Fire and Police Pension Association launches cost-of-living adjustments task force

For many years, cost-of-living adjustments (COLAs) have concerned retirees, active members, and pension managers of the Fire and Police Pension Association's (FPPA) Statewide Retirement Plan (SRP). CML and many employers have also been concerned that new COLAs or guaranteed COLAs could threaten the actuarial soundness of the plan, which has remained at or near full funding for many years. 

Retirees have seen minimal to no annual pension increases, while rising longevity, higher public safety pay, and softer investment returns have made the plan more expensive to fund. COLAs have been discretionary since the inception of FPPA in the early 1980s under the SRP's governing statute and subject to the FPPA Board of Directors’ fiduciary duty and statutory requirement the fund remain actuarily sound.  

FPPA recently convened a 27-member Statewide Retirement Plan COLA Task Force in September, bringing together FPPA Board representatives, active and retired members, employers, and FPPA staff for structured, good-faith dialogue on the issue. 

The task force must weigh COLA options against FPPA's fiduciary duties of loyalty, impartiality, and prudence, alongside strategic priorities including funded status, risk management, and stakeholder trust. It is expected to remain active for at least a year while reviewing actuarial and demographic analysis of the plan's funded status and will present the board a range of options and trade-offs — including points of disagreement — rather than a single recommendation. The task force has no authority to adopt or bind the board to any policy itself. 

As FPPA employers, municipalities have a direct financial stake in how any COLA solution is designed. CML Legislative and Policy Advocate Elizabeth Haskell represents municipal interests on the task force, alongside employer, active-member, and retiree representatives, ensuring cities' and towns' perspectives shape the conversation as options are developed. Municipal employers are also represented on the board by Tammy Hitchens, Commerce City accounting manager, and Kim McDaniel, Westminster retirement plan administrator. 

CML will keep members updated as the task force's work progresses, and information and recordings of meetings can be found online. Members with questions or input are encouraged to reach out to Elizabeth Haskell.