I_POFPRC_2017A 09/28/2017 01:03:55 PM Committee Summary

01:04 PM -- Fire and Police Pension Association of Colorado



Representative Ginal, chair of the Police Officers' and Firefighters' Pension Reform Commission (commission), gave opening remarks regarding the commission. She introduced three representatives of the Fire and Police Pension Association (FPPA) to present to the committee. She explained that the FPPA has asked that the commission consider two bills and noted that Mr. Kevin Lindahl, General Counsel for the FPPA, would be explaining the bills.





































01:07 PM



Mr. Dan Slack, Executive Director FPPA, began the association's presentation to the commission and distributed a copy of the annual update to the commission members (Attachment A). He highlighted Appendix A and Appendix B of the annual update, which summarize the creation of FPPA. He described the FPPA board and its membership. He highlighted the investment returns for the Fire and Police Members' Benefit Investment Fund (fund) and discussed the current funded status for the Statewide Defined Benefit Plan (101.4 percent), the Statewide Death & Disability Plan (104.8 percent), and the Statewide Hybrid Plan (129.6 percent).



17FPPA0928AttachA.pdf



01:17 PM



Mr. Slack discussed the plans that are administered by FPPA, including the Statewide Defined Benefit Plan, the Colorado Springs New Hire Pension Plan, and the Statewide Hybrid Plan, which comprise the FPPA Defined Benefit System. FPPA also administers the Statewide Money Purchase Plan, which is a defined contribution plan, and has investment and administration responsibilities for old hire plans and volunteer firefighter plans. He discussed the number of active and retired members in each plan. Mr. Slack discussed the cost of living adjustments given to retirees within the plans. Mr. Slack and Mr. Lindahl responded to questions from the committee regarding employers participating in the Statewide Defined Benefit Plan and the Money Purchase Plan. Mr. Slack responded to questions from the committee about the average age of retirement for the plans and the ratio of retirees to active members within the plans.





01:37 PM



Mr. J. Scott Simon, Chief Investment Officer for the FPPA, continued the presentation by discussing how moneys in the fund are invested and allocated. He further discussed the net performance annual returns in the fund, and how the fund's performance compares to other large public pension funds. He noted that the portfolio risk profile of the fund is much less than comparable peer pension funds, yet the returns have managed to keep pace.





01:49 PM



Mr. Kevin Lindahl, FPPA, discussed a study of volunteer firefighter pension plans conducted in 2016 and the status of the recommendations made in the study. Mr. Lindahl discussed rule making by the FPPA board and how the rules affect volunteer firefighter plans affiliated with FPPA.





01:51 PM -- Public Comment



Chief Jim Miles, Gunnison Mayor Pro Tem, discussed the matching funds provided by the state that fund volunteer firefighter pensions. He discussed the importance of pension funding to attracting volunteer firefighters in rural communities. Chief Miles responded to questions from the committee.





















01:58 PM -- Public Comment



Mr. Wayne Vara, Louisville Fire Protection District, discussed the pension program for volunteer firefighters in Louisville, which was frozen in 2005. He stated that Louisville is addressing compliance issues with the Internal Revenue Service, and conducts regular actuarial evaluations of the pension program.





02:02 PM -- Committee Discussion and Approval of Final Bill Drafts



Mr. Lindahl described Draft Bill 1. Copies of the bill and the fiscal note for the bill were distributed to the commission (Attachments B and C). The bill concerns the statewide standard health history form that members of the FPPA complete when commencing employment. The bill specifies that all newly hired members must fill out the form within 30 days of employment and employers must require all new employees to complete the form and file it with the FPPA within 60 days of completion. If any member omits or conceals any material fact concerning his or her health history on the form, that member may be disqualified from receiving disability or survivor benefits. Mr. Lindahl responded to questions from the committee regarding the bill. Nicole Myers, Office of Legislative Legal Services, responded to questions from the committee. Committee discussion ensued regarding the bill's provisions regarding fraudulently omitting the member's health history.



17FPPA0928AttachB.pdf 17FPPA0928AttachC.pdf



02:27 PM -- Mr. Kevin Bommer, Colorado Municipal League, testified regarding Bill 1. Mr. Bommer and Mr. Lindahl responded to questions from the committee.





02:34 PM



Mr. Lindahl responded to questions from the committee regarding the timeframe in which the health history form must be filed.





02:35 PM



Mr. Lindahl discussed Draft Bill 2. Copies of the bill and fiscal note were distributed to the committee (Attachments D and E). The bill simplifies the application process for local government employers to be covered under the FPPA Defined Benefit System. It also permits employers to require all new employees hired after a certain date who meet certain criteria to participate in the Defined Benefit System. He responded to questions from the committee.



17FPPA0928AttachD.pdf 17FPPA0928AttachE.pdf























02:44 PM



Committee discussion ensued regarding amendments to Draft Bill #1 to remove the bill's provisions regarding a member who omits or conceals a material fact regarding his or her health history.

02:57:09 PM



The bill will be sponsored by Representative Van Winkle and Senator Cook. Representatives Ransom, Williams, and Ginal were added as cosponsors.

The bill will be sponsored by Representatives Melton and Ransom and Senators Jones and Cooke. Representatives Exum, Ginal, and Valdez were added as cosponsors.





03:04 PM



The committee adjourned.