Final
STAFF SUMMARY OF MEETING

POLICE OFFICERS' AND FIREFIGHTERS' PENSION REFORM COMMISSION

Date:10/21/2015
ATTENDANCE
Time:01:09 PM to 03:17 PM
Buck
X
Cooke
E
Place:RM 271
Dore
X
Everett
X
This Meeting was called to order by
Garnett
X
Representative Ginal
Jones
X
Lontine
X
This Report was prepared by
Melton
X
Katie Ruedebusch
Moreno
E
Salazar
X
Scott
E
Ulibarri
E
Van Winkle
X
Balmer
E
Ginal
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Introductory Remarks
Overview of Committee Charge & Interim Process
Fire and Police Pension Association of Colorado (FPPA)
Municipal Issues
Public Comment
Committee Discussion and Approval of Final Bill Drafts
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Recommendation(s) Approved

01:09 PM -- Introductory Remarks

Representative Ginal, chair, called the meeting to order. A quorum was present. She discussed the committee charge and the meeting's agenda.

01:10 PM -- Overview of Committee Charge & Interim Process

Mr. Damion Perchota, Legislative Counsel Staff, came to the table. He discussed the interim committee process.

01:11 PM -- Fire and Police Pension Association of Colorado (FPPA)

Mr. Kevin Lindahl, representing the Fire and Police Pension Association of Colorado (FPPA), came to the table. He introduced FPPA and their legislative agenda.

Mr. Dan Slack, representing FPPA, came to the table. He discussed the history of the FPPA and the types of plans available to the FPPA members and member organizations. He distributed and discussed the Annual Update to the Police Officers' and Firefighters' Pension Reform Commission (Attachment A) with the committee. He also distributed the FPPA's Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2014 (Attachment B) to the committee. He noted the Colorado laws related to FPPA and the changes to FPPA benefits over past legislative sessions. He also discussed the recent FPPA election amongst members to increase contribution rates. He noted that the employee contribution was raised while employer contributions remained at the same rate. He answered a question from the committee regarding the stabilization reserve account.

Attachment A.pdfAttachment A.pdf Attachment B.pdfAttachment B.pdf

Mr. Scott Simon, representing FPPA, came to the table. He discussed FPPA assets and investment allocation. He noted the investment allocation is reviewed annually and approved by the FPPA Board of Directors. He noted the various types of asset allocation utilized by the FPPA. He noted the total fund is meeting benchmarks, but that it has been a difficult market year. He also noted the investment portfolio changes. He responded to a committee question regarding FPPA's global investments and offered to provide further information to the committee.

01:48 PM -- Municipal Issues

Mr. Kevin Bommer, representing the Colorado Municipal League (CML), came to the table. He noted that the FPPA does an excellent job of administering the program and providing benefits to municipal firefighters and police officers. Mr. Bommer stated CML believes that the program is well managed and funded. He also noted that there is municipal representation on FPPA's Board of Directors.

01:53 PM -- Public Comment

No members of the public testified at the meeting.

01:53 PM -- Committee Discussion and Approval of Final Bill Drafts

Mr. Lindahl, returned to the table to discuss the legislation proposed by the FPPA. He updated the committee on volunteer firefighter pension plan study, the result of the passage of Senate Bill 15-029. He discussed Bill 1 (Attachment C) and its fiscal note (Attachment D), which allows sheriff's departments that do not participate in social security to participate in the FPPA. Senator Jones requested to sponsor the bill in the Senate and Representatives Melton and Salazar requested to co-sponsor the bill in the House of Representatives.

Attachment C.pdfAttachment C.pdf Attachment D.pdfAttachment D.pdf

BILL:Bill 1
TIME: 01:58:19 PM
MOVED:Jones
MOTION:Refer Bill 1 to Legislative Council. The motion passed on a vote of 10-0.
SECONDED:Buck
VOTE
Buck
Yes
Cooke
Excused
Dore
Yes
Everett
Yes
Garnett
Yes
Jones
Yes
Lontine
Yes
Melton
Yes
Moreno
Excused
Salazar
Yes
Scott
Excused
Ulibarri
Excused
Van Winkle
Yes
Balmer
Excused
Ginal
Yes
Final YES: 10 NO: 0 EXC: 5 ABS: 0 FINAL ACTION: PASS

02:00 PM

Mr. Lindahl discussed Bill 2 (Attachment E) and its fiscal note (Attachment F). The bill changes the calculation of a transfer from the statewide death and disability plan of FPPA to the normal retirement plan of an FPPA member who has incurred a temporary disability. When a temporary disabled FPPA member is restored to active services or satisfies the age and service requirements for a normal retirement, a transfer is made from the state death and disability plan to the member's normal retirement plan. Under Bill 2, in cases where the member and employer were contributing less than 16 percent of the member's salary to the member's retirement plan at the time of disability, the amount of transfer will be reduced to reflect the actual percentage contribution at the time. The bill also changes the deadline for completion of a newly hired member's statewide standard health history form. Bill 2 allow the form to be completed within 30 days of hire.

