ASSEMBLY, No. 2759

 

STATE OF NEW JERSEY

 

INTRODUCED FEBRUARY 27, 1997

 

 

By Assemblymen BLEE, DALTON, LeFevre, R.Smith, Assemblywoman Turner, Assemblymen Roberts, Zisa and Assemblywoman Weinberg

 

 

An Act concerning annuities for volunteer firefighters and amending N.J.S.40A:10-30 and N.J.S.40A:14-38.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. N.J.S.40A:10-30 is amended to read as follows:

    40A:10-30. In addition to the insurance required pursuant to the provisions of chapter 15 of Title 34 of the Revised Statutes and the coverage provided in N.J.S.40A:10-29, a municipality maintaining a volunteer fire department or in which there are one or more incorporated volunteer fire companies may:

    a. Effect and maintain group accidental death and dismemberment, hospitalization, medical, surgical, major medical expenses, or health and accident insurance with any insurance company authorized to do business in New Jersey, or with a nonprofit hospital service or medical service corporation with respect to the benefits which they are authorized to provide, which is determined to be necessary or desirable for the protection, safety and welfare of the members of the volunteer fire department or the members of the incorporated volunteer fire companies;

    b. (1) Effect and maintain a contract or contracts to provide drug prescription or other health care benefits which is determined to be necessary or desirable for the protection, safety and welfare of the members of the volunteer fire department or members of an incorporated volunteer fire company;

    (2) Enter into a contract or contracts with an insurance company authorized to do business in this State to provide members of the volunteer fire department or members of an incorporated volunteer fire company, on a group or individual basis, individual retirement annuities as defined by section 408(b) of the Federal Internal Revenue Code of 1954 as amended (26 U.S.C.§408(b)). The contract or contracts shall provide for coverage under these annuities of such volunteers and may provide for the establishment of annuities on behalf of the spouses of the volunteers.

    c. In the discretion of the governing body of the municipality, appropriate and pay all or any portion of the costs of such insurance or contract or both.

(cf: P.L.1979, c.230, s.1)

 

    2. N.J.S.40A:14-38 is amended to read as follows:

    40A:14-38. In any fire district in this State maintaining a volunteer fire department, or wherein there shall exist one or more incorporated volunteer fire companies affording fire protection to said fire district, it shall be lawful for the board of commissioners of such fire district, in addition to the insurance provided in N.J.S.40A:14-37, to effect, maintain and continue any and all forms of insurance covering the members of said volunteer fire department or incorporated volunteer fire company or companies, including group accidental death and dismemberment, hospitalization, medical, surgical, major medical expenses, or health and accident insurance with any insurance company authorized to do business in New Jersey, or with a nonprofit hospital service or medical service corporation with respect to the benefits which they are authorized to provide, a contract or contracts to provide drug prescription or other health care benefits, which the board of fire commissioners may determine to be necessary or desirable for the protection, safety and welfare of the members, and for the protection and safety of the equipment and apparatus of said volunteer fire department, or incorporated volunteer fire company or companies, or for the protection of said fire district, or against liability for its negligence and that of its officers, employees or servants, whether or not compensated or part-time, who is authorized to perform any act or service, but not including an independent contractor within the limitations of the "New Jersey Tort Claims Act" (C.59:1-1, et seq.)[,]. The board of commissioners of the fire district may also enter into a contract or contracts with an insurance company authorized to do business in this State to provide members of the volunteer fire department or incorporated volunteer fire company or companies, on a group or individual basis, individual retirement annuities as defined by section 408(b) of the Federal Internal Revenue Code of 1954 as amended (26 U.S.C.§408(b)). The contract or contracts shall provide for coverage under these annuities of such members and may provide for the establishment of annuities on behalf of their spouses. [and by] By resolution, [to] the board of commissioners may appropriate from time to time, and pay, such sums of money as may be required to cover the premiums and costs of said insurance, including individual retirement annuities, or such portion of the same as said board of fire commissioners, in its discretion, may consider proper and advisable.

(cf: P.L.1979, c.230, s.3)

 

    3. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill would clarify the right of municipalities and fire districts that maintain volunteer fire departments, or in which there are one or more incorporated volunteer fire companies, to offer volunteer firefighters and their spouses insurance annuity policies. Such annuity policies could be provided on a group or individual basis with insurance firms authorized to do business in New Jersey.

    This bill is prompted by an Attorney General Opinion issued in November of 1996 to the Department of Community Affairs. Under the Attorney General's interpretation of current law, municipalities and fire districts are not authorized to purchase annuity contracts for the benefit of volunteer firefighters if the contracts provide for the payment of annuity benefits to individuals in any event other than their total permanent disability. However, the loss of the use of such incentives will detract from the ability of communities to recruit and retain volunteer firefighters.

 

 

                             

 

Permits municipalities and fire districts to provide individual retirement annuities to volunteer firefighters.