What's Next? Changes for 2022 and Beyond - Ben Colussy, Benefits Director - FPPA
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What’s Next? Changes for 2022
and Beyond…
Ben Colussy, Benefits Director
Employer Summit 2
Agenda
• Your FPPA Benefits Team
• Retirement Application Enhancements
• Statewide Retirement Plan
• Office Update
• Your Partnership with the FPPA Benefits Team
Employer Summit 3
Your FPPA Benefits Team
Benefit Administration Serving
1 Benefits Director ~25,000 members
+ (active and inactive)
6 Benefit Administrators*
+ +
1 Benefit Assistant ~330 Employers
*Interviewing for additional team member
Employer Summit 4
Your FPPA Benefits Team
• We get to make the benefit a reality:
• Retirement Applications
• Disability Applications
• Survivor Applications
• We also handle:
• Domestic Relations Orders (DROs)
• Service Credit Purchases
• Refunds
Employer Summit 5
Your FPPA Benefits Team
• Contact us for help
• Retirement related requests:
• benefits@fppaco.org
• 303.770.3772 extension 6400
• Death & Disability benefit requests:
• DDB@fppaco.org
• 303.770.3772 extension 6300
• We are looking for ways to improve our access…
Employer Summit 6
What’s Next:
Retirement Application Enhancements
• Encouraging member self service:
• Will become digital by year end 2022
• Moving into MAP (Member Account Portal)
• Member must log in to submit a retirement request
• No notarized signatures
• Incomplete applications cannot be submitted
Employer Summit 7
What’s Next:
Retirement Application Enhancements
• For employers:
• Electronic DROP agreements
• No more questions regarding last day on payroll
• Final contributions will clarify the current retirement date confusion:
• For members = last shift worked (“Cake Day”)
• For employers = day after last scheduled shift of final pay period
• For FPPA = 1st day after the last day of the final pay period when full contributions
are received
Employer Summit 8
What’s Next:
Retirement Application Enhancements
• Efficiencies:
• No more printing
• Submitted electronically through MAP, by the member
• No more secure emails or envelopes with copies of retirement applications
• Better flexibility for future plan changes…
Employer Summit 9
What’s Next:
Proposed Statewide Retirement Plan
• Proposed legislation highlights:
• 1/1/2023 effective date
• Merging the assets and liabilities of the Statewide Defined Benefit (SWDB) Plan
and Statewide Hybrid (SWH) Plan
• Rule of 80 for the SWH Plan
• Increases Minimum Contribution for SWH Plan by 2% over 8 years (9% EE /9% ER)
• Allows SWDB departments to have a 401(a) DC account (i.e. SWH-MP account)
*Discussed in presentation yesterday from Deputy Executive Director and General Counsel, Kevin Lindahl, Chief
Benefits Officer, Chip Weule, and Communications Director, Beth Hemenway
Employer Summit 10
What’s Next:
FPPA Office Update
• Office is re-opening Oct. 4th
• Hybrid Schedule = 2 days remote each week
• In-person coverage Mon – Fri
• In person meetings with FPPA staff are by appointment only
• To provide excellent customer service for our members
• Virtual appointments will continue
• In 2022 - We’re moving
• Office location is TBD, will remain in the Denver Tech Center
Employer Summit 11Importance of
our Partnership
Consider a Mt. Rushmore of life
decisions:
What do you think is on that
hypothetical monument?
How about when to retire?
Employer Summit 12FPPA Partnership:
Encouraging Retirement Readiness
• Beneficiary Designation?
• How often do you remind members to check their beneficiaries?
• 55% of Fidelity accounts have one
• 2 steps for Beneficiary Designations
(One designation does not cascade across plans/accounts)
• FPPA’s Member Account Portal -> FPPA DB Plans
• Fidelity’s Netbenefits® -> (SRA, Hybrid, Money Purchase, 457)
• Retirement Planners with Fidelity - available for individual meetings with
members
• At no additional cost, call 1 (800) 642-7131
Employer Summit 13FPPA Partnership:
Encouraging Retirement Readiness
• We need stories from retirees:
• 1st Retirement Dollar – what did they do with it?
