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OLR Bill Analysis
sSB 422
AN ACT CONCERNING FIREFIGHTER RECRUITMENT AND
RETENTION.
SUMMARY
This bill makes various changes designed to help retain firefighters.
Principally, the bill:
1. requires the Connecticut Housing Finance Authority (CHFA) to
develop and administer a mortgage assistance program for
uniformed members of paid or volunteer fire departments (§ 1),
2. provides certain tuition waivers for undergraduate and graduate
degree programs (a) at the state’s colleges and universities for
paid or volunteer firefighters with at least two years’ service and
for the dependent children of paid or volunteer firefighters with
at least five years’ service and (b) for anyone enrolled at the
Connecticut State Colleges and Universities (CSCU) or
community colleges who is attending the state fire school as part
of a program offered in coordination with the college or
university (§§ 2-4),
3. requires the State Retirement Commission to establish a
volunteer firefighter length of service award program (LOSAP)
(§§ 5 & 6), and
4. requires a municipality that hires a firefighter from another
municipality within two years of the firefighter completing
entry-level training to reimburse the initial hiring municipality
50% of the total training costs (§ 8).
The bill also extends certain dates for the 13-member task force to
study the shortage of firefighters and emergency medical services (EMS) 2024SB-00422-R000266-BA.DOCX
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personnel in Connecticut established by SA 23-1 (§ 7).
EFFECTIVE DATE: July 1, 2024, except the provision extending the
task force dates is effective upon passage.
§ 1 — MORTGAGE ASSISTANCE PROGRAM FOR PAID OR
VOLUNTEER FIREFIGHTE RS
The bill requires CHFA to develop and administer a mortgage
assistance program for uniformed members of paid or volunteer fire
departments in the state who are buying a home as their principal
residence in the community where they serve. In doing so, CHFA must
(1) use down payment assistance or any other appropriate housing
subsidies and (2) allow the mortgagee to realize a reasonable portion of
the property’s equity gain when it is sold.
§§ 2-4 — TUITION WAIVERS
The bill requires UConn and CSCU, and regional community-
technical colleges to waive tuition for the following students:
1. uniformed members of paid or volunteer fire departments who
have served for at least two years in the state, as documented by
their department chief; and
2. dependent children of uniformed members of paid or volunteer
fire departments who have served for at least five years in the
state, as documented by the department’s chief.
The bill specifies that the tuition that UConn and CSCU must waive
are only for undergraduate and graduate degree programs.
The bill also requires CSCU and the regional community-technical
colleges to waive tuition for students attending the state fire school who
are enrolled in a program offered together with a community college or
state university that accredits courses in the program.
§§ 5 & 6 — VOLUNTEER FIREFIGHT ER LENGTH OF SERVICE
AWARD PROGRAM
Overview
The bill requires the State Retirement Commission to establish a 2024SB-00422-R000266-BA.DOCX
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volunteer firefighter LOSAP for eligible volunteer firefighters providing
qualified services to a volunteer fire company or department in
recognition of their long-term service. The program provides length of
service awards up to a specified amount ($6,000, annually adjusted for
inflation) for each year of service credit. The benefits vest after a
participant has five years of service credit.
The State Retirement Commission must establish the program and
adopt its implementing regulations in consultation with the
Commission on Fire Prevention and Control and state fire
administrator. The State Retirement Commission may contract with
third parties to deliver program services.
The bill establishes a new trust fund, the Volunteer Firefighter
LOSAP Trust Fund, which must be used to make the length of service
award payments and pay the program’s administrative expenses.
Regulations
By January 1, 2025, the State Retirement Commission, in consultation
with the Commission on Fire Prevention and Control and state fire
administrator, must adopt regulations to implement the program. The
regulations must include provisions on the following:
1. earning service credits and determining award amounts, which
may include a point-based system that requires that members
earn points for responding to calls, attending meetings and
trainings, and other factors;
2. documenting these earned credits, including a system allowing
volunteer fire companies and departments to annually report
members’ service credits; and
3. contesting service credit determinations awarded to participants.
Volunteer Firefighter LOSAP Trust Fund
The bill establishes the Volunteer Firefighter LOSAP Trust Fund as a
separate, nonlapsing fund that must contain any money the law requires
and be held separately from other moneys, funds, and accounts. It 2024SB-00422-R000266-BA.DOCX
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authorizes the fund to hold all deposits, gifts, grants, and donations
from public or private sources, to allow it to carry out its purposes. The
investment earnings credited to the fund’s assets become part of the
fund and any balance remaining at the end of any fiscal year is carried
forward to the next year.
It extends to the fund the same oversight and investment
requirements that state law sets for other state trust funds, including the
Teachers’ Pension Fund, the State Employees Retirement Fund, and the
Connecticut Municipal Employees’ Retirement Fund.
