(1) Any employee initially employed by the authority on and after the transfer date under this part 5 shall be eligible for membership in the authority's qualified retirement plan.

(2) (a) Any employee of university hospital who was a member of PERA on the transfer date under this part 5 and who elects to become an employee of the authority pursuant to section 23-21-507 (1) shall have such employee's active membership in PERA terminated and shall be provided retirement benefits in accordance with this subsection (2).

(b) Any employee of university hospital who elects to become an employee of the authority, and who has less than five years of service credit at the time such employee's active membership in PERA was terminated, may elect to have such employee's member contributions to PERA credited to the authority's qualified retirement plan. Any employee who so elects shall receive from the authority, upon retirement, a benefit which, when combined with social security, is at least equal to the benefit such employee would have received from PERA if such employee had continued to earn PERA service credit until retirement or the date upon which the employee ceases to be an employee of the authority. The calculation of such benefit shall be based upon the PERA benefit plan in effect on the transfer date under this part 5. Any employee who elects not to have such employee's member contributions credited to the authority's qualified retirement plan shall be entitled only to those retirement benefits provided in accordance with such plan.

(c)

(I) Any employee of university hospital who elects to become an employee of the authority, and who has five or more years of service credit at the time such employee's active membership in PERA was terminated, may elect either to become a vested inactive member of PERA or to have such employee's member contributions to PERA credited to the authority's qualified retirement plan.

(II) Any employee who becomes a vested inactive member of PERA shall receive from the authority, upon retirement, a benefit which, when combined with social security and the PERA retirement benefit earned by the employee, is at least equal to the benefit such employee would have received from PERA had such employee continued to earn PERA service credit until retirement or the date upon which the employee ceases to be an employee of the authority. The calculation of such benefit shall be based upon the PERA benefit plan in effect on the transfer date under this part 5.

(III) Any employee who elects to have all member contributions credited to the authority's qualified retirement plan shall receive from the authority, upon retirement, a benefit which, when combined with social security, is at least equal to the benefit such employee would have received from PERA if such employee had continued to earn PERA service credit until retirement or the date upon which the employee ceases to be an employee of the authority. The calculation of such benefit shall be based upon the PERA benefit plan in effect on the transfer date under this part 5.

(IV) The discretion granted to an employee of the corporation by this subsection (2) to elect either vested inactive status in PERA or the crediting of the employee's member contributions to the authority's qualified retirement plan shall not be limited or abridged as a condition of employment or promotion by the authority.

(d) An employee of university hospital who becomes an employee of the authority and whose member contributions in PERA are credited to the authority's qualified retirement plan shall be eligible to purchase service credit for previous employment at university hospital only pursuant to the terms of section 24-51-505, C.R.S.

(3) (a) As soon as practicable after the transfer date under this part 5, and again on each annual anniversary of such transfer date, the board of trustees of PERA shall determine the amount of reserves required to provide benefits and health care to former employees of university hospital who are benefit recipients or vested inactive members of PERA as provided in article 51 of title 24, C.R.S. The amount of reserves required shall be determined by the board of trustees utilizing certified actuarial reports prepared by the board's actuary.

(b) If the amount of reserves on deposit in the state division trust fund of PERA to provide such benefits and health care, as calculated by the actuary, exceeds the amount of reserves required pursuant to paragraph (a) of this subsection (3), then the excess amount shall be paid to a retirement trust established by the authority as further provided in this subsection (3). Such payment shall be made if the actuarial report certifies that the payment will not have an adverse impact on the actuarial soundness of the state division trust fund or the PERA health care trust fund. If the actuary determines, in accordance with accepted actuarial principles, that the payment provided by this paragraph (b) will have an adverse impact on the actuarial soundness of these funds, the payment shall not be permitted.

(c) Not later than one hundred twenty days following the transfer date under this part 5, and again not later than one hundred twenty days following each anniversary date of such transfer date, the board of trustees of PERA shall pay to a retirement trust established by the authority any moneys payable pursuant to paragraph (b) of this subsection (3) together with all member contributions, not previously paid, of all employees electing to have their member contributions credited to the authority's qualified retirement plan pursuant to subsection (2) of this section. PERA shall include interest on such payment for the period from the transfer date under this part 5, or subsequent anniversary of such transfer date, to the date of payment at the rate specified for members in section 24-51-101 (28), C.R.S.

(d) All expenses incurred by the board of trustees of PERA for the preparation of actuarial reports pursuant to paragraph (b) of this subsection (3) shall be paid by the authority. Such expenses shall be deducted from any amounts transferred pursuant to paragraph (c) of this subsection (3). Any actuarial reports prepared pursuant to this subsection (3) shall be made available to the authority upon request.