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 long-term stability of all affected Plans.
Based upon the Task Force’s recommendation, the FPPA Board directed staff to pursue legislation to enact the changes prescribed in House Bill 22-1034. In addition, the Board directed staff to seek state assistance in shoring up FPPA’s Death & Disability Plan through a one-time cash infusion. This proposal is outlined in Senate Bill 22-36.
Both pieces of legislation, outlined in plain language on this site, have been introduced in the 2022 Colorado legislative session.
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 129.4% funding level to equal the funding level of the Statewide Defined Benefit Plan, which is 100% as of January 1, 2022, 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 additional 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
Seeks additional state funding for unfunded benefit costs for members hired prior to 1997LEARN MORE
Have a question about FPPA’s proposed legislation? We want to hear from you!GET IN TOUCH
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