Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING THE ASSETS HELD IN THE FIRE AND POLICE MEMBER’S DEFERRED COMPENSATION FUND.

Summary of Assessment

            This bill requires the assets of deferred compensation plans administered by the Board of the Fire and Police Pension Association (FPPA) to be held for the exclusive purpose of providing benefits to participants and beneficiaries, and for defraying expenses of the plan and any trust established to hold the assets of the plan. Current law requires the assets to remain solely for the property of the employer until made available to the members or beneficiaries. The bill also authorizes the board to invest assets held in the FPPA deferred compensation fund subject to the provisions of the “Colorado Uniform Prudent Investor Act”.

            The provisions of this bill conform with federal internal revenue code requirements for deferred compensation plans. The bill does not affect state or local government contributions to the fire and police deferred compensation plans, distributions from the plans, or administrative expenses of the FPPA.

            The bill does not affect state, or local government, revenue or expenditures. Therefore, the bill is assessed as having no fiscal impact. The bill would become effective upon the signature of the Governor.

Departments Contacted

            Fire and Police Pension Association              Local Affairs