HomeMy WebLinkAbout2004 Resolution No. 054•
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RESO LUTI ON 0 . _i
SERI ES OF 2004
A RESOLUTION 11' WHI CH THE CITY CO UNC IL OF THE CITY OF ENGLEWOOD,
COLORADO HEREBY CASTS ITS EM PL OYER 'S VOTE fN FAVOR OF Tl-IE FIRE AND
POLI CE PENS IO, ASSO CIATI O:--1' (F .P.P.A.'S) PROPOSED AMENDMENTS NO. I, NO.
2 AND NO . 3.
WHEREAS, pursuant to the authorit y gran ted in C.R.S. 3 1-3 1-408 , th e Board of Directors of
the Fi re and Poli ce Pension As sociation (F .P.P.A.) ("Board ") has prop osed certai n plan
amendments to th e pen sio n benefits se t forth in Part 4, Artic le 3 1, Title 3 I C.R .S., an d as
amended, wit h respect to members of th e Statewide Defined Bene fit Pl an ("the Plan ") sa id
proposed pl an amendm ent s includin g three scpura tc amcndm en1 s to th e tutcwi de Defin ed
Bene fit Plan; and
WHEREAS , the propo sed modifica1i0c ·
2004-4 , ado pted by th e Board on March 2
Plan is set fort h in th e FPPA 's Reso lu tion No.
I
WHEREAS , F.P.P .A. Boa rd ofDirec to, ned in its Re soluti on 2004-5, adopted on
Marc h 24, 2004, ha s cenified th at the prop osc u . nc ndment s will maint ain or enh ance the
actua rial so undne ss of the plan, do not requi re an 1111.:rease in th e em pl oye r and member
con tributi on rates, do not adve rse ly affe ct the Plan's statu s as a qualifi ed pl an, do not adve rse ly
affect th e pen sion benefits of reti red members 1 and do not redu ce the Plan's nonnal retireme nt
age below what is pennittcd by law ; and
WHEREAS, th e Eng lewood mem bers ofF.P.P.A. held an electio n and vo ted in favor of
F.P.P.A. 's proposed Amendments No . I , No . 2 and No. 3; fi ve (5) memb ers did not vo te and
those vo tes we re co unt ed as "No" vo tes;
NOW, TH EREFORE, BE IT RESOLVED BY THE CIT Y COUNC IL OF THE CITY OF
ENG LEWOO D, COLORADO , THAT :
Sect.ion I. Th e Ci ty Co un cil of the Cit y of Engl ewoo d, C..o lorado hereb y casts its Em pl,,yc r's
vo te in favo r ofF .P.P.A.'s proposed Amend ment No . I -"S elf-direction of SRA," mem bers will
se lf direc t th ! SRA monies in th eir accounts in any in vc simcnt opt ions offe red by FPPA, once the
members have retired (No nna !, Early. or Ve sted Re tiremen t) or ente red DROP .
Section 2. The City Cou ncil of the City of Eng lewoo d, Co lorado hereby cast s its Empl oye r's
vo te in favor ofF.P.P .A.'s prop ose d Ame nd ment No . 2 -"DROP Pa ymen t Opti oni" removing the
requi reme nt on the cu rrent amendment that a participa nt in the Statewide Deferred Reti rement
Option Plan (DROP) who tcnninatc s emp loyme nt and beco mes a retiree , or surviving spouse of a
deceased parti ci pant, mu st sel ec t a pa yme nt option with 30 days of em plo yme nt tcm1inati on or
the lump sum pa yment method shall be utili zed . A min imu m di str ibut ion would be required as
prov ided by the I RS .
• Secti on 3. Th e City Council of th e C ity of Englewood , Co lorado hereby casts its Empl oye r 's
vo le in favo r ofF.P.P.A.'s propowl Amend men t No. 3 -··Purchase of Monthly Benefit s," 10
all ow me mbers who have an SRA account aud/o r DROP acco unt to make a one-tim e, irre voca ble
election s at retirement or separa tion of service , which evr r co mes later, to purchase a month ly
benefit from the Statewide Defin ed Benefit Plan .
