Obligation of city.
Denver Revised Municipal Code § 18-419
in effectSec. 18-419. - Obligation of city.
(a) General. Nothing in this article is intended to nor shall it be construed to create a debt for any year which is a charge against the city's revenues for any future year. All benefits payable under the plan shall be payable from and only from the trust fund established in section 18-403. The plan is a determination of policy by the city, strictly of local and municipal concern, to enhance and stabilize its employer-employee relationship and will remain the policy until changed by city ordinance or amendment of the city Charter. The city reserves the right to change the operation of or to discontinue further city involvement in the operation of the system at any time and from time to time, subject only to the following limitations:
(1) No reductions below what may be actuarially provided. No alteration or amendment shall reduce the retirement benefits below those determined to be sufficiently provided for actuarially by the trust fund as it exists at the time of alteration or amendment, except in the case of complete termination of the plan, nor change any right of a member to receive the return of accumulated contributions, if any, upon death or withdrawal from service; and
(2) No reversion to employer. No alteration or amendment or complete or partial termination of the plan or any part thereof shall permit any part of the trust fund to revert to or be recoverable by the employer or be used or diverted to purposes other than for the exclusive benefit of eligible members or their beneficiaries under the plan. In the event of the discontinuance of city involvement in the plan, or the partial or complete termination of the plan, the proportionate interest of the members, and their beneficiaries, respectively, shall be determined by the plan's actuary and to the extent then funded shall become non-forfeitable. The assets of the trust shall be allocated to members, former members, retired members and their beneficiaries in the following order of preference:
a. The current balance of the member's accumulated contributions, if any, with interest thereon at a rate set annually by the Retirement Board, with a minimum rate of one (1) percent, not to exceed three (3) percent, per annum, compounded each June 30th, as of the date of the termination of the plan. If the member has already retired, the amount payable under this subsection shall be the balance of the member's accumulated contributions, if any, with interest thereon, as of the member's effective date of retirement, less the total amount already received in retirement benefit payments, if any.
b. The balance remaining after the allocation described in subsection (2)a., above, shall be allocated for the benefit of each retired member (including the member's beneficiary) in an amount proportionate to, but not in excess of, the actuarially determined present value of the retirement benefit payable to such member at the date of termination of the plan.
c. The balance remaining after the allocation described in subsection (2)b, above, shall be allocated to:
1. Each member who has attained the normal retirement date, but who has not retired; and
2. Each member who has been approved for a retirement benefit payment but who has not yet received such payment, in an amount proportionate to, but not in excess of, the actuarially determined present value of the retirement benefit payment accrued by such member at the date of termination of the plan, less any amount allocated pursuant to subsection (2)a., above.
d. The balance remaining after the allocation described in subsections (2)b., and (2)c above, shall be allocated for the benefit of each vested active and inactive member for whom no allocation has been made under subsection (2)b. and (2)c., above, in an amount proportionate to, but not in excess of, the actuarially determined present value of the retirement benefit payment accrued by such member at the date of termination of the plan, less any amount allocated pursuant to subsection (2)a, above.
e. The balance remaining after the allocation described in subsections (2)b., (2)c. or (2)d., above, shall be allocated for the benefit of each member for whom no allocation has been made under subsections (2)b., (2)c. or (2)d., above, in an amount proportionate to, but not in excess of, the actuarially determined present value of the retirement benefit payment accrued by such member at the date of termination of the plan, less any amount allocated pursuant to subsection (2)a., above.
f. Any balance remaining after the allocation described in subsections (2)b., (2)c., (2)d. or (2)e., above, shall be allocated for the benefit of all members who have participated in the above allocations in a pro-rata share of their total allocations to the total distribution.
(3) Timing of distributions upon termination of plan. Any distribution after termination of the plan may be made at any time, so long as the distribution requirements of the Internal Revenue Code are met, and from time to time, in whole or in part, to the extent that no discrimination in value results, in cash, in the form of a retirement benefit payment or a continued retirement benefit payment, or in a lump-sum amount as the retirement board directs. The benefit payments as apportioned upon plan termination shall be provided by the continuation of the trust fund until all assets of the trust fund have been exhausted. In making such distribution, any and all determinations, divisions, appraisals, apportionments and allotments shall be made by the retirement board acting under the information supplied by the actuary and shall be final and conclusive.
(4) No reduction upon merger. This plan shall not be merged or consolidated with, nor shall any assets or liabilities be transferred to any other plan, unless the benefits payable to each member if the plan were terminated immediately after such action would be equal to or greater than the benefits to which such member would have been entitled if this plan had been terminated immediately before such action.
(Ord. No. 960-05, § 1, 12-19-05; Ord. No. 1123-16, § 9, 12-5-16)
Source: City and County of Denver, Revised Municipal Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/co/denver/codes/code_of_ordinances?nodeId=TITIIREMUCO_CH18EMOFPABE_ARTXIIRE_DIV21963REPL_S18-419OBCIFetched: 10/27/2026