Location: LSB A
Fire and Police Pension Association of Colorado
POLICE OFFICERS' AND FIREFIGHTERS' PENSION REFORM COMMISSION
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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.
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).
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.
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.
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.