Background: The Volunteer Fire Fighters' and Reserve Officers' Relief and Pension System (VFFRORPS) provides death, disability, medical, and retirement benefits to volunteer firefighters, reserve officers, and emergency medical workers in cities, towns, and fire protection districts. VFFRORPS is funded by member and employer contributions and 40 percent of the revenue from the fire insurance premium tax.

Employers must participate in the death, disability, and medical benefit plans, collectively referred to as the relief benefits, offered by VFFRORPS, but participation in the pension component is optional and participants must enroll to be covered by the pension benefits. Around 13,000 members are covered by the death, disability, and medical benefits, and 10,600 members are covered by the pension benefits.

Relief benefits are available to members covered under the relief provisions of VFFRORPS who are injured in the performance of duty. Monthly and lump-sum line-of-duty death benefits are provided when VFFRORPS members die from injuries or sickness that are the result of the performance of duties. The lump-sum death benefit is currently $152,000. The monthly death benefit paid to a surviving widow or widower is currently $1,687 and is increased by $146 per month, per dependent child of the member, up to a maximum of $3,377 per month. The monthly surviving spouse and dependent child death benefits for VFFRORPS are indexed to the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers. In 2010, a $214,000 lump sum duty-related death benefit, indexed to the CPI, was added to the Law Enforcement Officers and Firefighters Retirement System; with the CPI increases the payment is currently $223,120.

If the widow or widower does not have legal custody of the deceased member's children, payments for the children are made to the person with legal custody of the children. If there is no widow or widower, then the monthly benefit that would be made to the widow or widower is made to the youngest child, along with $146 for each additional child. If there is no widow, widower, or children, then the benefit may be paid to a dependent parent or parents. The widow or widower benefits cease upon remarriage. The monthly payment may be converted to a lump sum payment not to exceed $12,000, at the discretion of the Board for Volunteer Firefighters and Reserve Officers.

Summary of Bill: The lump-sum death benefit paid to survivors of VFFRORPS members who die as a result of injuries or sickness that are the result of the performance of duties is increased from $152,000 to $214,000. The current additional $146 monthly survivor payment for each dependent child is increased to $500 per month, and is paid to the surviving parent or legal guardian of each child who was dependent upon the deceased member for support at the time of the member's death, and is either unemancipated or under 18 years of age. Monthly survivor benefits will no longer be affected by marriage. The limit for lump sum conversion of monthly survivor benefits is increased to $25,000.