Public Employees' Social Security

C.R.S. tit. 24, art. 53

in effect

C.R.S. § 24-53-101 Definitions

24-53-101. Definitions. As used in this article, unless the context otherwise requires: (1) "Department" means the department of labor and employment created pursuant to the provisions of section 24-1-121. (2) "Employee" means a person performing service which constitutes employment, as defined in this section, for a political subdivision of the state, as defined in this section. (3) "Employment" means any service performed by an employee of a political subdivision of the state, except for: (a) Service which, in the absence of an agreement entered into pursuant to the provisions of this article, would otherwise constitute "employment" as defined in the social security act; (b) Service which, pursuant to the provisions of the social security act, may not be included in an agreement between the state and the secretary entered into pursuant to the provisions of this article; (c) Service in any class of positions the compensation for which is on a fee basis, except for any county sheriff, treasurer, clerk and recorder, judge, and their clerks, deputies, and assistants; (d) Service in any class of positions filled by popular election if so provided for in the plan submitted by the political subdivision pursuant to the provisions of section 24-53-104; or (e) Service in any class of positions covered by an existing retirement system which is supported in whole or in part by the state or any of its political subdivisions. (4) "Federal Insurance Contributions Act" means subchapter A of chapter 9 of the federal "Internal Revenue Code of 1939" and subchapters A and B of chapter 21 of the federal "Internal Revenue Code of 1986", as amended. (5) "Political subdivision" includes an instrumentality of this state, or of one or more of its political subdivisions, but only if such instrumentality is a juristic entity which is legally separate and distinct from the state or subdivision and only if its employees are not, by virtue of their relations to such juristic entity, employees of the state or subdivision. "Political subdivision" does not include a school district. (6) "Secretary" means the secretary of health and human services and includes any individual to whom the secretary has delegated any of his functions specified in the social security act with respect to coverage pursuant to such act of employees of states and their political subdivisions. (7) "Sick pay" means any payment made on account of sickness or accident disability of the type specified in section 209 (b) or (d) of the social security act. (8) "Social security act" means the act of congress approved August 14, 1935, chapter 531, 49 Stat. 620, officially cited as the "Social Security Act", as amended. (9) "Wages" means all remuneration for employment, as defined in this section, including the fair cash value of all remuneration paid in any medium other than cash; except that such term does not include that part of such remuneration which, even if it were for employment within the meaning of the federal insurance contributions act, would not constitute wages within the meaning of that act.