ADOPTED AND APPROVED thi s 2 1st day of June , 2004.
~{l
Loucrishia A. Ellis, C ity Clerk
I, Loucrishia A. Ellis, City Cler@ the Ci ty of En
abov e is a true copy of Reso lution No. , Series of2
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COUNCIL COMMUNICATION
Date Agenda Item Subject
lun e 21, 2004 10 C ii Reso lution ca stin g th e City o f
Englewood's vo te as empl o1•er rega rding
Fi re and Poli ce Pension Associa ti on
(FPPA) pr o posed amend me nts
Initialed By
I
Staff Source
City of En glewood, Fina nce and Ad minis trati ve Frank Gryglew icz , Direc to r
Services D epa rtm en t
COUNCIL GOAL AND PREVIOllS COUNCIL ACTION
rhe City Co un cil has not acted o n thi s iss ue in th e past .
RECOMMlN DED ACTION
~ldif r,•co mm ends Ci ty Council cas t its vo te rega rding the proposed ame ndm en t to th e Statewide Defi ned
31-ne••t n (S WDP), as o utlined be low. Th e vo te must be ce rtifi ed to FPPA by Jun e 28 , 2004.
ll J\CKG l<OUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
Th e FPPA has submitted to it s ac ti ve pl an memb ers fo ur pro posed ame ndm ents to th e Statewid e Defi ne r!
Benefit Plan . An electio n has bee n held to determine if th e proposed amendmen ts sho uld be adopted.
An y amendm ent must be a pp rove d by an affirmative vo te of 65% of th e ac tive plan me mb ers, and o,o ,,,
than 50% of th ei r empl oyers to be adopted. Memb ers who do not vo te are co unt ed as a "no " vo te.
The amendm ent a nd results of th e empl oyee vote is as fo ll ows:
Amendment 1: Members will self direct the Separate Retirement Account (SRA) monies in their
accounts in any inve stment opfio,,s offered by FPPA, once the members have retired (Normal, Earl y, or
Ve sted Retirement ) or entert•d DROP .
Curre ntl y -SRA mo ni es are commin gled for in ves tment purp oses in th e Fir e & Police Mem bers'
Benefi t rund and eari 1 inves trn en t return bas ed on th e perfo rm ance of th e fun d, or memb ers may
choose th e rate of 1 short-term in vestm ent selected by th e FP PA Boa rd.
Empl oyee vote: In fa vo r: 33 Aga in st: 10 Eli gible memb ers who did no t vo te: 5
Cos t of amendm ent as pe rce nt (%) of payro ll : 0%
Amendment 2: Remove the requirement on the current amendment that a participant in the St atewide
Deferred Retirement Option Plan (DROP) who terminates employment and becomes a retiree, or
surviv in g spouse of a deceased participant, must select a pa yme nt option with 30 days of employment
termination or th e lump sum payment method shall be utilized . Minimu m distribution would be
required as pro vided by the IRS .
Cun mtl y -A pa rti cipa nt in th e DR O P who terminat es empl oyment and bec omes a retiree, or th e •
s11rvivln g spouse of a decease d parti ci pant, mu st se lect a pa yment op ti on wi th in 30 da ys or
1 tire ment. If no selec tion is made by th e retir ee or surv ivi ng spo use wi th in 30 days of retiremen t,
l he lump sum pa ym ent shall be utilitized.
Em p loyee vote: In favor: 4 1 Aga in st: 2 Eli gible m embers w h o did not vo l e: 5
Cost of am endment as perce nt (%) of payrol l: 0%
Amendment 3: To allow members who have an SRA account and /or DROP account lo make a one-
time, irrevocable election al retirement or separation of service, whichever comes later, to purchase a
monthly benefit from the Statewide Defined Benefit Plan .
Thi s amendment would all ow a member w ho is eligi ble fo r n orm al, deferred, or ea rl y retirem ent to elect to
transfer all o r part of hi s/her SRA acco unt an d/or DROP account to m ake a one•tim e, irrevocable electi on
at retiremen t or sepa rati on of service, whichever co m es later, to purchase a mo nthly benefit. Fund s may
no t b e transferred fr om outside the Statewide Defin ed Benefit (SWDB) to purchase a monthly benefi t.