• Life after public service
• Send us your stories: 1stRetirementDollar@FPPAco.org
• Will help encourage retirement planning and readiness
• Stories can be personal, anonymous, and/or shared a variety of
ways:
• Printed in newsletters, blog posts, or video interviews
• Shared with academy classes, benefit fairs, etc…
Employer Summit 14FPPA Partnership:
Employer Resources online
• FPPAco.org
• Electronic Employer Handbook
• ‘5 Things to Know’ plus other FPPA video series
• Employer and Member Portal Access
• FPPA Blog
• ForwardwithFPPA.org
• Current and former legislative updates and progress
• JoinFPPA.org
• Especially designed for departments considering affiliation with FPPA
Employer Summit 15FPPA Partnership
• The better partnership we have, the better service we can
provide our members and employers
• How can we improve our partnership with you?
• I’d love to hear from you:
bcolussy@fppaco.org
Direct Line: 720.479.2327
• Email me for progress updates on the Electronic Retirement
Application
Employer Summit 16Questions?
Please submit questions using the Q&A button on Zoom
Employer Summit 17The Employer’s Role in the Death &
Disability Process
Patti Seno, Benefits Administrator
Employer Summit 19Statewide Death & Disability Plan
(SWD&D)
• Members are Covered:
• 24 hours per day
• 7 days per week
• On and off the job
• Disability and Off-duty Survivor Benefits
• Until eligible for normal retirement
ü Age 55 and 25 years of accumulated service (or Rule of 80 in SWDB plan)
• On-duty Survivor Benefits
• Covered, while an active employee, regardless of retirement eligibility
20Occupational Disability
• Definition
• Member is unable to perform his/her regular, assigned duties
due to a medical condition
• Condition is expected to exist for at least one year
21Occupational Disability
• Temporary Occupational Disability
• Prognosis for improvement or recovery
• 40% of pensionable salary
• Limited to 5 years (or reach normal retirement eligibility)
• Permanent Occupational Disability
• No prognosis for improvement or recovery
• Member not able to return to the job
• Ability engage in substantial, gainful activity
• 50% of pensionable salary
22Total Disability
• Definition
• Inability to engage in any substantial, gainful activity
• Condition expected to last at least 1 year and/or life
expectancy may be shortened
• 70% of pensionable salary
23Benefit Payment Options
• Permanent Occupational and Total Disability
• Normal Option
• Option 1 – 100% Survivor Benefit
• Option 2 – 50% Survivor Benefit
• Option 3 – Spouse and Dependent Children*
*Only for members with spouses and/or dependent children at the time of disability
retirement
• Temporary Occupational Disability
• If member passes away, treated as active member death
• Payment to spouse and/or dependent children
24Offsets
• Equalize the payment of SWD&D benefits for
members in different pension plans
• Money Purchase Plan funds
• Defined Benefit Separate Retirement Account (non reentry)
• Defined Benefit DROP funds
• Contributions made above contribution rate for SWDB are not offset (e.g.:
2021 SWDB Contribution 20%)
• Apply to Permanent Occupational, Total Disability, or Survivor Benefits
• No offset for
• 457 Deferred Compensation
• Workers Compensation, or
• Insurance awards
25Taxability of Benefits
• On-Duty Disability Granted
• Benefits may be paid without withholding for state and federal
income taxes
• Member must support on-duty claim. FPPA is not bound by
presumption statutes
• Off-Duty Disability Granted
• State and federal income taxes are withheld
26Application Process
• Overview
• Must apply within 180 days of last day on payroll for condition that existed prior to
termination, and during which contributions were made to the plan
• Disability process can take 120 days to complete
• Applications are reviewed for missing information. Members have 90 days to complete
the application
• Member is sent to 3 individual medical examiners (IMEs)
• Summary of medical reports is presented to FPPA’s Death and Disability Review
Committee (DDRC)
• DDRC, representing FPPA Board, makes a determination of disability and duty status (if
applicable)
27Application Process