C.R.S. § 24-53-102 Federal-state and interstate agreements

24-53-102. Federal-state and interstate agreements. (1) The department, with the approval of the governor, is authorized to enter on behalf of the state into an agreement with the secretary, consistent with the terms and provisions of this article, for the purpose of extending the benefits of the federal old-age, survivors', disability, and health insurance system to employees of political subdivisions thereof with respect to services specified in such agreement which constitutes employment, as defined in section 24-53-101. Such agreement may contain provisions relating to coverage, benefits, contributions, effective date, modification, and termination of the agreement, administration, and other appropriate provisions as the department and secretary agree upon, but, except as may be otherwise required by or pursuant to the social security act as to the services to be covered, such agreement shall provide in effect that: (a) Benefits will be provided for employees, and their dependents and survivors, whose services are covered by the agreement on the same basis as though such services constituted employment within the meaning of Title II of the social security act; (b) The state will pay to the United States secretary of the treasury, at such times as may be prescribed by the social security act, contributions with respect to wages, as defined in section 24-53-101, equal to the sum of the taxes which would be imposed by the federal insurance contributions act if the services covered by the agreement constituted employment within the meaning of that act; (c) Such agreement shall be effective with respect to services in employment, covered by the agreement, performed after December 31, 1950, but in no event shall it be effective with respect to any such services performed prior to the first day of the calendar year in which such agreement is entered into or in which the modification of the agreement making it applicable to such services is entered into; except that, in the case of an agreement or a modification of an agreement made prior to January 1, 1955, if the date specified in section 218 (f) of the social security act, as amended, is not in conflict with such date, such agreement or modification may be made effective as of January 1, 1951, or as of the first day of any intervening calendar quarter; except that such effective date may be made retroactive to the extent permitted by section 218 (f) of the social security act, as amended; (d) All services which constitute employment, as defined in section 24-53-101, and are performed in the employ of the covered political subdivision shall be covered by the agreement, except as to those employees of political subdivisions not coming within the provisions of this article; (e) All services which constitute employment, as defined in section 24-53-101, are performed in the employ of a political subdivision of the state, and are covered by a plan which is in conformity with the terms of the agreement and has been approved by the department pursuant to the provisions of section 24-53-104 shall be covered by the agreement. (2) Any instrumentality jointly created by this state and any other state is hereby authorized, upon the granting of like authority by such other state: (a) To enter into an agreement with the secretary whereby the benefits of the federal old-age, survivors', disability, and health insurance system shall be extended to employees of such instrumentality; (b) To require its employees to pay and for that purpose to deduct from their wages contributions equal to the amounts which they would be required to pay pursuant to the provisions of section 24-53-103 (1) if they were covered by an agreement made pursuant to subsection (1) of this section; and vors', disability, and health insurance system shall be extended to employees of such instrumentality; (b) To require its employees to pay and for that purpose to deduct from their wages contributions equal to the amounts which they would be required to pay pursuant to the provisions of section 24-53-103 (1) if they were covered by an agreement made pursuant to subsection (1) of this section; and (c) To make payments to the United States secretary of the treasury in accordance with such agreement, including payments from its own funds, and otherwise to comply with such agreements. Such agreement shall, to the extent practicable, be consistent with the terms and provisions of subsection (1) of this section and other provisions of this article.

C.R.S. § 24-53-103 Employee contribution

24-53-103. Employee contribution. (1) Every employee of the political subdivision whose services are covered by an agreement entered into pursuant to the provisions of section 24-53-102 shall be required to pay for the period of such coverage into the contribution fund, established pursuant to the provisions of section 24-53-105, contributions with respect to wages, as defined in section 24-53-101, equal to the amount of tax which would be imposed by the federal insurance contributions act if such services constituted employment within the meaning of that act. Such liability shall arise in consideration of the retention of the employee in the service of the political subdivision, or his entry upon such service, after July 1, 1987. (2) The contribution imposed by the provisions of this section shall be collected by deducting the amount of the contribution from wages as and when paid, but failure to make such deduction shall not relieve the employee from liability for such contribution. (3) If more or less than the correct amount of the contribution imposed by the provisions of this section is paid or deducted with respect to any remuneration, proper adjustments, or refund if adjustment is impracticable, shall be made, without interest, in such manner and at such times as the department shall prescribe.

