Social Security Departments
For Colorado departments who contribute to Social Security, FPPA offers the Statewide Defined Benefit Plan: Supplemental Social Security Component (SWDB-SS). The benefit of joining this plan is simple: in retirement, vested members will receive a monthly pension benefit in addition to their monthly Social Security payment. This additional safety net provides added peace of mind for members in retirement.
The SWDB-SS plan includes all the features of the Statewide Defined Benefit Plan (SWDB), but has a couple of key differences: the total contributions by members and employers, and the benefit payments in retirement for time worked in the plan are both 50% of those included in the full plan. In other words, members and departments contribute half as much into the plan as full SWDB plan members, and their monthly pension benefit is 50% of what it would be for members of the full SWDB plan.
Generally speaking, the answer is no. Since members of this plan are paying into Social Security at the normal rate, they would retain their full Social Security benefit in retirement, as well as the additional monthly pension benefit provided by this plan.
FPPA uses the formula below to calculate our members' estimated monthly pension benefits:
Benefit percentages are accrued at different rates. While working in the plan, each year of earned service credit is equal to a 1% or 1.25% pension benefit. For purchased service credit, each purchased year is equal to a 2% or 2.5% benefit.
To see what your FPPA pension benefit could look like, use the SWDB-SS Benefit Calculator.
In addition to the defined benefit plan offered to Social Security departments, FPPA provides a Statewide Death & Disability Plan to assist these members in the event of unforeseen circumstances.
The features and benefits are identical to FPPA's death & disability plan for non-Social Security departments, with one important difference: in the event of a SWD&D-SS claim, when a member is granted a Social Security benefit (disability or retirement), the FPPA benefit would be reduced by the amount of any Social Security benefit received. For example, if FPPA grants a 70% of base salary Total Disability benefit, and Social Security grants a disability benefit that covers 50% of the recipient’s base salary, then FPPA’s benefit payment would be reduced to cover the 20% of the benefit not covered by Social Security.
It is also important to note that departments are only eligible to join the Statewide Death & Disability Plan if they also join the SWDB-SS plan.
The following departments have completed the affiliation process:
Departments who join FPPA as Social Security contributors are eligible to participate in the following plans: