[First Reprint]

SENATE, No. 1878

STATE OF NEW JERSEY

INTRODUCED MARCH 10, 1997

By Senators MATHEUSSEN, BUBBA, Adler and Bennett

An Act concerning annuities for volunteer fire fighters, ¹or first aid or rescue squad members,¹ supplementing chapters 10 and 14 of Title 40A of the New Jersey Statutes and amending N.J.S.40A:10-31.

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

    1. (New section) In addition to the powers granted to municipalities under Title 40A of the New Jersey Statutes, a municipality ¹[that maintains] in which there is located¹ a volunteer fire department ¹[has one or more incorporated volunteer fire companies may] ,volunteer fire company, or volunteer first aid or rescue squad may, if approved by resolution of the governing body and by referendum of the voters of the municipality,¹ 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 ¹[or members of an incorporated],¹ volunteer fire company, ¹or volunteer first aid or rescue squad,¹ on a group or individual basis, individual retirement annuities as defined by section 408(b) of the ¹[Federal] federal¹ Internal Revenue Code of ¹[1954 as amended] 1986¹ (26 U.S.C. §408(b)). The contract or contracts shall provide for coverage under these annuities of such ¹[volunteers and may provide for the establishment of annuities on behalf of the spouses of the volunteers. In the discretion of the] members. The¹ governing body of the municipality ¹[, it]¹ may ¹at its discretion¹ appropriate and pay all or any portion of the costs of such contract or contracts.

    2. (New section) The board of commissioners of a fire district that maintains a volunteer fire department ¹, or first aid or rescue squad¹ or has one or more incorporated volunteer fire companies ¹, or first aid or rescue squads,¹ affording fire protection ¹or first aid or rescue services¹ to the fire district may, ¹if approved by referendum of the voters of the fire district,¹ in addition to any other benefit provided in Title 40A of the New Jersey Statutes, 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 ¹[or incorporated]¹ volunteer fire company or companies, ¹or volunteer first aid or rescue squad,¹ on a group or individual basis, individual retirement annuities as defined by section 408(b) of the ¹[Federal] federal¹ Internal Revenue Code of ¹[1954 as amended] 1986¹ (26 U.S.C. §408(b)). The contract or contracts shall provide for coverage under these annuities of such members ¹[and may provide for the establishment of annuities on behalf of their spouses]¹. By resolution, the board of commissioners may appropriate and pay all or any portion of the costs of such contract or contracts ¹, if such costs are approved by referendum of the voters of the fire district¹.

    3. N.J.S.40A:10-31 is amended to read as follows:

    40A:10-31. A volunteer ¹[fireman] firefighter or volunteer first aid or rescue squad member¹ shall not be ineligible to receive any of the benefits under N.J.S.40A:10-29 [and] , N.J.S. 40A:10-30 or section 2 of P.L. c. (C. ) (now pending before the Legislature as this bill) because ¹[he] the volunteer or member¹ may otherwise receive any form of compensation or salary from the municipality.

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

    4. This act shall take effect immediately.

Permits municipalities and fire districts to provide retirement annuities to volunteer firefighters or volunteer first aid or rescue squad members.