T•1e fund s transferred to th e SWDB Plan are to be consi de red Member Contributions fo r purposes of
reiund con1ributi ons und er Colorado Revised St atut e (C.R.S.) 3 1·31 -403 (6) and 31-3 1-404.
The purchase must be in one lump sum, whi ch must be transferr ed prior to the distribution of benefits fr om
1h e D efined Bene fit Component.
Once th e M em be r 's monthly pay ment amount is ca lcul ated, it w ill b e co nsid ered to be a p o rtion of th e
Member's normal, deferr ed o r ea rl y retirem ent und er C.R.S. 3 1-3 1-403. it may b e redu ced if th e m ember •
elec ts one of survi vor opti ons offered under th e Plan .
As part of th e pe nsio n, th e purchased mo nthly ben efit may be ad ju sted fo r a Cost of Li ving Adjustment
pursuant to C.R.S. 3 1-3 1-407.
O nce th e mo nthly b enefil is purchased, th e Member ma y not conve rt b ac k to a lump sum payout.
An appli ca ti on to purchase a m onthly benefit shall be fil ed by th e M e:nber w ilh FPPA on th e Applicable
Fo rm . Th e M ember mu st provide any documentali on that is req uired by th e Boa rd to c omplete th e
purchase.
Currently -Thi s poss ibl e amendmen t will b e a new p lan provision.
Emp loyee vo te: In favo r: 41 Aga in st: 2 Eli gible members w h o did not vote· 5
Cost of amend ment as pe rce nt (%) of pay roll : 0%
Th e City Co un ci l h as the o pti on 10 vote lhe sa m e as th e employees, o r vote in favor or against any of th e
proposed amendm ents. Th e Employers ' votes are counted se parately fr om th e members . To pass, th e
am endments mu st b e approved by an affi rm ative vo l e of at leas t 65% of the active members and m ore
1h an 50% of their employe.-s. •
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FINANCIAL IMPACT
This action doe s not direc tl y impac t th e City's finan cia l condition because th ere is no additional cos t for th e
am endmen ts.
LIST OF ATTACHMENTS
Proposed reso lution
Fir e and Poli ce Pension Association Plai n Languag e Summary of 2004 Proposed Amendments
Fire an d Po lice Pension Association Board of Direc tors Reso lutio n No. 2004-4
Fire and Poli ce Pension Association Board of Direc tors Reso luti on No. 2004-5 (Th e Emp loyer does not vo te
for th e c rea ti on of th e Sta tewide H ea lth Ca re Defined Benefit Plan.)
Fi re and Police Pens ion Association Board of Direc tors Resolution No. 2004-6
Plain I
Language
of the
State1 Ide
Election Items
for members
of the
Statewide Defined
Benefit Plan
Fire
and
Police
Pension
Association
of Colorado
FP~
5290 OTC Parkway
Sulte100
Gntenwood \lllage,
Cdcndo 80111-2721
31l3/TT0-3m
IOllfree 800/332-3";'72
lax 3ll3/ 771 -7622
www.lppaco,"'11
Creation of the
Stat ew ide Healtl, Care Defined Benefit Plan
Implements the Swewide Health Care Defined Benefit (SWIIC) Plan 10 provide :1.1SIS1ance
in payinr, health we costs alter retirement.
Memberco11hib11tion is 1% of base snla1:r.
Amendment ] ____________ _
Members will self direct the SRA monies In their accounts in any Investment option
offered by FPPA, once the members have retired (Normal , Early, or Vested Retirement)
or entered DROP.
Gumm/ Plan Provision
In the curm,t plan , SRA monies are commingled for lnYeSUllenl purposes in lhe Fire & PoUce
Member.;' Benefit Fund and e:im investment rerum based on th e perfonnance of the fund , or •
member.; may choose the rate of a short-lenn investment seiertrd by the PPPA Board.
