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Committee hears bill to raise monthly pension for volunteer firefighters from $175 to $200
Summary
Representative Shelly Fyant and retirement officials told the House State Administration Committee that a $25 increase to the Volunteer Firefighters Compensation Act benefit would support retention and—per an actuarial forecast—keep the plan fully funded by fiscal 2026 under current assumptions. Proponents from tribal, farming and local governments urged a due pass.
Representative Shelly Fyant opened the committee hearing on House Bill 358, saying the bill increases the monthly VFCA (Volunteer Firefighters Compensation Act) pension from $175 to $200.
Fyant, who represents House District 91, said the VFCA is a length-of-service award plan created in 1965 and administered by the Public Employees Retirement Administration. She told the committee the last increase occurred in 2015 and described the $25 increase as a modest step to boost morale and help retain volunteers who provide firefighting, EMT and other first-response services in unincorporated towns and rural communities.
William Hollahan, executive director of the Montana Public Employee Retirement Administration, presented an actuary briefing and a one-page handout to the committee. Hollahan said the plan’s funded ratio was 107% as of the 06/30/2024 valuation and that the retirement board’s actuary projects the VFCA would be about 101% funded by the close of fiscal 2026 if the $25 increase is adopted and current actuarial assumptions hold. He explained the VFCA is funded by a statutory appropriation equal to 5% of fire insurance premium taxes collected statewide.
Several proponents spoke in favor. Lads Forstar submitted a letter from the Montana American Indian Caucus urging a due pass and said the caucus believes the bill is good for Indian country. Patrick Yawaki, representing the Blackfeet Tribe, Fort Belknap Indian Community and the Chippewa Cree Tribe, and witnesses from the Montana Farmers Union and local county government described volunteers’ wide-ranging duties—wildland and structure firefighting, hazardous-materials responses and medical calls—and urged support.
Committee members asked whether the VFCA benefit is tied to a consumer price index. Hollahan replied the VFCA is a statutorily set monthly benefit and is not automatically tied to the CPI; he said indexing could be contemplated but would change the actuarial forecast. He and the sponsor discussed other funding scenarios that had been considered—raising fire insurance premium tax shares or a one-time appropriation—but said the $25 increase preserves the plan’s fully funded status under the actuary’s baseline assumptions.
The sponsor closed by reiterating the reliance of rural communities on volunteer firefighters and urging a due pass. The committee closed the hearing on HB358 and proceeded to the next agenda item.
What happens next: The bill was heard and proponents urged a due pass; the committee did not take a final vote on HB358 during this session transcript.
