HB 13-1054 Summary

• Modifies Colorado law to change how unemployment insurance benefits are reduced when a claimant withdraws from a retirement plan due to unemployment.

• Changes the benefit reduction calculation from counting the full lump-sum retirement payment as received income to instead postponing benefits for only the portion of funds that are actually withdrawn and not reinvested.

• When an individual reinvests a portion of a lump-sum retirement payment as required by law, only the non-reinvested portion counts toward the benefit postponement period.

• When an individual withdraws less than the total lump sum from a retirement account, only the amount actually withdrawn (not reinvested) is considered when calculating the number of calendar weeks benefits are postponed.

• The act takes effect upon passage and applies to all unemployment insurance claims filed on or after the effective date.