Cos/ of Ibis possible amendment (as a11n11nl % of pay) = 0%
Amendment 2------------
Remove the requirement on the current amendment ti-at a participant In the Statewide
Defem-1 Retirement Option Plan (DROP) who terminates employment and becomes a
retiree, or the suniving spoUIC of a deceased participan~ must select a payment option
within 30 d2ys o~nninatioo or the lump sum payment method sh211 be utilized .
Minimum distribution would be required as provided by the IRS .
CUITelll Plt111 Provisio n
A participant in the DROP who tenninates employment and becomes a retiree , or the
surviving spoUIC of a deceased participant, must select a payment option within 30 days
of retirement If no selection Is made by the retiree or surviving spouse within 30 dar.;
of retirement, th e lump sum payment method shall be utilized .
Cost of this poss ih/e ama11dme11/ ( as annual % ofjJaJ1 = 0%
Amendment 3 ---------------
To allow members who have an SRA account and/or a DROP account to make a on e-time,
ilTevocable election at retirement or separation of senice, whichever comes 1:uer, to
purchase a monthly benefit from the Statewide Defined Benefit Plan .
Tbis possible a111e11d111e11/ will be a new jJlllll provision .
Cos/ o_( !hi.I' J1 ossiblt• m11e11d111e11/ ( as rm.mm/% offiaJ 1 = 0%
419 /04
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FIRE AND POLICE PENSION ASSOCIATION
BOARD OF DIRECTORS
RESOLUTION NO. 2004-4
Res.200 4-4
WHEREAS , Section 3 1-31-408 , C.R.S ., as amended , authorizes the Board ofDire<;tors of
the Fire and Police Pension Association ("the Board") to modify the pension ber.efits and the age
and service requirements for pension benefits set forth in Part 4, Article 31 , Title 31, Colorado
Revised Str.~t~s . as amended, with res pect to the memb ~rs of the Statewide Defined Benefit Plan
("th e ,·h111'"1, am!
·mu.KEAS, Section 31-31-408 , C.R.S ., ,s &mended , sets fo r::S , .. ,nitln conditions which
r,11J <! i." set before the Board may adopt any modification to the Plan , including approval by at
L ~, '\X!f•five pen:ent of the active members of the Plan and more than fifty percent of the
emptv1 cs hlving active member:; cov ered by the Plan ; and
WHEREAS, purnuant to the authority granted in Section 31-31-408, C.R .S., as amended,
the Board has adopted Rules establishing the procedure which th e Board will follow with respect
to its adoption of any modification of the Plan ; d
WHEREAS , FPPA Rule 704 .01 requires that the Board provide a copy of the language of
each propo sed plan modification to employers for distributi on to each member of the Plan ; and
V. HEREA S, if adopt ed, the proposed amendm ents will only affect the Stat ewide Defined
Benefit Plan ;
NOW , TIIEREFORE, BE IT RESOLVED, th at the Board hereby proposes the follow in g
modifications to the Plan which shall be submitted for approval 10 Plan employers and Plan
members purnuant to the prov isi c;;is of Section 31-31-408, C.R..S., as amended , and FPPA Rul e
704.
Amendment One : Self Dit ::~:ion for SRA monies fo r retired and DROP members
A new Section 31-3 1-406 .5 l·O be adopt ed as follow s:
31 -31-406.5 Self Direction of separate retirement account. If a retired meD1ber
elects to receive payment of the member's separate retirement account funds in periodic
installments or elects to defer receipt of funds, the unpaid balance in the member's
separate retirement account will continue lo accrue actual earnings based on the member's
direction for the investment of the separate retirement account. The separate retirement
account assets shall be hel d for investment purposes as part of the fire and police members'
self-directed investments fund, subject to such rules as may be adopted for the
administration of the member self-directed investments. The Board shall be authorized to
l/BoaJd/2004 Resolution/2004-i 0)-16--04
Rcs.2004~
charge eli> b account • fee for the administration of the separate retirement account. The
Board shall direct the investment of the member's separate retirement account until the •
rmber provid es direction oo the investment of the account.
A new Section 3 1-3 1-405(4 .5) to be adopted as follows :
(4 .5) For purposes of this Section 31 -3 1-405 C.R.S., members of th e deferred
r! •ircment option plan shall be deemed to have terminated service.
