CO SB149

Defines "defined benefit plan or system" as any retirement plan that is not a defined contribution plan, and "defined contribution plan or system" as one providing individual accounts with benefits based solely on contributions plus allocated income and gains.

Authorizes boards of local government defined benefit plans to modify benefits and age/service requirements if the board determines modification is required to ensure plan sustainability, serving a significant public purpose.

Prohibits modifications from adversely affecting vested benefits already accrued by members, including pension benefits of retired members or those eligible to retire as of the modification's effective date, unless required by Colorado or federal law.

Preserves board authority to modify future benefit accruals and other plan provisions as permitted or required under Colorado or federal law.

Requires plan boards to provide written notice to all members, inactive members, and beneficiaries that benefit reductions to ensure sustainability could occur in the future; section expires July 1, 2017.