Bill to Update FPPA Pension Plans Passes Committee
Denver, CO – Today the Senate Local Government committee advanced legislation to update pension plans administered by the Fire and Police Pension Association.
Our police officers and firefighters deserve the dignity and security provided by the Statewide Death & Disability Plan that covers them. But right now, this plan is significantly underfunded. An increase in disability claims as well as insufficient funding models have led to fewer contributions than the cost of these benefits.
"Firefighters and police officers put their lives on the line and serve as heroes for those who need them most," said Pres. Leroy Garcia. "Our first responders are showing up for us in our most vulnerable moments, and it is time we show up for them."
Firefighters and police officers work in high-risk, high-stress environments, yet they do not pay into Social Security and therefore do not qualify for disability. The D&D fund provides these public safety officers with compensation to allow them and their families to live in dignity after a disability or death.
"These public safety officers should be supported in early retirement with full benefits, especially if they have had decades of service that has caused physical and mental injuries," Sen. Joann Ginal said.
Contributions from public safety officers are gradually increasing each year, headed toward a rate of 12%. But employer contributions still remain at 8%. This rate of employer contribution is much lower compared to other public pension plans, and remains unchanged since 1980.
The normal retirement age for vested firefighters and police officers is 55 years old, and early retirement with reduced benefit is available at 50. Due to the physical toll of their work, many first responders are forced to consider an early, reduced benefit retirement. HB-1044 would increase the employer contribution rate to the plan and make adjustments to fully support plan members in early retirement.
The bill now heads to committee of the whole. Learn more here.