Section 31-31-409.5(8), as adopted as part of Amendment 5, Fire and Police Pensi on
Association, Bo ard of Directors Resolution No . 98-2, dated February 23, 1998, to be
am ended as foll ows:
(8) Upon commencement of the member's participation in the DROP, the member shall
,~main an active member. Nevertheless, the member shall earn no additional service credit or
sdd itional benefits under the Statewide Defined Benefit Plan. For purposes of Section 31-31-
405 C.R.S., a member participating in the DROP shall be deemed to have terminated
1,~r.•;ce.
Amendment Two: Removing the requirement that a DROP participant select a
payment option within 30 days of termination .
Amend Sections 31 -31-409.5 (13), as adopted as part of Amendment 5, Fire and Police
Pensi on Association, Board of Di1ectors Resolution No . 98-2, dated February 23, 1998, to read
as follows :
(13) (a) A participant in the DROP who terminates employment or reaches the five-
year limit for participation shall be come a retiree and shall receive, at the retiree 's option, a lump
sum payment from the retiree's individual DROP account equal to its balance plus net
investment earnings and lo sses, or equal monthly installment payments from the retiree's
individual DROP account over a period not to exceed the retiree's life expectancy or the joint life
expectancies of the retiree and the retiree 's designated beneficiary. At the end of the installment
period, a final disbursement of remaining funds in the DROP account shall be made. u:-i.e
seleetie11 is made liy Ille ,e1i,ee .. ~thie 30 d~·s efreliremenl; Ille 1-13 Simi Jl~'!B ef!I methed shall
lie-tililii!ed .
(b) Notwithstanding aoy prov151on to the contrary, any distribution under th e
DROP shall be made in accordance with Code Section 401(a)(9) and the regulations
estahlisted there under as they are amended and shall comply with the following rules:
(i) To the extent required by Code Section 401(a}(9) and the regulations
promulgated there under, payment of the benefits of a Member shall begin not later .than
the "required beginning date." For purposes of this Section, "required beginning date"
means April 1 of the calendar year following the later of the calendar year in which the
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Member reaches age seventy and one-half (70½), or the calendar year in which the Member •
retires.
l./Board/2004Rcsolut kmfl004--4 0J-16-04
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Res.2004-4
(ii) No payment option may be selected by a Member unless the amounts payable
to t he Member are expected to be at least equal to the minimum distribution required
under Code Section 401(a)(9).
(iii) The amounts payable m t satisfy the minimum distribution incidental
benefit requirements of Code Section 401(a)(9)(G).
Ame nd Sec ti ons 31-3 1-409 .5 (14), as adopted as pi Ill Am endment 5, Fire nnd Poli ce
Pen s ion Assoc iation, Board of Directors Reso lution No. 98-2, dated February 23, 1998, to read
as follow s:
(14) If the member dies dllfing the perieEI ef the member's plllti eipati efl in lh e DROP
end th e member"s Elesigfll1led benefieillf)' is the member 's SIIFYiving spel!Se le wham the tneml!ef
was legall)' mllffieEI at the lime eflhe member 's Elelllh , the niember 's desigBSled beeeiieiary-sball
ree,,we,at the benefieillf}''s eptien, a h1mp sum poyment frem the retiree 's inlliYi dool DROP
aeeaool e~ool le its ha!BJ1ee pll!S net in•estmenl eamiegs ood lesses, sr e~IIIII meethl y
installment payments frem the reliree 's indi•id11al DROP aee011111 e m a peried 1101 le eneee4 Uie
SJ!811se 's life er life enpeetooey. lfee seleeliee is maEle by the E'asigeated beeelieiary within 30
days ef death efthe member, the l11mp s11m pa)menl methed !ihall be 11til ia,EI.
(a) In the event of the Member's death, rlny remaining benefit shall bt
distributed according to the following subject compliance with Code Section 40l(a)(9)
and regulations there under •
(b) If the Member bad begun receiving periodic payments from the Piao
that were not aonuitized, the balance of the Accounts shall be paid to the Designated
Beneficiary at least as npidly as under the payment option selected by the Memb:r.
