FPPA proposes legislation to provide long‑term retirement plan stability
In 2020, FPPA convened a Task Force to study potential issues with one of our retirement plans, the Statewide Hybrid Plan. The Task Force’s charge was to evaluate the current and future health of the Hybrid Plan, and if necessary, make recommendations to the Board on how to maintain the stability of the Plan going forward.
In April 2021, the Task Force delivered a recommendation to merge the assets and liabilities of the Statewide Hybrid Plan with those of the Statewide Defined Benefit Plan, creating the new Statewide Retirement Plan. This action, along with other measures in the proposal, will ensure the stability of all affected Plans, and improve benefits for Plan members.
After receiving the Task Force’s recommendation, the FPPA Board directed staff to pursue legislation to enact the changes outlined on this site. FPPA intends to submit legislation, as described on this website, during the 2022 Colorado legislative session.
Note: The legislative provisions are concepts and are discussed herein are proposed for the 2022 Legislative session. A draft bill has not been prepared at this time and is not available. These provisions are based on recommendations made by the Statewide Hybrid Plan Task Force after careful review and analysis. The Task Force is made up of members and employers from across the state. The FPPA Board seeks your feedback on these proposals prior to proceeding to bill drafting and legislative hearings scheduled for summer 2021.
The component provisions of FPPA’s planned legislation are described below. Click the links to learn more about the individual provisions, or watch a summary presentation here.
Combines the assets and liabilities of two existing plans; the Statewide Defined Benefit Plan (SWDB) and the Statewide Hybrid Plan (SWH); to form a new plan, the Statewide Retirement Plan. Also expands the Money Purchase Component to allow for excess contributions from all other componentsLEARN MORE
Reduces existing 126.9% funding level to 100% by awarding a one-time benefit adjustment on all service accrued prior to the date of merger to current retirees, deferred vested and active members who are enrolled in the PlanLEARN MORE
Increases minimum required contributions into the Hybrid Defined Benefit and Money Purchase Components (Formerly the Statewide Hybrid Plan) by a combined 2% over 8 years for a total of 18% (9% member / 9% employer). No action will be required of departments who already meet this requirementLEARN MORE
Provides for Normal Retirement as early as age 50, if a member's combined years of service and age equals 80 or moreLEARN MORE
Have a question about FPPA’s proposed legislation? We want to hear from you!GET IN TOUCH
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