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Office of Sen.

Mike Johnston
Colorado General Assembly | 200 E. Colfax Avenue | Denver, CO 80203 | 303.866.4864

FACT SHEET MEMORANDUM


HB 12-1018 FPPA Social Security Pension Modifications Rep. Labuda & Sen. Tochtrop Staff Name: Dietrich Hoefner What the Bill Does: Public employers in Colorado eligible for participation in the Fire and Police Pension Association (FPPA) may currently elect to participate in the statewide death and disability plan without also being required to participate in a pension plan. This bill requires employers that join the statewide death and disability plan to also participate in the FPPA social security supplemental plan. The bill repeals sections of current law that allow employers to elect only to participate in the death and disability plan. Colorado Context: The bill addresses an actuarial concern that exists under current law. To the extent that benefits paid by the statewide death and disability plan are not accompanied by an offsetting pension benefit, the liabilities of the plan may exceed an actuarially appropriate level. The bill prevents this circumstance by requiring participation in the social security supplemental plan as a prerequisite for employers seeking to join the statewide death and disability plan.1 Bill Provisions: The bill provides that a covered employer must first participate in the social security supplemental (pension) plan before it can elect to be covered under the statewide death and disability plan. Fiscal Impact: The bill will have a minimal effect on local government costs. It will not affect cost or contribution levels for most local governments. However, participation in the statewide death and disability plan may affect pension contribution levels and administrative costs for a small number of local government employers.2

Alex Schatz, Fiscal Note: HB 12-1018 (Jan. 25, 2012), http://www.leg.state.co.us/clics/clics2012a/csl.nsf/fsbillcont3/8FC499C3393AE34087257981007DCD18?Open&file =HB1018_00.pdf 2 Id.

DRAFT 2/26/2012 9:25 PM

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