GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	2 

HOUSE BILL 756
Committee Substitute Favorable 5/8/89

Short Title:  Firemen's/Rescue/Funds.	(Public)
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Sponsors:
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Referred to:  
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March 20, 1989

A BILL TO BE ENTITLED
AN ACT TO AMEND THE FIREMEN'S AND RESCUE SQUAD WORKERS' PENSION FUND AND THE FIREMEN'S RELIEF FUND.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 118-41.1 reads as rewritten:
"§ 118-41.1. Additional retroactive membership.
(a)	Any fireman or rescue squad worker who is now eligible and is a member of a fire department or rescue squad chartered by the State of North Carolina and who has not previously elected to become a member may make application through the board of trustees for membership in the fund on or before March 31, 1987. The person shall make a lump sum payment of five dollars ($5.00) per month retroactively to the time he first became eligible to become a member, plus interest at an annual rate of eight percent (8%), for each year of his retroactive payments. Upon making the lump sum payment, the person shall be given credit for all prior service in the same manner as if he had made application for membership at the time he first became eligible. Any member who made application for membership subsequent to the time he was first eligible and did not receive credit for prior service may receive credit for this prior service upon lump sum payment of five dollars ($5.00) per month retroactively to the time he first became eligible, plus interest at an annual rate of eight percent (8%), for each year of his retroactive payments. Upon making this lump sum payment, the date of membership shall be the same as if he had made application for membership at the time he was first eligible.  Any fireman or rescue squad worker who has applied for prior service under this subsection shall have until October 1, 1989, to pay for this prior service and, if this payment is not made by October 1, 1989, he shall not receive credit for this service.
(b)	Effective April 1, 1987, any fireman or rescue squad worker who has not reached his thirty-fifth birthday who is eligible and who has not previously elected to become a member may make application through the board of trustees for membership in the fund at any time. The person shall make a lump sum payment of five dollars ($5.00) per month retroactively to the time he first became eligible to become a member, plus interest at an annual rate to be set by the board of trustees, for each year of his retroactive payments. Upon making this lump sum payment, the person shall be given credit for all prior service in the same manner as if he had made application for membership at the time he first became eligible. Any member who has not reached his thirty-fifth birthday who made application for membership subsequent to the time he was first eligible and did not receive credit for prior service may receive credit for such prior service upon lump sum payment of five dollars ($5.00) per month retroactively to the time he first became eligible, plus interest at an annual rate to be set by the board of trustees, for each year of his retroactive payments. Upon making this lump sum payment, the date of membership shall be the same as if he had made application for membership at the time he was first eligible.  Any fireman or rescue squad worker who applies for prior service under this subsection shall have six months from the date of his application to pay for this prior service and if the payment is not made within that time he shall not receive credit for the prior service."
Sec. 2.  Effective July 1, 1989, G.S. 118-42 reads as rewritten:
"§ 118-42.  Monthly pensions upon retirement.
Any member who has served 20 years as an ‘eligible fireman' or ‘eligible rescue squad worker' in the State of North Carolina, as provided in G.S. 118-38 and G.S. 118-39, and who has attained the age of 55 years is entitled to be paid a monthly pension from this fund. The monthly pension shall be in the amount of one hundred ten dollars ($110.00) per month. 
Members shall pay five dollars ($5.00) per month as required by G.S. 118-40 and G.S. 118-41 for a period of no longer than 20 years. No ‘eligible rescue squad member' shall receive a pension prior to July 1, 1983. No person shall be entitled to a pension hereunder until his official duties as a fireman or rescue squad worker for which he is paid compensation shall have been terminated and he shall have retired as such according to standards or rules fixed by the board of trustees.
Any member who is totally and permanently disabled while in the discharge of his official duties as a result of bodily injuries sustained or as a result of extreme exercise or extreme activity experienced in the course and scope of his official duties and who leaves the fire or rescue squad service because of this disability shall be entitled to be paid from the fund a monthly benefit in an amount of one hundred ten dollars ($110.00) per month beginning the first month after his fifty-fifth birthday. All applications for disability are subject to the approval of the board who may appoint physicians to examine and evaluate the disabled member prior to approval of his application, and annually thereafter. Any disabled member shall not be required to make the monthly payment of five dollars ($5.00) as required by G.S. 118-40 and G.S. 118-41.
