Signed by Governor Jared Polis

Vote Smart's Synopsis:

Vote to pass a bill that amends the state pension plan for firefighters and and police officers.

Highlights:

• Authorizes annual contributions to state-assisted old hire police officers’ and firefighters’ pension funds to be at least the amount determined by the Board of the Fire and Police Pension Association (Sec 1). 

• Specifies that the annual contributions will be determined with the following considerations (Sec 1):

• Stabilizing the amount of annual required contributions over time;

• Keeping the funded ratio of the pension fund from declining; and

• Reducing or eliminating contributions based on experience.

• Requires the member contribution rate to increase by 4 percent through 8 annual increases starting in 2015 and every year after through 2022 (Sec 2). 

• Requires the member contribution rate to increase by one half of one percent of base salary until the total member contribution rate is 12 percent of base salary (Sec 2). 

• Requires the employer contribution rate to increase by 4 percent through 8 annual increases, beginning in 2021 and every year after through 2028 (Sec 2). 

• Requires the employer contribution rate will increase by one-half of one percent of base salary until the total member contribution rate is 12 percent of base salary (Sec 2). 

• Authorizes any member covered by the statewide benefit plan who has attained the age of 50 years, whose combined age and years of service is equal to at least 80 is eligible for an unreduced normal retirement pension if not already receiving one (Sec 3). 

• Authorizes the Board of the Fire and Police Pension Association to increase the contribution rate above the established rate under the following circumstances (Sec 7):

• The rate of increase for the member is equal to the rate increase of the employer;

• The increase does not change the plan’s status as a qualified plan;

• The increase is approved by 65 percent of active members on the plan; and

• The increase is approved by more than 50 percent of employers having members covered by the plan.

• Prohibits any employer participating in the social security supplemental plan from receiving coverage from the death and disability plan (Sec 8). 

• Requires each member hired on or after January 1, 1997, who is eligible for the death and disability coverage to receive a contribution no greater than three percent of their salary for the year of 2021 (Sec 11).

• Requires each member hired on or after January 1, 1997, who is eligible for the death and disability coverage to have their contribution rate adjusted yearly (Sec 11).

• Requires the yearly adjustment increase to be no greater than two-tenths of the member’s salary  (Sec 11).

• Requires the continuing rate of contribution to be lower if the original rate exceeds the required cost benefits payment (Sec 12).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the state pension plan for firefighters and and police officers.

Highlights:

• Authorizes annual contributions to state-assisted old hire police officers’ and firefighters’ pension funds to be at least the amount determined by the Board of the Fire and Police Pension Association (Sec 1). 

• Specifies that the annual contributions will be determined with the following considerations (Sec 1):

• Stabilizing the amount of annual required contributions over time;

• Keeping the funded ratio of the pension fund from declining; and

• Reducing or eliminating contributions based on experience.

• Requires the member contribution rate to increase by 4 percent through 8 annual increases starting in 2015 and every year after through 2022 (Sec 2). 

• Requires the member contribution rate to increase by one half of one percent of base salary until the total member contribution rate is 12 percent of base salary (Sec 2). 

• Requires the employer contribution rate to increase by 4 percent through 8 annual increases, beginning in 2021 and every year after through 2028 (Sec 2). 

• Requires the employer contribution rate will increase by one-half of one percent of base salary until the total member contribution rate is 12 percent of base salary (Sec 2). 

• Authorizes any member covered by the statewide benefit plan who has attained the age of 50 years, whose combined age and years of service is equal to at least 80 is eligible for an unreduced normal retirement pension if not already receiving one (Sec 3). 

• Authorizes the Board of the Fire and Police Pension Association to increase the contribution rate above the established rate under the following circumstances (Sec 7):

• The rate of increase for the member is equal to the rate increase of the employer;

• The increase does not change the plan’s status as a qualified plan;

• The increase is approved by 65 percent of active members on the plan; and

• The increase is approved by more than 50 percent of employers having members covered by the plan.

• Prohibits any employer participating in the social security supplemental plan from receiving coverage from the death and disability plan (Sec 8). 

• Requires each member hired on or after January 1, 1997, who is eligible for the death and disability coverage to receive a contribution no greater than three percent of their salary for the year of 2021 (Sec 11).

• Requires each member hired on or after January 1, 1997, who is eligible for the death and disability coverage to have their contribution rate adjusted yearly (Sec 11).

• Requires the yearly adjustment increase to be no greater than two-tenths of the member’s salary  (Sec 11).

• Requires the continuing rate of contribution to be lower if the original rate exceeds the required cost benefits payment (Sec 12).

Full Bill Text