C.R.S. § 24-53-104 Coverage of political subdivisions

24-53-104. Coverage of political subdivisions. (1) Each political subdivision of the state is authorized to submit for approval by the department a plan for extending the benefits of Title II of the social security act, in conformity with applicable provisions of such act, to employees of such political subdivision. Each such plan and any amendment thereof shall be approved by the department if it finds that such plan, or such plan as amended, is in conformity with such requirements as are provided in regulations of the department; except that no such plan shall be approved unless: (a) It is in conformity with the requirements of the social security act and with the agreement entered into pursuant to the provisions of section 24-53-102; (b) It provides that all services which constitute employment, as defined in section 24-53-101, and are performed in the employ of the political subdivision by employees thereof shall be covered by the plan; (c) It specifies the source from which the funds necessary to make the payments required by paragraph (a) of subsection (3) and by subsection (4) of this section are expected to be derived and contains reasonable assurance that such sources will be adequate for such purpose; (d) It provides for such methods of administration of the plan by the political subdivision as are found by the department to be necessary for the proper and efficient administration of the plan; (e) It provides that the political subdivision make such reports, in such form and containing such information as the department may from time to time require, and comply with such provisions as the department or the secretary from time to time may find necessary to assure the correctness and verification of such reports; and (f) It authorizes the department to terminate the plan in its entirety, in the discretion of the department, if it finds that there has been failure to comply substantially with any provisions contained in such plan, such termination to take effect at the expiration of such notice and on such conditions as may be provided by regulations of the department and may be consistent with the provisions of the social security act. (2) The department shall not finally refuse to approve a plan submitted by a political subdivision pursuant to the provisions of subsection (1) of this section and shall not terminate an approved plan without sixty days' notice and opportunity for hearing to the political subdivision affected thereby. (3) (a) Each political subdivision as to which a plan has been approved pursuant to the provisions of this section shall pay into the contribution fund, with respect to wages, as defined in section 24-53-101, contributions in the amounts and at the rates specified in the applicable agreement entered into by the department pursuant to the provisions of section 24-53-102. Such contributions from the political subdivision to the department shall be due not earlier than the expiration of the initial one-third of the time provided for payment by the department to the United States secretary of the treasury pursuant to the provisions of section 24-53-102. ecified in the applicable agreement entered into by the department pursuant to the provisions of section 24-53-102. Such contributions from the political subdivision to the department shall be due not earlier than the expiration of the initial one-third of the time provided for payment by the department to the United States secretary of the treasury pursuant to the provisions of section 24-53-102. (b) Each political subdivision required to make such payments pursuant to the provisions of paragraph (a) of this subsection (3) is authorized, in consideration of the retention of the employee in or entry of the employee upon employment after July 1, 1987, to impose upon each of its employees, as to services which are covered by an approved plan, a contribution with respect to his wages, as defined in section 24-53-101, not exceeding the amount of tax which would be imposed by the federal insurance contributions act, if such services constituted employment within the meaning of that act, and to deduct the amount of such contribution from his wages as and when paid. Contributions so collected shall be paid into the contribution fund in partial discharge of the liability of such political subdivision or instrumentality pursuant to the provisions of paragraph (a) of this subsection (3). Failure to deduct such contribution shall not relieve the employee or employer of liability therefor. (4) Delinquent payments due pursuant to the provisions of paragraph (a) of subsection (3) of this section, with interest at the rate established by regulation pursuant to the social security act or pursuant to the provisions of this article, whichever is higher, may be recovered by action in a court of competent jurisdiction against the political subdivision liable therefor or, at the request of the department, may be deducted from any other moneys payable to such subdivision by any department or agency of the state. The department may establish additional penalties for failure of any political subdivision to make timely reports or contribution payments. (5) Each political subdivision may exclude from wages such payment made under a plan or system if such plan or system is approved by the department. This subsection (5) shall authorize a political subdivision to establish a plan or system as required by section 209 (b) of the social security act.

C.R.S. § 24-53-105 Contribution fund

24-53-105. Contribution fund. (1) There is hereby established a special fund to be known as the Colorado social security contribution fund, of which the state treasurer shall be custodian. (2) (a) The department is authorized to administer said fund and to perform all acts necessary for such administration, whether or not expressly prescribed in this article. (b) The department may establish within such fund, from interest and other charges accruing thereto not payable to the United States secretary of the treasury, a contingency account for the purpose of making payments to the United States secretary of the treasury of amounts claimed by the secretary of the United States department of health and human services to be due and owing from any political subdivision, payment of which amounts have not theretofore been made to the department by said political subdivision. The department may also establish within such fund, from such interest and other charges, an account from which the administrative expenses and costs incurred by the department may be paid directly to the department or to the department of the treasury in reimbursement of such expenses and costs previously paid. Such accounts shall be subject to annual audit. All moneys expended by the department from this account shall be appropriated by the general assembly. (3) There shall be credited and paid to said contribution fund: (a) All moneys appropriated thereto by the general assembly; (b) All contributions, interest, and penalties collected by the department pursuant to the provisions of sections 24-53-103 and 24-53-104; (c) Any interest derived from investment of moneys belonging to the fund and any property or securities received from the use of said moneys; (d) Any moneys recovered upon the bond of the custodian or otherwise for losses sustained by the fund and all other moneys received for the fund from any other source. (4) (a) Said fund shall be held separate and apart from other state moneys and shall be used exclusively for the purposes of this article. Payments therefrom shall be made solely for amounts required to be paid under this article to the United States secretary of the treasury from time to time pursuant to agreements entered into pursuant to the provisions of section 24-53-102, for refunds provided for in section 24-53-103 (3), for refunds of overpayments of political subdivisions not otherwise adjustable, and for payments made pursuant to the provisions of subsection (2)(b) of this section. (b) All such payments shall be made upon vouchers submitted to the office of the state controller and by warrants drawn upon the state treasurer in the manner prescribed by law. (c) Any moneys in the fund not immediately required for such payments shall, at the direction of the department, be temporarily invested by the state treasurer, or, at the direction of the department, all amounts in excess of anticipated expenditures shall be paid annually to the general fund. (d) If moneys in the fund are paid into the general fund pursuant to the provisions of paragraph (c) of this subsection (4) and if, subsequent to the payment to the general fund, the department becomes liable for any expenditure under this article, the expenditure shall be paid out of moneys in the general fund up to the amount paid into the general fund by the department.

C.R.S. § 24-53-106 Rules and regulations

24-53-106. Rules and regulations. The department shall make and publish such rules and regulations, not inconsistent with the provisions of this article, as it finds necessary or appropriate to the efficient administration of the functions with which it is charged under this article.

C.R.S. § 24-53-107 Studies and reports

24-53-107. Studies and reports. The department may study the problem of old-age, survivors', disability, and health insurance protection for employees of local governments and their instrumentalities covered by this article and concerning the operation of agreements made and plans approved under this article. Information concerning the administration of this article may form a part of the annual report of the department.

C.R.S. § 24-53-108 Coverage groups - terms and conditions

24-53-108. Coverage groups - terms and conditions. (1) Notwithstanding any limitations contained in section 24-53-101 (3)(e) and (5), any of the coverage groups participating in an existing retirement system on March 17, 1955, and described in subsection (2) of this section may, effective January 1, 1955, or any time thereafter, be covered pursuant to the provisions of sections 24-53-101 to 24-53-107 extending the benefits of the federal social security act pursuant to the additional terms and conditions set forth in subsection (3) of this section. (2) Coverage groups: (a) Positions in each state institution of higher education covered on March 17, 1955, by annuity contracts with each such institution and the teachers' insurance and annuity association; (b) Positions in any individual municipal corporation or subdivision thereof having a separate existing retirement system operated singly and independently from any other municipal corporations or subdivisions thereof, except for policemen and firefighters; (c) Positions in any municipal corporation which has less than five employees covered as of March 17, 1955, by an existing retirement system supported in whole or in part by said municipal corporation. This coverage group constitutes a separate retirement system for purposes of the social security act, as amended. (3) Terms and conditions: (a) The governor has certified to the secretary of health and human services that: (I) A referendum by secret written ballot was held on the question of whether service in positions covered by such retirement system should be included pursuant to an agreement; and (II) An opportunity to vote in such referendum was given, and was limited, to all eligible employees; and (III) Not less than ninety days' notice of such referendum was given to employees eligible to vote in such referendum; and (IV) Such referendum was conducted under the supervision of the governor or an agency or individual designated by him; and (V) Two-thirds of the eligible employees voted in favor of including service in such positions under an agreement. (b) The appropriate governing body of the coverage group as defined in subsection (2) of this section has given approval to the holding of the referendum. (c) A referendum has not been conducted during a period of one year immediately preceding the referendum. (d) A referendum was requested by at least ten percent of the employees eligible to vote in such referendum. (e) The notice of referendum has been accompanied by a statement to the effect that, with respect to both present and future members, the existing retirement system may be revised so that the retirement benefits of each individual member and the benefits of his dependents and those individuals entitled to benefits on account of the membership in such system of any such members pursuant to any revised retirement system and pursuant to the federal old-age, survivors', disability, and health insurance system shall be at least equal to the benefits which would have been payable to them under the existing retirement system. Former members already retired and their dependents and those individuals entitled to benefits on account of the membership in such system of any such member shall continue to receive the full benefits to which they are entitled pursuant to the existing system. ealth insurance system shall be at least equal to the benefits which would have been payable to them under the existing retirement system. Former members already retired and their dependents and those individuals entitled to benefits on account of the membership in such system of any such member shall continue to receive the full benefits to which they are entitled pursuant to the existing system. (f) The retirement benefits of each individual member and the benefits of his dependents and individuals entitled to benefits on account of membership in such system of any such members pursuant to any revised retirement system and the federal social security act shall be at least equal to the benefits which would have been payable to them pursuant to the existing retirement system. (4) For purposes of the referendum required in subsection (3) of this section, an employee shall be deemed an "eligible employee" with respect to any retirement system if, at the time such referendum was held, he was in a position covered by such retirement system and was a member of such system and if he was in such a position at the time notice of such referendum was given as required in subsection (3) of this section; except that he shall not be deemed an "eligible employee" if, at the time the referendum was held, he was in a position to which the state agreement already applied. (5) No referendum with respect to a retirement system shall be valid unless held within the two-year period which ends on the date of execution of the federal-state agreement or modification which extends the insurance system established pursuant to the federal social security act to such retirement system, nor shall any referendum with respect to a retirement system be valid if held less than one year after the last previous referendum held with respect to the retirement system.