• Three Part Application:
• Most current application available on our website
• Member should submit all packets to FPPA at same time
• Encouraged to apply prior to going off payroll
• If member on an authorized leave of absence, benefit start date
may be application completion date. See Rule 404.14
28Application Process
• Application:
• Packet 1: Applicant Section
ü Member completes
• Packet 2: Medical Section
ü Member and his/her physicians complete
• Packet 3: Employer’s Section
ü Employer completes and returns to member
29Application Process
• Packet 3: Employer’s Section
• Answer every question – be clear and concise
• Write N/A – don’t leave blank questions
• Submit current job description (not modified/light duty position)
• Call FPPA with any questions
• Best Practice: give back to member to submit with other sections
30Packet 3: Employer’s Section, Page 4
• Part 3 – C: Questions 1 & 2:
• Last Day on Job: Last day physically worked for employer
• Last Day on Payroll: Last day for which member received pay
• Part 3 – C: Question 4, Page 4: Base Salary
• See definition for pensionable earnings
• If salary reduced for light/modified duty, use pensionable salary
received just prior to light/modified duty
31Packet 3: Employer’s Section, Page 5
• Part 3 – D: Question 1:
• Is the application required to regularly perform all job duties
stated on the enclosed job description?
• This applies to position which member is claiming, due to his/her
health condition, he/she is unable to do
32Statewide Death
& Disability Plan
Survivor Benefits
33Survivor Benefits: Active Death
On Duty Off Duty
• 70% of base salary for spouse • 40% of base salary for spouse only
and/or dependent children or spouse and one dependent child
• Offsets apply • 50% of base salary for spouse with
two or more dependent children
• Offsets apply
Payable to spouse and/or dependent children only. Benefit split if
separate households.
34Survivor Benefits: Active Death
• Duration of Benefits:
• Spouse – Payable for lifetime regardless of remarriage
• Dependent children – Payable until age of 23 or married
• Incapacitated, dependent children – Can be extended beyond 23
regardless of marital status
35Application Process
Survivor Benefits: Active Death
• Let us know as soon as you hear
• Survivor Application on website
• Employer section
• No payment options
• Based on: on-duty; off-duty & number of dependents; offsets (if applicable)
• On-duty death: Applicant must provide supporting documentation
36Active Death vs. Disability
• Members with terminal illness
• If total disability granted, benefit is 70% of base salary
• Off-duty death benefit is 40% - 50% of base salary
37Questions?
Please submit questions using the Q&A button on Zoom
Employer Summit 38Employer Reporting 101
Ahni Smith, Chief Operations Officer
Jordy Bralower, Accounting Manager, Inflows and Financial Reporting
Employer Summit 40Agenda
1. Getting Started
2. Authorizations
3. Processing
4. Resources
Employer Summit 41Getting Started Employer Summit 42
Employer Summit 43
Getting Started
Call us! Your Contributions Specialist can help you get started
• Briefly describe FPPA
• Pension
• Death & Disability
• We can provide some basic information for the Department setup at FPPA
• Payroll frequency and dates of the last report processed
• Payment method
• Plans set up for contributions reporting
o Pension plan(s)
o Admin or Part-Time affiliation
o 457 Deferred Compensation
Employer Summit 44Getting Started
Things to know
• FPPA processes are mostly paperless (or will be soon)
• Employers and Members have access to FPPA portals to complete tasks
• Employer contacts access their specific Department plans and member data
through the FPPA Employer Portal
• Contributions Reporting
• Member OnBoarding and Management
• Historical Contributions Reports
• Messages
• Documents
• Employer Resources
• Volunteer Actives, Volunteer Retirees & Old Hire Retirees
Employer Summit 45Authorizations Employer Summit 46
Authorizations
• Complete an Employer Portal Access Form
• Add new personnel
• Update or change existing access
• Remove access for terminated personnel
• Don’t use the prior login credentials!
