Laserfiche WebLink
SUBJECT: POLICE MASTER PLAN WITH COMPENSATION AND BENEFITS <br />DATE: MAY 9, 2017 <br />PAGE 10 OF 17 <br />money purchase plans or the SWMP Plan could elect coverage under the FPPA <br />Defined Benefit System. <br />However, since the City of Louisville has a money purchase plan and also pays into <br />Social Security and Medicare there are only two FPPA options available to the Louisville <br />Police Officers: <br />1. The SWDB with Supplemental Social Security (SWDB-SS), or <br />2. The Statewide Death & Disability Plan with Supplemental Social Security <br />(SWD&D-SS). <br />A chart showing the contribution rates for the SWDB-SS are shown below. Rates are <br />set by the FPPA Board. <br />FPPA Employer Guide I Section 4 • Contributions to FPPA <br />-- Statewide Defined Benefit Plan - Supplemental to Social Security <br />Member Contribution Rate Implementation Schedule <br />Effective <br />January 1 of Year <br />Mandar©ry Mandatory Total Combined <br />Member Employer Member and Employer <br />Contribution Rate Contribution Rate Contribution Rate <br />2015 4,25% 4.0% 8.25% <br />2016 4.50% 4.0% 8.50% <br />2017 4.75% 4.0% 8,75% <br />2018 5.00% 4.0% 9.00% <br />2019 5.25% 4.0% 9.25% <br />2020 5.50% 4.0% 9.50% <br />2021 5.75% 4.0% 9.75% <br />2022 6.00% 4.0% 10.00% <br />Currently, the Employer Contribution Rates stay steady through 2022 and the members' <br />contribution rates increase a half of a percent each year through 2022. <br />The SWDB-SS Plan does allow members to purchase service credits. Service credits <br />are one of the factors FPPA uses to calculate a member's retirement benefit in a <br />defined benefit plan. Service credits affect the member's monthly pension payment <br />which may impact when a member decides to retire. A member earns service credits <br />based on the "pay/contribution periods" submitted by the employer to FPPA. <br />The attached, FPPA — State Wide Defined Benefit Plan with Social Security — SS 3.8.16 <br />document provides very detailed charts and graphs that outline the benefits for Normal <br />Retirement, Vested Retirement, Early Retirement, Deferred Retirement, Payment <br />Options, Survivor Benefits, Separate Retirement Account (SRA), Benefits Adjustments, <br />CITY COUNCIL COMMUNICATION <br />