Any member who is totally and permanently disabled for any cause, other than line of duty, who leaves the fire or rescue squad service because of this disability and who has at least 10 years of service with the pension fund, may be permitted to continue making a monthly contribution of five dollars ($5.00) to the fund until he has paid into the fund the sum of one thousand two hundred dollars ($1,200). The member shall upon attaining the age of fifty-five years be entitled to receive a pension as provided by this section. All applications for disability are subject to the approval of the board who may appoint physicians to examine and evaluate the disabled member prior to approval of his application annually thereafter.
Any member who, because his residence is annexed by a city under Part 2 or Part 3 of Article 4 of Chapter 160A of the General Statutes, or whose department is closed because of an annexation by a city under Part 2 or Part 3 of Article 4 of Chapter 160A of the General Statutes, and because of such annexation is unable to perform as a fireman of any status, and if the member has at least 10 years of service with the pension fund, may be permitted to continue making a monthly contribution of five dollars ($5.00) to the fund until he has paid into the fund the sum of one thousand two hundred dollars ($1,200). The member upon attaining the age of 55 years and completion of such contributions shall be entitled to receive a pension as provided by this section. Any application to make monthly contributions under this section shall be subject to a finding of eligibility by the Board of Trustees upon application of the member.
The pensions provided shall be in addition to all other pensions or benefits under any other statutes of the State of North Carolina or the United States, notwithstanding any exclusionary provisions of other pensions or retirement systems provided by law."
Sec. 3.  Effective July 1, 1990, G.S. 118-42, as rewritten by Section 2 of this act, reads as rewritten:
"§ 118-42.  Monthly pensions upon retirement.
Any member who has served 20 years as an ‘eligible fireman' or ‘eligible rescue squad worker' in the State of North Carolina, as provided in G.S. 118-38 and G.S. 118-39, and who has attained the age of 55 years is entitled to be paid a monthly pension from this fund. The monthly pension shall be in the amount of one hundred thirty dollars ($130.00) per month. 
	Members shall pay five dollars ($5.00) per month as required by G.S. 118-40 and G.S. 118-41 for a period of no longer than 20 years. No ‘eligible rescue squad member' shall receive a pension prior to July 1, 1983.
Any member who is totally and permanently disabled while in the discharge of his official duties as a result of bodily injuries sustained or as a result of extreme exercise or extreme activity experienced in the course and scope of his official duties and who leaves the fire or rescue squad service because of this disability shall be entitled to be paid from the fund a monthly benefit in an amount of one hundred thirty dollars ($130.00) per month beginning the first month after his fifty-fifth birthday. All applications for disability are subject to the approval of the board who may appoint physicians to examine and evaluate the disabled member prior to approval of his application, and annually thereafter. Any disabled member shall not be required to make the monthly payment of five dollars ($5.00) as required by G.S. 118-40 and G.S. 118-41.
Any member who is totally and permanently disabled for any cause, other than line of duty, who leaves the fire or rescue squad service because of this disability and who has at least 10 years of service with the pension fund, may be permitted to continue making a monthly contribution of five dollars ($5.00) to the fund until he has paid into the fund the sum of one thousand two hundred dollars ($1,200). The member shall upon attaining the age of fifty-five years be entitled to receive a pension as provided by this section. All applications for disability are subject to the approval of the board who may appoint physicians to examine and evaluate the disabled member prior to approval of his application annually thereafter.
Any member who, because his residence is annexed by a city under Part 2 or Part 3 of Article 4 of Chapter 160A of the General Statutes, or whose department is closed because of an annexation by a city under Part 2 or Part 3 of Article 4 of Chapter 160A of the General Statutes, and because of such annexation is unable to perform as a fireman of any status, and if the member has at least 10 years of service with the pension fund, may be permitted to continue making a monthly contribution of five dollars ($5.00) to the fund until he has paid into the fund the sum of one thousand two hundred dollars ($1,200). The member upon attaining the age of 55 years and completion of such contributions shall be entitled to receive a pension as provided by this section. Any application to make monthly contributions under this section shall be subject to a finding of eligibility by the Board of Trustees upon application of the member.
The pensions provided shall be in addition to all other pensions or benefits under any other statutes of the State of North Carolina or the United States, notwithstanding any exclusionary provisions of other pensions or retirement systems provided by law."
Sec. 4.  G.S. 118-6 reads as rewritten:
"§ 118-6.  Trustees appointed; organization.
