POLICE OFFICERS' AND FIREFIGHTERS' PENSION REFORM COMMISSION
|Votes: View--> ||Action Taken: |
|Moved that Bill 4 be recommended for introduction.||Pass Without Objection|
09:36 AM -- Bill 4
Kevin Lindahl, General Counsel, FPPA, presented Bill 4 (Attachment D), concerning authority for an election of active FPPA members to approve an increase in the member contribution rate. He said that the bill will authorize the FPPA Board of Directors to hold an election to approve an increase in the member contribution rate in the FPPA Statewide Defined Benefit Plan. He noted that such an increase would have no effect on the employer contribution rate and that the increase in the employee contribution rate would not be subject to negotiation for payment by the FPPA employer. Mr. Lindahl noted that the process for approval of the contribution rate increase would follow the FPPA's existing procedure for approval of plan amendments entailing approval of the proposal by both the employer and employees. He said that the process will give FPPA members an alternative to the reduction of benefits in the future in the event that a benefit reduction is necessitated by a funding shortfall. In this event, future FPPA members would be able to choose an increase in contributions as opposed to, for example, an increase in retirement age. He said that there is no immediate need to increase contribution rates. He said that the bill will give FPPA members a mechanism for increasing contributions if it becomes necessary.
Mr. Lindahl said that the bill will allow the possibility of the funding of future cost-of-living adjustments (COLAs) and noted that these COLAs are awarded annually on an ad hoc basis by the board. He said that the funding source for future COLAs has fallen dramatically over the previous year. He said that the bill does not require an election, but merely authorizes the board to initiate an election at its discretion. He noted that only active members will be eligible to vote in the elections. Mr. Lindahl commented on fire and police plans in Colorado that are not members of the FPPA. He noted that a number of local plans left the FPPA in the 1980s and that since then 16 have re-entered the FPPA plan.
|BILL:||Bill 4 |
|TIME: || 10:02:01 AM|
|MOTION:||Moved that Bill 4 be recommended for introduction. The motion passed without objection.|
Final YES: 9 NO: 0 EXC: 6 ABS: 0 FINAL ACTION: Pass Without Objection
Representative Benefield said that Bill 4 will be introduced in the Senate and that Senator Morse will serve as the primary sponsor in the Senate. She said that Representatives Riesberg and King will serve as co-prime sponsors in the House of Representatives, and that all members present will serve as co-sponsors of the bill.