HomeMy WebLinkAbout2014 Resolution No. 072,,,.
RESOLUTION NO. '7J-...
SERIES OF 2014
A RESOLUTION VOTING IN FAVOR OF INCREASING THE EMPLOYEE FIRE
FIGHTERS' CONTRIBUTIONS TO THE FIRE AND POLICE PENSION ASSOCIATION
(FPPA) STATEWIDE DEFINED BENEFIT PLAN.
WHEREAS, Section 31-31-408(1.5) C.R.S., as amended, authorizes the Board of Directors of
the Fire and Police Pension Association (the FPPA Board'') to increase the member contribution
rate for pension benefits for participating public safety officers with respect to the members of the
Statewide Defined Benefit Plan ("the Plan''), as established pursuant to Section 31-31-402 C.R.S.,
upon the meeting of certain conditions; and
WHEREAS, pursuant to FPPA Resolution No. 2014-05, the FPPA Board bas directed an
election of the participating Employers in the plan be conducted with regard to an increase in the
member contribution rate for the Plan by an additional 4% of base salary, to be implemented by
an annual increase in the member contribution of½% of base salary paid beginning in 2015. The
member contribution rate shall be increased by an additional½% of base salary paid in each of
the 7 following years, through 2022, until the cumulative increase in the member contribution rate
is 4% of base salary paid; and
WHEREAS, employees in the City of Englewood Fire Department earn service credit towards
retirement and are thereby members of the Plan administered by FPP A; and
WHEREAS, the City of Englewood is thereby eligible to vote in the City of Englewood
election concerning the membership contribution rate, being conducted at the direction of the
FPPABoard.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS:
Section 1. The City Council of the City of Englewood, Colorado hereby votes in favor of
increasing the City of Englewood Fire Fighters' contribution rate for the Statewide Defined
Benefit Plan, by an additional 4% of base salary paid.
ADOPTED AND APPROVED this 4th day of August, 2014.
I, Loucrishia A. Ellis, City Clerk for ~ C~ty of Englewood, C
above is a true copy of Resolution No . ~ Series of201 .
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COUNCIL COMMUNICATION
Date: Agenda Item: Subject:
Resolution to Vote for the Increased
August 4, 2014 9 C ii Employee Firefighters Contributions
to the Fire and Police Pension
Association (FPPA) Statewide
Defined Benefit Plan {SWDB)
Initiated By: Staff Source:
City of Englewood, Finance and Administrative Frank Gryglewicz, Director
Services Department
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
The City Council and staff discussed the FPPA SWDB election results at the July 28, 2014 Study
Session. Council and staff believe an increase in contributions will help fund retirement benefits for
firefighters in the future. Council directed staff to prepare the necessary resolution for their
consideration at the Regular City Council Meeting on August 4, 2014.
-RECOMMENDED ACTION
Staff recommends City Council approve the attached resolution supporting increasing the
Firefighters Member Contributions to the Fire and Police Pension Association Statewide Defined
Benefit Plan by 1/2% per year over eight years.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
Section 31-31-408(1.5), C.R.S., as amended, authorizes the Board of Directors of the Fire and Police
Pension Association ("the FPPA Board") to increase the member contribution rate for pension
benefits for participating public safety officers with respect to the members of the Statewide
Defined Benefit Plan ("the Plan"), as established pursuant to Section 31-31-402, C.R.S., upon the
meeting of certain conditions.
Pursuant to FPPA Resolution No. 2014-05, the FPPA Board has directed an election of the
participating Employers in the plan be conducted with regard to an increase in the member
contribution rate for the Plan by an additional 4% of base salary, to be implemented by an annual
increase in the member contribution of 1/2% of base salary paid beginning in 2015. The member
contribution rate shall be increased by an additional 1 /2% of base salary paid in each of the 7
following years, through 2022, until the cumulative increase in the member contribution rate is 4%
of base salary paid.
Employees in the Employer's Fire Department earn service credit towards retirement and are
thereby members of the Plan administered by FPPA.
The Employer is thereby eligible to vote in the Employer election concerning the membership
contribution rate, being conducted at the direction of the FPPA Board.
During June of 2014, the active members in the SWDB Plan voted on the proposal with respect to
increasing the member contribution rate to the SWDB Plan. The SWDB membership voted in favor
of the proposal (68% approval), to increase the member contribution rate to the SWDB Plan by 4%,
phased in at 1/2% per year over 8 years . The Colorado State Statutes election process now
provides for an Employer Election on the proposal.
Only 17 Englewood firefighters voted in the election; ten voted against (59%) and seven voted in
favor (41%). Even though past City Council action has been to vote in favor or against election
issues based upon the vote of the Firefighters FPPA SWDB membership Council determined it is the
best interest of firefighters to increase their contributions to insure they have adequate retirement
income.
The election has no impact on the amount of the employer contributions.
FINANCIAL IMPACT
There is no financial impact to the City.
LIST OF ATTACHMENTS
Employer's Notification of Member Election Results
FPPA Board of Directors Resolution No. 2014-05
Proposed Resolution
e
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FPPA
Fire & Police Pension Association
of Colorado
EMPLOYER'S NOTIFICATION OF MEMBER ELECTION RESULTS
Primary Proposal
This notification concerns the Member election results for the Statewide Defined Benefit
(SWDB) Member Contribution election Primary Proposal as set forth In the Fire and Police
Pension Association Board of Directors Resolution No. 2014-04.