• This allows the prior personnel to still be able to access the member data
• Available on FPPA Employer Portal
Employer Summit 47Authorizations
Employer Portal Access Form
Contributions Contact
• This is applicable to ALL plans
• Reports contributions for all employer plans and to enroll, update and terminate paid
active members
• Same access as the Enrollment Contact
• Volunteer and Old Hire plan departments: If your department also has paid members, this
role should be assigned to the person who submits contributions to FPPA for those pension
plans. This contact will have access to sensitive information for the paid members (social
security number, dates of hire, dates of birth, salary, address, etc.)
• Access
• Contributions Reporting and Member Onboarding and Management
Employer Summit 48Authorizations
Employer Portal Access Form
Enrollment Contact
• This is applicable to all PAID member plans
• Statewide Defined Benefit, Statewide Hybrid, Statewide Money Purchase and local money purchase
plan departments
• Reports new members, new plan enrollments (457 deferred compensation, DROP,
etc.), leaves of absence, and member terminations
• Receives all email and notification center messages regarding new member
onboarding processing
• Access
• Member Onboarding and Management
Employer Summit 49Authorizations
Employer Portal Access Form
GASB Contact
• This is applicable for Statewide Defined Benefit, Statewide Hybrid, Volunteer, and
Old Hire plan departments
• Downloads and reviews annual GASB 68 reports and other supporting documents
provided by FPPA for annual financial reporting
• FPPA will contact individuals in this role for all matters concerning GASB reporting
• Census testing requests
• Access
• Download reports from FPPA
Employer Summit 50Authorizations
Employer Portal Access Form
Allocation Report Contact
• This is only applicable to Volunteer and Old Hire plan departments.
• Downloads and reviews the information provided by FPPA in the quarterly
allocation report
• Responsible for contacting FPPA with any concerns or corrections
• The allocation report details the change in pension plan net assets through
reporting of contributions, benefit payments, expenses, and investment earnings
• Access
• Download reports from FPPA
Employer Summit 51Authorizations
Pension Authorization Form
Contacts
• Applicable for Volunteer and Old Hire plan
departments
• Actuarial Valuation
• Member Eligibility
• Pension Plan Amendments
• Plan Expense
Note: There are more specific training materials for Volunteer and Old Hire plans available
Employer Summit 52Processing Employer Summit 53
Processing
Contributions Reporting
Pension Contributions
• Due from both the member and employer based on Pensionable Earnings
every payperiod
• Not all compensation is pensionable
• Most departments have multiple plans and each may have different contribution rates
• Members earn service credits with each contributions report
• Leave of Absence should be communicated and we can work with you for
reporting
Employer Summit 54Processing
Contributions Reporting
D&D Contributions
• May be paid by the Member, Employer or shared
• Member contributions may be withheld pre-tax or post-tax
• Decided by the department
• Reported with the pension contributions
• Departments with a Local Money Purchase plan may report only D&D contributions to FPPA
• Not all members will owe D&D contributions
• Leave of Absence should be communicated and we can work with you for
reporting
Employer Summit 55Processing
Contributions Reporting
Contributions Timeliness
• Contributions are due to FPPA within 10 days of the members’ paid date
• Both the detailed report of member contributions and the deposit are required
• Late charges will be applied when late
Employer Summit 56Processing
Member Management
Enrolling New Members
• Enrollment is required prior to submitting contributions
• New members or members participating in a new plan
• Best Practice is to enroll as soon as possible
• New members complete required enrollment “forms” through the Member
Account Portal
• Have 30 days from the date of hire to complete the Health History Form or a compliance letter
will be sent to the Department Chief
• Enrollment contacts will receive notices
Employer Summit 57Processing
Member Management
Managing Member Statuses and Data
• Enroll in new plans
• 457 Deferred Compensation
• DROP
• Terminate members
• Leave of absence status updates
• Update demographics
• Address, phone
Employer Summit 58Resources Employer Summit 59
Resources
FPPAco.org
• Employer section
• Employer Guide
• Employer Portal Link
• Pensionable Earnings Definition
• Information by Plan
• Actuarial Valuation
• Actuarial Experience Study
• Contributions Rates and Limits
Employer Summit 60Resources Employer Summit 61
62
63
Employer Summit 64
Questions?