Attachment E.pdfAttachment E.pdf Attachment F.pdfAttachment F.pdf

Ms. Nicole Myers, Legislative Legal Services, came to the table to respond to a committee question concerning the content of the bill. Ms. Myers explained that the bill could not be split into two separate bills because of the interim committee deadline rules.

Committee discussion ensued regarding the standard health history form, pre-existing conditions, and the procedures for paying claims. Mr. Lindahl described the change of due date for the standard health form as beneficial to the employer and prospective employee. Representative Van Winkle requested to sponsor Bill 2 in the House of Representatives.

BILL:Bill 2
TIME: 02:27:43 PM
MOVED:Van Winkle
MOTION:Refer Bill 2 to Legislative Council. The motion passed on a vote of 10-0.
SECONDED:Lontine
VOTE
Buck
Yes
Cooke
Excused
Dore
Yes
Everett
Yes
Garnett
Yes
Jones
Yes
Lontine
Yes
Melton
Yes
Moreno
Excused
Salazar
Yes
Scott
Excused
Ulibarri
Excused
Van Winkle
Yes
Balmer
Excused
Ginal
Yes
Final YES: 10 NO: 0 EXC: 5 ABS: 0 FINAL ACTION: PASS

02:28 PM

Mr. Lindahl described Bill 3 (Attachment G) and its fiscal note (Attachment H). Under current law, if a member is single at the time of retirement and has no beneficiary and later marries, the member can choose a new retirement option and name a new beneficiary. Bill 3 requires that if the member changes his or her benefit option, the new beneficiary must be the new spouse. In addition, the bill makes a clarification that applies to the statewide death and disability plan. The bill clarifies that if a member elects an option with a payment to a spouse and dependent children, then the beneficiary designation is irrevocable even in the case of a dissolution of marriage, death of the beneficiary, marriage or remarriage. Committee discussion ensued regarding specific components of the bill, choosing a beneficiary after retirement, and the irrevocable nature of an FPPA member's choice.

Attachment G.pdfAttachment G.pdf Attachment H.pdfAttachment H.pdf

Ms. Myers, Legislative Legal Services, returned to the table to describe contents of the bill. She clarified that it is unusual for a pension plan to allow members to choose a beneficiary after retirement.

Mr. Slack, representing FPPA, returned to the table to help explain the intent of Bill 3. Committee discussion ensued.



BILL:Bill 3
TIME: 03:11:24 PM
MOVED:Everett
MOTION:Adopt conceptual amendment to strike page 3, lines 1-27. The motion failed on a 5-5 vote.
SECONDED:Melton
VOTE
Buck
Yes
Cooke
Excused
Dore
No
Everett
Yes
Garnett
No
Jones
No
Lontine
No
Melton
Yes
Moreno
Excused
Salazar
Yes
Scott
Excused
Ulibarri
Excused
Van Winkle
Yes
Balmer
Excused
Ginal
No
YES: 5 NO: 5 EXC: 5 ABS: 0 FINAL ACTION: TIE


BILL:Bill 3
TIME: 03:12:36 PM
MOVED:Jones
MOTION:Adopt conceptual amendment to strike page 2, lines 2-18. The motion failed on a vote of 3-7.
SECONDED:Salazar
VOTE
Buck
No
Cooke
Excused
Dore
No
Everett
Yes
Garnett
No
Jones
Yes
Lontine
No
Melton
No
Moreno
Excused
Salazar
Yes
Scott
Excused
Ulibarri
Excused
Van Winkle
No
Balmer
Excused
Ginal
No
YES: 3 NO: 7 EXC: 5 ABS: 0 FINAL ACTION: FAIL

Representative Ginal requested to sponsor the bill.


BILL:Bill 3
TIME: 03:15:09 PM
MOVED:Ginal
MOTION:Refer Bill 3 to the Legislative Council. The motion failed on a vote of 2-8.
SECONDED:Lontine
VOTE
Buck
No
Cooke
Excused
Dore
No
Everett
No
Garnett
No
Jones
No
Lontine
Yes
Melton
No
Moreno
Excused
Salazar
No
Scott
Excused
Ulibarri
Excused
Van Winkle
No
Balmer
Excused
Ginal
Yes
Final YES: 2 NO: 8 EXC: 5 ABS: 0 FINAL ACTION: FAIL

03:17 PM

The committee adjourned.