State Payment Old Hire Death And Disability Benefits

Pension Review Commission. For members of the fire and police pension association hired before January 1, 1997, death and disability benefits are paid from state money in the statewide death and disability trust fund. State funding for this benefit discontinued in 1997 based on an assumption that the last payment had fully funded all of the benefits to be paid. Based on a current actuarial analysis, however, there is a shortfall in the trust fund. The bill requires the state treasurer to pay $33.191 make 5 yearly payments of $6.65 million for a total of $33.25 million from the general fund to the fire and police pension association for it to deposit into the trust fund so that there will be sufficient money to pay future death and disability benefits to these members.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)