Please submit questions using the Q&A button on Zoom
Employer Summit 65Old Hire & Volunteer Plans
Ahni Smith, Chief Operations Officer
Jordy Bralower, Accounting Manager, Inflows and Financial Reporting
Employer Summit 67Member Management
Old Hire & Volunteer Plans
Reporting Census Data
• It is your membership!
• Very important to keep it updated with FPPA
• Ability to provide updates anytime on the FPPA Employer Portal
• Census updates are requested annually to be completed by January 31
• Your silence indicates that the data on file with FPPA is accurate
We only know what you tell us!
Employer Summit 68Member Management
Old Hire & Volunteer Plans
Plan Sponsor is responsible for:
• Overall member management and tracking
• Reporting changes in members and survivors, mailing addresses and other
contact information to FPPA
• Directing FPPA to continue or stop payments
• Census process completed in January each year
• Approving survivor’s benefits
• Tracking surviving spousal remarriage and resulting termination of benefits
• Providing timely benefit adjustment data
Employer Summit 69Retiree Management
Old Hire & Volunteer Plans
FPPA does the following to track and locate
retirees:
üResearch all returned mail
üAnnual longevity letter for retirees 87 years or older
üAnnual verification of overseas annuitants
üDeath match services for retirees, survivors and beneficiaries
If the above is unsuccessful, we will look to the department to
provide direction to continue or stop benefit payments
Employer Summit 70DOL Best Practices Employer Summit 71
DOL Best Practices
• Maintain accurate census information
• Ask retirees to update contact info
• Flag undeliverable mail and uncashed checks
• Audit information and correct errors
• Implement effective communication strategies
• Use websites, toll free numbers
• Build in a termination process and retiree onboarding to require
members to keep their contact information updated
Employer Summit 72DOL Best Practices
• Improve missing participant searches
• Use beneficiary and other familial contact information
• Talk to other plan members, colleagues, etc.
• Cross check with other documents you may have (health insurance, etc.)
• Partner with other agencies or companies
• Commercial locator services
• Credit-reporting agencies
• Social media
• USPS certified mail
• Social Security death index
Employer Summit 73DOL Best Practices
• Document!
• Record your policies and procedures in writing
• Document key decisions and steps taken
• Be consistent and follow your process
• Supervise third-party providers
Employer Summit 74Questions?
Please submit questions using the Q&A button on Zoom
Employer Summit 75FPPA Resources
Ahni Smith, Chief Operations Officer
Jordy Bralower, Accounting Manager, Inflows and Financial Reporting
Employer Summit 77FPPA Staff! Employer Summit 78
Employer
Resources –
How to
access FPPA
79Employer
Resources –
How to
access FPPA
80FPPAco.org Employer Summit 81
FPPAco.org
• Employer section
• Employer Guide
• Employer Portal Link
• Pensionable Earnings Definition
• Information by Plan
• Actuarial Valuation
• Actuarial Experience Study
• Contributions Rates and Limits
Employer Summit 82Employer Summit 83
FPPA
Employer
Portal
Employer Summit 8485
FPPA
News & Media
Employer Summit 86Employer Summit 87
Employer Summit 88
Employer Summit 89
Employer Summit 90
Employer Summit 91
Questions?
Please submit questions using the Q&A button on Zoom
Employer Summit 92Employer Questions
from SurveyMonkey
Ahni Smith, Chief Operations Officer
Jordy Bralower, Accounting Manager, Inflows and Financial Reporting
Employer Summit 94Question
Volunteer plans:
If my plan is fully funded (>100%)
why is there still a actuarial
calculated contribution due?
Employer Summit 95Question
Investments:
What assets does my plan hold?
Can you explain pooled
investments?
Employer Summit 96Question
Retiree Insurance:
Is there any way FPPA can provide
insurance for retired members
from retirement age until qualified
for Medicare like PERA does?
Employer Summit 97Question
Contributions:
Could you explain a bit more
about the contributions reporting
process for military/unpaid
leaves?
Employer Summit 98You can also read
