FINAL BILL REPORT

SB 5590

                              C 91 L 89

BYSenators Conner, Johnson, Newhouse, Rasmussen, Hansen and von Reichbauer

Making changes to the firefighters relief and pension fund.

Senate Committee on Ways & Means

House Committe on Appropriations

SYNOPSIS AS ENACTED

BACKGROUND:

The Volunteer Firemen's Relief and Pension Act was established to provide long-term volunteer firefighters with disability and survivor coverage in the event injury or death occurred in putting out a fire.  The funding of the relief and pension system comes from the following sources:  (1) a $3 fee for death and disability benefits paid by the municipal corporation for each volunteer member or 1 percent of salary for each fully paid member; (2) an optional $30 fee for retirement benefits, $20 of which is paid by the member, if the option is chosen, and $10 of which is paid by the municipal corporation; and (3) 40 percent of the fire insurance premium tax collected annually.  The assets of the system are invested by the State Treasurer in fixed income instruments.

SUMMARY:

The assets of the Volunteer Firemen's Relief and Pension System, upon request of the State Treasurer, may be invested by the State Investment Board.  Volunteer fire department fees are increased from $3 per year to $10 per year or 0.015 percent of the annual salary of a full-time member.  The disability and survivor benefits are revised to be based on the statewide average wage as is done in industrial insurance.  The Office of the State Actuary will provide actuarial services for the board.  Provisions are made for a lump sum payment of the actuarial equivalent of the annuity or death benefit.  The board is to maintain necessary records, including the names and addresses of each person enrolled in the system.

VOTES ON FINAL PASSAGE:

     Senate   45    0

     House 91  0

EFFECTIVE:July 1, 1989