Social Security Departments
For Colorado departments who contribute to Social Security, FPPA offers the Statewide Retirement Plan: Social Security Component. Beginning in 2020, FPPA also allows these departments to affiliate into the Statewide Retirement Plan: Defined Benefit Component or the Statewide Retirement Plan: Hybrid Defined Benefit and Money Purchase Components. The benefit of joining one of these plans 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.
By comparison, the Social Security Component includes all the features of theDefined Benefit Component, 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 Defined Benefit Component members, and their monthly pension benefit is 50% of what it would be for members of the Defined Benefit Component.
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. Please check the plan brochure or contact FPPA for specific details for each plan.
To see what your FPPA pension benefit could look like in the Social Security Component, use this Benefit Calculator.
In addition to defined benefit retirement plans, Social Security departments are also eligible to join FPPA's Statewide Death & Disability Plan, depending on which defined benefit plan the department elects to join. Only departments that join the Defined Benefit Component or Hybrid Defined Benefit and Money Purchase Components are eligible to also join the Statewide Death & Disability 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: