base salary.

101.06. Board means the Board of Directors established as the governing body of the Fire and Police Pension Association of Colorado.

101.07. Cash equivalent of the death and disability benefit means the value of the benefits provided under the statewide death and disability plan determined, for each employer, by multiplying the cost percentage provided in the latest actuarial valuation of the statewide death and disability plan times the covered payroll of the applicable employer.

101.08.1.1. REPEALED

101.09. Dependent child means an unmarried child under the age of 19 or, if such child is enrolled as a full-time student at a secondary school or an accredited institution of higher education, under the age of 23 and includes, if the Board so determines, any child of whatever age and marital status who is so mentally or physically incapacitated that he cannot provide for himself/herself. The term also includes a child who is conceived but unborn at the date of the Member's death or the date of disability, whichever applies. Any applicable increase in benefits will occur upon birth.

101.10. Earned income means wages, salaries, professional fees, or other amounts received as compensation for personal services, actually rendered, but does not include that part of compensation derived by the Member for personal services rendered by him/her to a corporation which represents a distribution of earnings or profits rather than a reasonable allowance as compensation for the personal services actually rendered.

101.12. Equal base pay for purposes of Section 31-31-805 (2) (a),Colorado Revised Statutes, as amended, means base pay which is equal to the current base pay of an active Member having the same rank and grade as the disabled Member held at the time the disabled Member was retired for disability.

101.13. FPPA means the Fire and Police Pension Association of Colorado, created by Section 31-31-201, Colorado Revised Statutes, as amended.

101.14. Salary, for the purpose of calculating the contribution to the statewide death and disability plan required by Section 31-31-811 (4), Colorado Revised Statutes, as amended, means base salary as defined in Rule 101.05, except that for Members who are not enrolled in the statewide defined benefit plan or the statewide money purchase plan, salary shall include Member contributions to any alternative retirement plan which are "picked up" by the employer.

102.01.01. When an application for membership in the statewide defined benefit plan, statewide money purchase plan or statewide death and disability plan is received by FPPA, the FPPA staff may refer the application to the Board, and the Board may determine that the applicant does not meet the eligibility requirements to become a Member. If the Board determines that the applicant does not meet the eligibility requirements, it shall notify the applicant and the applicant's employer of its decision by mail.

102.01.02. Either the applicant or the applicant's employer may file a request for a hearing on the applicant's eligibility for membership within 30 days of the mailing of the notice of the determination of ineligibility. Such hearing shall be held within 90 days from receipt of the request.

102.01.03. At the commencement of the hearing, the presiding officer shall state the reasons that FPPA denied membership, and may, if necessary, call upon FPPA staff and the attorney for FPPA to assist in the explanation.

102.01.04. The Board may call any witnesses it desires at that time. The applicant and/or the applicant's employer shall then present their evidence. The applicant and/or the applicant's employer have the burden of proof.

102.01.05. At the conclusion of the evidence offered by the parties, any other witness desired by the Board or any Member thereof shall also testify.

102.01.06. When the Board affirms or reverses its prior decision, then such affirmation or reversal is final as of the date it is announced, unless the Board makes its decision subject to the adoption of written findings. In that case, the decision is final as of the date the Board adopts such written findings. If the final decision is adverse to the applicant or the applicant's employer, any allowable judicial review may then proceed.

102.01.07. The provisions of Rule 501 shall apply to proceedings under this Rule 102.01.

102.02.01. Except as provided in Rule 102.02.02, upon a department chief's election to be exempted from the statewide defined benefit plan within 90 days of his/her appointment to the position of department chief, FPPA shall return to the employer, all Member and employer contributions made to the statewide defined benefit plan on behalf of the department chief. Except as provided in Rule 102.02.02, upon a department chief's election to be exempted from the statewide defined benefit plan more than 90 days following his/her appointment to the position of department chief, FPPA shall return to the Member, the Member's contributions to the statewide defined benefit plan plus five percent as interest.

102.03.01. Employers which cover clerical or other personnel, who provide services auxiliary to fire protection and which provide said employees with retirement benefits under the Colorado Public Employees Retirement Association, shall not be allowed to terminate such coverage and elect coverage under plans administered by the Fire and Police Pension Association.

CHAPTER 2 - RETURN OR TRANSFER OF MEMBER CONTRIBUTIONS TO THE STATEWIDE DEFINED BENEFIT PLAN

201. Refunds of an employee's accumulated contributions shall not be made to any Members of employers who have failed to remit all contributions required under the provisions of the statewide defined benefit plan.

202. A refund shall be processed within 90 days after FPPA has received a completed Request for Refund of Contributions Form, all supporting documentation and the final contribution. This form may be obtained by contacting FPPA.

203. In lieu of having his/her contributions returned to him/her, as set forth in this Chapter 2, a Member who has at least 5 years of credited service may leave his/her contributions with the FPPA fund and elect a vested retirement benefit as provided in Section 31-31-404 (2), Colorado Revised Statutes, as amended. The Member may elect a vested retirement at any time following the date upon which he/she terminated his/her employment. If a vested Member has neither elected a vested retirement or a refund of contributions within 18 months from the date upon which the Member terminated his/her employment, it is presumed that the Member has elected a vested retirement. If the Member has not completed a vested retirement form prior to the time he/she is eligible to begin receiving vested retirement benefits, it is presumed that he/she has elected the normal benefits option and an immediate lump sum payout of his/her SRA account balance.

204. In the event a Member who is covered by the statewide defined benefit plan dies while in active service, the deceased Member's contributions may be refunded to the Member's Designated Beneficiary or, if none, the Member’s estate if:

205. If a Member who is covered by the statewide defined benefit plan terminates his/her employment but, within 90 days of his/her termination, he/she becomes employed by another employer and in his/her new employment is again covered by the statewide defined benefit plan, his/her contributions will remain in the FPPA fund and he/she will retain all service credit earned with his/her prior employer.

206. If a Member dies after he/she has terminated service, does not have at least 5 years of service and has not yet received a refund, FPPA shall refund the Member’s contributions to the Member's Designated Beneficiary; if no Designated Beneficiary, to the surviving spouse; if no Designated Beneficiary or surviving spouse, to the dependent children; or, where there is no Designated Beneficiary, surviving spouse or dependent children, to the deceased Member's estate.

301.01. A Member's service with successive employers shall be aggregated to determine eligibility and benefits for normal, early, deferred or vested retirement under the statewide defined benefit plan if the Member's service was rendered while the employer(s) covered their Members under the statewide defined benefit plan for normal retirement benefits. If, however, a Member has received a refund of contributions as provided in Section 31-31-404 (1), Colorado Revised Statutes, as amended, no service will be credited for that period of time covered by the refunded contributions unless:

Any maternity or paternity leave of up to one year in duration shall not be included in calculating the applicable period. In this regard, FPPA may require the Member to furnish proof that the absence was due to the pregnancy of the Member, the birth of the Member's child, the adoption of a child and the care of that child immediately following such birth or adoption.

Notwithstanding the return of contributions by a Member within the time limits specified above, the Member shall not be entitled to the restoration of any amount in a separate retirement account which the Member forfeited at the time of the Member's previous termination.

301.011. In addition to the direct payment to FPPA of refunded contributions and interest, FPPA will accept eligible rollover contributions and direct transfers from an Eligible Retirement Plan, defined as an individual retirement account described in Code §408(a), an individual retirement annuity described in Code §408(b), a qualified trust described in Code §401(a), an annuity contract described in Code §403(b), a Code §457(b) plan which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state, or a Code §401(k) plan for the payment of previously refunded contributions and interest.

301.03. Based on information submitted by a Member applying for normal retirement benefits, FPPA shall compile a list of all former employers of the Member, and those employers shall verify the Member's employment and shall certify the Member's service.

301.04. If an employer cannot verify a Member's employment and/or cannot certify a Member's service, FPPA shall contact the Member for additional information.

301.05. A Member's service is the total period of eligible employment, as set forth in Rule 301 less lost service as specified in Rule 301.06, to the nearest one-twelfth of a year.

301.06. In order to accrue service credit for a particular month, a Member must work or be paid on a full-time basis for the entire month. If a Member takes a leave of absence without pay, or is suspended without pay, any period exceeding 30 consecutive days shall be considered lost service, except as provided in this Rule. If a Member returns to active service after an authorized leave of absence, the Member may purchase service credit for a period of absence not to exceed five years.

A Member returning from an authorized leave of absence will receive service credit for any period of lost service attributable to his/her leave upon FPPA's receipt of the amount of Member and employer contributions which would have been paid to the fire and police Members' benefit fund if the Member had remained in active service. Any such funds must be paid to FPPA within 12 months of the Member's return to service.

The above provisions of this Rule shall also apply for the purpose of calculating the benefits of a Member who takes an authorized leave of absence pursuant to the provisions of the Family Medical Leave Act or the Uniformed Services Employment and Reemployment Rights Act (USERRA). However, a Member on a family medical leave of absence, or a military leave of absence covered by USERRA, shall not lose service credit for the purpose of determining eligibility for vesting and retirement benefits. Further, a Member on a military leave of absence covered by USERRA, shall not lose service credit for benefit purposes, assuming Member and employer contributions for the period of the leave are remitted to the fire and police Members' benefit fund in accord with the provisions of USERRA. It is intended that with respect to military service, this Rule shall be construed so as to comply with Internal Revenue Code Section 414(u) and notwithstanding any provision to the contrary, contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with Internal Revenue Code Section 414(u).

301.07. FPPA shall delete ineligible prior service from a Member's application for retirement benefits, as set forth in Rule 301.01 through 301.06, but shall inform the Member of such deletions, and the Member may challenge such deletions as provided in Rule 509.

301.08. Member of the Statewide Defined Benefit Plan may purchase service credit pursuant to Section 31-31-410, Colorado Revised Statutes, as amended, and these rules. An application to purchase service credit shall be filed with FPPA in the form prescribed by the association. The Member has the burden of providing the information and supporting documentation necessary to satisfy the requirements of the plan and these rules.

301.09. The Member shall purchase service credit in the Statewide Defined Benefit Plan by contributing to the plan, in one lump sum, an amount which is equal to the actuarial cost of such service. No service credit shall be awarded to the Member until the association has approved the request and has received the full contribution of the prescribed amount. In order to receive credit for the service, the Member must complete the contribution no later than the last day of active Membership in the Statewide Defined Benefit Plan.

301.10. Money received by FPPA for service credit purchased pursuant to Section 31-31-410, Colorado Revised Statutes, as amended, shall not be considered for the purpose of making allocations to the Member’s separate retirement account.

301.11. For the purpose of Section 31-31-410 (1), Colorado Revised Statutes, as amended, and except to the extent otherwise required by federal law, "other public employment" shall mean service or employment that is (a) service as an employee of the federal, state, or local government, (b) service as an employee of a secondary or elementary education organization, or (c) service as an employee of an association of government employees. "Other public employment" shall not include service that is covered by the statewide defined benefit plan. For the purpose of Section 31-31-410(2.5), Colorado Revised Statutes, as amended, "private employment" shall mean "nonqualified service" under I.R.C. § 415(n)(3)(C), which includes any service or employment not meeting the definition of "other public employment" except military service.

301.12. Members of the Statewide Defined Benefit Plan who purchase credit for "private employment" service that is "nonqualified" under Section 415 (n) of the Internal Revenue Code (for example, employment with a private employer) must comply with the additional requirements of that section, including (but not limited to) the requirements that the Member have at least five years of service credit in the Statewide Defined Benefit Plan prior to purchase, and purchase no more than five years of non-qualified service.

301.13. In no case will FPPA allow Members of the Statewide Defined Benefit Plan to purchase service credit for: (1) any period of employment for which the Member is eligible for benefits under another retirement or annuity plan (except Social Security), payable at the time of purchase or in the future; (2) public or private employment concurrent with full-time FPPA-covered employment; (3) employment by a foreign government or by any foreign employer; or (4) any period of employment for which no pay was received. Members of the Statewide Defined Benefit Plan shall not purchase service credit to the extent that the additional accrued benefit derived from the purchased service credit, as actuarially determined by the association, would result in the annual amount of the Member’s benefit exceeding the annual benefit limitation for defined benefit plans as determined under Section 415 of the Internal Revenue Code.

301.14. A Member who is restored to active service after a temporary occupational disability ceases to exist will receive service credit for the period during which the Member received temporary disability benefits. The statewide death and disability plan shall transfer to the Member’s normal retirement plan in the amount of sixteen percent of the monthly base salary that the Member was being paid at the time of disability retirement multiplied by the number of months the Member received temporary occupational benefits. Any amount in excess of sixteen percent which would normally have been contributed to the Member’s normal retirement plan had the Member not been temporarily occupationally disabled shall be contributed by the Employer.

302.01. The average of a Member's highest three years' base salary, for purpose of calculating a Member's normal, early, deferred or vested retirement benefit, shall be the average of the Member's highest three calendar years' base salary.

302.02. The year in which a Member retires may be considered in calculating the average of the Member's highest three years' base salary if the Member retired on or after July 1. In that event, FPPA will annualize the last year's salary by comparing total pay periods for the year to total pay periods actually paid. If a Member retires on or before June 30 of any given year, the Member's salary for that year shall not be considered for purposes of calculating the average of the Member's highest three years' salary.

