SENATE BILL REPORT

HB 1776

BYRepresentative Hine; by request of Office of Financial Management

Creating a volunteer firefighters' pension administrative fund.

House Committe on Appropriations

Senate Committee on Ways & Means

Senate Hearing Date(s):March 29, 1989; March 30, 1989

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Fleming, Gaspard, Hayner, Johnson, Lee, Matson, Moore, Newhouse, Niemi, Owen, Saling, Smith, Talmadge, Warnke, Williams.

Senate Staff:Charles Langen (786-7715)

                  March 31, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 30, 1989

BACKGROUND:

The Volunteer Firemen's Pension System is administered by the Board for Volunteer Firemen.  Participation is open to members of volunteer fire departments.  The system is funded through members' fees and revenue received from a tax on fire insurance premiums. Assets of the system are held in the volunteer firemen's relief and pension fund.  Both benefits and administrative expenses are paid from this fund.

Assets for the other state retirement systems are held in separate funds from the monies required for administration of the retirement systems.

In 1987, the deferred compensation revolving fund was split into a principal account and an administrative account.  The same change was also made to the state employees insurance fund.

SUMMARY:

The volunteer firemen's relief and pension fund is split into two funds.  The volunteer firefighters' relief and pension principal fund will be used for making all benefit payments. The volunteer firefighters' relief and pension administrative fund will be used for administrative and budget functions.  Changes in language are made to make the statute gender neutral.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Jerry Allard, State Actuary