Investments

Fire & Police Members' Benefit Investment Fund

Includes the assets of the following plans:

  • Statewide Defined Benefit Plan,
  • Statewide Hybrid Plan - Defined Benefit Component,
  • Colorado Springs New Hire Pension Plan,
  • Statewide Death & Disability Plan,
  • Certain DROP (Deferred Retirement Option Plans) which are not self-directed,
  • Certain SRA (Separate Retirement Account Plans) which are not self-directed.
  • Plus over 200 affiliated local "Old Hire" plans and Volunteer Fire pension plans.

 

Fire & Police Members' Self-Directed Investment Fund

(This link connects to the Fidelity Investments page. Fidelity Investments provides the record keeping and investment management services for this fund.)

This fund includes the assets of the following plans:

  • Statewide Money Purchase Plan
  • Statewide Hybrid Plan - Statewide Money Purchase Component,
  • FPPA 457 Deferred Compensation Plan,
  • Certain DROP (Deferred Retirement Option Plans) which are self-directed.
  • Certain SRA (Separate Retirement Account) Plans which are self-directed.


Overview
The Colorado Revised Statutes establish the authority of FPPA’s Board of Directors to invest the assets of the Fire & Police Members' Benefit Investment Fund. In exercising its authority to invest and manage Fund assets, the Board is governed by the “Uniform Prudent Investor Act.” The Board’s investment objectives, policies and guidelines are outlined in the FPPA Comprehensive Annual Financial Report. Investment staff and an outside consultant assist the Board in implementing its investment policies.

Objectives
The overall investment objective of the Fund is to prudently manage and balance the investment needs (risks and return) of all plans participating in the Fund, including the need to eliminate current unfunded liabilities and/or to protect surpluses. In developing long-term investment objectives, investment class allocations, and investment guidelines, we recognize that the Fund includes the assets of several different benefit plans, each with a distinct time horizon, risk tolerance, cash flow and liquidity needs, number of participants and benefit adjustment objectives. In consideration of these factors, effective March 14, 2019, plans are grouped into different investment pools:



The Short-Term Pool and the Glide-Path Pool will have lower expected investment returns than the Long-Term Pool, which may affect required contributions for plans participating in these two pools. Please contact FPPA with questions regarding specific plan assignments.

 

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Asset Allocation Policy
The Board will conduct an asset/liability study as needed, but at a minimum every three years. The purpose of the study is to develop appropriate investment allocation targets and ranges which are generally expected to achieve the performance objectives relative to the liability and liquidity needs of the Pools and the overall risk tolerance of the Board. The Board relies upon analyses and recommendations from the Staff, Investment Consultant, FPPA’s actuary, and any other expert opinion that it determines is advisable. The Total Fund will be maintained as a single investment entity, with participation by the Pools to be achieved through accounting unitization.

 

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