SENATE BILL REPORT

EHB 2177

BYRepresentatives Bristow, Ballard, Fraser and Todd

Making changes to the firefighters' relief and pension fund.

House Committe on Appropriations

Senate Committee on Ways & Means

Senate Hearing Date(s):

Senate Staff:Charles Langen (786-7715)

AS OF MARCH 23, 1989

BACKGROUND:

The volunteer firemen's pension and relief fund is open to members of volunteer fire departments and is administered by the Board for Volunteer Firemen.  The State Investment Board is responsible for investing monies in the fund.  Currently the State Investment Board is authorized to make only debt investments for the fund.  This contrasts with the state's other retirement funds for which the Investment Board may make investments in both debt instruments and equities.  Historically, equity investments have exceeded debt investments by 4.5 percent to 5.0 percent per year.

The fund provides death and disability benefits in lieu of workers' compensation.  Because of this, the level of benefits provided by the fund has generally been set at a level equal to that provided by workers' compensation.

Firefighters who have served 25 years as active members and are 65 years of age receive a pension of $200/month for the balance of their lives.  No joint and survivor retirement benefits are currently available under the plan.

Four sources provide monies to the fund.  They include:

      1)Fire department death and disability fees - $5 per year;

2)!tl Fire department retirement fee - $10 per year;

3)!tl Member retirement fee - $20 per year;

4)!tl 40 percent of fire insurance premium tax.

SUMMARY:

Investment restrictions on the volunteer firemen's relief and pension fund are removed to allow funds to be invested by the State Investment Board in the same types of investments as the other state retirement systems.

Disability and survivor's benefits are increased to a level equal to that provided by workers' compensation.

An optional joint and survivor benefit is offered as a retirement benefit.

Fire departments' costs for death and disability fees are increased from $5.00 to $10.00 per year per firefighter.

The State Actuary is directed to provide actuarial services to the Board for Volunteer Firefighters.  The board is to keep records of the names and addresses of all persons enrolled.

Language is changed to make the statute gender neutral.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available