ColoradoSB26-0392026 Regular SessionSenateWALLET

Fire and Police Pension Association Disability and Survivor Benefits

Sponsored By: Andrew Boesenecker (Democratic), Byron Pelton (Republican), Marc Snyder (Democratic), Rick Taggart (Republican)

Signed by Governor

Local GovernmentState Government

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Bill Overview

Analyzed Economic Effects

13 provisions identified: 4 benefits, 3 costs, 6 mixed.

Disability pay amounts and annual raises

The law sets disability pay levels: 70% of base pay for total disability, 50% for permanent occupational, and 40% for temporary occupational (up to five years). Benefits get annual cost‑of‑living increases each October 1 after 12 months of payments. Total disability gets 3% per full year; permanent occupational gets up to 3% per full year set by the board. Coverage is 24‑hour, on and off duty. Special rules apply to occupational disability awards made before October 1, 2002, and you may choose an actuarially equivalent reduced option.

Survivor payments and line-of-duty top-ups

If a member dies in service or on temporary disability, the plan pays survivors a monthly share of the member’s last base pay. Percentages depend on who survives and where they live. For qualifying line‑of‑duty deaths, the plan adds a payment so total survivor benefits can reach up to 70% of last monthly pay. Survivor payments are rechecked each October 1 after 12 months, with increases up to 3% per full year. Payments end when the spouse dies or when a child is no longer a dependent.

Offsets and return to work cut pay

If you receive Part 8 disability and also get other retirement plan payments or Social Security tied to your member work, your disability check is reduced by those amounts or their actuarial value. Survivor benefits are also reduced by money‑purchase plan value or defined‑benefit payments. You get no COLA while on temporary occupational disability. If you return to full‑time police or fire work (about 1,600 hours a year), disability payments stop and any later claim is a new application.

State funding keeps FPPA benefits paid

The state sends set payments to fund death and disability benefits. It pays $6.65 million on July 1, 2022 and again on July 1, 2023. It then pays $2.05 million on July 1, 2025 and every July 1 through 2059. The 2022 payment comes from the General Fund; later ones come from the Death and Disability Payment Cash Fund. The law creates that cash fund and a Disability and Death Benefits Trust Fund. All Part 8 benefits and COLAs are paid from the trust fund using the plan’s regular funding rules.

Coverage limits for FPPA death and disability

You are not covered under Part 8 if your employer covers you under Social Security, had certain old pension or money‑purchase plans, or joined PERA. Departments cannot withdraw after December 31, 2001; a prior leaver may reenter only once. If your employer fails to enroll you, the Association and the trust fund are not liable.

Stricter rules to qualify for disability

You can apply only if you are not already eligible for a normal pension, not age 55 with 25 years in money‑purchase plans, and not in DROP. You cannot get benefits if your disability mainly comes from a pre‑existing permanent condition. You also cannot get benefits if it stems from illegal drug addiction, a felony you were convicted of, or an intentional self‑injury.

Follow-up checks and return-to-work rules

The law can stop or cut benefits if you refuse exams, skip required treatment, or your condition improves. If total disability ends, pay drops to the permanent occupational level. If your disability ends, your employer must restore you to the same or an equivalent job when a vacancy exists. Your disability pay can continue during needed training or certification for up to one year. You can seek an upgrade from temporary to permanent or total disability, and if benefits stop you keep any vested pension or get a refund. If found not disabled after applying, your employer must reinstate you or pay you as occupationally disabled until reinstatement. You have first rights to vacancies within five years; refusing a matching job ends benefits. You may also irrevocably waive reinstatement, and the board can require rehab to keep benefits.

How to apply and who decides

You must apply for disability within 365 days of your last covered payroll day and use the Association’s form. Newly hired members must disclose full health history; hiding a material fact can bar benefits. The FPPA board decides disability status, on‑duty classification, and amounts under its rules. You can appeal board decisions through the board’s review and then to court. Employers must provide reasons for separation and any medical records during the application.

Member contributions and protected funding

Members hired on or after 1997 pay into the death and disability account. The 2021 rate is up to 3% of pay, and future yearly increases are capped at 0.2 percentage points. The state pays these benefits from dedicated funds, and the trust fund can only pay death and disability benefits. A department chief who is exempt from the statewide plan can keep Part 8 coverage if in a qualifying plan with at least an 18% contribution rate.