(c) If the Member bad begun receiv ing payments in the form of a pension
or annuity, the Designated '8eneficiary shall be bound by all restrictions applicable to the
pension or annuity, and the form of payment selected there under, and remaining
payments, if any, shall b e paid to the Designated Beneficiary in the same manner.
(d) If the Member dies before distribution. na ee commeued, a Spouse
Designated Beneficiary may take a lump sum distribution or may delay the commencement
of benefits until not later than December 31 of the year the Mtmber would have attained
age sev enty and one-half (70½) and may elect to receive periodic payments over the
Spouse's life expectancy.
( e) If the Member dies before distributions have commenced, a Designated
Beneficiary other tban ·. ,,.rviviog Spouse may take a lump sum or a periodic payment. In
the case of a lump Slim, payment must be made no later than December 31 of the calendar
year containing the fifth anniversary of the Member's death. In the case of a periodic
payment distribution., payment must commence no later than December 31 of the year
following the year r,f the Member's death, and in no event be payable over a period longer
than lhe De signat<:d Beneficiary's life expectancy at the time the distribution commences.
LJD 011d/2004Rcsolu t10nl2004-4 03-16-04
Res .20044
(f) If the Member bas not designated a Designated Beneficiary or the
Piao is unable to locate the Designated Beneficiary upon death, the Member's remaining
interest wiU be paid in a lump sum to the Member's estate.
(g) Notwithstanding the foregoing, any payment to an estate shall be
made in a lump s11m.
Amendment Three : Allow purchase of a monthly benefit from the SRA account
and the DROP BCC C\UOt.
A new Section 31 -3 1-410.5 to read as follows :
31-31-410.S Purchase of Monthly Benel'its. A Member who is eligible for
normal, deferred, or early retirement may elect to transfer all or part of bis/her SRA
Account and bis/her DROP balance within the Statewide Defined Benefit Plan to purchase
a monthly benefit. Funds may not be tnusferred from outside the Sta,ewide Defined
Benefit Plan to purchase a monthly benefit.
(a) The funds transferred are to be considered part of the member's
accumulated contributions for purposes ofC.R.S. § 31-31-403(6).
(b) At retirement or separation of service, which ever comes later, a
Member may make a one-time, irrevocable election to purchase a monthly benefit. The
purchase must be in one lump sum, which must be transferred prior to the receipt of
defined benefits.
(c) Once the Member's monthly payment amount is calculated, it will be
considered to be a portion of the Member's pension u,Jder C.R.S. §§ 31-31-403 (1) (normal
retirement), (3) (deferred retirement), (4) (early r,,tirement), or C.R.S. § 31-31-404(2)
(vested retirement). It may be reduced if the member elects one of t~e survivor options
offered nnder C.R.S. § 31-31-404(S)(a) of lbe State,.·ide Def med Benefit Piao.
( d) As part of the pension, the purchased monthly benefit may be
.. djusted punuant to C.R.S. § 31-31-407 of the Statewide Defined Benefit Plan.
( e) Once the monthly beoet;t is purchased, the Member may not convert
back lo a lump sum payout.
(f) An application to purchase a monthly benefit shall be filed by tbe
Member with the Plan Administrator on the Applicable Form. The Member must provide
any documentation that is required by the Board to complele the purchase.
L/Doudfl004Rcsolulion/'20CM-4 03 ·16-04
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Rcs .2004 -4
Upon approva l by the members and the employers, the se amendments shall become
effective ~~ /1 :).oos-'
IN WITNESS WHEREOF , I have hereunto set my hand on thi s 24th day of March ,2004.
ST A" f: OF COLORADO
) ss.
County of Arapahoe )
FIRE AND POLICE PENSION ASSOCIA TJON,
a political subdivision of the State of Colorado
By:_€:~
Leo,. Jo~ h' an
Board of Directors
The foregoing Resolution was acknowledged before me this 24th day of March, 2004, by
Leo J . J~hnso n, Chainnan of the Board of Directors, Fire and Police Pension Associ ation, a
political subdivision of the State of Colorado.