303.01. The effective date of normal or early retirement shall be the day after the last date on which the employer deducted FPPA contributions from the Member's base salary. If a Member completes his/her service requirement for purposes of normal or early retirement while exhausting accumulated vacation leave and he/she received a lump sum payment for such leave, his/her effective date of retirement shall be the day after the last date on which the employer would have deducted FPPA contributions had the Member been paid for his/her vacation leave according to his/her regular salary schedule. The effective date of normal retirement for Members classified as having a temporary occupational disability shall be the date upon which the Member would have met the age and service requirement if the Member had not been granted a disability.

303.02. A Member's election to receive normal, vested, deferred or early retirement benefits is irrevocable if the first pension payment has been deposited or otherwise negotiated, or 60 days has elapsed from the date of the check's issuance.

303.03. The reduced retirement pension provided under any option shall be calculated according to the appropriate actuarial assumptions adopted by the Board which take into account the life expectancy of both the Member and his/her designated beneficiary; the reduced retirement pension, however, shall be calculated as the actuarial equivalent of the full retirement pension otherwise payable.

303.04. If a Member has elected Option 3 provided by Section 31-31-403 (5) (a) (III), Colorado Revised Statutes, as amended, or has, prior to October 1, 2002, elected Option 3 provided by 31-31-803 (8) (a) (III), Colorado Revised Statutes, as amended, a new beneficiary may be designated only in the event of a change in the retired Member's marital status, occurring prior to the death of the beneficiary originally designated by the retired Member.

303.05. In the event that an inactive Member who is eligible for vested benefits dies prior to the commencement of benefit payments, FPPA shall pay the greater of either (i) a refund of the inactive Member’s contributions and separate retirement account to the Member’s estate; or (ii) provide survivor benefits to the Member’s Designated Beneficiary, payable when the Member would have been eligible to receive a vested benefit. Survivor benefits will be calculated as if the Member had selected Option 1 provided by Section 31-31-403 (5) (a) (I) Colorado Revised Statutes, as amended. If the Member's designated beneficiary dies prior to the time the Member would have been eligible to receive a vested benefit, the inactive Member's contributions and separate retirement account will be refunded to the beneficiary's estate.

303.06. Any benefit recipient whose benefit distribution method requires multiple payments and for whom the original effective date of benefit eligibility is on or after April 1, 2000, shall provide authorization to FPPA for the electronic transfer of pension payments to the benefit recipient’s banking institution. In lieu thereof, the benefit recipient may apply for a waiver, which is subject to approval by FPPA for good cause. Such authorization or application for waiver shall be executed, in writing, in the form prescribed by the association. Benefit recipients who fail to provide such authorization and who fail to show good cause for a waiver shall pay reasonable administrative charges for the additional costs to FPPA of issuing benefit checks, and such charges shall be deducted from the benefits paid. Members who are receiving benefits from the fire and police Members’ self-directed investments fund shall be subject to the requirements of the record keeper of the fund with regard to issuance of benefits.

303.07. Retirement applications and distributions and refund of contributions under the Statewide Defined Benefit Plan may be approved after administrative review by the chief executive officer, without further hearing by the Board. Such an application shall otherwise meet all criteria required for approval of a retirement application by the Board. The chief executive officer may defer consideration of any application to the Board. An appeal of the chief executive officer’s decision shall be processed pursuant to Rule 509. The chief executive officer shall report each such approval at the next regularly scheduled Board meeting. Any application not approved by the chief executive officer shall be processed for consideration by the Board.

304.01. Each year following receipt of the annual actuarial study of the statewide defined benefit plan, the FPPA Board of Directors will determine whether any portion of the contributions to the plan to be made in the succeeding year will be allocated to the stabilization reserve account. In making its determination, the Board will consider the following:

304.02. Any amounts allocated to the stabilization reserve account shall be further allocated to each Member's separate retirement account in accord with the provisions of Section 31-31-405 (2), Colorado Revised Statutes, as amended.

304.03. Earnings, losses, and reductions to a Member's separate retirement account shall be made in accord with the provisions of Section 31-31-405 (3), Colorado Revised Statutes, as amended. Statements will be sent to each Member on at least an annual basis showing all changes to his/her account during the preceding reporting period. Statements shall also be provided upon request.

If a Member elects to receive payment of the Member’s separate retirement account funds in periodic installments, the unpaid balance of the Member’s separate retirement account shall accrue earnings at the same rate realized by FPPA on the fire and police Members’ benefit fund. Alternatively, the Member may elect to accrue earnings at the rate of a short-term investment fund selected by the FPPA Board beginning the first day of the month following such election. Said election shall be irrevocable and may be made at the time of retirement but not later than prior to receipt of the first installment.

304.04. Upon termination for reasons other than early, normal, deferred or vested retirement, a Member shall forfeit the entire amount in his/her separate retirement account to the actuarial account if he elects to receive a refund of his/her contributions pursuant to Section 31-31-404 (1), Colorado Revised Statutes, as amended. If the Member does not elect to receive a refund of contributions, then upon his/her employment with another employer covered by the statewide defined benefit plan, the Member shall once again be credited with the amount accumulated in his/her separate retirement account.

304.05. Upon termination and election of an early, normal, deferred or vested retirement, a Member's interest in his/her separate retirement account shall be non-forfeitable except that a vested retired Member, prior to the selection of a payment option with respect to amounts in his/her separate retirement account may elect a refund of his/her Member contributions to the statewide defined benefit plan, thereby revoking his/her right to vested retirement benefits and forfeiting the entire amount in his/her separate retirement account to the actuarial account. Once a vested retired Member has selected a payment option with respect to amounts in his/her separate retirement account, he/she may not elect a refund of his/her Member contributions to the statewide defined benefit plan.

304.06. A Member retired under an early, normal, deferred or vested retirement may elect to commence payment of the amount in the Member’s separate retirement account at any time after the Member terminates service but payments must begin in no event later than the year in which the Member attains the age of 70 and one-half. Member shall be given notice of the right to elect a payment plan within 60 days of FPPA receiving notification that Member has terminated service. If the Member fails to elect a payment option, FPPA shall distribute the balance in the Member’s separate retirement account to the Member in a lump sum payment at age 70 and one-half.

304.061. In the event a vested retired Member reactivates as a Member of the statewide defined benefit plan prior to the commencement of payments from the Member’s separate retirement account he/she will not be eligible to commence payments from the Member’s previously vested separate retirement account until the Member again terminates service. If payments from the vested Member's separate retirement account have commenced at the time of reactivation, payments will continue in accord with the original option elected by the Member.

304.08. In the event a retired Member elects to receive payment of the Member’s separate retirement account funds in a lump sum or in periodic installments and dies prior to the distribution of the Member’s entire account balance, or the retired Member dies prior to making an election regarding the payment of the Member’s separate retirement account, the remaining funds in the account shall be payable to the Member’s surviving spouse or dependent children or designated beneficiary in accordance with their selection of one of the payment options permitted by Section 31-31-406 (3). If there is no surviving spouse, dependent child or designated beneficiary, the remaining funds shall be paid to the Member’s estate.

304.09. A Member who is awarded a permanent occupational or total disability pension shall elect a payment option and commencement date for distribution of the Member’s separate retirement account. FPPA shall distribute the balance in the Member’s separate retirement account to the disability retiree in a lump sum payment in the year the disability retiree attains the age of 70 and one-half, if the disability retiree fails to elect a payment option and commencement date prior to such time. If the disability retiree dies prior to making an election, the remaining funds in the account shall be distributed to the disability retiree’s surviving spouse or dependent children or designated beneficiary in accordance with their selection of one of the payment options permitted by Section 31-31-406 (3). If there is no surviving spouse, dependent child or designated beneficiary, the remaining funds shall be paid to the Member’s estate.

304.10. A surviving spouse or legal guardian of the dependent children of a Member having a separate retirement account who dies prior to termination of employment shall elect a payment option and commencement date for distribution of the deceased Member’s separate retirement account. If the surviving spouse or legal guardian for the dependent children of the deceased Member fails to elect a payment option and commencement date, FPPA shall distribute the balance in the Member’s separate retirement account to the surviving spouse or legal guardian of the dependent children in a lump sum payment in the year the Member would have attained the age of 70 and one-half.

304.11. Regardless of the form of distribution selected, distribution must be made in accordance with minimum distribution requirements under Internal Revenue Code Section 401(a)(9) and the regulations there under. The minimum distribution may be recalculated on the basis of the life expectancy of the Member and/or the beneficiary, if applicable. A Member will continue to accrue investment earnings and losses on the amount in the Member’s separate retirement account at the same rate realized by FPPA on the fire and police Members’ benefit fund until such time as the account is exhausted, unless a Member otherwise elects under Rule 304.07.

CHAPTER 4 - DISABILITY RETIREMENT AND SURVIVOR BENEFITS UNDER THE STATEWIDE DEATH AND DISABILITY PLAN

401.01. For purposes of establishing eligibility to apply for disability or survivor benefits, unpaid leaves of absence are categorized into two general types:

Official certification of the leave by the Member's employer is not required for leaves in the first category.

401.02. A Member will continue to be covered under the Statewide Death and Disability Plan while on an authorized leave of absence for a period of up to two years. A Member hired after January 1, 1997 on authorized leave will continue to be covered only if FPPA receives a monthly contribution at the established contribution rate multiplied by the Member’s monthly salary immediately prior to the beginning of the authorized leave of absence. Coverage under the Statewide Death and Disability Plan shall terminate if the monthly contribution is not received by FPPA.

401.03. An absence attributable to a work stoppage in which the employee has been unable to work, for example, because of picket lines or employer lockout, shall be considered an authorized and certified leave of absence. However, the absence shall cease to be termed an authorized and certified leave whenever the person fails to observe a valid order issued by a court of proper jurisdiction to return to work.

401.04. A Member on military leave is entitled to the same death and disability benefits that a person on an authorized leave of absence is entitled to receive. Any benefits payable under the Statewide Death and Disability Plan shall be offset by any death or disability benefits received from the military.

402.01. For purposes of calculating disability benefits or eligibility for survivor benefits, the terms "spouse" and "surviving spouse" may include a spouse by common law marriage, if the Member or such spouse can prove to the Board the existence of a common law marriage. Such proof may include, but shall not be limited to, evidence of cohabitation, joint credit, joint checking and/or savings accounts, joint purchase of a house, and/or evidence that the spouse or Member represented that they were married.

402.02. The final determination as to whether an individual qualifies as a spouse by common law marriage for disability and survivor benefits, as set forth in Rule 402.01 shall be made by the Board. Before making its decision, the Board may require an evidentiary hearing be held on the matter substantially in accord with Rule 508.

402.03. For purposes of calculating disability benefits or eligibility for survivor benefits, the term dependent child as defined in Section 31-31-801 (2), Colorado Revised Statutes, as amended, and Rule 101.09 of these Rules, includes a Member's birth children, adopted children, and stepchildren living in the Member's household. It also may include a Member's birth children or adopted children living in another household or any other child living in the Member’s household if:

402.04. A Member or applicant for survivor benefits wishing to claim the Member's stepchild, stepchildren, birth children or adopted children living in another household as dependent children shall list the names of such children on the application for disability or survivor benefits. The Member or applicant for survivor benefits also shall give the percentage of support provided by the Member to such children.

402.05. To determine eligibility for dependent status of a stepchild, stepchildren, birth children or adopted children living in another household, FPPA may require the Member or applicant for survivor benefits to submit to FPPA a copy of the Member's most recent federal income tax return.

402.06. The final determination of eligibility for dependent status of a stepchild, stepchildren, birth children or adopted children living in another household, shall be made by the Board. Before making its decision, it may require an evidentiary hearing be held on the matter substantially in accord with Rule 508.

402.07. Mental or physical incapacity of any dependent child shall be initially determined at the time of the Board's award of disability or survivor benefits. The Board may require the subsequent review and consideration of the continuing status of the child initially found to be incapacitated.

402.08. Members found to be occupationally disabled prior to October 1, 2002 and receiving a spousal benefit who become divorced may continue to receive the spousal benefit in an amount equal to the amount of maintenance actually paid by the Member to the former spouse but not more than ten percent of the annual base salary, as provided under Section 31-31-803(2)(a) C.R.S.

403.01. For purposes of calculating the earned income offset against occupational disability benefits provided in Section 31-31-804 (1), Colorado Revised Statutes, as amended, FPPA will convert any lump sum Workmen's Compensation award to an "actuarial equivalent" as that term is defined in Rule 101.03 of these Rules; the term "earned income" shall have the meaning set forth in Rule 101.10 of these Rules.

403.02. For purposes of calculating the offset against benefits for an occupational disability granted prior to October 1, 2002, for a permanent occupational disability, or for a total disability and against survivor benefits provided in Sections 31-31-804 (2), 31-31-808, and 31-31-812(2), Colorado Revised Statutes, as amended, the term "actuarial equivalent" is defined as set forth in Rule 101.03 of these Rules.

403.03. To determine whether an earned income offset against occupational disability benefits is required, FPPA will require the Member to submit to FPPA a copy of the Member's most recent federal income tax return for each year up to and including the year in which the Member attains the age of 55. If the Member fails to submit said return, FPPA may withhold the distribution of benefits until such time as the return is submitted.

403.04. Spousal and dependent child benefits shall be reduced upon the loss of eligibility of the surviving spouse or dependent child.

403.05. When a surviving spouse or dependent child becomes ineligible to receive survivor benefits, the amount of survivor benefits to which a remaining surviving spouse or remaining dependent children are entitled will be determined according to the schedules set forth in Sections 31-31-807 and 807.5, Colorado Revised Statutes, as amended.

403.06. In order to remain eligible for disability or survivor benefits, a Member or the Member's survivors must comply with the Rules in this Section 403 and applicable FPPA staff procedures. Failure to comply may result in the discontinuance of disability or survivor benefits.

404.01. FPPA will determine only those applications for total or occupational disability benefits, where the Member became disabled on or after January 1, 1980. The Board presumes that all disability applications filed on and after January 1, 1980, concern disabilities occurring on and after January 1, 1980, until such time as this presumption is rebutted by substantial evidence. If the presumption is rebutted, then the Board shall refer the case to the appropriate local pension authority for determination in accordance with the applicable provisions of Part 7, Article 30.5, Title 31, Colorado Revised Statutes, as amended.

404.02. A Member is disabled when, as a reasonable person, he should recognize the nature, seriousness and probable compensable character of his/her injury.

404.03. An applicant for disability retirement is encouraged to file the application prior to termination of employment.

404.04. FPPA will accept applications within 180 days from the date certified by the employer to be the applicant's last day on the payroll, provided that:

404.06. As a supplement to a Member's application for disability benefits, the employer of such a Member shall indicate the reason for the Member’s separation from employment. The employer shall state any additional basis for disability, which the employer believes exists and shall include any documentation of relevant medical evidence. The employer shall, if requested, or may if not specifically requested, submit to the Board available records, reports and other information, which might be helpful to the Board in the determination of a Member's disability.

404.07. Records, reports and other information submitted to the Board under Rule 404.06 shall be retained by FPPA, placed in the appropriate file covering the applicant for retirement, and treated as confidential, although the affected Member shall have the right to inspect said information.

404.08. An application for disability must be completed within 90 days from the date FPPA first receives any part of the application packet required by FPPA. If not completed within 90 days, FPPA will treat the application as having been withdrawn. Once withdrawn, a Member must file a completely new application packet in order to apply for disability benefits.

404.09. Once a complete application for disability benefits has been received by FPPA, the Board shall, in consultation with its medical advisor, appoint a panel of three physicians to examine the applicant unless the applicant requests that the Board make a preliminary determination of jurisdiction. In the event such a request is made, the Board shall determine if the application reveals on its face whether FPPA has jurisdiction to grant an award of disability benefits, pursuant to the limitations set forth in Rule 404.01, and shall proceed as follows:

404.10. A Member applying for disability benefits may refuse to undergo an invasive test during examination by the panel of three physicians. If, however, the panel of physicians cannot determine that a disability exists without performing the invasive test, then the Board cannot award disability benefits.

404.11. Once the examination required under Rule 404.09 (a) has been completed, the panel of three physicians shall submit its findings and conclusions to a medical advisor appointed by the Board for review. On the basis of the reports of the three physicians, the medical advisor may make a recommendation regarding future reexaminations and treatment plans in the event the Member is granted disability benefits.

404.12. The applicant and his/her attorney shall have full access to any medical information and reports in the possession of FPPA for the purposes of inspection and copying from the time that FPPA has received the reports of all Members of the physician panel and, if applicable, its medical advisor. The applicant shall reimburse FPPA for its actual cost in making copies.

404.13. Prior to the release of medical information and reports to the attorney for the applicant, the applicant or his/her attorney shall file a written release signed by the applicant, and verified by a notary public or other officer entitled to administer oaths, authorizing FPPA to provide such medical information to the attorney.

404.14. A Member who has been granted a disability retirement will begin to accrue disability benefits on the day following the Member's actual last day on the payroll. Last day on the payroll for purposes of this Rule shall include any form of accrued leave time if the Member remains on the employer's payroll while exhausting such leave. Lump sum payments by the employer for accrued leave will not be considered in calculating a Member's last day on the payroll if the Member's employment has been terminated. If a Member receives short-term disability benefits from the employer, pending a determination by the Board regarding the disability retirement application, disability benefits under the state plan will accrue from the date the Member's short-term disability benefits are discontinued.

405.01. If a Member covered by the statewide defined benefit plan dies while in active service or on an authorized unpaid leave of absence properly documented, if necessary, pursuant to Rule 401, and leaves no surviving spouse or dependent children, FPPA shall refund the Member’s contributions, and the Member’s separate retirement account if the Member has at least 5 years of service, to the deceased Member's estate.

405.011. If a Member dies after he/she has terminated service, FPPA shall refund the Member’s contributions, and the Member’s separate retirement account if the Member has at least 10 years of service in the statewide defined benefit plan, to the Member's surviving spouse or dependent children or, where there is no surviving spouse or dependent children, to the deceased Member's estate.

405.02. If a Member eligible for a normal, or vested retirement under the statewide defined benefit plan dies while off the employer’s payroll and prior to making an election of a retirement option, the Member shall be considered to have retired on the day before the Member's death and to have elected retirement Option 1 provided by Section 31-31-403 (5) (a) (I), Colorado Revised Statutes, as amended, if the Member is survived by a spouse or dependent child or designated beneficiary.

405.03. If, preceding death, a Member was on extended sick leave drawing only a portion of the Member's normal base salary, the Member's normal salary, and not the Member's sick leave pay, shall be used to calculate survivor benefits as set forth in Section 31-31-807, Colorado Revised Statutes, as amended.

405.04. In order to remain eligible for survivor benefits, a Member's eligible survivors must comply with the Rules in this Section 405 and applicable FPPA staff procedures. Failure to comply may result in the discontinuance of survivor benefits.

405.05. FPPA will not consider applications for survivor benefits if the Member was otherwise eligible for a retirement pension pursuant to Section 31-31-807(1)(a)(I) and (II).

406.01. Initial disability applications and reexaminations which receive a recommendation for approval by all three physician panel members may be approved after administrative review by the chief executive officer, without further hearing by the Board. Such an application shall otherwise meet all criteria required for approval of a disability application by the Board. The administrative approval may include a requirement for reexamination. The chief executive officer may also make determinations and referrals pursuant to Rule 503.05. The chief executive officer may defer consideration of any application to the Board. An appeal of the chief executive officer’s decision shall be processed pursuant to Rule 503.07. The chief executive officer shall report each such approval and approvals shall become effective at the next regularly scheduled Board meeting unless an earlier date is indicated in the approval. Any application not approved by the chief executive officer shall be processed for consideration by the Board.

406.02. Survivor benefit applications which are uncontested may be approved after administrative review by the chief executive officer, without further hearing by the Board. Such an application shall otherwise meet all criteria required for approval of a survivor benefit application by the Board. The chief executive officer may also make determinations and referrals pursuant to Rule 504.03. The chief executive officer may defer consideration of any application to the Board. An appeal of the chief executive officer’s decision shall be processed pursuant to Rule 504.07. The chief executive officer shall report each such approval at the next regularly scheduled Board meeting. Any application not approved by the chief executive officer shall be processed for consideration by the Board.

406.03. The chief executive officer may appoint physicians, upon recommendation by the medical advisor, on behalf of the Board to participate on a panel of physicians on a specific case-by-case basis. The medical advisor shall determine if the physician is properly certified and the physician shall meet all criteria otherwise required. The chief executive officer shall report such appointments to the Board.

407.01. A Member who is found to have a permanent occupational disability and who is within five years of reaching the age and service requirements under a defined benefit plan or the requirements under a defined contribution plan for a normal retirement may elect to be classified as having a temporary occupational disability. Said election shall be irrevocable and shall be made prior to the election of a disability payment option.

407.02. A member retired for disability, who was a member of the statewide defined benefit plan, may elect to terminate his/her disability benefits and shall receive his/her vested retirement pension under the statewide defined benefit plan payable at normal retirement.

CHAPTER 5 - HEARINGS

501.01. The following provisions shall apply to all hearings before the Board except as otherwise specifically provided:

502.01. In the event that the Board has declined jurisdiction under Rule 404.09 (c), and either the applicant or the local pension authority has filed a written request for redetermination of the jurisdictional question, then such hearing shall be held within 120 days from the receipt of the request. A Member, for good cause, may have the date of his/her evidentiary hearing continued but in no event will the Board permit a continuance or continuances beyond one year from the date of the Board's initial determination.

502.02. At the commencement of the hearing, the presiding officer shall state the reasons that FPPA declined jurisdiction, and may, if necessary, call upon the medical advisor and the attorney for FPPA to assist in the explanation.

502.03. The party requesting the redetermination of jurisdiction shall have the burden of proof and shall proceed with his/her proof first. The party opposing redetermination shall proceed second. The party requesting redetermination shall then have the opportunity to rebut.

502.04. If both parties request redetermination, then the applicant shall proceed first and the local pension authority second. There shall be no rebuttal from either the applicant or the local pension authority.

502.05. At the conclusion of the evidence offered by the parties, any other witness desired by the Board or any Member thereof shall also testify.

502.06. If the Board affirms its prior decision, then that decision is final as of the date it is announced, unless the Board makes its decision subject to the adoption of written findings. In that case, the decision is final as of the date the Board adopts such written findings. Any allowable judicial review may then proceed.

502.07. If the Board reverses its prior decision, then it shall proceed in accordance with Rule 404.09 (a)

503.01. In the event the Board has accepted jurisdiction under the provisions of Rule 404.09 (b), it shall, upon receipt of the reports of the physician panel and the medical advisor, determine jurisdiction. If it declines jurisdiction, then the matter shall proceed as set forth in Rule 502 of these Rules. If it accepts jurisdiction, then the matter shall proceed as set forth in the following portions of this Rule 503.

503.02. In a case where the Board has accepted jurisdiction, under Rule 404.09 (a) or 503.01 it shall, upon receipt of the reports of the physician panel and the medical advisor, promptly schedule the matter for an initial hearing.

503.03. At the initial hearing, the Board shall first determine if a majority of the physician panel has found a temporary occupational disability, a permanent occupational disability or total disability as defined under Section 31-31-801 (3.2), (3.4) and (4), Colorado Revised Statutes, as amended. If not, the hearing shall terminate, and the applicant shall be notified by mail within 10 days that his/her application has been denied and the reason therefore. The applicant may, within 60 days of the date of mailing of the Board decision file a written request for an evidentiary hearing, for the limited purpose of requesting a reexamination.

503.04. If a majority of the physician panel has found an occupational disability or total disability, then the medical advisor shall advise the Board on the medical issues. The Board may consider any relevant evidence in considering a disability award.

503.05. If the applicant is found to be temporarily occupationally disabled, permanently occupationally disabled, or totally disabled and the applicant claims the disability is the result of an injury received while performing official duties or an occupational disease arising out of and in the course of the applicant's employment, the Board, or the chief executive officer if the finding was made administratively, shall, on the basis of documentary evidence submitted by the applicant with the applicant's disability application and the reports of the three physician panel, either:

503.051. If the applicant is found to be temporarily occupationally disabled, the Board shall establish a treatment plan based on the recommendations of the three physician panel and advice from the medical advisor.

503.06. In making the decision pursuant to Rule 503.05, the following standards shall be considered:

503.061. In making a decision regarding a recommendation on a case referred pursuant to Rule 503.05 (b), the hearing officer may consider any relevant evidence, including but not limited to the following:

503.07. Except with respect to a decision to appoint a hearing officer pursuant to Rule 503.05 (b), the applicant may file a written request for an evidentiary hearing if the applicant disagrees with any aspect of the determination regarding the applicant's application. Such request must be filed within 60 days from the date of mailing of the decision. In all cases under this Rule, the Board shall issue its written decision within 10 days from the adoption of the written decision by the Board. Where the Board has appointed a hearing officer pursuant to Rule 503.05 (b), the matter shall proceed as provided in Rule 511.

504.01. Upon receipt of a completed application for survivor benefits or, where there is more than one applicant, upon receipt of all completed applications for survivor benefits, and where there has been no administrative approval granted, the Board shall promptly schedule the matter for an initial hearing.

504.02. At the initial hearing, the Board shall determine, based upon the information supplied in the applications, and any other relevant evidence, each applicant's eligibility for survivor benefits in accord with Section 31-31-807, Colorado Revised Statutes, as amended, and Rules 401 and 402.

504.03. If the applicant claims that the Member’s death was the result of an injury received while performing official duties or an occupational disease arising out of and in the course of the Member’s employment, the Board or the chief executive officer, if the finding was made administratively, shall, on the basis of documentary information submitted in connection with the application for survivor benefits, either:

In making its decision, FPPA shall consider the standards set forth in Rule 503.06. In the case of line-of-duty deaths occurring after December 31, 1996, FPPA shall also determine whether any of the exceptions specified in Section 101 (h) (2) of the Federal "Internal Revenue Code of 1986," as amended, are applicable.

504.04. Except with respect to matters which have been referred to a hearing officer by the Board, the Board shall issue its written decision by mail within 10 days from the adoption of the written decision by the Board.

504.05. After the evidence is concluded, the Board may, before issuance of its decision, order the submission of evidence reopened, with such limitations and instructions as it desires.

504.06. If evidence is reopened under Rule 504.05, then the decision time under Rule 504.04 shall be extended accordingly.

504.07. Except with respect to a decision to appoint a hearing officer pursuant to Rule 504.03 (b), the applicant may file a written request for an evidentiary hearing in the event the applicant believes the determination of the applicant's eligibility is incorrect or, where it has been determined that more than one applicant is eligible for benefits, any such applicant may request an evidentiary hearing on the other applicants' eligibility for benefits. Such request must be filed within 60 days from the date of mailing of the decision.

504.08. Where a hearing officer has been appointed pursuant to Rule 504.03 (b), the matter shall proceed as provided in Rule 515.

