SENATE BILL REPORT

                                    HB 2398

          AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 20, 1992

Brief Description:  Revising provisions for the volunteer fire fighters' relief and pension fund.

SPONSORS: Representatives Fraser, Ballard, Wang, Bowman, Carlson, Sheldon, Rasmussen, Casada, J. Kohl and Morton; by request of Board for Volunteer Firefighters

HOUSE COMMITTEE ON APPROPRIATIONS

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass. 

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bailey, Bauer, Bluechel, Cantu, Gaspard, M. Kreidler, Murray, Newhouse, Rinehart, Saling, Talmadge, West, Williams, and Wojahn.

Staff:  Denise Graham (786‑7715)

Hearing Dates: February 19, 1992; February 20, 1992

BACKGROUND:

The Volunteer Firefighters' Pension Plan was created in 1945.  Currently, an estimated 12,000 firefighters participate in the plan.  Fees paid by municipalities on behalf of participants have never increased, fees paid by members of the pension plan have not increased since 1973.  Pension payments to volunteer firefighters have not increased since 1981.

In 1991, the Legislature adopted House Bill 1058 concerning the distribution of interest earnings of funds managed by the State Treasurer and the state Investment Board.  The bill amended the Revised Code of Washington chapter dealing with the volunteer firefighters' pension and relief fund (41.24.030) and inadvertently deleted the paragraph creating the administrative fund.  The administrative fund may be used only after appropriation, and may be used only for the operating expenses of the pension and administrative funds. 

SUMMARY:

Annual contributions made by municipalities and volunteer firefighters to the volunteer firefighters' pension and relief fund are increased and the maximum monthly pension and corresponding smaller pensions paid to retired volunteer firefighters are increased. 

Annual municipal contributions on behalf of members increase from $10 to $30.  Annual member contributions increase from $20 to $30.  The formula for determining monthly pensions is revised from $25 plus $7 for each annual fee paid to $25 plus $8 for each annual fee paid.  The maximum monthly pension increases from $200 to $225. 

The administrative fund is reestablished. 

Appropriation:  none

Revenue:  none

Fiscal Note:  available

Effective Date:  July 1, 1992

TESTIMONY FOR:

Retired volunteer fire fighters have not received an increase in their pensions since 1981.  They deserve to have their pensions increased.

TESTIMONY AGAINST:  None

TESTIFIED:  Representative Karen Fraser (pro); Joe Faubion, Board of Volunteer Fire Fighters