Department of Finance
Reference: Contribution Rates for the FPPA Pension Plans
To: Mayor Gregory Mills and Members of City Council
Through: Jane Bais DiSessa, City Manager
Prepared By: Maria Ostrom, Finance Director
Karen Borkowski-Surine, Assistant City Manager
Date Prepared: November 18, 2020
PURPOSE
To adopt contribution rates for the FPPA pension plans as required per legislative mandate for reentry members, to adopt contribution rates required for new members, and to adopt contribution rates for the Statewide Death and disability.
STRATEGIC FOCUS AREA
Financially Responsible
BACKGROUND
At the November 17, 2020 Council Meeting, staff presented information regarding State legislative mandates requiring additional contributions for the FPPA pension plans and for the Statewide Death and Disability plan.
The State passed HB-1044 modifying pension plans administered by the FPPA. This legislation makes changes to the required contributions in the SWD&D (Statewide Death and Disability Plan) beginning January 1, 2021. The act increases member and employer contributions to the SWD&D plan from 2.8% to 3% of base salary.
The FPPA Board is authorized to increase the contribution rate by .2% annually. It is the City of Brighton’s decision whether this is paid by the member officer, employer, or split. HB -1044 increases employer contribution rates in the SWDB (Statewide Defined Benefit) beginning January 1, 2021. The rates are increased from 8% - 12% of base salary and is implemented over the next eight years at an increase.