C.R.S. § 24-53-109 Coverage of agricultural inspectors

24-53-109. Coverage of agricultural inspectors. (1) On and after January 1, 1955, the provisions of this article are extended to individuals employed pursuant to an agreement entered into pursuant to the provisions of section 205 of the "Agricultural Marketing Act of 1946", 7 U.S.C. sec. 1624, or section 14 of the "Perishable Agricultural Commodities Act of 1930", 7 U.S.C. sec. 499n, between the state of Colorado and the United States department of agriculture to perform services as inspectors of agricultural products who are not eligible for coverage pursuant to the public employees' retirement association because of the temporary nature of their positions. (2) The department of agriculture is authorized to make necessary deductions from the salaries of such temporary employees, and to make the payment of contributions as provided in sections 24-53-104 and 24-53-105, and to do such other things as are necessary pursuant to the law to bring about such coverage. (3) In case any of such temporary employees who are so covered pursuant to the provisions of subsection (1) of this section thereafter become eligible to be members of the said public employees' retirement association, as may be determined by the board of trustees of the association, such persons shall thereupon cease to be subject to the coverage provided for in subsection (1) of this section and shall forthwith become members of said association as otherwise provided by law.

C.R.S. § 24-53-110 Civil employees of National Guard

24-53-110. Civil employees of National Guard. Effective January 1, 1954, the provisions of this article are extended to civilian employees of the Colorado National Guard who are employed pursuant to the provisions of section 90 of the "National Defense Act", now codified at 32 U.S.C. sec. 709, as amended, and paid from funds allotted to the Colorado National Guard by the department of defense and who are not eligible for coverage pursuant to the public employees' retirement association, and, upon presentation of reports and payment of contributions as provided in sections 24-53-104 and 24-53-105, they shall be entitled to the basic protection afforded such employees, their dependents, and their survivors accorded to others by the federal old-age, survivors', disability, and health insurance system embodied in the social security act.

C.R.S. § 24-53-111 Transfer of powers, duties, and obligations

24-53-111. Transfer of powers, duties, and obligations. On and after March 26, 1984, all powers, duties, and obligations pursuant to this article which were undertaken prior to March 26, 1984, by the division of employment and training of the department shall be undertaken by the department.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-24.docxFetched: 10/6/2026