Colorado Legislative Council Staff
LOCAL
REVISED CONDITIONAL FISCAL NOTE
No State General Fund Impact
Local Revenue and Expenditure Impact
(replaces Fiscal Note dated February 26, 1998)
Drafting Number: Prime Sponsor(s): |
LLS 98-788 Rep. Grampsas |
Date: Bill Status: Fiscal Analyst: |
March 13, 1998 House Appropriations Steve Tammeus (866-2756) |
TITLE: CONCERNING PENSION BENEFIT AMOUNTS PROVIDED UNDER THE “VOLUNTEER FIREFIGHTER PENSION ACT”.
Summary of Legislation
STATE FISCAL IMPACT SUMMARY |
FY 1998/99 |
FY 1999/2000 |
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 — The provisions of this bill may affect the amount of local government (districts and municipalities) pension contributions if an increased amount of funding is required to ensure the local pension fund remains actuarially sound. |
This bill, as amended by the House Local Government Committee (House Journal, March 12, 1998, Page 886), repeals the maximum benefit amount of $450 per month for a volunteer firefighter and authorizes the board of a municipality to determine the amount of the retirement pension to be actuarially sound, subject to the prior consent of the municipality’s governing body. The bill establishes the maximum amounts of the following volunteer firefighter pension benefits:
• the amount of a short-term disability monthly annuity to be not more than one-half the amount of the retirement pension as determined by the board, or $250, whichever is greater;
• the amount of a long-term disability monthly annuity to be not more than the amount of the retirement pension as determined by the board, or $450, whichever is greater;
• the maximum total retirement benefits as the maximum amount of the retirement pension as determined by the board, or $450, whichever is greater;
• the amount of a survivor benefit monthly annuity to be not more that one-half the amount of the retirement pension as determined by the board, or $225, whichever is greater;
• the amount of a funeral benefit to be not more than twice the amount of the retirement pension as determined by the board, but not less than $100.
The bill also provides that survivor benefits are eligible for post-retirement increases. The bill will become effective on July 1, 1998.
The provisions of this amended bill will not affect state revenue or expenditures. The provisions of this bill may affect local government revenue and expenditures if fire districts elect to increase the amounts of certain volunteer firefighter pension benefits, and if the district is required to increase contributions to the fund. Therefore, this bill is assessed as having a local government conditional fiscal impact.
Fire and Police Pension Association Impact
The provisions of this bill will not affect the administrative or operating expenses of the Fire and Police Pension Association.
Local Government Impact
The amended bill will allow municipalities and districts to elect to increase certain volunteer firefighter pension benefits so long as the pension fund remains actuarially sound. In the event the municipality or district should be required to contribute additional funds to keep the fund actuarially sound, the amount of the state’s contributions would not be affected.
Spending Authority
This fiscal note would imply that no new state appropriation or spending authority is required for FY 1998-99 to implement the provisions of the bill.
Departments Contacted
Local Affairs Fire and Police Pension Association