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Department of State Treasurer Should Strengthen Its Oversight of the Firefighters' and Rescue Squad Workers' Pension Fund (March 2014)

Summary

The Firefighters' and Rescue Squad Workers' Pension Fund provides $170 per month in retirement benefits. The Pension Fund is adequately funded, but the State's annual required contribution now exceeds the amount of property insurance premium tax proceeds going to the General Fund. The Department of State Treasurer overstated appropriation requests due to overly conservative actuarial assumptions; accepted delinquent member contributions without collecting additional costs to compensate for lost investment earnings; and minimally enforced the prohibition against paying benefits to members still working as firefighters or rescue workers. The department is taking steps to address these issues, and the General Assembly should require annual reports on its progress.

Final Report

Executive Summary

Presentation

FOLLOW-UP REPORT

Relevant Legislation:

  • S.L. 2014-64: Amended laws related to (1) local firefighters' relief funds, the statewide Firefighters' Relief Fund, and the Rescue Squad Workers' Relief Fund, (2) Workers' Compensation for firefighters and rescue squad workers, (3) supplemental pensions for firefighters and rescue squad workers, and (4) the Volunteer Fire Department Fund and Volunteer Rescue/EMS Fund.

Subsequent Agency Actions:

  • The Department of State Treasurer’s Retirement Systems Division has undertaken a multi-year effort to improve the Firefighters’ and Rescue Squad Workers’ Pension Fund in the following areas: lapse assumption, operational compliance, and business processes.

Related Reports: