Transcript OSFM PPT Template 1

North Carolina
Chief 101
Relief Fund
Chief 101 Class

This class consists of several programs
that together will satisfy the 9s inspection
criteria as specified by the North Carolina
Administrative Code. The primary
objective of the course is to inform
current and future chief officers of the
various aspects and complexities
surrounding the operations and
organization of North Carolina fire
departments.
Program Objectives

Describe administration of Firefighters’
Relief Fund Program.

List requirements for participation.

Explain how money can be spent.

Provide contact information.
What is the Relief Fund?
Firefighters’ Relief Fund is found in N.C.G.S. 58-84-35
House Bill 1034-Ratified Session Law 2014-64, Page 3:
(a) The board of trustees shall have entire control of the
funds derived from the provisions of this Article, and
shall disburse the funds only for the following purposes:
(1) To safeguard any firefighter in active service from
financial loss, occasioned by sickness contracted or
injury received while in the performance of his duties as
a firefighter.
(2) To provide a reasonable support for those actually
dependent upon the services of any firefighter who may
lose his life in the fire service of his town, city, or State,
either by accident or from disease contracted or injury
received by reason of such service. The amount is to
be determined according to the earning capacity of the
deceased.
What is the Relief Fund?
Firefighters’ Relief Fund uses (cont.)
(2a) To provide assistance, upon approval by the
Executive Director of the State Firemen's Association,
to a destitute member fireman firefighter who has
served honorably for at least five years. The
determination of destitute shall be based on the inability
of the firefighters, through no fault of their own, to
provide basic provisions to themselves or their families.
Such basic provisions include, but are not limited to,
assistance with housing, vehicle or commuting
expenses, food, clothing, utilities, medical care, and
funeral expenses.
(3) Repealed by Session Laws 1985, c. 666, s. 61.
(4) To provide for the payment of any fireman's
firefighter's assessment in the Firemen's Fraternal
Insurance Fund of the State of North Carolina if the
board of trustees finds as a fact that said firefighter is
unable to pay the said assessment by reason
of disability.
What is the Relief Fund?
Firefighters’ Relief Fund uses (cont.)
(5) To provide for benefits of (i) supplemental retirement,
including payment of firefighters' monthly assessments
for the North Carolina Firefighters' and Rescue Squad
Workers' Pension Fund, (ii) workers compensation,
including the payment of premiums to the Workers'
Compensation Fund established under N.C.G.S. 58-8710, and (iii) other insurance and pension protection for
firefighters otherwise qualifying for benefits from the
Firefighters' Relief Fund as set forth in Article 85 of this
Chapter.
(6) To provide for educational benefits to firemen
firefighters and their dependents who otherwise qualify
for benefits from the Firefighters' Relief Fund as set forth
in Article 85 of this Chapter.
(7) To provide for annual physicals that are required for
firefighter positions by the Department of Labor or are
recommended by the National Fire Protection
Association.
Gross Premium Tax (GPT)


All N.C. licensed insurance companies
pay to the N.C. Department of Revenue a
portion of the Fire & Lightning coverage
of all property insurance Gross Premium
Tax (GPT).
Simple Definition = .074 Cents Per $100
of any N.C. insurance policy containing
Fire Coverage (i.e. homeowners, rental,
etc.)
Distribution Amounts
 Distributions Amounts:
̶ Relief Fund (20%)
̶ Volunteer Safety Workers
Comp Fund (20%)
̶ Volunteer Fire Department Grants (20%)
̶ General Fund Redistributed to F&R
Pension (40%)
GPT Example
 2013 Funding
$30,364,035.00 Total Collected
$ 6,072,807.00 VSWCF (20%)
$ 6,072,807.00 Grants (20%)
$ 6,072,807.00 Relief Funds (20%)
$12,145,614.00 State General Fund
(Directed to Pension Fund with additional
funding from the state if needed.)
$180,000.00 NC State Firemen's Association (3%)
$155,000.00 OSFM Grants Administration (2%)
$120,000.00 OSFM Relief Fund (2%)
How is it funded?


All county tax administrators report to the
N.C. Department of Insurance the county
population and the property tax value for
each rated fire insurance district.
Checks are then sent electronically to all
departments with the provided relief fund
account numbers.
Rules for Participation

Must elect relief fund board of trustees:
– Two are elected by the fire department.
– Two are appointed by the City or
County Commissioners.
– One is appointed by the Insurance
Commissioner.
– One of the five members will be elected
as the relief fund treasurer. (All local
relief fund treasurers are covered by a
bond for losses in excess of $25,000
and up to a max of $1,000,000.00,
which is paid from the administrative
fees.)
Rules for Participation

Department must be a member of the
N.C. State Firemen’s Association.
– For information contact the Executive
Director at 1-800-253-4377.

Financial report of local relief fund:
– Submitted to N.C. State Firemen’s
Association.
– Form is available from NCSFA to the
department in June.
– Must be received at NCSFA Annual by
October 31.
Rules for Participation

Report of Fire Condition:
̶ Filed with the N.C. Dept. of Insurance.
̶ Filed annually by October 31.
̶ NCDOI notifies each City and/or
County Clerk-Finance Officer in August
to file the report.
̶ Required by N.C.G.S. 58-84-46 for all
rated fire districts.
̶ Provides the local relief fund board of
trustees names and identifies the
treasurer.
How Funds Can Be Spent
 Two Classes of Relief Fund Uses
1. Uses controlled by the LRFB.
The following uses are allowable if the
LRFB has reviewed and approved
them:
– To assist financially any firefighter in
active service for a sickness or injury
contracted in the line of duty. The
amount is dependent on need and
availability of funds as determined by
the LRFB upon review and the annual
earning capability of the
individual.
How Funds Can Be Spent
 Two Classes of Relief Fund Uses
1. Uses controlled by the LRFB.
– To provide reasonable support to family or
dependents of a firefighter who may lose
their life in the line of duty by accident or
sickness. The amount is dependent on
need and availability of funds as
determined by the LRFB upon review and
the annual earning capability of the
individual.
– To pay premiums in the Fraternal
Insurance Fund of N.C., if the firefighter is
a member and the LRFB has determined
the firefighter cannot pay for
reasons of disability.
How Funds Can Be Spent
 Two Classes of Relief Fund Uses
2. Uses controlled by the LRFB, but
require approval from the NCSFA.
̶ The reason for the review and
approval of the NCSFA Executive
Director is to insure it is an allowable
use, the fund is “financially sound” or
stable, and the use will not reduce
the funds to an extent where they
would not be available for uses.
How Funds Can Be Spent
 Two Classes of Relief Fund Uses
2. Uses controlled by the LRFB, but
require approval from the NCSFA.
̶ If a firefighter becomes financially
destitute, the LRFB can request the
use of funds to be used to assist the
firefighter.
How Funds Can Be Spent
 Two Classes of Relief Fund Uses
2. Uses controlled by the LRFB, but
require approval from the NCSFA.
̶ Upon approval of the LRFB and a
request made and approval given by
the Executive Director of the N.C.
State Firemen’s Association, the
payment of monthly assessments in
the N.C. Firefighter’s and Rescue
Workers Pension Fund is allowed.
Relief Fund Changes 2014
 Additional uses of Local Relief Funds:
̶ Fire and Rescue Workers Pension
Premium.
̶ Worker’s Compensation Premiums.
̶ Annual physicals required or
recommended by N.C. Dept. of Labor
or NFPA.
Relief Fund Changes 2014
– Modernization of language and
definitions (i.e. firemen – firefighter).
– Local and State Board to manage
funds prudently according to Chapter
36E (GS 36E).
– Increased reporting requirements.
– Electronic transfer of checks from
NCDOI.
– Dual signatures on all checks.
Relief Fund Changes 2014
 New definition of destitute added:
The determination of destitute shall be
based on the inability of the
firefighters, through no fault of their
own, to provide basic provisions to
themselves or their families. Such
basic provisions include, but are not
limited to, assistance with housing,
vehicle or commuting expenses, food,
clothing, utilities, medical care and
funeral expenses.
Relief Fund Changes 2014
 Financially Unsound defined:
“means that a local fund could not
sustain a requested expenditure or
could not make similar payments for
five years without the local fund's
balance falling below the greater of the
following:
1) Five hundred dollars ($500.00)
multiplied by the number of eligible
firefighters in the local department.
2) Twenty thousand dollars ($20,000).”
Relief Fund Changes 2014
 Increased Reporting Requirements
starting in 2015.
Details on the disbursements from
local relief funds, including how much
was disbursed for each allowable
purpose and how many members
received disbursements for those
purposes.
Relief Fund Changes 2014
 No legislative restriction on amount of
spending.
“A local board of trustees shall not be
restricted to making disbursements
solely from the interest.”
Relief Fund Changes 2014
 Local Bills vs. Public Bills
– What is a local bill? Local bills are
those bills that are passed to address
a specific issue(s) in a local area.
These bills are introduced by local
legislators on behalf of their
constituents and only impact the areas
designated within the bill.
– What is a public bill? Public bills are
those bills that are introduced and
passed by the General Assembly and
impact the state as a whole.
Relief Fund Changes 2014
 Repeal of Local Law Provisions
“The following provisions contained within any
local act enacted or amended prior to January 1,
2014, are hereby repealed:
1) Any redirection, at the time of receipt, of
funds directed to a fire district under G.S.
58-84-25(c) to a fund other than a local
relief fund.
2) Any restriction that would be inconsistent
with G.S. 58-84-35(d).
3) Any transfer of interest earned on a local
