We want to remind everyone that the scholarship application period is open and expect another year of incredible applicants. Be aware the process has been streamlined, so the applicant must fill out the application online and submit the required documents as attachments to the application. The applicant must have a gmail account in order to complete the process. We wish all the students good luck.Paused
CPFF COLA Update
Brothers and Sisters,
The CPFF has heard the frustration from FPPA plan participants who are currently receiving benefits under the FPPA New Hire Statewide Defined Benefit Plan. We understand the frustration, especially in this economic environment where we are seeing high inflation and little, to no cost-of-living adjustments. We have been in constant communication with the leadership of the FPPA and this dialogue has led to the following legislative action that the CPFF supported, and ultimately passed at the State Capitol:
- HB 20-1044: Legislation that was supported in both chambers and signed by the Governor in 2020 that increased employer contributions to equal 13%. This legislation increases the employer contribution by .5% per year, until 2030. This will provide additional funding to the pension to eventually allow FPPA to give more meaningful cost-of-living adjustments. However, it is still up to the FPPA Board of Directors to make this decision on an annual basis. This legislation also allows for the rule of 80 to be eligible to retire.
- HB 23-1106: This legislation was the result of direct communication between the CPFF and the FPPA last year regarding the frustrations with the cost-of-living adjustments. This legislation was also supported by both chambers and the Governor signed this year to allow FPPA the ability to give a non-compounding cost-of-living adjustment. As President of the CPFF, I instructed our legislative team to support this bill so we can give the tools to FPPA to give our CPFF retirees some relief during this time of high inflation.
With this said, our work is not done. There are several questions that our members are asking and the CPFF leadership hears you loud and clear. I know that there is a great deal of complexity in our defined benefit pension, therefore, we have partnered with the National Conference on Public Employee Retirement Systems (NCPERS). NCPERS is the largest trade association for public pensions, representing approximately 500 plans, plan sponsors, and other stakeholders throughout the United States and Canada.
I have been in contact with the Executive Director of NCPERS, Hank Kim. Mr. Kim has offered their services to review the inquiries regarding our pension and compare the practices and policies of FPPA of Colorado with other public pensions in the United States. I hope to have more information by the CPFF annual meeting at the end of June. Due to the complexity of the issues, we may not have all the answers by the end of June, but we will stay in communication with all of you as this inquiry progresses.