The recent implementation of FPPA’s new Statewide Retirement Plan (SRP) created new ways for Members to plan and save for retirement, and for their Employers to help them reach their goals. These new features allow for extra contributions into FPPA Plans on behalf of individuals or groups of Members, which are then available to those Members in retirement.
Here are brief summaries of each new feature:
- Excess Contributions into SRP: Members and/or their Employer can now elect to pay additional voluntary contributions into another FPPA 401(a) Plan on the Member’s behalf. These excess contributions are deposited into an SRP Money Purchase Component account at Fidelity in the Member’s name for use in retirement. Member contributions are made either pre- or post-tax depending on how they are submitted, whereas Employer contributions are pre-tax
- Employer DROP Contributions: as a part of the Statewide Retirement Plan, Employers can now make contributions into the Plan while Members are enrolled in DROP. Employers can contribute any amount (within IRS/Plan limitations), but it must be the same for all Members in the department who enroll in DROP. More information, including affiliation details, can be found in this blog post
- Previously, only a Member’s individual payroll contributions and monthly pension payment were deposited during their DROP period
- This option is not mandatory. It simply gives the Employers the opportunity to contribute additional funds to Members in DROP should the department choose to do so
If you have questions about either of these options, please contact us.
Ryan Woodhouse is the Content and Publications Manager for the Fire & Police Pension Association of Colorado. When not managing content for FPPA, Ryan can be found fly fishing in the Colorado high country or shouting at the TV during University of Wisconsin football and basketball games.