Northglenn requests deeper analysis after third‑party comparison of police retirement options

City staff and a third‑party adviser briefed Northglenn City Council on Sept. 23 on retirement plan options for police officers after a request from the Fraternal Order of Police to evaluate moving from a local defined‑contribution plan to the statewide FPPA defined‑benefit system.

Inovest Portfolio Solutions principal Jared Martin described conceptual differences between defined‑contribution (money‑purchase) accounts — the city’s current police retirement structure administered via Mission Square Retirement — and the FPPA defined‑benefit model, which defines retirement payouts and is administered at the state level. Martin emphasized he was providing impartial, educational analysis: “I’m not here to give ... to opine which path to take,” he said; city staff later said they would commission a deeper financial study if council desired.

Key points: The current money‑purchase plan holds individual accounts, allows flexible distributions and leaves assets to beneficiaries; FPPA pools assets, uses actuarial funding and can provide a predictable lifetime benefit. Martin noted trade‑offs: defined benefit plans can lower retirement risk for employees near retirement but concentrate funding and longevity risk on the employer; defined contribution plans shift investment and longevity risk to employees. Presentation details included vesting differences (current local plan 6‑year vesting, FPPA 5 years in the example discussed) and recent FPPA contribution increases cited as a historical trend.

Council direction: Several council members spoke in favor of studying the question further. City Manager Heather Geyer summarized next steps and staff sought council consensus. Council members gave consensus to proceed with a more detailed financial analysis to quantify employer funding impacts and options for reentry, note potential effects on recruitment and retention, and return with timeline and cost estimates.

What happens next: Staff will pursue a deeper fiscal analysis of the funding implications, possible contribution rates, and transition costs, and return to council with findings for a policy decision.