Offsets, Social Security reports, and credits

If you get Social Security from your member work while on occupational disability, you must report that amount each year or your disability benefit stops. If death or disability happens on authorized military leave, plan benefits are reduced by the actuarial value of any military benefits received. If you return to work or reach normal retirement while on temporary disability, the plan transfers money to your retirement account for those months, capped at 16% of monthly pay per month, and you get service credit.

Clearer line-of-duty death decisions

The Board sets standards and procedures to decide if a death was in the line of duty or from an occupational disease. The rules allow administrative and court appeals, and the Board can appoint hearing officers. The Board also reviews some past survivor awards for deaths after December 31, 1996, using existing records. Results apply going forward and may change future payments.

Free licenses for disabled first responders

The law defines free‑license eligibility as a retired FPPA member with a permanent occupational disability, as found by the Association. You must be a Colorado resident.

Board can update and delegate rules

The FPPA Board may amend disability and survivor rules to comply with state and federal law and run the plan efficiently. The Board may delegate duties to the executive director, officers, committees, or contractors. Any changes must still follow legal limits.

Sponsors & Cosponsors

Sponsors

  • Andrew Boesenecker

    Democratic • House

  • Byron Pelton

    Republican • Senate

  • Marc Snyder

    Democratic • Senate

  • Rick Taggart

    Republican • House

Cosponsors

  • Bob Marshall

    Democratic • House

  • Brianna Titone

    Democratic • House

  • Chad Clifford

    Democratic • House

  • Cecelia Espenoza

    Democratic • House

  • Eliza Hamrick

    Democratic • House

  • Jennifer Bacon

    Democratic • House

  • Jarvis Caldwell

    Republican • House

  • Jamie Jackson

    Democratic • House

  • Julie McCluskie

    Democratic • House

  • Jacque Phillips

    Democratic • House

  • Jenny Willford

    Democratic • House

  • Kenny Nguyen

    Democratic • House

  • Rebekah Stewart

    Democratic • House

  • Michael Carter

    Democratic • House

  • Monica Duran

    Democratic • House

  • Meg Froelich

    Democratic • House

  • Mandy Lindsay

    Democratic • House

  • Manny Rutinel

    Democratic • House

  • Naquetta Ricks

    Democratic • House

  • Regina English

    Democratic • House

  • Ryan Gonzalez

    Republican • House

  • Rebekah Stewart

    Democratic • House

  • Ron Weinberg

    Republican • House

  • Sean Camacho

    Democratic • House

  • Sheila Lieder

    Democratic • House

  • Ty Winter

    Republican • House

  • Cathy Kipp

    Democratic • Senate

  • Chris Kolker

    Democratic • Senate

  • Dylan Roberts

    Democratic • Senate

  • Iman Jodeh

    Democratic • Senate

  • Judy Amabile

    Democratic • Senate

  • Jeff Bridges

    Democratic • Senate

  • John Carson

    Republican • Senate

  • James Coleman

    Democratic • Senate

  • Julie Gonzales

    Democratic • Senate

  • Janice Marchman

    Democratic • Senate

  • Kyle Mullica

    Democratic • Senate

  • Katie Wallace

    Democratic • Senate

  • Lisa Cutter

    Democratic • Senate

  • Matt Ball

    Democratic • Senate

  • Tony Exum

    Democratic • Senate

  • William Lindstedt

    Democratic • Senate

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. Governor Signed

    4/6/2026House
  2. Sent to the Governor

    3/27/2026House
  3. Signed by the President of the Senate

    3/26/2026Senate
  4. Signed by the Speaker of the House

    3/26/2026House
  5. Senate Considered House Amendments - Result was to Concur - Repass

    3/24/2026Senate
  6. House Third Reading Passed - No Amendments

    3/23/2026House
  7. House Second Reading Special Order - Passed with Amendments - Committee, Floor

    3/20/2026House
  8. House Second Reading Laid Over Daily - No Amendments

    3/17/2026House
  9. House Committee on Finance Refer Amended to House Committee of the Whole

    3/12/2026House
  10. Introduced In House - Assigned to Finance

    2/11/2026House
  11. Senate Third Reading Passed - No Amendments

    2/10/2026Senate
  12. Senate Second Reading Passed - No Amendments

    2/9/2026Senate
  13. Senate Second Reading Laid Over to 02/09/2026 - No Amendments

    2/6/2026Senate
  14. Senate Committee on Finance Refer Unamended - Consent Calendar to Senate Committee of the Whole

    2/3/2026Senate
  15. Introduced In Senate - Assigned to Finance

    1/27/2026Senate

Bill Text

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