Annual Reporting of Members’ Service Credits
Beginning by January 1, 2025, each volunteer fire company or
department must annually submit to the State Retirement Commission
(1) a list of eligible firefighters and (2) the amount of service credit each
one earned with the department. They must do so as the commission
prescribes.
Eligible Firefighters
Bona Fide Volunteers and Qualified Service. Starting by April 1,
2025, the commission must annually determine which eligible
firefighters satisfy the service credit requirements set by the program’s
regulations and the amount of credits applicable to each participant. An
“eligible firefighter” is a firefighter who is:
1. a bona fide volunteer performing qualified service in a volunteer
fire company or department and
2. not otherwise earning credit for his or her qualified service in
another LOSAP, municipal pension system, or other comparable
program.
Under the bill, a “bona fide volunteer” is one who does not receive
compensation for providing firefighting and prevention services, EMS,
or ambulance services (i.e., “qualified service”) except for the
reimbursement of reasonable expenses incurred while performing these
services, reasonable benefits, and nominal fees for the services. The bill’s
definitions of “bona fide volunteer” and “qualified service” are tied to 2024SB-00422-R000266-BA.DOCX
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the federal rules for length of service award plans. Under federal law, a
plan paying only length of service awards to bona fide volunteers or
their beneficiaries is exempt from the rules and tax treatment for
deferred compensation plans under the Internal Revenue Code (26
U.S.C. § 457(e)).
Eligible Service. Participants must receive service credit for their
service as an eligible firefighter before, on, and after July 1, 2024. Their
service credits may not be forfeited.
Participation Waivers. Eligible firefighters may decline to
participate in the program by filing an irrevocable participation waiver.
The waiver must be signed by the firefighter and his or her volunteer
fire company’s or department’s chief. The firefighter must file this
waiver before he or she satisfies the service credit requirements to
participate in the program.
Length of Service Awards Credited to Program Accounts
Starting by July 1, 2025, the commission must annually determine
which participants qualify for a length of service award based on the
regulations’ service credit requirements and credit their program
accounts in an amount set by the regulations. Under the bill, the
“program account” is a separate account maintained for each
participant that reflects the applicable contributions and forfeitures,
investment income or loss, and administrative and investment expenses
allocated to each participant and paid from the trust fund.
The award may not exceed the limit set under federal law’s special
rules for length of service award plans. (The inflation-adjusted limit is
$7,500 for 2024.)
Vesting
A participant’s accrued service award (i.e., the total value of his or
her program account as of a given date) becomes vested once he or she
has five years of service credit, as determined under the regulations. If
a participant has not been an eligible firefighter for 36 consecutive
months and his or her accrued service award has not become vested, it 2024SB-00422-R000266-BA.DOCX
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is forfeited and deposited in the trust fund.
Payment of Accrued Service Awards
The commission must pay a participant his or her accrued service
award when the participant:
1. becomes vested and reaches the age of 65 or over;
2. has 20 years of service credit, except as described below;
3. is vested and has not been an eligible firefighter for at least 36
consecutive months; or
4. is totally and permanently disabled as determined by the U.S.
Social Security Administration, the Workers’ Compensation
Commission, or any other entity the State Retirement
Commission approves.
Under the bill, a participant may file a written election with the State
Retirement commission before reaching 20 years of service credit to
defer payment until he or she reaches age 65.
If a participant is paid his or her accrued service award and then
qualifies for a length of service award at any other time under the bill’s
provisions and program regulations, the commission must pay his or
her service award directly to the participant.
Death Benefits
Under the bill, if a participant dies before receiving his or her accrued
service award or length of service award, the commission must pay it to
the participant’s designated beneficiary. Participants must designate
their beneficiaries on a commission-prescribed form.
§ 7 — TASK FORCE TO STUDY FIREFIGHTER AND EMS
SHORTAGE
SA 23-1, established a 13-member task force to study and make
recommendations to address the shortage of firefighters and EMS
personnel in Connecticut. 2024SB-00422-R000266-BA.DOCX
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The bill extends certain dates for the task force, including when the:
1. initial appointments must be made, from July 7, 2023, to July 2,
2024;
2. chairpersons must schedule and hold the first meeting, from
August 6, 2023, to August 1, 2024; and
3. task force must terminate and submit its findings and
recommendations, from January 1, 2024, to January 1, 2025.
§ 8 — MUNICIPAL REIMBURSE MENT OF FIREFIGHTER TRAINING
COSTS
The bill requires any municipality that hires a firefighter from
another municipality within two years of the firefighter completing
entry-level training to reimburse the initial hiring municipality 50% of
the total training costs. This does not apply to a municipality that hires
a firefighter two or more years after the firefighter completes entry-level
training.
The bill’s requirement does not affect any agreement for
reimbursement between a firefighter or collective bargaining unit and a
municipality entered into before July 1, 2024.
COMMITTEE ACTION
Public Safety and Security Committee
Joint Favorable Substitute
Yea 25 Nay 0 (03/19/2024)