Colorado Legislative Council Staff
NO FISCAL IMPACT
January 5, 1999
Steve Tammeus (303-866-2756)
TITLE: CONCERNING REQUIREMENTS FOR THE ACQUISITION OF SERVICE CREDIT FOR THE STATEWIDE DEFINED BENEFIT PLAN OF THE FIRE AND POLICE PENSION ASSOCIATION.
Summary of Assessment
This bill, in section 1, allows any new hire member of the statewide defined benefit plan of the Fire and Police Pension Plan to purchase service credit. Service credit may be purchased for the duration of public safety employment within the United States, and for up to five years of service of active duty in the uniformed services of the United States, subject to certain conditions. In each case, the member must pay the Fire and Police Pension Association (FPPA) the cost of the purchased service as calculated by the plan on an actuarially equivalent basis. Any service credit to be purchased must cover a period of employment or military service equal to or exceeding one year.
Section 2 of this bill allows any new hire member who has terminated service and received a refund of contributions to return to service and restore service credit. The bill requires such a member to return the full amount of the member’s refunded contributions, with interest accrued from the date of the refund to the date of return, according to the terms and conditions established by the board.
The bill would take effect at 12:01 a.m. on the day following the expiration of the 90-day period after final adjournment of the General Assembly; or upon proclamation of the Governor if a referendum petition is filed against this act and approved by a vote of the people. The provisions of section 1 will become effective on January 1, 2000.
The provisions of this bill will not affect state, or local government, revenue or expenditures. The costs of this benefit enhancement will be borne by any member who elects to purchase service credit. The FPPA may experience some additional administrative costs, but the amount of those costs, if any, are estimated to be minimal. Therefore, this bill is assessed as having no fiscal impact.
Fire and Police Pension Association