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I_POFPRC_2016A 11/09/2016 01:33:26 PM Committee Summary

Final

STAFF SUMMARY OF MEETING



POLICE OFFICERS' AND FIREFIGHTERS' PENSION REFORM COMMISSION

Date: 11/09/2016
ATTENDANCE
Time: 01:33 PM to 02:34 PM
Buck
E
Danielson
E
Place: RM 271
Dore
E
Everett
E
This Meeting was called to order by
Garnett
E
Senator Cooke
Jones
*
Lontine
*
This Report was prepared by
Melton
*
Chris Creighton
Salazar
X
Scott
E
Tate
X
Ulibarri
E
Van Winkle
E
Ginal
X
Cooke
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Presentation by the Office of the State Auditor

Presentation by FPPA

Presentation by DOLA

Public Comment

Committee Discussion
Witness Testimony and/or Committee Discussion Only

Witness Testimony and/or Committee Discussion Only

Witness Testimony and/or Committee Discussion Only

Witness Testimony and/or Committee Discussion Only

Witness Testimony and/or Committee Discussion Only





Senator Cooke called the commission to order.






01:34 PM -- Presentation by the Office of the State Auditor



Mr. Andrew Knauer, Audit Manager, representing the Office of the State Auditor (OSA), came to the table and gave some introductory remarks. He provided members with a copy of the "Study of Volunteer Firefighter Pension Plans in Colorado" (Attachment A).



Attachment A.pdfAttachment A.pdf





01:36 PM



Mr. William (Flick) Fornia, representing the Pension Trustee Advisors and OSA, came to the table to speak to the commission about the study. Mr. Fornia discussed the background and funding of volunteer firefighter plans in Colorado. He noted that the majority of plans in Colorado do not have any unfunded liability and generally follow best practices, but that at least 101 plans are underfunded. He also highlighted the statewide coordination of plans and administrative costs. He responded to a commission question regarding state funding of volunteer firefighter pensions.



01:42 PM



Mr. John Nixon, representing Duane Morris, LLP., and OSA, came to the table to discuss how volunteer pension plans maintain tax qualification. He noted that several plans in Colorado are not meeting tax qualification requirements. He discussed the repercussions of noncompliance and recommended some ways the plans can become tax compliant. In addition, he noted that while the vast majority of plans in Colorado are compliant with the Fair Labor Standards Act, 33 plans may warrant further investigation to determine if they are compliant.



01:54 PM



Mr. Fornia returned to the table and confirmed that the volunteer plans are paid out of the General Fund.



02:06 PM



Mr. Nixon returned to the table and discussed plan design alternatives and touched on issues related to restructuring noncompliant plans. He highlighted the six proposed alternatives to current plan structures as recommended in the study.



02:23 PM -- Presentation by FPPA



Kevin Lindahl, General Counsel of the Colorado Fire & Police Pension Association of Colorado (FPPA), and Dan Slack, FPPA Executive Director, came to the table to discuss the study. He noted that the FPPA appreciated the guidance regarding federal regulations in the study. He stated that the FPPA Board of Directors is interested in continuing to provide service to volunteer firefighter plans and welcome more plans to affiliate with the FPPA. He noted that the FPPA will continue to work with non-FPPA affiliated volunteer firefighter plans to make sure the plans are in compliance with all laws and regulations. The FPPA plans to work over the next nine months with the Colorado Municipal League; the Special District Association; the Colorado Department of Local Affairs; Colorado Counties, Inc.; and other groups to discuss how to move forward with volunteer firefighter plans in Colorado.




02:28 PM -- Presentation by DOLA



Bruce Eisenhauer, representing DOLA, came to the table to explain DOLA's role in volunteer firefighter pension plans in Colorado. He noted that DOLA simply provides certain calculations for the level of funding for volunteer firefighter plans.



02:30 PM -- Public Comment





Mr. Wayne Vara, representing the Louisville Fire Protection District, provided the commission with background on Louisville Fire and discussed the Louisville volunteer firefighter pension plan.



02:34 PM -- Committee Discussion



Commission members thanked the presenters and witnesses for testifying about the study audit.





02:34 PM



The committee adjourned.




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