505.01. When the Board has evidence that indicates a Member is no longer totally disabled based upon periodic reexamination as may be required by the Board or based upon other evidence of ability to engage in substantial gainful activity, the Board may conduct a hearing to consider a change in the Member's status from total to permanent occupational disability.

505.02. For purposes of determining whether a Member retired for total disability who is employed during any period of his/her retirement should have his/her status changed from total to permanent occupational disability, the term "substantial gainful activity" means work that involves doing significant physical or mental activities for pay or profit.

505.03. In determining whether work performed by a Member constitutes substantial gainful activity, the Board may consider the following criteria:

505.04. FPPA will require members to submit a statement of income to verify continuing eligibility for each year up to and including the year in which the member attains the age of 55. If the member fails to submit the required information, FPPA may withhold the distribution of benefits until such time as the information is submitted. Generally, earnings from work as an employee, including earnings or income from self-employment, will show that a Member is not engaged in substantial gainful activity if the Member's earnings on a monthly basis average less than 20 percent of the highest monthly base salary paid to the chief of a fire or police department within the state of Colorado.

505.05. In calculating earnings as provided in Rule 505.04, the Board will subtract the reasonable costs to the Member of certain items and services which, because of the Member's impairment, he/she needs and uses to enable him/her to work. The Board shall use the pertinent rules adopted by the Social Security Administration in determining the conditions for deducting impairment related work expenses.

505.06. Prior to the hearing, the Board shall provide the retired Member with copies of any medical reports issued by physicians who have examined the Member and shall advise the Member of any other evidence of ability to engage in substantial gainful activity.

505.07. At the hearing, the association may present evidence and the Board may call witnesses. The Member then may present his/her evidence.

505.08. The Board shall notify the Member of its decision in writing. If the Board determines that the Member's status should be changed from total to occupational disability, the Member may file a written request for an evidentiary hearing. Such request must be filed within 60 days of the mailing of the Board's decision.

506.01. A Member retired for a permanent occupational disability may apply to the Board to have his/her status changed to total disability anytime within five years from the date of original disablement, the day after the last day on the payroll. A Member retired for an occupational disability prior to October 1, 2002 may apply to the Board to have his/her status changed to total disability within five years from the date he was declared occupationally disabled by the Board. Any such application must be filed with FPPA no later than 90 days prior to the expiration of the five-year period. The Board may waive the 90 day period for good cause shown. The application should be accompanied by physician reports or other medical documentation, which supports the request for a change in status.

506.011. A Member retired for a temporary occupational disability may apply to the Board to have his/her status changed to permanent occupational disability or total disability within five years from the date of original disablement, the last day after the last day on the payroll. Any such application must be filed with FPPA no later than 180 days prior to the expiration of the five-year period. The application should be accompanied by physician reports or other medical documentation, which supports the request for a change in status.

506.02. The Board will review the application and supporting documentation and determine whether reasonable grounds exist for a reexamination.

506.03. If the Board determines there are no reasonable grounds for reexamination, the matter shall terminate and the Board shall notify the Member of its decision in writing. The Member may file a written request for an evidentiary hearing. Such request must be filed within 60 days from the date of mailing of the Board's decision.

506.04. If the Board determines there are reasonable grounds for reexamination, it shall, upon the recommendation of its medical advisor, appoint one or more physicians to examine the Member. The physician or physicians shall submit reports to the Board on the Member's disability status and, following submission of the reports, the matter shall be set for a hearing. Prior to the hearing, the Board shall provide the Member with copies of the medical reports submitted by the physicians appointed to examine the Member. Alternatively, on the basis of medical reports submitted by the Member, the Board may waive the requirement of a reexamination by Board appointed physicians and declare the Member totally disabled.

506.05. At the hearing, the association may present evidence and the Board may call witnesses. The Member then may present evidence.

506.06. The Board shall notify the Member of its decision in writing. If the Board denies the request for a change in status, the Member may file a written request for an evidentiary hearing. Such request must be filed within 60 days from the date of mailing of the Board's decision.

506.07. If the Member’s disability status is changed from occupational to total after January 1, 2000 and if the occupational disability was granted prior to October 1, 2002, or if the Member’s temporary occupational disability status is changed to permanent occupational disability or total disability, the Member shall elect one of the payment options available under Section 31-31-803 (1), Colorado Revised Statutes, as amended, in writing, on the form prescribed by FPPA. The Member’s election shall be made within 90 days of the date on which all determinations affecting the change in status have become final. Determinations shall not be deemed final until all applicable appeal periods have expired. If the Member fails to make the election within 90 days, FPPA shall continue to pay benefits under the member’s prior status until the election is received. Upon receipt of the written election, FPPA shall pay the Member’s unpaid benefits resulting from the change in status without interest or earnings. If the Member dies without making an election and the Member is survived by a spouse or dependent child, the Member shall be considered to have elected Option 3 provided by Section 31-31-803 (1) (b), Colorado Revised Statutes, as amended,

507.01. If, subsequent to a grant of occupational disability benefits to a Member, the Member is employed or reemployed in this state or any other jurisdiction, pursuant to either an agreement or court order, in a full-time salaried position which normally involves working at least 1,600 hours in any given calendar year and the duties of which are directly involved with the provision of police or fire protection as determined by the Board, the occupational disability benefits provided to the Member shall be discontinued.

507.02. In the event a Member retired for occupational disability is subsequently employed or re-employed in a full-time salaried position, staff may refer the matter to the Board for a determination concerning the Member's continuing eligibility for disability benefits pursuant to Rule 507.01 and Section 31-31-806, Colorado Revised Statutes, as amended. The Board will base its preliminary determination upon a review of the written job description, or a similar explanation provided by the employer, for the position in question. In reviewing the written job description, the Board, among other things, may consider the following matters:

507.03. Employment in a position which is clerical in nature or primarily involved with the provision of services which are auxiliary to police or fire protection will not result in a discontinuation of occupational disability benefits pursuant to Rule 507.01 and Section 31-31-806, Colorado Revised Statutes, as amended. Generally, such positions may include the following:

507.04. If, after reviewing the written job description, the Board finds that the position is one directly involved with the provision of police or fire protection, it shall notify the affected Member of its decision by mail. The affected Member may then file a request for an evidentiary hearing within 60 days of the mailing of the notice of the Board's determination.

507.10. Discontinuance of Temporary Occupational Disability

507.11. In addition to the basis of discontinuance of occupational disability benefits contained in Rule 507.00, the Board may terminate temporary occupational disability benefits if the Member fails to make rehabilitations efforts or if insufficient evidence of compliance and of a continuing disability is provided to the Board by the Member.

507.12. Members required to follow a treatment plan shall submit evidence of compliance with the treatment plan and evidence of continuing disability to FPPA no later than 30 days prior to the Board meeting at which a review of their compliance is scheduled. FPPA staff shall suspend benefit payments to disabled Members who fail to timely comply with deadlines for the submittal of evidence of compliance with treatment plans and continuing disability.

507.13. If, after reviewing the evidence submitted, and after considering any comments submitted by the medical advisor, the Board finds that the Member has failed to comply with the treatment plan, the Board shall terminate disability benefits and the Member shall have no right to be restored to active service. The Board shall notify the affected Member of its decision by mail. The affected Member may then file a request for an evidentiary hearing within 60 days of the mailing of the notice of the Board’s determination.

507.14. If the Board finds that the Member has failed to submit evidence of compliance with the treatment plan and evidence of continuing disability, the Board shall terminate disability benefits and the Member shall have no right to be restored to active service. The Board shall notify the affected Member of its decision by mail. The affected Member may then file a request for an evidentiary hearing within 60 days of the mailing of the notice of the Board’s determination.

508.01. Within 120 days from the receipt of a request for an evidentiary hearing, such hearing shall be held. A Member, for good cause, may have the date of the evidentiary hearing continued but in no event will the Board permit a continuance or continuances beyond one year from the date of the Board's initial determination.

508.02. At the commencement of the hearing, the presiding officer shall state the reasons for the Board's initial determination or, if the hearing is being held at the Board's request pursuant to Rule 402.02 or 402.06, the reason the Board has requested the hearing.

508.03. The Board may call any witnesses or present any evidence following the presiding officer's preliminary statement. If the hearing concerns the issue of base salary, the applicant's employer shall be given notice of the hearing, and shall be requested to present evidence supporting its determination of base salary.

508.04. The applicant shall then present the applicant's evidence. The applicant has the burden of proof. If the applicant is challenging the Board's determination of eligibility for survivor benefits with respect to another applicant, the other applicant may also present evidence. In that case, the applicant requesting the evidentiary hearing has the burden of proof.

508.05. Following the conclusion of the evidence, the Board may take the following actions:

509.01. When a preliminary determination is made by FPPA staff affecting benefit eligibility, amount or duration of benefits, or an employer's obligation to enroll Members under one of the state plans administered by FPPA, and an evidentiary hearing on such a determination is not provided elsewhere in these Rules, then the person or entity affected by the determination will be granted an evidentiary hearing by the Board upon request as provided by Rule 509.02.

509.02. The person or entity affected may file a request for a hearing on staff's determination within 30 days of being notified of the determination. Such hearing shall be held within 120 days from receipt of the request. For good cause, the person or entity requesting the hearing may have the date of the hearing continued but in no event will the Board permit a continuance or continuances beyond one year from the date of staff's determination.

509.03. At the commencement of the hearing, the presiding officer shall state the reasons for staff's determination, and may, if necessary, call upon FPPA staff and the attorney for FPPA to assist in the explanation.

509.04. At the hearing, the staff may present evidence and the Board may call witnesses. The person or entity requesting the hearing then shall present his/her/its evidence, and shall have the burden of proof.

509.05. At the conclusion of the evidence offered by the parties, any other witness desired by the Board or by any Member thereof shall also testify.

509.06. When the Board affirms or reverses staff's determination, then such affirmation or reversal is final as of the date it is announced, unless the Board makes its decision subject to the adoption of written findings. In that case, the decision is final as of the date the Board adopts such written findings. Any allowable judicial review may then proceed.

509.07. The applicable provisions of Rule 501 shall apply to proceedings under this Rule 509.

511.01. If the Board has referred a matter to a hearing officer for review, the hearing officer shall promptly set the matter for a hearing and shall notify the Member of the date and time of the hearing. The Member may attend the hearing and may be represented by counsel at the Member's expense. A Member, for good cause, may have the date of the hearing continued but in no event may the hearing be continued beyond one year from the date of the Board's referral of the matter to the hearing officer. All hearings before the hearing officer shall be tape recorded and all witnesses appearing at any hearing shall be placed under oath or affirmation.

511.02. The hearing officer shall be governed by the same standards governing the Board as set forth in the Colorado Revised Statutes, in the FPPA Rules, or as otherwise provided by law.

511.04. In making a decision regarding a recommendation on a case referred, the hearing officer may consider any relevant evidence.

511.05. Within 60 days after the hearing, the hearing officer shall file written findings and a recommendation with the Board. The Member shall be notified of the hearing officer's written findings and recommendation and shall have 30 days from the date of the findings to file objections thereto. Objections shall be in writing and shall set forth in detail the particular errors and objections relied upon, and may be accompanied by a supporting brief. If objections are not timely filed, the Board shall consider the hearing officer's written findings and recommendation uncontested.

511.06. The Board shall conduct an administrative appellate review of the hearing officer's written findings and recommendation and any timely filed Member objections to the recommendation, at a regularly scheduled Board meeting. The Member shall be notified of the date the Board will conduct such review.

511.07. At the review hearing, the Board may issue a summary decision affirming the recommendation of the hearing officer. Alternatively, the Board may correct, modify or set aside, or remand any recommendation, but only on the following grounds:

511.08. If the Board corrects, modifies or sets aside a hearing officer's recommendation, the Board may direct the preparation of new written findings for its final review and approval prior to its decision on the Member's application becoming final.

511.09. A copy of the Board's final decision shall be sent to the Member. If the Board affirms the recommendation of the hearing officer, then that decision is final as of the date it is announced and any allowable judicial review may then proceed. If the Board directs the preparation of new written findings for its review and approval pursuant to Rule 511.07, the decision is final as of the date the Board adopts such written findings. The Member may then proceed with any allowable judicial review.

512.01. When the Board has reasonable grounds to believe that an employer is liable for payment of disability or survivor benefits, it shall consider the matter at a regular or special meeting.

512.02. If the Board determines that the employer is not liable, the matter shall terminate.

512.03. If the Board determines that the reasonable grounds exist to believe that the employer may be liable then it shall schedule a hearing on the issue.

512.04. At least 20 days before the date scheduled for the hearing, the Board shall give written notice of the hearing to the affected employer.

512.05. The notice of hearing shall be accompanied by a written statement containing the reasons why the Board determined that reasonable grounds exist to believe that the employer may be liable.

512.06. At the conclusion of the hearing, if the Board determines that the employer is not liable, the matter shall terminate.

512.07. At the conclusion of the hearing, if the Board determines that the employer is liable, the Board's decision is final at the time it is announced and the employer may then proceed with any allowable judicial review, unless the Board makes its decision subject to the adoption of written findings. In that case, the Board's decision is final as of the date the Board adopts such written findings.

513.01. The Statewide Standard Health History Form shall be a form approved by the Board.

513.02. Employers may use photocopies of the form or may print their own forms, so long as the content is identical with the most recent form approved by the Board.