For each town or city complying with and deriving benefits from the provisions of this Article, there shall be appointed a local board of trustees, known as the trustees of the firemen's relief fund, to be composed of five members, two of whom shall be elected by the members of the local fire department who are qualified as beneficiaries of such fund, two of whom shall be elected by the ;mayor and board of aldermen or other local governing body, and one of whom shall be named by the Commissioner of Insurance.  Their selection and term of office shall be as follows:
(1)	The members of the fire department shall hold an election each January to elect their representatives to above board.  In January 1950, the firemen shall elect one member to serve for two years and one member to serve for one year, then each year in January thereafter, they shall elect only one member and his term of office shall be for two years.
(2)	The mayor and board of aldermen or other local governing body shall appoint, in January 1950, two representatives to above board, one to hold office for two years and one to hold office for one year, and each year in January thereafter they shall appoint only one representative and his term of office shall be for two years.
(3)	The Commissioner of Insurance shall appoint one representative to serve as trustee and he shall serve at the pleasure of the Commissioner.
All of the above trustees shall hold office for their elected or appointed time, or until their successors are elected or appointed, and shall serve without pay for their services.  They shall immediately after election and appointment organize by electing from their members a chairman and a secretary and treasurer, which two last positions may be held by the same person.  The treasurer of said board of trustees shall give a good and sufficient surety bond in a sum equal to the amount of moneys in his hand, to be approved by the Commissioner of Insurance.  The cost of this bond may be deducted by the Insurance Commissioner from the receipts collected pursuant to G.S. 118-2 before distribution is made to local relief funds.  If the chief of the local fire department is not named on the board of trustees as above provided, then he shall serve as an ex officio member without privilege of voting on matters before the board."
Sec. 5.  G.S. 118-12 reads as rewritten:
"§ 118-12.  Application of fund.
The money paid into the hands of the treasurer of the North Carolina State Firemen's Association shall be known and remain as the ‘Firemen's Relief Fund' of North Carolina, and shall be used as a fund for the relief of firemen, members of such Association, who may be injured or rendered sick by disease contracted in the actual discharge of duty as firemen, and for the relief of widows, children, and if there be no widow or children, then dependent mothers of such firemen killed or dying from disease so contracted in such discharge of duty; to be paid in such manner and in such sums to such individuals of the classes herein named and described as may be provided for and determined upon in accordance with the constitution and bylaws of said Association, and such provisions and determinations made pursuant to said constitution and bylaws shall be final and conclusive as to the persons entitled to benefits and as to the amount of benefit to be received, and no action at law shall be maintained against said Association to enforce any claim or recover any benefit under this Article or under the constitution and bylaws of said Association; but if any officer or committee of said Association omit or refuse to perform any duty imposed upon him or them, nothing herein contained shall be construed to prevent any proceedings against said officer or committee to compel him or them to perform such duty.  No fireman shall be entitled to receive any benefits under this section unless the fire department of which he is a member is eligible for local firemen's relief funds pursuant to Article 1 of Chapter 118 of the General Statutes and then only when the firemen's relief fund of his city or town has been exhausted.  Notwithstanding the above provisions, the Executive Board of the North Carolina State Firemen's Association is hereby authorized to grant educational scholarships to members and the children of members, to subsidize premium payments of members over 65 years of age to the Firemen's Fraternal Insurance Fund of the North Carolina State Firemen's Association, and to provide accidental death and dismemberment insurance for members of those fire departments not eligible for benefits pursuant to standards of certification adopted by the State Firemen's Association for the use of local relief funds.” 
Sec. 6.  G.S. 118-17 reads as rewritten:
"§ 118-17.  Treasurer to pay fund to Volunteer Firemen's Association.
The treasurer of the North Carolina State Firemen's Association shall pay to the treasurer of the North Carolina State Volunteer Firemen's Association one-sixth of the funds arising from the three percent (3%) paid him by the Insurance Commissioner each year to be used by said North Carolina State Volunteer Firemen's Association for the purposes set forth in G.S. 118-7.
Local units of the North Carolina State Volunteer Firemen's Association shall maintain records and report to the North Carolina State Firemen's Association in the same manner and to the same extent as provided for in G.S. 118-8, and shall be subject to the sanctions as set forth therein."
Sec. 7.  There is appropriated from the General Fund to the Department of State Auditor, the sum of $2,900,000 for the 1989-90 fiscal year and the sum of $5,200,000 for the 1990-91 fiscal year to implement the provision of this act.
Sec. 8.  This act shall become effective July 1, 1989.