TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA-CM
FROM: Kevin Dove, Fire Chief
DATE: February 10, 2025
RE:
Title
Firefighter’s Local Relief Fund
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Provide Safe and Secure Community
Executive Summary:
This report provides an annual update of the Firefighter’s Relief Fund.
Background:
The Firefighter’s Relief Fund (FRF) was created through legislative action in 1907 to ensure firefighters that were injured would not become destitute. Funds for the FRF come from a tax levied on insurance policies in North Carolina. Each county in the state receives a portion, which is then divided between the eligible departments there. These funds are designated to be used only for purposes specified through law. Using these monies for non-approved purposes jeopardizes eligibility for future disbursements. Over time, some changes to General Statue have allowed Local Firefighter Relief Funds (LFRF) to use funds for other purposes. Our LFRF is managed by a board consisting of five people. NCGS 58-84-1 dictates that two seats are elected by fire department members from eligible personnel, two appointed by the City Council, and one by the State Fire Marshal. Currently, we oversee a supplemental retirement plan that provides a yearly stipend to retirees. Any firefighter that retires in good standing with at least 20 years of service is eligible. Each year equates to one share, with the value of a share based on funds received that year. Besides the retirement fund, the LFRF Board (LFRB) also receives occasional requests from active personnel that need financial assistance for various reasons. Some requests are allowed automatically with Board approval, while others that fall within certain criteria must be approved by designated personnel with the NC State Firefighters Association (NCSFA). Examples of allowed expenses are costs incurred to manage the fund; firefighter membership dues with the NCSFA are approved with permission.
The LRFB is required to submit financial reports by the end of October annually to the NCSFA to maintain eligibility. This ensures a layer of oversight that protects the LFRB and provides accountability to an outside party. As part of this process, the NCSFA maintains a surety bond that insures the FRF and LFRB as a whole.
Currently, the LFRB holds some funds in checking and money market accounts. The bulk is held in interest generating investments that keep the retirement fund solvent. As of this submission, there is a combined $206,121.79 in a Truist checking and money market account, and $1,459,273.23 invested in funds with Woodmen Insurance.
Current and retired members of the FFD appreciate the City and Council’s roles with this board and look forward to your continued support.
Issues/Analysis:
None
Budget Impact:
None
Options:
None
Recommended Action:
None
Attachments:
None