View/Download a two page summary of FPPA's current rates
Based on the results of recent annual actuarial valuations of FPPA Plans, the FPPA Board of Directors approved the Funded Ratios, Contribution Rates, IRS Contribution Limits, Cost of Living Adjustments, One-Time Lump Sums, and SRA Allocations below.
Per Colorado House Bill 22-1034, effective January 1, 2023, FPPA merged the assets and liabilities of the Statewide Defined Benefit Plan and the Statewide Hybrid Plan into a new Plan, the Statewide Retirement Plan. Annual Rates for the Statewide Retirement Plan are displayed below.
The Funded Ratio is a pension fund's current financial position, showing a fund's assets as a percentage of liabilities. It is common measure of a fund's ability to pay all promised benefits to its current and future members.
Funded Ratio: 100.0%, effective 1/1/2023
This valuation applies to the following components:
Funded Ratio: 81.7%, effective 1/1/2023
Members of FPPA's Death & Disability and retirement plans, and their Employers, make monthly payroll contributions to fund the plan(s). The amount Members and their Employers contribute varies by Plan.
The Statewide Death & Disability Plan contribution rate increased from 3.4% to 3.6% for the period of January 1, 2024 through December 31, 2024. Contributions can be paid by Members, Employers, or split between the two. This contribution split is a local decision.
As of 2020, the Board may adjust the Statewide Death & Disability Plan required contribution rate annually by a maximum of 0.2%.
Defined Benefit Component
CoContribution rates for the Defined Benefit Component are set by state statute. Employer contribution rates can be amended by state statute or by election of both the Employers and Members. Member contribution rates can be amended by state statute or by election of the membership.
Changes to Contributions Through 2030
Members elected in 2014 to increase the Member contribution rate beginning in 2015. Member contribution rates increased 0.5% annually through 2022 to a total of 12% of pensionable earnings. Member contributions will remain at 12% for the foreseeable future.
Recent legislation mandated a similar increase in Employer contributions beginning in 2021. Employer contribution rates will increase 0.5% annually through 2030 to a total of 13% of pensionable earnings. The Employer contribution rate for 2024 is 10.0%.
Social Security Component
Following the 2014 Member election, Member contributions for the affiliated social security group also increased 0.25% annually beginning in 2015 through 2022 to a total of 6% of pensionable earnings. Member contributions in this component will remain at 6% for the foreseeable future.
Legislation passed in 2020 requires an Employer contribution increase of 0.25% annually through 2030 to a total of 6.5% of pensionable earnings. The Employer contribution rate for 2024 is 5.0%.
Hybrid Defined Benefit and Money Purchase Components
In 2024, the required minimum contribution for the Hybrid Defined Benefit and Money Purchase Components is 16.5% of the Member’s pensionable earnings. Of that required minimum, a portion goes towards the Hybrid Defined Benefit Component and the remainder is contributed to the Money Purchase Component of the Plan. If a department has a higher contribution rate, any amount above the required minimum goes towards the Money Purchase Component.
Effective July 1, 2023 through June 30, 2024, the Hybrid Defined Benefit Component contribution rate is 14.24%. After the necessary contribution is allocated to the Hybrid Defined Benefit Component, the remainder of the total contribution rate is then directed to the Money Purchase Component.
Changes to Contributions Through 2030
Legislation passed in 2022 increases the required minimum contribution by a total of 2% over eight years, to a combined contribution rate of 18%, split evenly between Member and Employer.
Money Purchase Component Only
The 2023 required minimum contribution for the Money Purchase Component will be 16.25%, with a minimum rate of 8.125% each for both Member and Employer. In 2024, the required minimum contribution will increase to 16.5%, with a minimum rate of 8.25% each for Members and Employers.
Per the January 1, 2023 actuarial valuation, the Police Component member contribution rate is 8% of basic salary and the employer remits the remainder of the $9,630,054 annual required contribution effective 1/1/2024.
Per the January 1, 2023 actuarial valuation, the Fire Component member contribution rate is 10% of basic salary and the employer remits the remainder of the $5,194,423 annual required contribution effective 1/1/2024.
The Statewide Money Purchase Plan mandatory combined contribution rate remains set at 16% (8% Member and 8% Employer).
2 Ways to Catch-Up on 457 Contributions
Cost of Living adjustments (COLAs) to FPPA’s plans are determined by the Board of Directors each year (with the exception of the Colorado Springs New Hire Pension plans – see below). These are sometimes referred to as Benefit Adjustments. COLAs are not guaranteed and are granted based upon what a plan can afford to pay under its current funded status. Learn more about FPPA’s COLA policy for the Statewide Retirement Plan on our blog.
Totally Disabled Members and their Beneficiaries
By law, totally disabled Members and their beneficiaries are granted a fixed 3% benefit adjustment each year on October 1. Those who began receiving benefits by October 1, 2022 received this increase beginning in their October 2023 benefit payment.
Occupationally Disabled Members and their Beneficiaries, and Survivors of Active Duty Members
Occupationally disabled Members and their beneficiaries, and survivors of active duty Members may be granted a benefit adjustment at the Board’s discretion. The Board takes into account many factors when granting a benefit adjustment. One of those factors is maintaining the funded status of the plan (81.7% as of January 1, 2023) to ensure all benefits can be paid. The Board decided that occupationally disabled Members, their beneficiaries, and survivors of active duty Members who have been in receipt of an occupational disability benefit for at least 15 years would receive a benefit adjustment of 1.0%, effective 10/1/2023 through September 30, 2024. The benefit adjustment will remain at 0% for those receiving an occupational disability for less than 15 years.
Defined Benefit Component
Statewide Retirement Plan retirees and beneficiaries received a benefit adjustment of 0.15% effective October 1, 2023, through September 30, 2024. This adjustment is in addition to any one-time lump sum payments described below.
Colorado Springs New Hire Pension Plan
Effective October 1, 2023 through September 30, 2024, the following Cost Of Living Adjustments are implemented for retirees of the Colorado Springs New Hire Pension Plans: payees in both the Fire Component and Police Component will receive a 3.0% COLA. The FPPA Board of Directors do not establish Cost of Living adjustments for either Colorado Springs New Hire Pension Plans. For both components of the Colorado Springs New Hire Plan, Cost Of Living Adjustments are linked to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the previous year.
In April 2023, the Board approved a change to FPPA’s Cost of Living Adjustment policy for the Statewide Retirement Plan. This new policy allows the board to consider a non-compounding, one-time lump sum payment in years where the national inflation rate is higher than the compounding COLA that the Plan can afford. This one-time lump sum which would be in addition to any awarded compounding COLA.
The Board can now consider granting one-time lump sum payments to eligible retirees under these conditions:
In 2022, the conditions for awarding a one-time lump sum were met. Therefore, for eligible retirees in the Statewide Retirement Plan, FPPA’s Board has approved a one-time lump sum payment equal to 8.35% of the Member’s annual benefit, which will be included in the Member’s October 2023 benefit payment. This sum was calculated by subtracting the approved compounding COLA (0.15%) from the previous year’s CPI-W inflation rate (8.5%).
Legislation passed in 2020 required FPPA to convert existing Separate Retirement Account (SRA) balances to individual, self-directed defined contribution accounts held at Fidelity Investments®. This conversion is now complete. More information about the changes can be found in these resources: