The following three bills recommended by the FPPA Board of Directors to the Pension Reform Commission have currently passed through the 2003 Legislative Session.

The purpose of these summaries are informational and cannot be relied upon as the ultimate declaration of benefits under a plan or the law in Colorado. In some cases the information below is prior to any consequential amendments. Please consult the actual legislation.

For more information about the following bills:

• click on the State of Colorado Legislative Web Site at: http://www.state.co.us/gov_dir/stateleg.html . Once there, click on either the bills for the House or Senate and you will be taken to a list of bills and their current status.
• or call FPPA at (303) 770-3772 for more information.
  

Passed through the Senate and House and became law: March 24, 2003.

Senate Sponsorship
Senator Norma Anderson, Sponsor
Senator Deanna Hanna
Senator Terry Phillips

House Sponsorship
Representative Bill Cadman, Co-Sponsor

This proposed bill will accomplish the following:

The creation of a new Statewide Hybrid Plan.

FPPA Board is authorized to create a new plan.

The terms of the plan to be established after a task force of interested members and employers meet and make recommendations.

• Members earn a defined benefit and a defined contribution account.
  
• The plan document will govern:
  
  • The accrual of service credit and vesting,
    
  • The benefits to be offered based on age and service,
    
  • The allocation of contributions between the defined benefit and the defined contribution,
    
  • Service credit purchase options, and
    
  • The establishment of defined contribution investment alternatives.
    
• Contributions are split 8% employer and 8% member; local election available to increase contribution rates.
  

Local election into the Statewide Hybrid Plan.

• Employers with a local money purchase plan, an alternate exempt local money purchase plan, or the Statewide Money Purchase Plan may apply for coverage under the new plan.
  
• A department wide election by members is conducted.
  
• Members maintain their money purchase balances either within the existing local plan or with FPPA.
  
• Members vest in money purchase balances based on combined years of service.
  
• Members vest in the Statewide Hybrid Plan based on service credit earned or purchased while in the Statewide Hybrid Plan.
  

Entry allowed into the Statewide Defined Benefit Plan.

• Employers with a local money purchase plan, an alternate exempt local money purchase plan, or the Statewide Money Purchase Plan may apply for coverage under the plan.
  
• Members maintain their money purchase balances either within the existing local plan or with FPPA.
  
• Members vest in money purchase balances based on combined years of service.
  
• Members vest in the Statewide Defined Benefit Plan based on service credit earned or purchased while in the Statewide Defined Benefit Plan.
  
• Based on an actuarial study, the FPPA establishes a continuing rate of contribution for all members who are active upon the date of coverage.
  
• New members after the date of coverage are treated as new hires under the Statewide Defined Benefit Plan.
  

Vesting for all members under the Statewide Defined Benefit Plan is changed to five years.

Senate Bill 03-056
Membership In Plans Administered By The Fire & Police Pension Association

Passed through the Senate and House and became law: April 22, 2003.

Senate Sponsorship
Senator Terry Phillips, Sponsor
Senator Deanna Hanna

House Sponsorship
Representative Ann Ragsdale, Co-Sponsor

This proposed bill will accomplish the following:

• The definition of member may include part-time fire and police officers beginning August 5, 2003.
  
• Part-time members would have the option to be in the Statewide Money Purchase Plan or a local money purchase plan.
  
• Clerical or other personnel employed by a fire protection district, fire authority, or county improvement district, whose services are auxiliary to fire protection may participate in the Statewide Defined Benefit Plan or the Statewide Money Purchase Plan.
  
• County sheriffs are eligible to participate in the FPPA supplemental social security plan for defined benefits or for death and disability.
  
• Public safety members of the PERA plan are not eligible to participate in the Statewide Death and Disability Plan because they have disability coverage under PERA.

Passed through the Senate and House and became law: March 25, 2003.

House Sponsorship
Representative Timothy Fritz, Sponsor
Representative Jim Snook
Representative Bill Cadman
Representative Pam Rhodes

Senate Sponsorship
Senator Deanna Hanna, Co-Sponsor
Senator Terry Phillips

This proposed bill will accomplish the following:
FPPA is authorized to create a defined benefit plan to provide assistance in paying health care costs after retirement.

• The plan benefits would be based on years of service.
  
• A task force would be created to recommend terms of the plan.
  
• The plan would be implemented if 65% of members in the Statewide Defined Benefit Plan, the Statewide Money Purchase Plan, and/or the Statewide Hybrid Plan vote in favor of adopting the plan. The plan would then be mandatory for all participants in the statewide plans electing coverage. If less than the majority of a department's members vote in favor of adopting the plan, the employer may elect not to participate in the plan.
  
• Member contributions would be 1% of pay. Employers could “pick-up” the contribution.