513.03. The Board may revise the form from time to time and shall provide copies of any such revised form to all employers not later than 30 days prior to the effective date of use of such revised form.

515.01. If the Board has referred a matter to a hearing officer for review pursuant to Rule 504.03 (b) or Rule 514.02 (b), the hearing officer shall promptly set the matter for a hearing and shall notify the applicant of the date and time of the hearing. Any survivor beneficiary may attend the hearing and may be represented by counsel at the survivor’s expense. A survivor, for good cause, may have the date of the hearing continued but in no event may the hearing be continued beyond one year from the date of the Board’s referral of the matter to the hearing officer. All hearings before the hearing officer shall be tape-recorded and all witnesses appearing in any hearing shall be placed under oath or affirmation.

515.02. The hearing officer shall be governed by the standards set forth in Rule 503.06. In the case of line-of-duty deaths occurring after December 31, 1996, the hearing officer shall consider whether any of the exceptions specified in Section 101 (h) (2) of the Federal "Internal Revenue Code of 1986," as amended, are applicable.

515.03. In making a decision regarding a recommendation on a case referred pursuant to Rule 514.02 (b), the hearing officer may consider the following:

515.04. In making a decision regarding a recommendation on a case referred pursuant to Rule 504.03 (b), the hearing officer may consider any relevant evidence, including but not limited to the following:

515.05. Within 60 days after the hearing, the hearing officer shall file written findings and a recommendation with the Board. The survivor(s) shall be notified of the hearing officer’s findings and recommendation and shall have 30 days from the date of the findings to file objections thereto. Objections shall be in writing and shall set forth in detail the particular errors and objections relied upon, and may be accompanied by a supporting brief. If objections are not timely filed, the Board shall consider the hearing officer’s written findings and recommendation uncontested.

515.06. The Board shall conduct an administrative appellate review of the hearing officer’s written findings and recommendation and any timely filed survivor objections to the recommendation, at a regularly scheduled Board meeting. The survivor(s) shall be notified of the date the Board will conduct such review.

515.07. At the review hearing, the Board may issue a summary decision affirming the recommendation of the hearing officer. Alternatively, the Board may correct, modify or set aside, or remand any recommendation, but only on the following grounds:

515.08. If the Board corrects, modifies or sets aside a hearing officer’s recommendation, the Board may direct the preparation of new written findings for its final review and approval prior to its decision on the pending application becoming final.

515.09. A copy of the Board’s final decision shall be sent to the survivor(s). If the Board affirms the recommendation of the hearing officer, then that decision is final as of the date it is announced and any allowable judicial review may then proceed. If the Board directs the preparation of new written findings for its review and approval pursuant to Rule 515.07, the decision is final as of the date the Board adopts such written findings. The survivor(s) may then proceed with any allowable judicial review.

515.10. This Rule 515 shall take effect 60 days after the date on which FPPA receives a letter from the Internal Revenue Service containing a favorable ruling to the effect that benefits paid to the survivors of deceased police officers or firefighters as a result of on-duty personal injuries or service-related or occupational diseases under the statewide death and disability plan are excludable from the gross income of the recipients pursuant to Section 104 (a) (1) of the Federal "Internal Revenue Code of 1986," as amended if such ruling is received by December 31, 1999.

516.01. At a Member’s initial disability hearing, or at his/her subsequent evidentiary hearing if one is held, the Board shall establish a period for reexamination of all Members awarded temporary disability. The Board may order the reexamination of Members retired for any type of occupational disability as it deems warranted. The Board may delegate the decision regarding the necessity and timing of the reexamination to the medical advisor. At each subsequent reexamination hearing, the Board may establish the subsequent period for reexamination.

516.02. Prior to the reexamination hearing, the medical advisor may schedule a reexamination with a physician panel. The reexamination shall include a review of compliance with the treatment plan if one was required.

516.03. If at least two Members of the three-Member physician panel examining the Member find that in their opinion an occupational disability ceases to exist, the Board may, but is not required to, determine that such disability ceases to exist. In the event an occupational disability is based on a medical determination of mental impairment or disease, all three Members of the physician panel must agree before the Board must determine that the occupational disability ceases to exist.

516.04. At least thirty days prior to making a determination that a disability ceases to exist, the Board shall provide written notice to the employer and the Member of the physicians’ findings and of the opportunity for a hearing, upon request of the employer or Member, before the Board.

516.05. If the appropriate number of physicians agrees that the disability ceases to exist, and if the employer has filed a statement of additional basis for disability with the original application, the Member shall be examined by a three member physician panel and evaluated for disability based on the statement of additional basis for disability. If the Board finds that the Member refuses or fails to cooperate with additional examination, the Member’s benefits shall terminate. If after the subsequent examination, the appropriate number of physicians agree that the Member is not disabled on the additional basis for disability, at least thirty days prior to making its determination as to whether the disability ceases to exist, the Board shall provide written notice to the employer and the Member of the opportunity for a hearing before the Board, at the request of the Member or the employer.

CHAPTER 6 - AFFILIATIONS AND WITHDRAWALS

601. Affiliation of Old Hire Plans

601.01. An affiliating old hire plan employer shall furnish FPPA with all information necessary to administer its old hire plan and manage the plan's fund.

601.02. For Members of an affiliating old hire plan who, pursuant to Section 31-31-701 (2), Colorado Revised Statutes, as amended, elect coverage under the statewide defined benefit plan for retirement benefits, the greater of the following shall be transferred from the old hire pension fund to the FPPA:

601.03. If an employer is unable to make the transfers required under Rule 601.02, the employer shall transfer what funds are available, and shall transfer the balance within the employer's own time frame, but subject to the conditions set forth in Rule 601.04 through Rule 601.06.

601.04. An interest rate shall be charged on the balance of funds owed by the employer to the FPPA fund, as set forth in Rule 601.02.

601.05. The interest rate, set forth in Rule 601.04, shall be calculated to be the yield rate to maturity, as published by the Western Edition of the Wall Street Journal effective for a U. S. treasury bill, note, or bond, with the maturity date falling nearest the date on which the final installment of transferring liability is due, but in no event shall the interest rate be less than the then current actuarial earnings assumptions adopted by the Board.

601.06. The interest rate, set forth in Rule 601.04, shall be calculated on the first active trading day of the New York Stock Exchange coincident with, or the next day following, the date of affiliation.

601.07. The cost of any actuarial study performed pursuant to Section 31-30.5-306, Colorado Revised Statutes, as amended, with respect to employers desiring to receive state assistance contributions for their old hire pension plans shall be a cost of the association and shall be paid for as provided in Section 31-31-302 (3), Colorado Revised Statutes, as amended. Once an old hire pension plan fund is actuarially sound and no longer eligible for state assistance contributions, however, the cost of any subsequent actuarial study on such fund shall not be considered an expense of the association payable from the fire and police members' benefit fund. The cost of such a study shall be the responsibility of the employer or old hire pension plan fund.

602.01. A social security employer may elect affiliation with FPPA for:

602.02. An employer may initiate affiliation with FPPA by filing a resolution with FPPA. The resolution shall state the employer's intent to affiliate, whether the employer wishes to affiliate for retirement benefits, disability and survivor benefits or both, and, if the employer previously offered a local defined benefit plan, whether the employer wishes to include past service credits or exclude past service credits.

602.03. FPPA will accept a resolution for affiliation under this Section 602 at any time. After receipt of all necessary forms, completion of actuarial studies, if necessary, and other administrative requirements, a waiting period of 90 days shall commence.

602.04. The affiliation resolution shall be revocable by the employer at any time during the 90 day waiting period. If the employer does not revoke the resolution, affiliation will be accepted by FPPA at the end of the 90 day waiting period.

602.05. The level of contributions for Members of employers which affiliate pursuant to this Section 602 will be determined in accord with the provisions of Section 31-31-704 (6), Colorado Revised Statutes, as amended.

602.06. Members of employers which affiliate for disability retirement and survivor benefits will be eligible to receive the disability and survivor benefits provided by Part 8 of Article 31, Title 31, Colorado Revised Statutes, as amended, but any benefits so received shall be reduced by the pro rata amount of any Social Security benefit received by the Member attributable to the Member's credits of Social Security coverage derived from employment as a Member.

602.07. Election for defined benefit plan participants. Members of employers which affiliate for retirement benefits and which provide an old hire retirement plan or other local defined benefit plan in addition to Social Security, shall elect within 60 days after affiliation, either to remain covered under the retirement provisions of the old hire pension plan or other local defined benefit plan, or to become covered under the retirement provisions of the statewide defined benefit plan. If a Member elects to remain covered under the old hire plan or other local defined benefit plan, the Member shall be eligible to receive the retirement benefits provided by the old hire plan or other local defined benefit plan.

602.08. Election for defined contribution plan participants. (a) Social Security employers electing affiliation and which provide a defined contribution plan shall prepare a disclosure statement which compares the main provisions of the defined contribution plan and the statewide defined benefit plan for affiliated social security employers. The disclosure statement shall be submitted to FPPA for its approval. Once approved, the employer shall hand deliver or mail a copy of the disclosure statement to each Member eligible to vote in the election at least 10 days prior to the date the employer has set for the Member election.

602.09. Members of affiliated Social Security employers, who are covered under the statewide defined benefit plan shall be eligible to receive the retirement benefits provided by Part 4 of Article 31, Title 31, Colorado Revised Statutes, as amended, but any benefits so received shall be reduced by the pro rata amount of any Social Security benefit received by the Member attributable to the Member's credits of Social Security coverage derived from employment as a Member and the Member shall not be eligible for separate retirement account benefits.

602.10. An employer which elects to affiliate pursuant to this Section 602 shall furnish FPPA with all information necessary in order to carry out the provisions of Section 31-31-704, Colorado Revised Statutes, as amended.

603.01. This Section 603 applies to the reduction in retirement, survivor and disability payments payable to the Members of affiliated Social Security employers, as required by Section 31-31-704 (5), Colorado Revised Statutes, as amended.

603.02. The amount of benefits to which a person is determined to be entitled by the Board shall be reduced by the pro rata amount of any Social Security benefits received by the Member attributable to the Member's Social Security coverage derived from employment as a Member. To calculate the amount of the reduction, FPPA will multiply the Member's Social Security benefit by a fraction, the numerator of which is equal to the Member's Primary Insurance Amount (PIA) attributable to his/her service as a Member, and the denominator of which is equal to the Member's PlA for all Social Security employment.

603.03. The exact amount of the offset will be calculated just prior to the actual commencement of Social Security benefits. The Member may be advised of a preliminary percentage reduction at the time of his/her FPPA retirement, but FPPA may be required to adjust such preliminary percentage to reflect additional Social Security employment between the date of his/her FPPA retirement and the commencement of Social Security benefits.

603.04. An offset for survivor benefits paid by Social Security will be made against payments by FPPA to a survivor pursuant to the election by the Member of a joint and survivor annuity. An offset for survivor benefits paid by Social Security will be made against payments by FPPA to a survivor under the Statewide Death and Disability Plan.

603.05. The offset will be increased to reflect subsequent cost of living increases in Social Security benefits.

603.06. Any person who applies for or is receiving benefits from FPPA must provide FPPA prompt, accurate and complete information as to any Social Security benefits received by or through the Member. Failure to do so may result in the denial, discontinuance or adjustment of benefits from FPPA.

603.07. Whenever Social Security benefits received by or through a Member are amended or changed, or the Social Security coverage derived from employment as a Member is increased, the benefits provided by FPPA may be adjusted accordingly.

604. Affiliation of Volunteer Fire Departments

604.01. Any municipality, fire protection district, fire authority or county improvement district having a fire department which utilizes volunteer firefighters or a combination of paid and volunteer firefighters may elect affiliation with FPPA relating to a volunteer pension plan for its volunteer firefighters.

604.02. The procedures for affiliating such a plan are as follows:

604.03. Subsequent to the date of affiliation, all contributions to the local volunteer firefighter's pension plan shall be paid to FPPA.

604.04. An affiliating municipality, fire protection district, fire authority or county improvement district shall furnish FPPA with all information necessary to implement FPPA’s affiliation agreement with the governing body providing the local volunteer firefighters’ pension plan.

604.05. Any municipality, fire protection district, fire authority or county improvement district which entered into an agreement with FPPA for the purpose of having the association administer and manage a pension plan for the municipality, fire protection district, fire authority or county improvement district volunteer firefighters, may terminate such an agreement in accord with the following procedures:

604.06. Upon the effective date of disaffiliation, the municipality, fire protection district, fire authority or county improvement district will be liable for the payment of all benefits then vested under the volunteer firefighter pension plan.

604.07. Upon the effective date of disaffiliation, FPPA will be released and indemnified from all liabilities and obligations it may have with respect to the volunteer firefighter pension plan except as noted in Rule 604.05 (c).

605.01. Any employer providing a money purchase pension plan for its police officers and/or its firefighters which was established pursuant to Part 8 of Article 30.5, Title 31 or Part 6 of Article 31, Title 31, Colorado Revised Statutes, as amended, may elect to affiliate its plan with FPPA for administration and investment purposes.

605.02. The procedures for affiliating such a plan are as follows:

605.03. Subsequent to the date of affiliation, all contributions to the local money purchase plan shall be paid to FPPA.

605.04. An affiliating municipality, fire authority or fire protection district shall furnish FPPA with all information necessary to administer its local money purchase pension plan and manage the plan's fund, including Member account balances as of the effective date of affiliation. FPPA will follow the direction of the local plan Board or committee regarding the payment of benefits except that in the event a plan is silent as to the payment of benefits upon a Member's death, FPPA will distribute the Member's entire vested account balance in a lump sum to the Member's designated beneficiary.

