Colorado Legislative Council Staff
LOCAL
CONDITIONAL FISCAL NOTE
No State General Fund Impact
Local Government Expenditure Impact
Drafting Number: Prime Sponsor(s): |
LLS 98-061 Rep. Grampsas |
Date: Bill Status: Fiscal Analyst: |
January 2, 1998 House Local Government Steve Tammeus (866-2756) |
TITLE: CONCERNING THE ELIMINATION OF A MAXIMUM BENEFIT AMOUNT FOR A RETIREMENT PENSION PAYABLE BY THE BOARD TO VOLUNTEER FIREFIGHTERS WHO HAVE TWENTY YEARS OF ACTIVE SERVICE AND WHO ARE OVER THE AGE OF FIFTY YEARS WHEN AN ACTUARIAL REVIEW INDICATES THAT A PAYMENT HIGHER THAN ONE HUNDRED DOLLARS IS ACTUARIALLY SOUND.
Summary of Legislation
STATE FISCAL IMPACT SUMMARY |
FY 1998/99 |
FY 1999/00 |
State Revenues General Fund Other Fund |
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State Expenditures General Fund Other Fund |
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FTE Position Change |
None |
None |
Local Government Impact — Local districts and municipalities that elect to pay a higher monthly benefit may be required to provide additional contributions to the volunteer firefighter pension plan. |
This bill allows pension boards to determine the maximum monthly benefit for qualifying volunteer firefighters based upon an actuarial review indicating the amount of the payment that is actuarially sound.
Current law limits the amount of the monthly benefit to no more than $100, unless an actuarial review indicates a higher payment is actuarially sound. Current law further limits the amount of the monthly benefit to no more than $450.
Summary of Assessment
This bill will not affect state revenue or expenditures. The bill, however, allows local government pension boards to increase monthly benefits which may require additional local government contributions to the plan. Therefore, this bill is assessed as having a local government conditional fiscal impact. This bill would become effective upon the signature of the Governor.
State Expenditures
The provisions of this bill would not affect the current cap on matching state funds paid to volunteer firefighter pension funds. Local governments who elect to increase the monthly benefits, and who are already receiving the maximum matching state funds, may be required to fund additional contributions to the plan. Therefore, this bill would not affect state expenditures.
Local Government Impact
The provisions of this bill allow local government pension boards to increase benefits payable to qualifying volunteer firefighters above the current monthly cap of $450. Therefore, districts and municipalities that elect to pay a higher monthly benefit may be required to provide additional contributions to the pension plan. The amounts of these increase, if any, have not been estimated.
Fire and Police Pension Association Impact
The provisions of this bill will have no fiscal impact on the FPPA.
Spending Authority
This fiscal note indicates that no additional appropriations are required to implement the provisions of the bill for FY 1998-99.
Departments Contacted
Fire and Police Pension Association Local Affairs