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I_POFPRC_2016A 09/27/2016 10:03:00 AM Committee Summary

Final

STAFF SUMMARY OF MEETING



POLICE OFFICERS' AND FIREFIGHTERS' PENSION REFORM COMMISSION

Date: 09/27/2016
ATTENDANCE
Time: 10:03 AM to 10:48 AM
Buck
X
Danielson
X
Place: RM 271
Dore
E
Everett
*
This Meeting was called to order by
Garnett
E
Senator Cooke
Heath
X
Jones
X
This Report was prepared by
Lontine
X
Katie Ruedebusch
Melton
X
Salazar
X
Scott
E
Tate
*
Van Winkle
X
Ginal
X
Cooke
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Fire and Police Pension Association of Colorado (FPPA)

Committee Discussion and Approval of Final Bill Drafts
Witness Testimony and/or Committee Discussion Only

Rerfer Unamended to Legislative Council





The committee was called to order. A quorum was present.



10:03 AM -- Fire and Police Pension Association of Colorado (FPPA)



Mr. Dan Slack, Executive Director of the Fire and Police Pension Association of Colorado (FPPA), came to the table and gave some introductory remarks. He distributed an annual update to the committee (Attachment A). He discussed the diversity of the FPPA's board of directors and highlighted sections of the annual update. He noted that the current low-interest, low-return rates have imposed some challenges, but that FPPA plans are still well funded. He stated that there is some state and local funding for volunteer firefighter plans.



Attachment A.pdfAttachment A.pdf



10:14 AM



Mr. J. Scott Simon, FPPA's Chief Investment Officer, came to the table to discuss FPPA's investments and the overall financial state of FPPA. He noted the asset allocation of FPPA funds and that FPPA investments had a strong performance over the last three to five years. He noted that FPPA is focusing on total fund risk management and reducing risks to the portfolio. He responded to a question about long/short investments and noted that long/short investments are designed to be a lower-risk investment.



The committee continued by discussing the future audit study on volunteer firefighters pensions. In response to committee questions, Mr. Slack discussed the current new member moratorium and noted that the FPPA board is planning on lifting the moratorium by the end of the year. The committee discussed state funding of FPPA and Mr. Slack stated that the state currently does not fund FPPA. In response to committee questions regarding state oversight, Mr. Slack noted that the FPPA board has not yet discussed removing legislative oversight. Mr. Slack continued by discussing how other state governments have lessened certain restrictions on local pension funds.



10:32 AM



Mr. Kevin Lindahl, FPPA's General Counsel, came to the table to respond to committee questions regarding state oversight and funding of FPPA. He highlighted the state's relationship to old hire plans and its discussions with stakeholders. He noted the state's 25 year commitment to funding the old hire plan and stated that the state made its final payment in 2013.



10:37 AM -- Committee Discussion and Approval of Final Bill Drafts



Mr. Lindahl continued by discussing two proposed bills. Bill 1 (Attachment B) allows the board of directors of FPPA to develop, maintain, and amend a multi-employer deferred compensation plan document.



Attachment B.pdfAttachment B.pdf

BILL: Committee Discussion and Approval of Final Bill Drafts
TIME: 10:39:27 AM
MOVED: Jones
MOTION: Refer Bill 1 to Legislative Council (Attachment B). The motion passed on a vote of 12-0.
SECONDED: Van Winkle
VOTE
Buck
Yes
Danielson
Yes
Dore
Excused
Everett
Yes
Garnett
Excused
Heath
Yes
Jones
Yes
Lontine
Yes
Melton
Yes
Salazar
Yes
Scott
Excused
Tate
Yes
Van Winkle
Yes
Ginal
Yes
Cooke
Yes
Final YES: 12 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS



10:41 AM



Mr. Lindahl continued by discussing Bill 2 (Attachment C). Bill 2 establishes a uniform standard for approving modifications to the statewide defined benefits plan administered by FPPA. Employers who participate in plans administered by FPPA, and who wish to modify their status in the plan, must conduct an election and obtain the approval of 65 percent of those employees who vote in that election. Under current law, some employers need to obtain approval of 65 percent of all their employees. Mr. Slack responded to a committee question regarding the percentage of members who have voted in past elections.



Attachment C.pdfAttachment C.pdf

BILL: Committee Discussion and Approval of Final Bill Drafts
TIME: 10:47:02 AM
MOVED: Jones
MOTION: Refer Bill 2 to Legislative Council (Attachment C). The motion passed on a vote of 8-4.
SECONDED: Ginal
VOTE
Buck
No
Danielson
Yes
Dore
Excused
Everett
No
Garnett
Excused
Heath
Yes
Jones
Yes
Lontine
Yes
Melton
Yes
Salazar
Yes
Scott
Excused
Tate
No
Van Winkle
No
Ginal
Yes
Cooke
Yes
FINAL YES: 8 NO: 4 EXC: 3 ABS: 0 FINAL ACTION: PASS



10:48 AM



The committee adjourned.