1. Q. What is the Firefighters Relief Fund Tax?
A. It is a tax of 2% assessed against the fire and lightning premium written by an insurance company on Kansas risks.
2. Q. How is the Firefighters Relief Tax paid?
A. The tax is paid by the insurance companies. The Insurance Commissioner collects the tax annually from the insurance companies and distributes the tax to each individual Firefighters Relief Association.
3. Q. Does a Firefighters Relief Association have a charter?
A. Yes. The Firefighters Relief Act requires that the association must be incorporated under the laws of this state.
4. Q. What are some of the ways in which the funds of an association can be spent?
A. (a) Group term, group permanent or individual permanent life insurance contracts. (b) Insurance providing 24 hour coverage or on-duty coverage. (c) Payments to a member Firefighter who is injured or physically disabled in or by reason of the discharge of their duties as a firefighter. (d) Payments of gratuities to the surviving spouse or dependents of a member who is killed in the discharge of their duties as a Firefighter, or who dies from injuries received or disease contracted by reason of their duties as a Firefighter. (e) Payment of funeral expenses for a member killed in the discharge of their duties as a Firefighter, or by reason of injuries received or disease contracted therefrom. (Purchase of flowers is not an allowable funeral expense.) (f) Payment of pensions to members of full-paid fire departments who are unfit for service after serving for a period of not less than 20 years. (Such pensions shall not exceed one half of the total monthly salary at the date of retirement.) (g) Establish annuities for volunteer firefighters. (h) Loan part or all of its funds to its fire department to improve its fire department and equipment.
5. Q. If a Firefighters Relief Association does not receive its distribution check because of an error on the financial statement, does the association lose its money for that year?
A. No. The money is reserved for the association until such time as the Treasurer of the association submits an acceptable financial statement; however, warrants not redeemed by the State Treasurer within one year of issuance may be canceled at the discretion of the Director of Accounts and Reports in accordance with K.S.A. 10-811. Subsequent to cancellation, however, the payee on a canceled warrant may request payment of the obligation for which the canceled warrant was initially issued. The Director of Accounts and Reports is authorized by K.S.A. 46-921, to make such payment except that the amount to be paid will be the amount denoted on the canceled warrant reduced by the greater of 10% or fifteen dollars ($15).
6. Q. Should every association have a set of bylaws?
A. Yes. The Act requires that each association shall adopt bylaws to cover all functions of the association. The duties of each officer in the association should be fully described in the bylaws and the procedure for handling the funds of the association should be outlined therein. A copy of the bylaws must be filed with the Commissioner of Insurance.
7. Q. When can an association buy insurance with its money? A. Anytime that the members vote in accordance with their bylaws.
8. Q. What kind of life insurance can be purchased?
A. Group term, group permanent or individual permanent life insurance contracts may be purchased as set forth in Section 40-1707 of the Firefighters Relief Act. Insurance Department Regulations 40-10-5 and 40-10-6 govern the purchase of life insurance by a Firefighters Relief Association. All insurance policies must comply with the requirements set forth in the rules and regulations.
9. Q. Who is responsible for determining whether an injury or illness is "caused by fire duty"?
A. The burden of proof is on the association. Matters of this nature should be worked out in association meetings under procedures established in the bylaws. The files of the association should contain documents necessary to establish that every disbursement for injury or illness was justified.
10. Q.Who can receive payment when a firefighter is killed or dies as the result of fire duty?
A. Payment of a death benefit may be made to the beneficiary or beneficiaries as designated by the member or, in the event that no beneficiary has been designated to receive such death benefit, to the persons established in priority order by Kansas statutes.
11. Q. Are U.S. Government Bonds carried on the financial statement at cost or at market value?
A. All bonds owned by the association should always be carried at cost. When the bonds are sold, the difference is reflected by an entry in the receipts section of the financial statement as "interest received from government bonds"
12. Q. Can an association buy additional firefighting equipment from its funds?
A. No. However, the city, township, county or fire district may borrow from the association in order to purchase additional fire equipment. Such a loan is to be in the form of a warrant which must bear interest payable semi-annually to the association at a rate not to exceed 6%.
13. Q. Can an association invest excess funds in a savings account or N.O.W. account, thus earning more return on its cash?
A. The Insurance Department has no objection to this procedure provided that such money is readily accessible and provided that the attorney for the governing body of the association has made no prior objection.
