ASSEMBLY LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2759

STATE OF NEW JERSEY

DATED: JUNE 16, 1997

      The Assembly Local Government Committee reports favorably Assembly Bill No. 2759.

      Assembly Bill No. 2759 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.