j_lc_2016a_2016-10-14t09:09:40z5 Hearing Summary

Date: 10/14/2016

10:40 AM -- Police Officers' and Firefighters' Pension Reform Commission



Senator Cooke, chair of the Police Officers' and Firefighters' Pension Reform Commission, presented Bills A and B recommended by the committee. The summary report prepared for the Legislative Council Committee, copies of the bills, and the committee's charge can be found in Attachment E.



161014 AttachE.pdf



The bills are as follows:



Bill A - Deferred Compensation Plan Establishment. This bill allows the board of directors of the Fire and Police Pension Association (FPPA) to develop, maintain, and amend a multi-employer deferred compensation plan document. Under current law, the FPPA maintains a master deferred compensation plan document for use by FPPA member employers when establishing these supplemental plans for their employees. Bill A allows the FPPA to also provide a master document that will assist members in establishing a multi-employer plan. Multi-employer plans are allowed under federal Internal Revenue Service rules. This bill aligns Colorado statutes with federal law and current practice, permitting the FPPA to provide technical assistance in developing and maintaining these types of plans.



Bill B - Uniform Approval Standard for Statewide Plan Elections. This bill establishes a uniform standard for approving modifications to the statewide defined benefits plan administered by the 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.