SENATE BILL REPORT

ESB 5590

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

Making changes to the firefighters relief and pension fund.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 3, 1989; March 6, 1989

Majority Report:  Do pass.

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

Senate Staff:Charles Langen (786-7715)

                  March 14, 1989

AS PASSED SENATE, MARCH 10, 1989

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 $5 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 $5 per year to $10 per year. 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.  The board is to maintain necessary records, including the names and addresses of each person enrolled in the system.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Effective Date:July 1, 1989

Senate Committee - Testified: Senator Paul Conner; Joe Faubian, Secretary, Office of Volunteer Firemen; Otto Jensen, Executive Director, Washington Association of Fire Chiefs; Jerry Allard, State Actuary