Witness my hand and official se al.
My commission exp ires: /,;/_ -/ -;}_ tJ/12
(Seal)
L/Do11d/2004Re10 lu1 ionl2004..it OJ-l b-CM
FIRE AND POLICE PENSION ASSOCIATION
BOARD OF DIRECTORS
RESOLUTION NO . 2004-5
Rcs .2004:;
W.'fEREAS, pursuant to the authority granted in Section 3 1-3 1-408, Colorado Revi sed
Statutes, a:: am ended , the Board of Directors of the Fire and Police Pension Ass ociation ("the
Board") hi s proposed certai n modifications to the pension ben e fit s set forth in Part 4 , Articl s 31,
Title 31 , C )iorado Revi sed Statutes , as amended, with respect to the me mbers of the Statewide
Defined ~nefit Plan ("the Plan"); and
WHEREAS, the proposed modifications to the Plan are set forth in the Board's
Reso luti on No. 2004-4 , adopted by the Board on March 24, 2004 ; and
WHEREAS, FPPA Rule 704.02(b) requires that prior to an election by employers and
members on any proposed modification to th e Plan , the Board shall provide employers with a
certification that the proposed modifications comply with the requirements set forth in Section
31-31-408, Colorado Revised Statutes, as amended;
NOW, THEREFORE, BE IT RESOLVED, that the Board hereby certifies that the
proposed modification s to the Plan set forth in Board Resolution No. 2004-4 comply with the
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requirements set forth in Section 31 -3 1-408. The Board finds and determines the following : •
I . The proposed modifications will maintain or enhance the actuarial soundness, as
s pec ified' in Section 31-31-102 (I ), of the Plan.
2 . The proposed modifications do not require an increase in the employer and member
contribution rates established as of January I , 1980, pursuant to Section 31 -31 -402.
3. The proposed modification s do not adversely affect the Plan 's statu s as a qualified
plan pursuant to the "Internal Revenue Code of 1986," as amended .
4 . The proposed modific ations do not adversely affect the pension benefits of retired
members.
5. The proposed modification s do not reduce the Plan's norm al retirement age below that
pem1itted by Section 31-31-403 (I) (b).
IJ Boar dn004Rcsolu1 ions/2004•5 SWOB AmcndCom pli OJ 1604
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FIRE AND POLICE PENSION ASSOCIATION
BOARD OF DIRECTORS
RESOLUTION NO. 2004-6
Res.2004-6
WHEREAS , Section 31-31-904, C.R.S., as amended, authorizes the Board of'Directors of
the Fire and Police Pension Association (the "Board'') to develop, maintain, and amend a
statewide health care defined benefit plan (the "Plan'') with respect to the members of the
statewide retirement plans; and
WHEREAS, Section 31-31-904(2), C.R.S ., sets forth certain conditions which must be
met before the Board may establish the Plan, including approval by at least sixty-five percent
(65%) of the active members of the proposed Plan; and
WHEREAS, pursuant to the authority granted in Section 31-31 -904, C.R.S ., as amended ,
the Board bas a,lopted FPPA Rule 714 establishing the procedure which the Board will follow
with respect to its adoption of the Plan; and
NOW, TIIEREFORE, BE IT RESOLVED, that the Board hereby proposes the :':mtewidc
Defined Benefit Health Care Plan and directs that an election shall be conducted of a1I statewide
retirement plan members working 1600 hours or more per year, pursuant to the provisions of
Section 31-31-904 , C.R.S., as amended, and FPPA Rule 714. FPPA staff is authorized to take
a1I actions necessary to conduct said election.
Upon approval by the members and all subsequent actions required by law, the
Plan, shall become effective January I, 2005 .
IN WITNESS WHEREOF, I have hereunto set my hand on this 24~ day of March, 2004.
l/Boar ~004Rcsolu1ions/2004-6 Elcc.Rcs031604
FIRE AND POLICE PENSION ASSOCIATION ,
a political subdivision of the State of Colorado
~~~J -~,2-~
Board of Directors