2011 Annual Rates
Based on the results of recent annual actuarial valuations of FPPA Plans, the FPPA Board of Directors approved the following SRA, Contribution Rates, Benefit Adjustments and COLAs.

• SRA (Stabilization Reserve Account)
• Contribution Rates
• Benefit Adjustments

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

FPPA 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, 2011. 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 benefit adjustments.

Re-Entry Members to the Statewide Defined Benefit Plan
The SRA rate for Re-Entry Members (those members of a money purchase plan who re-entered the Statewide Defined Benefit System) is 3.74%. This SRA contribution rate went into effect July 1, 2011. The required 20% combined contribution rate from members and employers in this tier fully funded this plan with a total surplus of 3.74% (3.74% for this group + 0% base SRA).

FPPA Social Security Supplemental Retirement Plan
The SRA rate for the Social Security Supplemental Retirement Plan is 0%. This SRA contribution rate went into effect July 1, 2011. 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 benefit adjustments.

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%. This SRA contribution rate is effective January 1, 2012. 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.

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, a percentage of each member’s base pay is required for coverage under the Statewide Death & Disability Plan. The employer, in conjunction with its members, decides who actually pays the contribution.

In 2010 the Statewide Death & Disability Plan contribution rate was set at 2.6% and is effective from January 1, 2011 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%).

Re-entry Members to the Statewide Defined Benefit Plan
The contribution rate for members of a money purchase plan who re-entered the Statewide Defined Benefit System is set at 20% combined contribution rate from members and employers. A Member’s 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
The FPPA Board of Directors set the following contribution rates for the Colorado Springs New Hire Pension Plan effective January 1, 2012. The Police Component contribution rate is 28.656% (20.656% employer + 8% member), The Fire Component contribution rate is 30.248% (20.248% employer + 10% member). *The employer contribution rates have been updated as a result of a decision by the FPPA Board of Directors in their October board meeting based on an actuarial study of the voluntary transition of members from the Colorado Springs New Hire Pension Plan to the Statewide Defined Benefit Plan.

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 11.3% effective July 1, 2011 through December 31, 2011. Effective January 1, 2012 through June 30, 2012 the Defined Benefit Component contribution rate was set at 12.9% due to the implementation of new actuarial assumptions. Each department in the Statewide Hybrid Plan establishes a total contribution rate. After the 11.3% 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% member and 8% employer).

Benefit Adjustment Defined:Colorado Revised Statutes provide that Benefit adjustments 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 benefit adjustments are effective every year beginning October 1. Historically, the Board has considered the CPI-W from the prior year in setting the ad hoc benefit adjustment. The CPI-W for 2010 was 2.1%. The Board also considers the amount of benefit increase the plans can sustain to ensure appropriate funding of the plans and looks to the Social Security Administration for additional information. The Social Security Administration did not grant a cost-of-living adjustment on January 1, 2011.  

Totally Disabled Members and their Beneficiaries
Under the Statewide Death & Disability Plan, totally disabled members and their beneficiaries are granted a fixed 3.0% benefit adjustment each year on October 1. 

Occupationally Disabled Members and their Beneficiaries and Survivors of Active Duty Members

Occupationally disabled members and their beneficiaries and survivors of active duty members are granted a benefit adjustment at the discretion of the FPPA Board of Directors. The Board decided that occupationally disabled members their beneficiaries and survivors of active duty members will receive a 0.5% increase in October 2011. Those who retired on or before October 1, 2010 will have their benefit adjusted by this percentage in their October retirement payment. The decision was based on the amount of benefit increase the plan could sustain based on the 2.6% contributions to the plan.

Statewide Defined Benefit Plan
The Board decided to grant a 1.34% benefit adjustment to the retirees and beneficiaries of the Statewide Defined Benefit Plan for October 2011. Those who retired on or before October 1, 2010 will have their benefit adjusted by this percentage in their October retirement payment. The decision was based on the amount of benefit increase the plan could sustain based on the 16% contributions to the plan. 

Statewide Hybrid Plan - Defined Benefit Component
A 3.0% benefit adjustment was granted for all retirees and beneficiaries of the Statewide Hybrid Plan – Defined Benefit Component who were retired on or before October 1, 2010. The decision was based on the amount of benefit increase the plan could sustain based on the 11.3% contributions to the plan. The benefit will be adjusted in the October 2011 retirement payment. 

Colorado Springs New Hire Pension Plan
Effective October 1, 2011 the following cost-of-living adjustments will be granted for certain retirees of the Colorado Springs New Hire Pension Plans: Fire Component = 2.0% and Police Component = 2.5%. For both components cost-of-living adjustments are based off of the CPI-W from the prior year. The CPI-W for 2010 was 2.1%.