The following bills were recommended by FPPA and were sponsored by members of the Pension Reform Commission during the 2009 session Colorado General Assembly.

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 the most up-to-date 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.

Click here to download a hard copy of the information below.

House Bill 09-1030 | FPPA IRS Qualification Plan Bill

Senate Bill 09-017 | FPPA Disability and Survivor Benefits Bill

The following legislation, while not originating with FPPA, was introduced by The Colorado Municipal League and impacts FPPA by allowing for the deferment of state contributions to "Old Hire" plans affiliated with FPPA.

Senate Bill 09-227 | Assistance to "Old Hire" FPPA Plans Bill

• Gives the boards of the Statewide Defined Benefit System, Old Hire, and Volunteer pension plans for firefighters and police officers authority to adopt provisions necessary for compliance with IRS code qualification requirements.

• Permits the FPPA to create a master Old Hire plan document and seek IRS qualification approval for the document. Local Old Hire boards could elect, but would not be required, to adopt the document. Permits the FPPA to amend the master Old Hire plan document as necessary to comply with IRS code.

• The requirement that the plans meet the qualification requirements of section 401 of the IRS code remains, but eliminates itemized requirements that were intended to ensure that plans meet the IRS qualification requirements.

Passed through the House and Senate and signed by Governor Ritter: March 18, 2009.

House Sponsorship
Sponsor - House Representative Jeanne Labuda, District 1

Senate Sponsorship
Co-Sponsor - Senator Lois Tochtrop, District 24

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• Repeals the earned income offset for occupational disability benefits.

• Repeals the dependent child eligibility requirements with regard to education for dependent children between the ages of 19 and 23 for members receiving an occupational disability benefit prior to October 1, 2002.

• Repeals the termination of benefits upon remarriage for survivors of members awarded total disability benefits prior to January 1, 2000, and clarifies the termination statute.

• Repeals the board’s authority to implement the supplemental disability benefit program. (This program has never been implemented.)

• Includes an offset for statewide defined benefits for a member or survivor who subsequently receives a disability or survivor benefit from the Statewide Death and Disability plan.

• Includes the requirement for payment by the employer of the excess contribution over the sixteen percent rate for members in the FPPA Defined Benefit System (for those members paying the re-entry rate) who are found temporarily disabled and subsequently receive a normal retirement benefit.

• Clarifies the applicability of on-duty status for temporary occupational benefits and permanent occupational benefits.

• Repeals obsolete language allowing totally disabled members to elect a new survivor benefit upon the implementation of the flat benefit in 2000.

Passed through the House and Senate and signed by Governor Ritter: March 25, 2009.

Senate Sponsorship
Sponsor - Senator Lois Tochtrop, District 24

House Sponsorship
Co-Sponsor - House Representative James Reisberg, District 50

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This bill modifies the way the annual employer contribution amount is calculated for Old Hire Plans that are affiliated with the Fire and Police Pension Association and that are not receiving contributions.  Previously, Colorado Revised Statutes 31-30.5.404 required that the liability of unfunded past service be amortized over a period ending December 31, 2021.  The legislation now allows the liability of unfunded past service to be amortized over a period not to exceed the lesser of twenty years or the number of years equal to the average remaining life expectancy of the pension fund’s members.  In most cases, this modification will significantly lengthen the period over which the amortization is calculated, thereby reducing the required annual contributions.  Additionally, the amortization now is calculated over a rolling twenty year period instead of a fixed period.  For those plans which have a shorter average remaining life expectancy, the amortization requirements appropriately ensure adequate contributions to fund the plan through the expected remaining period of benefit payments. 

Passed through the House and Senate and signed by Governor Ritter: April 16, 2009.

Senate Sponsorship
Sponsor - Senator Able Tapia, District 3

House Sponsorship
Co-Sponsor - House Representative Jack Pommer, District 11

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