Employer Entry FPPA Fire And Police Pension Association Defined Benefit System

Police Officers' and Firefighters' Pension Reform Commission. Current law allows an employer that is affiliated with the fire and police pension association (FPPA) and that provides a money purchase plan for its employees to apply to the board of directors of FPPA (board) to cover some or all existing members of the money purchase plan under either the statewide hybrid plan or the statewide defined benefit plan, both of which are part of the defined benefit system. Current law requires the employer to apply to the board separately for each plan. In addition, the employer may apply to cover only existing employees under the statewide hybrid plan or the statewide defined benefit plan. The bill allows an employer that provides a money purchase plan to apply to the board, with a single application, to cover some or all of the existing members of its money purchase plan in the defined benefit system. In addition, the bill allows an employer that provides a money purchase plan to apply to the board to cover all new employees hired on or after a date certain and who are members of the FPPA to participate as a group in either the statewide hybrid plan or the statewide defined benefit plan through the defined benefit system. The bill eliminates certain statutory requirements in connection with an employer's participation in the defined benefit system and instead authorizes the board to determine the terms, process, certifications, and schedules that will govern an employer's participation in the defined benefit system. The bill also repeals the separate application process for entry into the statewide defined benefit plan. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) , Read More