605.05. Earnings and losses to a Member's individual account shall be posted at least on a quarterly basis. Quarterly statements will be sent to each Member showing all changes to his/her account during the preceding quarter.

605.06. The Board may allow a Member of an affiliating plan to exercise control of the investment of part or all of the Member’s accrued benefit under the Member’s plan. In allowing a Member to exercise such control, the Board shall select at least three investment alternatives, each of which is diversified in itself, that allow the Member a broad range of investments and a meaningful choice between risk and return in the investment of a Member’s accrued benefit.

One hundred percent of all Member contributions must be invested in any one or a combination of the designated investment alternatives. If no investment election is made by the Member, all monies will be invested in a "balanced" fund option designated by the Board. Members may redirect the investment of new contributions at any time and may reallocate monies in existing funds at least once a month after earnings are allocated.

605.07. Any municipality, fire authority or fire protection district which entered into an agreement with FPPA for the purpose of having the association administer and manage a money purchase pension plan for the municipality's, fire authority’s or fire protection district's Members, may terminate such an agreement in accord with the following procedures:

605.08. Upon the effective date of disaffiliation, the municipality, fire authority or fire protection district will be liable for the payment of all benefits then vested under the money purchase pension plan.

605.09. Upon the effective date of disaffiliation, FPPA will be released and indemnified from all liabilities and obligations it may have with respect to the money purchase pension plan except as noted above.

606.01. Any employer which has established a money purchase plan on or before December 1, 1978, in accordance with the provisions of Part 8 of Article 30.5, Title 31, Colorado Revised Statutes, as amended, may elect to have its Members covered by the provisions of the death and disability plan.

606.02. The procedures for making such an election are as follows:

606.03. Each active Member hired prior to the effective date of the employer's election of coverage under the state death and disability plan shall individually elect whether the Member wishes to be covered under that plan or the current death and disability plan provided by the employer. The individual Member election shall be made on a form prescribed by FPPA and shall be filed with FPPA prior to the effective date of the employer's election. For those Members electing coverage under the state death and disability plan, their election is subject to the requirements set forth in Rule 513 and the election form shall be accompanied by a statewide standard health history form and FPPA Member form. The Member's election shall be irrevocable.

606.04. Any Member hired by the employer on or after the effective date of the employer’s election of coverage shall be covered under the state death and disability plan and shall have no right of individual election. All provisions governing the state death and disability plan, including the completion and filing of the statewide health history form and the requirements set forth in Rule 513, shall apply to such Member.

607.01. Any employer may withdraw its police officers and/or firefighters from the statewide defined benefit plan for the purpose of covering them under the statewide money purchase plan, subject to the limitations set forth in this Section 607 and Part 5 of Article 31, Title 31, Colorado Revised Statutes, as amended.

607.02. Any employer desiring to withdraw from the statewide defined benefit plan pursuant to the provisions of this Section 607 shall file with FPPA a letter of intent to withdraw. The letter of intent to withdraw shall state that the employer desires to withdraw from the statewide defined benefit plan for the purpose of covering its eligible Members under the statewide money purchase plan.

607.03. Within 60 days of FPPA's receipt of a letter of intent to withdraw pursuant to Rule 607.02, FPPA shall direct the actuary for the statewide defined benefit plan to prepare and file with FPPA a certified actuarial report which calculates the amount of reserves which must be set aside, and the actuarial impact of the withdrawal on the statewide defined benefit plan, in accordance with Section 31-31-501 (4), Colorado Revised Statutes, as amended. For the purpose of calculating the amount of reserves, the actuary shall assume that all of the employer's Members who are vested under the statewide defined benefit plan will elect a vested retirement as provided by Section 31-31-404 (2), Colorado Revised Statutes, as amended. Upon written request by the employer, the actuary shall make an alternative reserve calculation to reflect the employer's estimate of those Members who will elect a vested retirement as provided by Section 31-31-404 (2), Colorado Revised Statutes, as amended. The cost of the actuarial study or studies shall be paid by the employer.

607.04. Upon receipt of the actuarial study prepared in accordance with Rule 607.03, FPPA shall transmit a copy to the employer. If the actuary determines that the withdrawal will have an adverse financial impact on the actuarial soundness of the new hire benefits account, the employer shall not be permitted to withdraw. If the actuary determines that the withdrawal will not have an adverse financial impact on the actuarial soundness of the new hire benefits account, the employer may proceed to withdraw by filing a resolution, adopted by the governing body of the employer, stating that the employer intends to withdraw from participation in the statewide defined benefit plan for the purpose of electing participation in the statewide money purchase plan, in accordance with applicable law and regulations promulgated by FPPA. The resolution of withdrawal shall also state a requested date for withdrawal.

607.05. Filing of the resolution of withdrawal is completed when FPPA receives a certified copy of the resolution. FPPA shall notify the employer that the resolution of withdrawal has been received, and the FPPA notice shall also state the date of filing.

607.06. Unless a shorter waiting period is approved by the Board, the resolution of withdrawal must be filed with FPPA no less than nine months prior to the effective date of withdrawal. The effective date of withdrawal shall be the first day of the month immediately following the month in which the waiting period expires.

607.07. FPPA shall prepare a disclosure statement which compares the main provisions of the statewide defined benefit plan and the statewide money purchase plan. At least 10 days prior to the date of the Member election, the employer shall hand deliver or mail a copy of the disclosure statement to each Member eligible to vote in the election.

607.08. All police officers and/or firefighters, as appropriate, who are employed on the date or dates of the election and are participating in the statewide defined benefit plan, are eligible to vote. Those hired less than 10 days prior to the commencement of the election shall be personally handed a disclosure statement by the employer on the date of their employment.

607.09. A public meeting must be held to discuss the withdrawal and the two statewide plans no later than five days before the election. Written notice of the meeting, by mail or hand delivery, must be given to each Member eligible to vote on the question of withdrawal and to FPPA, at least ten days before the meeting.

607.10. All Members voting in the election shall sign a register of voters at the time they receive their ballots.

607.11. At the election conducted by the employer concerning the withdrawal, all Members shall vote by secret ballot. The ballot shall contain the following statement: I have read and I understand the disclosure statement. The ballot shall then contain the applicable options. A sample ballot shall be approved by FPPA prior to the election. Subject to approval of the procedure by FPPA, an employer may allow members to vote by absentee ballots.

607.12. After all of those eligible to vote have had an opportunity to cast their ballots, the election shall be closed, but in no event shall the election be conducted during more than three consecutive days. In addition, all Members who are vested under the statewide defined benefit plan must complete a notice which will be provided by FPPA. The notice shall state whether the vested Member, in the event the withdrawal becomes effective, wishes to leave the Member’s contributions with the statewide defined benefit plan and elect a vested retirement, or whether the Member wishes to transfer the Member contributions to the statewide money purchase plan. The notice shall be returned to the employer by the close of the election. If a vested Member fails to return a notice it will be presumed that the Member wishes to have the Member contributions transferred to the statewide money purchase plan.

607.13. After the election, the employer shall deliver the following to FPPA:

607.14. FPPA shall count the ballots in the presence of designated representatives of the employer. If both police officers and firefighters are voting on the withdrawal, the ballots of each group will be counted separately.

607.15. If the above procedures have been completed and if 65 percent of the Members eligible to vote in each voting group approve the withdrawal, it shall be considered adopted, and the withdrawal approved, unless subsequently revoked as provided in Rule 607.17 and Section 31-31-501 (4) (a) (II) (A), Colorado Revised Statutes, as amended. If fewer than 65 percent of the Members eligible to vote in a voting group approve the withdrawal, the resolution of withdrawal will be considered null and void as to that group.

607.16. All disputes concerning the election shall be resolved by FPPA.

607.17. If deemed necessary by FPPA, the actuary shall update the report prepared pursuant to Rule 607.03 and finalize the amount of reserves required for purposes of that Rule and Section 31-31-501 (4) (a) (II), Colorado Revised Statutes, as amended. The cost of the updated study or studies shall be paid by the employer. FPPA will promptly provide the employer with a copy of the updated study, a preliminary estimate of each Member's initial account balance under the statewide money purchase plan, and a revoking ballot for each Member. The employer shall promptly provide each Member with FPPA's estimate of the Member's initial account balance under the statewide money purchase plan and a revoking ballot. Within 30 days of the employer's receipt of the updated actuarial study, the employer may terminate the withdrawal by filing with the FPPA Board a resolution revoking the employer's resolution of intent to withdraw. The withdrawal will also terminate if, within 30 days of the employer's receipt of the updated actuarial study, more than 35 percent of the employer's active Members who are eligible to vote, file revoking ballots with FPPA.

607.18. Within 60 days of FPPA's receipt of the updated actuarial report, and assuming the withdrawal is not subsequently terminated, FPPA shall make the allocations required by Section 31-31-501 (5) and (6), Colorado Revised Statutes, as amended, and shall notify the employer of any additional payments which the employer must make in order to fund the amount of reserves as calculated in the actuarial report. Payment shall be due within 30 days of the date FPPA mails notice of the amount to the employer, but in no event later than 10 working days after the effective date of withdrawal.

607.19. Each eligible Member of a withdrawing employer shall be enrolled in the statewide money purchase plan as of the effective date of withdrawal. All subsequent contributions made by the Member and his/her employer shall be credited to the Member's individual account under the statewide money purchase plan as provided by the plan.

608.01. Any employer may elect to cover police officers and/or firefighters in a local money purchase plan under the statewide money purchase plan administered by FPPA, subject to the limitations set forth in this Section 608 and Section 31-31-502 (6), Colorado Revised Statutes, as amended.

608.02. Any employer desiring to cover the Members of its local money purchase plan under the statewide money purchase plan shall file a resolution with FPPA, adopted by the governing body of the employer, stating the employer's intent to cover the Members of its local money purchase plan under the statewide money purchase plan. The resolution shall state a requested effective date of coverage which shall be the first day of a month. The resolution must be filed with FPPA no less than six months prior to the proposed effective date, unless a shorter waiting period is requested and approved by the Board.

608.04. All police officers and/or firefighters, as appropriate, who are employed on the date or dates of the election and are participating in the local money purchase plan, are eligible to vote. Those hired less than 10 days prior to the commencement of the election shall be personally handed a disclosure statement by the employer on the date of their employment.

608.05. All Members voting in the election shall sign a register of voters at the time they receive their ballots.

608.06. At the election conducted by the employer concerning statewide money purchase plan coverage, all Members shall vote by secret ballot. The ballot shall contain the following statement: I have read and I understand the disclosure statement. The ballot shall then contain the applicable options. A sample ballot shall be approved by FPPA prior to the election. Subject to approval of the procedure by FPPA, an employer may allow members to vote by absentee ballots.

608.07. After all of those eligible to vote have had an opportunity to cast their ballots, the election shall be closed, but in no event shall the election be conducted during more than three consecutive days.

608.08. After the election, the employer shall deliver the following to FPPA:

608.09. FPPA shall count the ballots in the presence of designated representatives of the employer. If both police officers and firefighters are voting on the withdrawal, the ballots of each group will be counted separately.

608.10. If the above procedures have been completed and if 65 percent of the Members eligible to vote in each voting group approve coverage under the statewide money purchase plan, such coverage shall be considered approved, subject to compliance with the other requirements of this Rule 608 and Section 31-31-502 (6), Colorado Revised Statutes, as amended.

608.11. At least 30 days prior to the proposed effective date of coverage under the statewide money purchase plan, the employer shall file with FPPA the certification required by Section 31-31-502 (6) (e), Colorado Revised Statutes, as amended.

608.12. On the effective date of coverage under the statewide money purchase plan, the employer shall transfer the assets of the local money purchase plan to FPPA, together with such records regarding the benefits of retired Members and the accrued benefits of active Members, as FPPA may require in order to properly commence covering the Members under the statewide money purchase plan.

609.01. Any employer may irrevocably elect to cover police officers and/or firefighters in a local money purchase plan or the statewide money purchase plan under the statewide hybrid plan administered by FPPA, subject to the limitations set forth in this Section 609 and the plan document created pursuant to Section 31-31-1102 Colorado Revised Statutes, as amended.

609.02. Any employer desiring to cover the Members of its money purchase plan under the statewide hybrid plan shall file a resolution with FPPA, adopted by the governing body of the employer, stating the employer's intent to cover the Members of its money purchase plan under the statewide hybrid plan. The resolution shall state a requested effective date of coverage which shall be the first day of a month. The resolution shall state the member and the employer contribution rates proposed under the plan. The resolution shall state whether the employer elects to offer members the option of participating in the statewide defined benefit plan and include how the contributions shall be split between the employer and the Member. The resolution shall also indicate the employer’s election to cover the members hired after the effective date under either the statewide hybrid plan or the statewide defined benefit plan. The resolution shall indicate whether the employer intends to transfer the active and retired members’ account balances to FPPA to the Statewide Money Purchase Plan. The resolution shall acknowledge that election for coverage under the statewide hybrid plan is irrevocable. The resolution must be filed with FPPA no less than six months prior to the proposed effective date, unless a shorter waiting period is requested and approved by the Board.

609.03. The employer shall prepare a disclosure statement which compares the main provisions of its money purchase plan and the statewide hybrid plan. The disclosure statement shall be submitted to FPPA for its approval. Once approved, the employer shall hand deliver or mail a copy of the disclosure statement to each Member eligible to vote in the election at least 10 days prior to the date the employer has set for the Member election.

609.04. All police officers and/or firefighters, as appropriate, who are employed on the date or dates of the election and are participating in the money purchase plan, are eligible to vote. Those hired less than 10 days prior to the commencement of the election shall be personally handed a disclosure statement by the employer on the date of their employment.

609.05. All Members voting in the election shall sign a register of voters at the time they receive their ballots.

609.06. At the election conducted by the employer concerning statewide hybrid plan coverage, all Members shall vote by secret ballot. The ballot shall contain the following statement: I have read and I understand the disclosure statement, and I vote for the following plan. The ballot shall then contain the applicable options. A sample ballot shall be approved by FPPA prior to the election. Subject to approval of the procedure by FPPA, an employer may allow members to vote by absentee ballots.

609.07. After all of those eligible to vote have had an opportunity to cast their ballots, the election shall be closed, but in no event shall the election be conducted during more than three consecutive days.

609.08. After the election, the employer shall deliver the following to FPPA:

609.09. FPPA shall count the ballots in the presence of designated representatives of the employer. If both police officers and firefighters are voting on the coverage, the ballots of each group will be counted separately.

609.10. If the above procedures have been completed and if 65 percent of the Members eligible to vote in each voting group approve coverage under the statewide hybrid plan, such coverage shall be considered approved, subject to compliance with the other requirements of this Rule 609 and of the plan document created pursuant to Section 31-31-1102, Colorado Revised Statutes, as amended.

609.11. At least 30 days prior to the proposed effective date of coverage under the statewide hybrid plan, the employer shall file with FPPA the certification required by Section 31-31-1101(5) or (6), Colorado Revised Statutes, as amended.

609.12. On the effective date of coverage under the statewide hybrid plan or on such date as mutually agreed upon by the employer and FPPA, the employer, if it has so elected, shall transfer the assets of its local money purchase plan to FPPA, together with such records regarding the benefits of retired Members and the accrued benefits of active Members, as FPPA may require in order to properly commence covering the Members under the statewide hybrid plan.

610. Electing Reentry Into The Statewide Defined Benefit Plan For Members of a Local Money Purchase Plan or the Statewide Money Purchase Plan

610.01. Any employer may irrevocably elect to cover police officers and/or firefighters in a local money purchase plan or the statewide money purchase plan under the statewide defined benefit plan administered by FPPA, subject to the limitations set forth in this Section 610 and Section 31-31-1103, Colorado Revised Statutes, as amended.

610.02. Any employer desiring to cover the Members of its money purchase plan under the statewide defined benefit plan shall file a resolution with FPPA, adopted by the governing body of the employer, stating the employer's intent to cover the Members of its money purchase plan under the statewide defined benefit plan. The resolution shall state a requested effective date of coverage which shall be the first day of a month. The resolution shall state the contribution rate and how the contributions shall be split between the employer and member. The resolution shall acknowledge that election for coverage under the statewide defined benefit plan is irrevocable. The resolution must be filed with FPPA no less than six months prior to the proposed effective date, unless a shorter waiting period is requested and approved by the Board.

610.03. The employer shall prepare a disclosure statement which compares the main provisions of its money purchase plan and the statewide defined benefit plan. The disclosure statement shall be submitted to FPPA for its approval. Once approved, the employer shall hand deliver or mail a copy of the disclosure statement to each Member eligible to vote in the election at least 10 days prior to the date the employer has set for the Member election.

610.04. All police officers and/or firefighters, as appropriate, who are employed on the date or dates of the election and are participating in the money purchase plan, are eligible to vote. Those hired less than 10 days prior to the commencement of the election shall be personally handed a disclosure statement by the employer on the date of their employment.

610.05. All Members voting in the election shall sign a register of voters at the time they receive their ballots.

610.06. At the election conducted by the employer concerning reentry into the statewide defined benefit plan coverage, all Members shall vote by secret ballot. The ballot shall contain the following statement: I have read and I understand the disclosure statement, and I vote for the following plan. The ballot shall then contain the applicable options. A sample ballot shall be approved by FPPA prior to the election. Subject to approval of the procedure by FPPA, an employer may allow members to vote by absentee ballots.

610.07. After all of those eligible to vote have had an opportunity to cast their ballots, the election shall be closed, but in no event shall the election be conducted during more than three consecutive days.

610.08. After the election, the employer shall deliver the following to FPPA:

610.09. FPPA shall count the ballots in the presence of designated representatives of the employer. If both police officers and firefighters are voting on the reentry, the ballots of each group will be counted separately.

610.10. If the above procedures have been completed and if 65 percent of the Members eligible to vote in each voting group approve coverage under the statewide defined benefit plan, such coverage shall be considered approved, subject to compliance with the other requirements of this Rule 610 and Section 31-31-1103, Colorado Revised Statutes, as amended.

610.11. At least 30 days prior to the proposed effective date of coverage under the statewide defined benefit plan, the employer shall file with FPPA the certification required by Section 31-31-1103 (1)(e), Colorado Revised Statutes, as amended.

610.12. Prior to the effective date of coverage under the statewide defined benefit plan or on such date as mutually agreed upon by the employer and FPPA, the employer, shall transfer such records regarding the accrued benefits of active Members, as FPPA may require in order to properly commence covering the Members under the statewide defined benefit plan.

611.01. Employers whose Members participate in the statewide defined benefit plan or the statewide money purchase plan and the statewide death and disability plan may elect to cover police officers and/or firefighters working less than 1600 hours, but who otherwise qualify as Members, in the statewide money purchase plan and the statewide death and disability plan administered by FPPA.

611.02. Employers whose Members participate in the statewide death and disability plan may elect to cover police officers and/or firefighters working less than 1600 hours, but otherwise qualifying as Members, in the statewide death and disability plan administered by FPPA.

611.03. Any employer desiring to make an election pursuant to Rule 611.01 or 611.02 shall file a resolution with FPPA, adopted by the governing body of the employer, stating the employer's intent to cover its police officers and/or firefighters working less than 1600 hours under the statewide money purchase plan and/or the statewide death and disability plan. The resolution shall state a requested effective date of coverage which shall be the first day of a month.

612.01. A fire protection district, fire authority, or county improvement district providing fire protection services whose Members participate in the statewide defined benefit plan or the statewide money purchase plan may elect to cover clerical or other personnel whose services are auxiliary to fire protection in the statewide defined benefit plan or the statewide money purchase plan administered by FPPA, unless said clerical or other personnel participate the Public Employees’ Retirement Association established under Title 24, Article 51, Colorado Revised Statues.

612.02. Any employer desiring to make an election pursuant to Rule 612.01 shall file a resolution with FPPA, adopted by the governing body of the employer, stating the employer's intent to cover its clerical and other personnel under plan in which its fire fighters participate. The resolution shall state a requested effective date of coverage which shall be the first day of a month.

701. Operating Rules of the Board

701.01. The Board shall elect a vice chairperson prior to the September meeting of each year. The vice-chairperson, after serving a one year term, shall succeed to the chair on the following September 1. In the event the vice-chairperson is unable to succeed to the chair, then the Board shall elect both a chairperson and a vice-chairperson prior to the September meeting at which the then current vice-chairperson would have succeeded to the chair position. In the absence of the chairperson and vice-chairperson from any meeting, the meeting may be called to order by any Member and the Board shall immediately elect a temporary chairperson. The temporary chairperson shall serve until entrance of the regular chairperson or vice-chairperson or until election of another temporary chairperson.

701.02. The calendar year shall be the fiscal year of the FPPA.

701.03. A majority of the Members of the Board shall constitute a quorum, and a majority of those Members participating in any vote shall be required for approval of an action.

701.04. The Board shall meet at least 10 times per year according to a schedule established by the Board. Each meeting shall be set at least one month in advance.

701.05. The chairperson of the Board, or any three Members of the Board, may call a special meeting of the Board by giving all Board Members four days' (96 hours) notice in writing or by telephone. Any Member of the Board may call a special meeting of the Board by telephone upon less than four days (96 hours) notice, for the sole purpose of conducting an emergency disability hearing where the applicant for disability retirement is in imminent danger of death.

701.06. Excessive excused or unexcused absences from the meetings of the Board shall be reviewed by the full Board and two consecutive unexcused absences from Board meetings shall be reviewed automatically by the full Board.

701.07. Any operating rule of the Board which does not have a basis in state law may be amended or new rules may be adopted, by a two-thirds vote of the Board.

701.08. Any such amendment or alteration to the operating rules of the Board shall be submitted in writing to each Board Member at least seven days before the regular Board meeting at which the rule amendment or rule addition is to be considered.

701.10. Any procedural meeting matter which is not specifically addressed in this Section 701 shall be governed by Robert's Rules of Order Newly Revised, wherever applicable and not in conflict with state law.

701.11. The only exception to Robert's Rules of Order Newly Revised will be that the chairperson of the Board may vote on business before that group.

701.12. Actions taken by the chief executive officer regarding policy guidelines shall be ratified by the Board at its next regularly constituted meeting if such actions involve interpretation of policy.

701.13. The Board shall annually designate at its first meeting each year a public place within the offices of FPPA where notice of all meetings of the Board will be posted at least 24 hours prior to any such meeting. In the event of a special meeting called pursuant to Rule 701.05 for the purpose of conducting an emergency disability hearing, notice shall be posted as early as possible prior to the meeting. The notice shall include specific agenda information where possible. Minutes of any Board meeting at which the adoption of any proposed policy, position, resolution, rule, regulation or formal action occurs or could occur shall be taken and promptly recorded and such records shall be open to public inspection. Minutes of a meeting during which an executive session is held shall reflect the general topic of the discussion at the executive session.

702. Rules on Rule-Making By The Board

702.01. Notice of proposed rule-making shall be given in the following manner:

702.02. At the place and time stated in the notice, the Board shall hold a public hearing at which it shall afford interested persons an opportunity to submit written data, views, or arguments and to present the same orally unless the Board deems it unnecessary. Any proposed rule or revised proposed rule by the Board which is to be considered at the public hearing, together with a proposed statement of basis, statutory authority, and purpose, shall be made available to any person at least five days prior to said hearing. The Board shall consider all submissions. The rules, promulgated by the Board, shall be based on the record which shall consist of proposed rules, evidence, exhibits, and other matters presented or considered, matters officially noticed, rulings on exceptions, any findings of fact and conclusions of law proposed by any party, and any written brief filed. If no change is made, the Board may adopt said rule at the last public hearing. However, if a change is to be made therein, the Board shall announce at said public hearing the date of availability to any party of the incorporated change in the proposed final rule and shall afford any party to the public hearing at least four working days following the availability of such proposed final rule to submit written comments thereon prior to the adoption thereof. After consideration of the relevant matter presented, the Board shall incorporate by reference on the rules adopted, a written concise general statement of their basis and purpose. The written statement of the basis and purpose of a rule which involves scientific or technological issues shall include a detailed, analytical evaluation of the scientific rationale justifying the rule.

702.03. FPPA shall maintain a copy of its currently effective rules and the current status of each published proposal for rules and minutes of all its action upon rules which shall be available for inspection by any person during regular office hours.

702.04. A temporary or emergency rule may be adopted without compliance with the procedures prescribed in Rule 702.02 and with less than the 20 days' notice prescribed in Rule 702.01 (or where circumstances imperatively require, without notice) where the Board finds that immediate adoption of the rule is imperatively necessary to comply with a state or federal law or federal regulation or for the preservation of public health, safety, or welfare and compliance with the requirements otherwise provided in this Section 702 would be contrary to the public interest. Such findings and a statement of the reasons for the action shall be published with the rule. A temporary or emergency rule shall become effective on adoption or on such later date as is stated in the rule, shall be published promptly, and shall have effect for not more than three months from the adoption thereof, unless made permanent by compliance with Rule 702.01 and Rule 702.02 of this Section 702.

702.05. Any interested person shall have the right to petition for the issuance, amendment, or repeal of a rule. Such petition shall be open to public inspection. Action on such petition shall be within the discretion of the Board; but when the Board undertakes rule-making on any matter, all related petitions for the issuance, amendment, or repeal of rules on such matters shall be considered and acted upon in the same proceeding.

702.06. FPPA shall make available to the public and shall deliver to anyone requesting it a copy of any rule of FPPA then in effect or of any notice of proposed rule-making proceeding in which action has not been completed. Upon request, such copy shall be certified by the Board's executive secretary. FPPA may make a reasonable charge for supplying any such copy.

702.07. Upon adoption by the Board of all new rules, amendments to rules and repealers of rules, notice of such action shall be in the same manner as provided in Rule 702.01 of this Section 702.

702.08. Unless they are temporary or emergency measures, adopted pursuant to Rule 702.04, all rules, amendments and repealers shall be effective on the date of mailing of the appropriate notice, as set forth in Rule 702.07.

703. Plan Modification of Old Hire Plans

703.01. In the event that an election concerning plan modification of a local pension plan is concurrent with an election on other matters, the employer must demonstrate that the proposed modification was approved in a separate vote by a separate ballot, by those Members of the plan eligible to vote on the modification. FPPA, in its discretion, reserves the right to examine all ballots submitted in an election on plan modification. The employer must also demonstrate compliance with all other procedures set forth in Section 31-30.5-210 (2), Colorado Revised Statutes, as amended.

