Committee backs bill allowing firefighters’ board to grant one-time payments to retirees using system funds

Chad Major, representing professional firefighters, told the Senate Finance Committee that House Bill 18 would authorize the firefighters’ retirement board to make a one-time payment to retirees from funds the board has set aside. Major said similar systems elsewhere have a mechanism—an account the board controls—to provide nonrecurring payments to retirees, and the bill would grant the firefighters’ board that authority.

Barbara Goodson of the Firefighters’ Retirement System told the committee the board generated roughly $6,000,000 in a separate account over the past year by keeping the employer rate above the actuary’s required level when setting rates. “The board felt very strongly that we needed to do something for the retirees because we have not been able to give a COLA by law in about 15 years,” Goodson said. She confirmed the system’s action produced the current balance and that the bill would give the board authority to distribute a one-time payment if the board votes to do so.

Chad Major said the bill would allow the board to provide, if it so chooses, a one-time $2,000 payment to retirees this year as a cost-of-living or one-time payment; the amount and timing would be at the board’s discretion under the authority the bill would provide. Senators from both parties supported the measure in committee and moved the bill favorable.

Committee members said the bill would align the firefighters’ system with other retirement boards that already have similar authority and praised the proposal as a way to help retirees facing higher living costs. The committee reported HB18 favorable with no recorded opposition in the transcript.