The Fire and Police Pension Association sponsored three bills during the 2006 Colorado Legislature.  The Pension Reform Commission approved these bills on October 13, 2005.

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/ . 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.

House Bill 06-1068
FPPA Social Security Supplemental Plan Legislation

Passed through the Senate and House and became law: March 27, 2006.

House Sponsorship
Representative Lindstrom, Sponsor

Senate Sponsorship
Senator Grossman, Co-Sponsor

Concerning the creation of a Social Security supplemental plan by the Board of Directors of the Fire and Police Pension Association that will allow employers that cover employees under the Federal “Social Security Act” to provide a defined benefit retirement plan.

Bill Highlights

• Converts current Social Security supplemental plan into a more modern defined benefit plan.
  
• Eliminates Social Security offset. Provides for ½ of the standard Statewide Defined Benefit Plan (SWDB) benefit based on ½ of the SWDB contribution rate.
  
• Reduces staff and actuarial costs in calculating individual benefits.
  
• Benefits become calculable for members prior to retirement.
  
• Existing members vest in benefits earned prior to conversion. Existing members receive a combination of old and new benefits at retirement.
  
• Contribution rates for employers and members become fixed and predictable from year to year.
  
• Contribution rates and benefits do not change based on any future changes made to Social Security.

Passed through the Senate and House and became law: April 4, 2006.

Senate Sponsorship
Representative Tochtrop, Sponsor

House Sponsorship
Senator McGihon, Co-Sponsor

Concerning the partial entry into the Fire and Police Pension Association Defined Benefit System by members of Money Purchase Plans where all future eligible employees are required to participate in the Defined Benefit System.

Bill Highlights

• Allows a department with a local money purchase plan to put members hired after effective date in either the Statewide Hybrid Plan or the Statewide Defined Benefit plan and allows existing members in the local money purchase plan to individually elect participation either the local money purchase plan or the FPPA Defined Benefit System.
• The option to remain in a local money purchase plan is offered at the discretion of the Employer.