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



 



 

State Expenditures

General Fund

Other Fund


 


 

FTE Position Change

None

None

Local Government ImpactLocal 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