House of Representatives

SB 1211

PSPRS fire fighters; asset transfers

Sponsors: Bee, McClure, Graf, et al

DP	Committee on Retirement & Government Operations
X	Caucus and COW
	As Passed the House

HB 2239 allows fire districts, that are administered by a board, and that have 25 or more full-time fire fighters to transfer the excess assets from the fire fighters’ relief pension fund to the Public Safety Personnel Retirement System (PSPRS), if the district elects to provide coverage to its full-time fire fighters under PSPRS.

History

Currently, the proceeds of the fire insurance premium tax, after deducting cancellations, return premiums, dividends and the amount received as reinsurance on business in the state, is appropriated and set aside for distribution to, among other entities, fire districts for the payment of benefits under the fire fighters’ relief pension fund. In addition to the tax distribution, payroll deductions or percentage of salary or compensation deductions as well as additional employer and/or employee contributions are paid into the fire fighters’ relief pension fund. The portion of the principal, which accrues from salary deductions, may be drawn upon when necessary. Otherwise, all other sums shall be set aside in the fund.

A person having served as a member of a fire district for 25 years or more, or who has reached 62 years of age, and served 20 years or more, shall be paid a monthly pension not to exceed $200.00 a month based on the benefits available to members of that fire district as determined by the board of trustees. The pension may be increased or decreased in amount, or discontinued at the discretion of the board of trustees.

Laws 1998, Chapter 110, allowed board administered fire districts with 25 or more full-time fire fighters to transfer any assets from the fire fighters’ relief pension fund, in excess of the funds needed to provide benefits for volunteer fire fighters, and assets under any existing retirement program that the fire district elects to transfer to PSPRS by August 31, 1999. This legislation allows a similar transfer to PSPRS through January 1, 2001 to January 1, 2006.

Provisions

· Allows board administered fire districts with 25 or more full-time fire fighters to transfer assets from the fire fighters’ relief pension fund, in excess of the funds needed to provide benefits for volunteer fire fighters, to PSPRS for the purpose of paying any past, present or future service cost attributable to the full-time fire fighters.

· States that the fire district board shall determine, by actuarial procedures prescribed by PSPRS, the amount necessary to remain in the fire fighters’ relief pension fund for volunteer fire fighter benefits, prior to the transfer of funds.

· Allows excess assets to be transferred by a lump sum at the time of the joinder agreement or in installments or in any other manner allowed by PSPRS.

· Requires a fire district to elect to transfer excess assets by December 31, 2002.

· States that any joinder agreement and election to transfer made prior to December 31, 2002, is governed by this legislation.

· Authorizes this act effective from January 1, 2001 to January 1, 2006.

SB 1211 passed the Retirement and Government Operations Committee unamended.