BILL NUMBER: AB 197 CHAPTERED 09/25/01 CHAPTER 331 FILED WITH SECRETARY OF STATE SEPTEMBER 25, 2001 APPROVED BY GOVERNOR SEPTEMBER 24, 2001 PASSED THE ASSEMBLY AUGUST 31, 2001 PASSED THE SENATE AUGUST 28, 2001 AMENDED IN SENATE JUNE 25, 2001 AMENDED IN ASSEMBLY MAY 31, 2001 INTRODUCED BY Assembly Member Correa FEBRUARY 7, 2001 An act to amend Sections 50952 and 50965 of the Government Code, relating to volunteer firefighters. LEGISLATIVE COUNSEL'S DIGEST AB 197, Correa. Volunteer firefighters: death benefit. Existing law provides for the Volunteer Firefighters Length of Service Award System Fund, which is administered by the Board of Administration of the Public Employees' Retirement System and funded by contributions from contracting departments. Volunteer firefighters may receive from the fund up to $100 per month for life, based on their length of service, and a supplemental amount not to exceed $50, based on an actuarial analysis of the condition of the fund as determined by the board. This bill would additionally require the board to pay a lump-sum benefit of $3,000 upon the firefighter's death to his or her designated beneficiary or estate, if the firefighter has accrued 10 years of service. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 50952 of the Government Code is amended to read: 50952. For the purposes of this chapter, unless the context otherwise requires, the definitions set forth below shall mean the following: (a) "Actuarial interest rate" means the interest rate fixed by the board for purposes of actuarial valuation of the assets and liabilities of the award system. (b) "Annual interest rate" means the interest rate fixed by the board for purposes of crediting interest. (c) "Award" means monthly payments for life derived from contributions by a department. (d) "Award recipient" means a former member who has a minimum of 10 years of service credit in the program, has attained the minimum age of 60 years, has filed an application with the award system, and is receiving an award. (e) "Award system" means the Volunteer Firefighters Length of Service Award System established by this chapter. (f) "Board" means the Board of Administration of the Public Employees' Retirement System. (g) "Certified current service credit" means credit certified pursuant to Section 50959 for services rendered after the contract operative date. (h) "Contract operative date" means the first day of the month next following the date on which the contract becomes effective. (i) "Department" means a regularly organized fire department of a city, county, city and county, or district, having official recognition of the government of the city, county, city and county, or district in which such department is located. (j) "Fund" means the Volunteer Firefighters Length of Service Award System Fund created by this chapter. (k) "Member" means a volunteer of a department, the governing body of which has contracted with the Public Employees' Retirement System under this chapter, and who has been certified by a qualifications review commission as having qualified for at least one year of current service credit. Membership, once established, continues indefinitely unless membership is terminated pursuant to Section 50957. (l) "Service credit" means the aggregate of certified current service credit. (m) "Service year" means the period beginning July 1 and ending June 30 of the following year. (n) "Volunteer" means any person registered as a volunteer member of a regularly organized fire department as defined in subdivision (i). (o) "Certified prior service credit" means credit for service performed prior to the contract operative date as certified by a qualifications review commission. That prior service shall be credited in the award system only in addition to current service for the same department or its predecessor. Certified prior service credit is optional to the contracting agency. The provisions of this subdivision shall not apply to any department or to its volunteers unless and until the department elects to be subject to it by an amendment to its contract which is approved pursuant to Section 50973. In no event shall any member be credited with more than eight years of prior service credit. SEC. 2. Section 50965 of the Government Code is amended to read: 50965. (a) The award shall consist of one hundred dollars ($100) per month for life reduced proportionately for service less than 20 years. (b) (1) A supplemental amount, not to exceed fifty dollars ($50), may be added to the award, based on an actuarial analysis of the condition of the fund as determined by the board. The amount shall be reviewed annually by the board to ensure that it remains consistent with the maintenance of adequate actuarial reserves. (2) Supplemental payments shall not commence until any outstanding loan to the award system has been repaid to the General Fund. (c) Upon the death of award recipient or a member of the award system who has accrued 10 years of service, the board shall pay a one-time lump-sum death benefit of three thousand dollars ($3,000) to the member's designated beneficiary or the member's estate.