relief fund from the local relief fund to
another fund.
Relief Fund Changes 2014
 Repeal of Local Law Provisions
4)
Any transfer of funds from a local relief
fund to a supplemental retirement fund
based on the local relief fund exceeding
a certain amount.
5)
Any allowable expenditures that are not
within the scope of the list provided in
G.S. 58-84-35(a).
6)
Any variation from the certification
requirement under G.S. 58-84-35(b)."
Relief Fund Changes 2014
 Repeal of Local Law Provisions
– Regardless of the type account they
are held in, relief funds cannot be
hidden and must be reported on the
annual financial report; and all funds
must be administered by the Local
Relief Fund Board.
Relief Fund Changes 2014
 New Maximum Balance (For July 1, 2015)
– The balance of a local fire department's
Firefighter's Relief Fund for a given year shall
not exceed the product of multiplying the
number of members on the department's roster
as of January 1 for that year by the sum of two
thousand five hundred dollars ($2,500).
– A local fire department whose relief fund
balance, at the time of annual financial report,
exceeds the maximum amount above shall not
be entitled to receive a check for that year, and
the Commissioner shall redistribute the funds
that the department would have received to
other eligible departments, first within the
county, then statewide.
Relief Fund Changes 2014
 New Maximum Balance Exception:
Supplemental Retirement Account (SRA)
– A board of trustees of a local Firefighters'
Relief Fund may, with the authorization of
and under guidelines provided by the North
Carolina State Firemen's Association,
dedicate a portion of the local Firefighters'
Relief Fund towards providing supplemental
retirement. If this SRA approved by NCSFA is
used solely for supplemental retirement within
the guidelines provided by the North Carolina
State Firemen's Association, then such
dedicated amounts shall not count towards the
maximum allowable balance under subsection
(a) of this section.
Relief Fund Changes 2014
 All N.C. firefighters are now protected by
NCSFA LODD benefit regardless of
membership in the association.
 The NCSFA AD&D coverage is not
included in this statutory requirement.
Frequently Asked
Questions
 Who has control of the relief fund money?
– The Local Relief Fund Board of Trustees.
 My department is owned & operated by
municipal government, do they control the
relief fund?
– No. The Local Relief Fund Board of
Trustees controls the funds.
 Can equipment or other purchases be made
with relief fund money?
– No. N.C. General Statute 58-84-35 defines
how the fund can be used.
Frequently Asked
Questions
 Can the Local Relief Fund Board make all
disbursement decisions?
– No.
– Disbursements for destitute firefighter’s,
supplemental retirement, pension & other
insurance protection, educational benefits
MUST be approved by the Local Board
and the NCSFA.
– This is to ensure the fund balance will
remain actuarially sound for its original
intent, to assist an injured firefighter.
Frequently Asked
Questions
 Who is responsible to file the membership,
financial statement and the Report of Fire
Condition?
– The fire department files:
• Annual NCSFA membership and the
Relief Fund financial statement with the
N.C. State Firemen’s Association
annually by October 31.
– The City and/or County Clerk-Finance
Officer files:
• Report of Fire Condition with the N.C.
Department of Insurance annually
by October 31.
Frequently Asked
Questions
 Can the Local Relief Fund Board make
all disbursement decisions?
– No. All requests to withdraw money
from this fund MUST be approved by
the local board and the N.C. State
Firemen’s Association. This ensures
the fund balance remains actuarially
sound for its original intent, to assist an
injured firefighter.
Who Appoints the Relief
Fund Board of Trustees?
 The fire department elects two
representatives, the City and/or County
appoints two representatives, and the
N.C. Insurance Commissioner selects
one representative. One of the five board
members will be elected to serve as the
relief fund treasurer.
Do the Relief Fund Board Members
Have to be a Resident of the Fire
District?
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The two fire department appointees shall
be residents of the fire district OR active
or retired members of the fire department.
The two City/County Commissioner
appointees shall be residents of the fire
district.
The N.C. Insurance Commissioner
appointee shall be a resident of the fire
district OR an active or retired member of
the fire department.
What is the Term for Board
Members?
 A board member’s term shall be as follows:
– The fire department and City/County
Commissioners shall hold an election each
January to elect their representatives to the
board.
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One member will serve for two years and one
member will serve for one year.
Thereafter, each year in January they shall elect
only one member, and his term of office shall be
for two years.
The N.C. Commissioner of Insurance appointee
shall serve at the pleasure of the
Insurance Commissioner.