FINAL BILL REPORT

                  HB 2398

                          C 97 L 92

                     Synopsis As Enacted

Brief Description:  Revising provisions for the volunteer fire fighters' relief and pension fund.

By Representatives Fraser, Ballard, Wang, Bowman, Carlson, Sheldon, Rasmussen, Casada, J. Kohl and Morton; by request of Board for Volunteer Fire Fighters.

House Committee on Appropriations

Senate Committee on Ways & Means

Background:  The Volunteer Fire Fighters' Pension Plan was created in 1945 to provide an incentive to keep volunteer fire fighters active for longer periods of time.  Currently, an estimated 12,000 fire fighters participate in the plan.  Fees paid by municipalities on behalf of participants have never been increased, and fees paid by members of the pension plan have not increased since 1973.  Pension payments to volunteer fire fighters have not increased since 1981.

In the spring of 1991, the Legislature adopted House Bill 1058 concerning the distribution of interest earnings of funds managed by the state treasurer and the state Investment Board.  The bill amended the chapter of the Revised Code of Washington dealing with the volunteer fire fighters' pension and relief fund (RCW 41.24.030) but inadvertently deleted a paragraph creating the administrative fund.  The administrative fund may be used only after appropriation and only for the operating expenses of the pension and administrative funds. 

Summary:  HB 2398 increases annual contributions to the volunteer fire fighters' pension and relief fund by municipalities and volunteer fire fighters and increases the maximum monthly pension and corresponding smaller pensions paid to retired volunteer fire fighters. 

Annual municipal contributions on behalf of members increase from $10 to $30.  Annual member contributions increase from $20 to $30.  The formula for determining monthly pensions is revised from $25 plus $7 for each annual fee paid to $25 plus $8 for each annual fee paid.  The maximum monthly pension increases from $200 to $225. 

The bill also reestablishes the administrative fund. 

Votes on Final Passage:

House  96   0

Senate 47   0   (Senate amended)

House            (House refused to concur)

Senate 46   1   (Senate receded)

Effective:    July 1, 1992