14. Q. Is the expense of having the association's funds audited a permissible disbursement?
A. Yes. The expense should be itemized as such opposite line 21 of the financial statement.
15. Q. When is it necessary to get an attorney's approval for disbursements?
A. In all cases involving expenditures or payments in an amount of $1,500 or more prior certification shall be obtained from an attorney designated by the governing body of the city, township, county or fire district that such expenditure or payment complies with the requirements of the firefighters relief act.
16. Q. Are volunteer firefighters who are members of a firefighters relief association covered under Workmen's Compensation?
A. Yes. Unless the firefighters relief association opted out of such coverage, volunteer firefighters are covered under Workmen's Compensation through the city, county, township or fire district that governs the fire department, but only to the extent and during such periods as they are serving in their capacity as firefighters.
17. Q. Can the bond for an association's treasurer be paid for from association funds?
A. Yes. The amount of the bond, which is required by Section 40-1706(g), shall be determined by the association's governing body.
18. Q. Issue: Under K.S.A. 40-1707, may a Firefighters'
Relief Association authorize an insurance
company to transfer a life insurance policy to another person named
by the firefighters upon that firefighters death?
A. Short Answer: No. Upon the death of the firefighter, the life insurance contract is fulfilled and there is no remaining interest which may be transferred. Additionally, Kansas Administrative Regulation (K.A.R.) 40-10-5 and 40-10-6 require that; (1) each policy shall be purchased on and held by the Firefighters' Relief Association and, (2) each policy shall name the Firefighter's Relief Association as a beneficiary of the policy.
19. Q. Is it permissible to use FRA funds for Hepatitis shots?
A. No, since the Act only contemplates benefits after the firefighter is injured or physically disabled as a result of duties as a firefighter. We would, however, call your attention to K.S.A. 44-510. This is a section of the Kansas Workers Compensation Act which deals with "...preventative medical care and treatment for Hepatitis to which such employees is exposed under circumstances arising out of and in the course of employment," It is possible, under the provisions of the Kansas Workers Compensation Act, that costs associated with Hepatitis shots and/or treatment could be a compensable claim under this Act. Any questions on this should be directed to the Department of Human Resources, A Division of Workers Compensation, 800 S.W. Jackson, Merchants Bank Tower, 6th Floor, Topeka, Kansas 66612-1227. The phone number is (785) 296-2996.
20. Q. There are some types of accident and/or sickness insurance programs available in Kansas that provides a "cash value" through a surrender value provision. Is it possible to transfer the ownership as well as cash value to a firefighter when that firefighter is no longer a member of our association?
A. Since there is no provision in the Act for the assignment, transfer, etc., of insurance purchased with FRA funds other than life insurance, the only "value" transferable would be insurability. Any cash value under such accident and/or sickness insurance must be returned to the treasurer upon any firefighters' termination, for any reason, as a member of your association. The issue of transfer of such a policy, other than any cash value, is really one of an agreement between your association and the insurance company issuing the accident and/or sickness policy.
21. Q. Regarding K.S.A. 40-10-6(c), the question is asked whether the portion of premium payable by an individual member of a firefighters' relief association for the cost exceeding "on duty" coverage in a 24 hour coverage plan is be to paid at the time of the policy's inception or at the time of termination.
A. If the member pays his portion at the policy's termination, then the mandate of the regulation has not been met because at some point in time, the individual's position would be paid by the association. This is not what is intended. Coverage beyond "on duty" is a benefit made available, but is to be at the expense of the individual.
Payment by an association of a "lump sum deposit as recognition for past service or to reduce future premiums" is stated to be a common practice. Assuming this to be true, payment of the sum must be considered premium payment, at least for purposes of K.A.R. 40-10-6(c), if such sum reduces premiums. That lump sum payment benefits the individual by reducing the cost of coverage beyond "on duty" coverage. This reduction is in reality a pre-payment of a portion of that for which the individual is responsible.
In summary, the portion of the cost of coverage beyond "on duty" coverage must be paid at the time of inception, not termination, of the policy. Otherwise, the association would be funding that portion of the cost. Such was not the intent of the regulation.
22. Q. Who owns the annuity?
A. The owner and beneficiary of the annuity policies must be FRA, not the trustee of the FRA.
23. Q. Would a firefighter that was a member of a fire department prior to being drafted into the U.S. military count their years as a department service.
A. Yes, the firefighters length of military service may be credited as long as the firefighter maintains his or her membership with a particular department.