ENGLEWOOD FIRE
% of voting members In favor of the proposal-41%
"Yes" votes
% of voting members opposed to the proposal-59%
"No" votes
VR Election Services, a neutral election services firm located In Texas, conducted the member election on behalf of
FPPA. Active Members participating In the Statewide Defined Benefit Plan and appearing on the FPPA pension
administration system as of May 15, 2014, at 5:00 p.m. were permitted to vote. These Members were given the
option to vote by mall, touch-tone telephone or by the Internet. The member election concluded on June 30, 2014,
at 4:00 p.m. Mountain Time.
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FPPA
Fire & Police Pension Association
of Colorado
FIRE AND POLICE PENSION ASSOCIATION
BOARD OF DIRECTORS
RESOLUTION NO, 2014~0!
Regarding: MEMBER CONTRIBUTIONS TO
THESTATEWIDEDEFINEDBENEFITPLAN
WHEREAS, Section 31-31-408(1.5), C.R.S., as amended, authorizes the Board of
Directors of the Fire and Police Pension Association ("the Board") to increase the member
contribution rate for pension benefits set forth in Part 4, Article 31, Title 31, Colorado Revised
Statutes, as amended, with respect to the members of the Statewide Defined Benefit Plan ("the
Plan"); and
WHEREAS, Section 31-31-408(1.5), C.R.S., as amended, sets forth certain conditions
which must be met before the Board may adopt an increase in the member contribution rate,
including approval by at least sixty-five percent of the active members of the Plan who vote in
the election proposing an increase in the member contribution rate and more than fifty percent of
the employers who vote in the election proposing an increase in the member contribution rate.;
and
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WHEREAS, pursuant to the authority granted in Section 31•31-408, C.R.S., as amended, •
the Board has adopted Rules establishing the procedure which the Board will follow with respect
to its adoption of any modification of the Plan. Furthermore, pursuant to FPPA Rule 704.08, the
Board has prescribed an alternative voting procedure in lieu of using the paper ballots and the
process otherwise contemplated by FPPA Rule 704. Pursuant to the adopted alternative election
procedure, the Board must certify that the proposed modification complies with the requirements
set forth in the Colorado statute and the Plan.
WHEREAS, the Board has adopted Resolution No. 2013-02 and Resolution No. 2014-03,
which set forth facts, background and history regarding the Plan and the desirability of an
increase in the member contribution rate.
WHEREAS, if adopted, the proposed amendments will only affect the Statewide Defined
Benefit Plan.
WHEREAS, the Board previously adopted Resolution No. 2013-09 and Resolution No.
2014-04 establishing a member election to be conducted regarding an increase in member
contribution rate.
WHEREAS, an election of the active members of the Plan regarding the proposed
increase in the member contribution rate has been conducted at the Board's direction. VR
Election Services has certified the results of the election, indicating that an increase in the
member contribution rate by 4% over eight years (2% over eight years for members participating •
in the Social Security Supplemental Plan), hereinafter referred to as the Increased Member
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FPPA
Fire & Police Pension Association
of Colorado
Contribution Rate, has been approved by more than sixty-five percent of the active members of
the Plan who voted in the election.
WHEREAS, the Board has been advised by legal counsel regarding the proposed
increase in the membership contribution rate complies with the federal Internal Revenue Code.
NOW, THEREFORE, BE IT RESOLVED,
THAT the Board hereby proposes the following increase in the member contribution rate
to the Plan which shall be submitted for consideration to all employers who had active members
in the Plan on May 15, 2014, pursuant to the provisions of Section 31-31-408, C.R.S., as
amended, the FPP A Rules and Regulations, and the alternative election procedure.
"Shall the member contribution rate for the Statewide Defined Benefit Plan, as
established pursuant to Section 31-31-402, C.R.S., be increased by an additional
4% of base salary paid, and shall the member contributions rate for members
participating in the social security supplemental plan (the SWDB-SS), as
established pursuant to Section 31-31-704.6(3), be increased by an additional 2%
of base salary paid, to be implemented as follows? An annual increase in the
member contribution of½% of base salary paid(¼% of base salary paid for the
SWDB-SS members) beginning in 2015. The member contribution rate shall be
increased by an additional ½% of base salary paid(¼% of base salary paid for the
SWDB-SS members) in each of the 7 following years, through 2022, until the
cumulative increase in the member contribution rate is 4% of base salary paid
(2% of base salary paid for the SWDB-SS members)."
TIIA T the Board finds and certifies to employers of the Plan that the proposed Increased
Member Contribution Rate:
1. Does not require an increase in the employer contribution rate; and
2. Does not adversely affect the Plan's status as a qualified plan pursuant to the federal
Internal Revenue Code; and
3. Has been duly approved by more than sixty-five percent of the active members of the
Plan who voted in the election; and
4. Complies with all other requirements set forth in the applicable statutes and plan
documents.
THAT staff be directed to conduct the election of the employers. The governing body of
the employer shall determine whether the employer approves the Increased Member
Contribution Rate. Each employer participating in the election shall submit a resolution, copy of
minutes or other certification of a decision made by the governing body prior to 4:00 pm MT on
August 22, 2014 in order for the employer's vote to be included in the election results. The
proposal shall be deemed to be approved by the employers if a majority of those employers
submitting votes approve the proposal.
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FPPA
Fire & Police Pension Association
of Colorado
THAT upon approval by the members and the employers, the increase in the member
contribution rate shall become effective J enuary 1, 2015 .
IN WITNESS WHEREOF, I have hereunto set my hand on this 9th day of July, 2014.
ORIGINAL ON FILE AT FPPA
FIRE AND POLICE PENSION ASSOCIATION,
a political subdivision of the State of Colorado
By:
Susen R. Eaton, Chair
Board of Directors
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