2010 Annual Rates
Based on the results of recent annual actuarial valuations of certain FPPA Plans, the FPPA Board of Directors approved rates for the following:

• SRA (Separate Retirement Account)
• Member / Employer Contributions
• COLA (Cost of Living Adjustments)

Refer to this chart to better understand the FPPA Defined Benefit System Plans.

Statewide Defined Benefit System

Statewide Defined Benefit Plan
The SRA rate for the Statewide Defined Benefit Plan is 0%. This SRA contribution rate went into effect July 1, 2010.The Board concluded that the entire required 16% combined contribution rate from members and employers should be allocated to the actuarial account in order to ensure appropriate funding of the Plan’s defined benefits and to provide funding for future cost-of-living adjustment (COLA) increases. 

Re-Entry Members to the Statewide Defined Benefit Plan
The SRA rate for members of a money purchase plan who re-entered the Statewide Defined Benefit System is 3.66%. This SRA contribution rate went into effect July 1, 2010. The required 20% combined contribution rate from members and employers in this tier fully funded this plan with a total surplus of 3.66% (3.66% for this group + 0% base SRA).

FPPA Social Security Supplemental Retirement Plan
The SRA rate for members of the Social Security Supplemental Plan Component is 0%. This SRA contribution rate went into effect July 1, 2010.The Board concluded that the entire required 8% combined contribution rate from members and employers should be allocated to the actuarial account in order to ensure appropriate funding of the Plan’s defined benefits and to provide funding for future COLA increases. 

Colorado Springs New Hire Pension Plan
The Colorado Springs New Hire Pension Plan became a part of the FPPA Defined Benefit System on October 1, 2006. The SRA rate for members of the Colorado Springs New Hire Pension Plan - Fire & Police Components is 0%. The Board concluded that the entire required contribution rate from members and employers should be allocated to the actuarial account in order to ensure appropriate funding of the Plan’s defined benefits. This SRA contribution rate is effective January 1, 2011.

Statewide Hybrid Plan
Excess contributions, if any, to the Statewide Hybrid Plan are made to the member’s money purchase component account and therefore no SRA is awarded.

For Colorado firefighters and police officers hired on or after January 1, 1997, employers are required to contribute a percentage of each member’s base pay for coverage under the Statewide Death & Disability Plan. The employer, in conjunction with its members, decides who actually pays the contribution.

In 2008 the Statewide Death & Disability Plan contribution rate was set at 2.6% and is effective from January 1, 2009 through December 31, 2010. Based on the 2010 actuarial results the FPPA Board of Directors agreed to continue the 2.6% contribution rate effective through December 31, 2012.  According to Colorado Revised Statute (C.R.S., 31-31-811(4)) contributions may be increased or decreased by 0.1% every two years as determined by the FPPA Board following an actuarial review.

Statewide Defined Benefit Plan
The Statewide Defined Benefit Plan remains set at 16% combined contribution rate from members (8%) and employers (8%).

Reentry Members to the Statewide Defined Benefit Plan
The Social Security Supplemental Plan remains set at 20% combined contribution rate from members and employers. Members contribution may not be less than 8% with the actual split of contributions to be determined by the employer in conjunction with its members.

FPPA Social Security Supplemental Retirement Plan
The Social Security Supplemental Retirement Plan remains set at 8% combined contribution rate from members (4%) and employers (4%)

Colorado Springs New Hire Pension Plan - Police & Fire Components
The Board of Directors set the following contribution rates for the Colorado Springs New Hire Pensions Plans effective January 1, 2011. The Police Component contribution rate is 28.906% (20.906%% employer + 8% member). The Fire Component contribution rate is 25.095% (15.095% employer + 10% member).

Statewide Hybrid Plan -

Defined Benefit & Money Purchase Components
The FPPA Board of Directors set the Defined Benefit Component of the Statewide Hybrid Plan contribution rate at 11.5% effective July 1, 2010. Each department in the Statewide Hybrid Plan establishes a total contribution rate. After the 11.5% is allocated to the Defined Benefit Component, the remainder of the total contribution rate is then directed to the Money Purchase Component.

Money Purchase Component (ONLY)
The contribution rate for the Statewide Hybrid Plan - Money Purchase Component remains at 16% with the member and employer rates established by the employer's resolution

The Statewide Money Purchase Plan mandatory combined contribution rate remains set at 16% (8% coming from members and 8% from employers).

COLA Defined: Colorado Revised Statutes provide that COLA’s to statewide plans administered by FPPA are to be determined by the FPPA Board of Directors each year (with the exception of Colorado Springs - see below). Announced annual COLA’s are effective every year beginning October 1. 

Totally Disabled Members
Under the Statewide Death & Disability Plan, totally disabled members are granted a fixed 3.0% COLA each year on October 1. 

Occupationally Disabled Members and Survivors of Active Duty Members
Occupationally disabled members and survivors of active members are granted a COLA at the discretion of the FPPA Board of Directors. The Board decided that occupationally disabled members and survivors of active duty members will not receive a COLA in October 2010.  The decision was based on the CPI-W information as noted below.

Statewide Defined Benefit Plan
& Statewide Hybrid Plan - Defined Benefit Component
The Board decided not to grant a COLA to the retirees and beneficiaries of the Statewide Defined Benefit Plan and the Statewide Hybrid Plan – Defined Benefit Component for October 2010.  Historically, the Board has considered the CPI-W from the prior year in setting the ad hoc COLA.  The CPI-W for 2009 was -0.7%.  The Social Security Administration also did not grant a COLA on January 1, 2010.  Based on this information and with the intent to ensure appropriate funding of the plans, the Board decided not to grant a COLA. 

Colorado Springs New Hire Pension Plan
Effective October 1, 2010  no COLAs will be granted for certain retirees of the Colorado Springs New Hire Pension Plans Fire Component and Police Component. For both components COLAs are based off of the CPI-W from the prior year.  The CPI-W for 2009 was -0.7%