703.02. Notwithstanding any other provision of these Rules, the percentage of annual state contributions toward an employer's unfunded pension liability will not be increased due to any local plan modification. The employer will be required to separately track and account for increases in unfunded liabilities attributable to any local plan modification in order to ensure that the amount of state funds the employer receives is not affected by any such plan modification.

703.03. An employer which elects to "pick-up" mandatory employee contributions to an FPPA-affiliated local pension plan pursuant to Section 414(h) of the Internal Revenue Code must file a written certification with FPPA stating that it has elected to "pick-up" such contributions and has complied with all applicable provisions of federal law governing the "pick-up" of such contributions. The certification shall also state the effective date of the pickup provision and must be filed with FPPA at least 60 days prior to the effective date. If the employer pick-up provision is enacted through plan modification of the local pension plan, all statutory procedures governing modification of such plan must be complied with.

704.01. Whenever the FPPA Board of Directors proposes a modification to the statewide defined benefit plan or the statewide money purchase plan which requires a vote of the Members and employers, FPPA shall provide to each employer employing active Members covered by the state plan the following information to be distributed by the employer to each such Member:

704.02. In addition to the Member information set forth in Rule 704.01, FPPA shall provide the following information to each employer:

704.03. FPPA will forward the information required by Rules 704.01 and 704.02 by certified mail or hand-delivery to the applicable department chief or chiefs for each employer unless the employer designates a different individual in writing to FPPA; or the employer may pick up the information in the FPPA offices. In cases of delivery by other than certified mail, the employer shall provide FPPA with a written receipt for such information.

704.04. The following procedures shall govern the Member election:

704.05. At the time the Member election results are certified to FPPA, the employer shall also return the employer election ballot. The employer election shall be made by the governing body of the employer. The employer shall attach to the ballot a copy of the motion, resolution or other action evidencing the governing body's decision.

704.06. Within 90 days from the date of FPPA's mailing to employers, the chief executive officer for FPPA shall certify the results of the Member and employer elections to the Board of directors. If at least 65 percent of the active Members and more than 50 percent of the employers approve the proposed modification, the Board will consider final approval at a subsequent meeting of the Board. The effective date of the proposed modification will be the date of the Board's final approval, or such other date as may be prescribed by the Board.

704.07. Each employer shall retain all Member ballots actually voted for a period of six months and shall make such ballots available for inspection by FPPA upon its request.

705. Availability of Records

705.01. It is the policy of the Board to make the records of FPPA open for inspection as is required under Colorado law, including under the Colorado Open Records Act, Section 24-72-201, et seq., Colorado Revised Statutes.

705.02. For purposes of 24-72-204, Colorado Revised Statutes, as amended, all documents, without regard to the form of transmission, received from or sent to, private equity investment managers and entities in which FPPA has made, or has contemplated making, private equity investments are deemed to contain trade secrets, privileged information, and confidential commercial information and shall therefore not be released, except as necessary for FPPA to conduct business and meet its fiduciary obligations, and except to the extent a document is specifically identified by the sender as being a document that may be made available in the public domain. FPPA shall offer for public inspection and copying periodic reports produced by FPPA for the Board of Directors which contain the return on investments and such periodic reports shall not be deemed to fall within the definition of trade secrets, privileged information, or confidential commercial information

705.03. When an inspection of records is conducted, the person or entity performing the inspection may request copies of those records. Copies are to be made by, or under the supervision of, FPPA staff. A reasonable fee will be charged for copies furnished.

705.04. Notwithstanding any other provision of this section, FPPA shall release information on disability benefit awards to the State Compensation Insurance Fund or any qualified self-insurer, upon their request, in order to assist them in implementing any statutorily required offsets against workmen's compensation awards granted to disabled Members.

706.01. The Board shall recognize and implement domestic relations orders subject to the following rules.

706.02. A "domestic relations order" means a judgment, decree or order issued by a court of competent jurisdiction in this state relating to dissolution of marriage, legal separation or declaration of invalidity action, which complies with Section 14-10-113, Colorado Revised Statutes, as amended, and this Rule 706.

706.03. The Board shall recognize only those domestic relations orders which seek to implement a written agreement between a Member of a retirement plan administered by FPPA and the Member's former spouse. The Board shall approve a standardized form of agreement which must be used by the parties in this regard. The Board shall also approve a standard judicial "order" which incorporates and approves the terms of the written agreement.

706.04. Any written agreement concerning the division of benefits in a retirement plan administered by FPPA shall be submitted to FPPA within 90 days after entry of the decree and the permanent orders regarding property distribution in the proceeding for the dissolution of marriage, legal separation, or declaration of invalidity of marriage. The order approving the agreement shall be certified by the clerk of the court and submitted to and received by FPPA at least 30 days before the plan may make its first payment.

706.05. REPEALED

706.06. Any formula in a written agreement concerning the division of benefits must enable FPPA to make a one-time calculation of the alternate payee’s share. Any expenses incurred by FPPA in making the calculation shall be paid by the Member.

706.07. FPPA permits (and hence, state law requires) benefit adjustments to the alternate payee’s share of a Member’s defined benefit at the same time and in the same manner as any benefit adjustments applied to the participant’s distribution

707.01. A Member of the Statewide Defined Benefit Plan who elects to participate in the DROP shall be entitled to elect one of the following distribution methods by executing, in writing, a DROP distribution payment option selection form as prescribed by FPPA:

707.02. Regardless of the form of payment the participant chooses, the minimum distribution amount will be determined and made in accordance with Internal Revenue Code Section 401(a)(9) and the regulations there under. The minimum distribution is recalculated by FPPA or its record keeper periodically on the basis of the life expectancy of the participant and the participant’s designated beneficiary, if applicable. If elected in writing before the required beginning date by the participant and/or the participant’s spouse, if applicable, the life expectancy of the participant and/or the participant’s spouse shall be recalculated periodically.

707.03. If the retiree does not select a distribution method, benefit payments will be made in compliance with applicable federal law regarding minimum distributions.

707.04. If the Member dies during the period of the Member’s participation in the DROP and the Member’s designated beneficiary is the Member’s surviving spouse to whom the Member was legally married at the time of the Member’s death, the Member’s designated beneficiary shall be entitled to select one of the distribution methods set forth in Rule 701.01, subject to the provisions of Rule 707.02. If no selection is made within 30 days of death of the Member, the lump sum payment method shall be utilized.

707.05. If a retiree or surviving spouse chooses a distribution method involving periodic payments, he or she may make a change in payment as may be allowed by the record keeper.

708.01. The Board may waive the statutory interest charge mandated by Section 31-31-402(4), C.R.S. as amended, for new accounts in hardship cases. An account is established when an employer, who is a new participant within the Statewide Defined Benefit Plan, has an employee first enroll as a Member within the plan. An account qualifies as "new" for a period of six months from the date of establishment. "Hardship cases" are limited to instances in which the employer has paid erroneously into the federal social security system or another retirement benefits provider instead of FPPA. The period for which interest may be waived shall begin on the latter of the first date on which an employee of the new participant enrolls as a Member with FPPA or the date on which the employer applies for a refund of contributions erroneously paid to the federal social security system or another retirement benefits provider, and shall continue until the date on which FPPA receives the erroneously paid contributions and any earnings or interest that have been refunded to the employer. The employer shall provide documentation satisfactory to FPPA of its efforts to collect all amounts erroneously paid to the federal social security system or another retirement benefits provider.

708.02. The statutory interest charge mandated by Section 31-31-402(4), C.R.S., as amended, shall compounded on an annual basis.

709.01. Old hire plans may be amended to provide for the self direction of vested DROP assets and contributions by allocating such assets of the plan to the police and fire members’ self directed investments fund subject to the terms of Rule 709 herein. Any such amendment must remove all of its members’ DROP assets from the police and fire members’ total fund to the police and fire members’ self directed investments fund and all DROP retirees who are currently in pay status shall be included.

709.02. FPPA shall transfer the DROP assets of an old hire plan providing for self direction of the assets to its record keeper for self direction no later than 120 days after the latter of the effective date of the old hire plan amendment or the date on which the FPPA Board permitted the amendment.

709.03. FPPA shall keep an accurate account of each such individual old hire fund. In addition, FPPA shall keep an accurate account of each member's separate account in any such individual fund. The FPPA Board shall allow a member to exercise control of the investment of all of the member's accrued benefit under the member’s plan. The Board shall designate a fund for investments of a member’s funds of which the member fails to direct the investment.

709.04. In allowing a member to exercise such control, the FPPA Board shall:

709.05. FPPA, or its record keeper, shall adopt procedures governing the calculation and allocation of earnings and losses under the various investment alternatives that it may offer, the transfer of assets between funds under each alternative, the allocation of a member's account between investment alternatives, and such other matters as may be necessary to its administration and management of the fund.

709.06. The FPPA Board shall be the trustee of the fire and police members' self directed investments fund subject to the members' allocation of moneys in their accounts to the alternatives offered by the FPPA Board. A member who exercises control over the plan assets in the member's account shall not be deemed to be a fiduciary of the fund by reason of such exercise of control, and neither the FPPA Board nor the FPPA shall be liable for any loss that results from such exercise of control.

709.07. The FPPA Board shall designate one or more financial institutions as custodians of the fund. All moneys paid or transmitted to the custodian shall be credited to appropriate accounts in the fund, and the custodian shall maintain a current inventory of all investments of the fund.

709.08. Disbursements from the fund shall be made, subject to the approval of FPPA, only for payment of the expenses of the association in connection with the administration of the fund, refunds to the members, benefits, and investment purposes.

709.09. The FPPA Board shall submit an annual audit of the fire and police members’ self directed investment fund to the general assembly and to each employer that has active or retired members with balances in the fund. Each employer shall make the audit and study available for review by its members.

710.01. A member who participates in an old hire plan DROP program, the assets of which are not subject to self-direction pursuant to Rule 709, may, at the time of commencement of participation in the DROP, irrevocably elect to invest all contributions to his/her DROP account in either the FPPA Total Fund or in a short-term investment fund selected by the FPPA Board. The short-term investment fund selected by the Board shall have as one of its objectives the preservation of principal invested in the fund.

711.01. Pursuant to Section 31-30.5 306, Colorado Revised Statutes, actuarial studies of the unfunded state-assisted old hire plans are required to determine the amount of unfunded liability that accrues as a result of suspension of state contributions. This will be accomplished as set forth in Rules 711.02 through 711.07.

711.02. An allocation of hypothetical state contributions shall be determined as of September 30, 2003, September 30, 2004, and September 30, 2005 under the assumption that the suspension of state contributions pursuant to Section 31-30.5-307(5)(a) were not in effect.

711.03. Such allocated contributions shall be credited to a hypothetical account for each old hire plan.

711.04. Interest shall be added to these hypothetical accounts at the actuarial rate.

711.05. An allocation of state contributions made as of April 30, 2006 and each April 30 thereafter through April 30, 2012 shall result in an interest reduction to these hypothetical account balances, based on the payment amount and the actuarial rate.

711.06. Hypothetical account balances shall be added to actual fund account balances for purposes of determining the unfunded liability for purposes of each department’s determination of their required department contribution.

711.07. The sum of these hypothetical account balances for each plan is the total unfunded liability in accordance with Section 31-30.5-307(5)(b).

713.01. Retirement applications and distributions under the statewide money purchase plan may be approved after administrative review by the chief executive officer, without further hearing by the Board. Such applications shall otherwise meet all criteria required for approval of the application by the Board. The chief executive officer may defer consideration of any application to the Board. An appeal of the chief executive officer’s decision shall be processed pursuant to Rule 509. The chief executive officer shall report each such approval. Any application not approved by the chief executive officer shall be processed for consideration by the Board.

714.01. Whenever the FPPA Board of Directors proposes a statewide health care defined benefit plan pursuant to its authority under Section 31-31-904, Colorado Revised Statutes, a vote is required of the members. FPPA shall provide to each employer employing active Members to be covered by the statewide health care defined benefit plan the following information to be distributed by the employer to each such Member:

714.02. In addition to the Member information set forth in Rule 714.01, FPPA shall provide each employer a list of the active Members of the statewide plan employed by the employer as reflected in FPPA records.

714.03. FPPA will forward the information required by Rules 714.01 and 714.02 by certified mail or hand-delivery to the applicable department chief or chiefs for each employer unless the employer designates a different individual in writing to FPPA; or the employer may pick up the information in the FPPA offices. In cases of delivery by other than certified mail, the employer shall provide FPPA with a written receipt for such information.

714.04. The following procedures shall govern the Member election:

714.05. The FPPA Board shall certify the results of the elections held pursuant to Rule 714.04, breaking out the vote totals for each employer. The Board shall mail a copy of the certification to each employer within in ten days after the certification. If less than a majority of an employer’s eligible members vote in favor of participating in the plan, the employer, on behalf of its Members, may elect not to participate in the plan. Such an employer election shall be made by the governing body of the employer within 90 days of the FPPA Board’s certification of the election results. The employer shall submit a certified copy of the minutes, resolution or other action evidencing the governing body's decision within 15 days of the date of the decision in order for said election to be effective and for the Members to be excluded from the plan.

714.06. Within 120 days from the date of FPPA's mailing to employers, the chief executive officer for FPPA shall certify the results of the Member and employer elections to the Board of directors. If at least 65 percent of the active Members approve the proposed plan, the Board will consider final approval at a subsequent meeting of the Board. The effective date of the proposed plan will be such date as may be prescribed by the Board.

714.07. Each employer shall retain all Member ballots actually voted for a period of six months and shall make such ballots available for inspection by FPPA upon its request.