October 2005 - State Firemen's & Fire Marshals'

Fire FightersPension CommissionStaffE.O.Thompson Bldg.920 Colorado St.Austin, TX 78701(Mailing Address: PO Box 12577,Austin, TX 78711)Phone: 512/936-3372TX Only: 800/919-3372CommissionerLisa Ivie Miller(512) 936-3470 FAX: (512) 936-3480Mobile: 512/698-4593lisa.iviemiller@ffpc.state.tx.usExecutive AssistantBelinda Ramsey(512) 936-3473 FAX: (512) 936-3480belinda.ramsey@ffpc.state.tx.usDirector of PolicyKevin Deiters(512) 936-3472 FAX: (512) 936-3480kevin.deiters@ffpc.state.tx.usSystems AnalystGeorge McCullough(512) 936-3474 FAX: (512) 475-2430Mobile: 636-0266george.mccullough@ffpc.state.tx.usProgram AdministratorElaine Rummel(512) 936-3471 FAX: (512) 936-3480elaine.rummel@ffpc.state.tx.usProgram AdministratorLinda Hajovsky(512) 936-3410 FAX: (512) 475-2430linda.hajovsky@ffpc.state.tx.usBenefits SpecialistAnthony Alexander(512) 936-3478 FAX: (512) 475-2430anthony.alexander@ffpc.state.tx.usBenefits SpecialistJoey Evans(512) 936-3464 FAX: (512) 475-2430joey.evans@ffpc.state.tx.usContract AccountantJudy Johnson(512) 936-3479 FAX: (512) 936-3480judy.johnson@ffpc.state.tx.usBenefits Specialist(512) 936-3477 FAX: (512) 475-2430ffpc.state.tx.usUpdateThe Fire Fighter’s Pension CommissionCommissionerwithin 30 years;Lisa Ivie Miller • a lump-sum payment for certainannuities if it would be more costefficientSince assuming this position inFebruary 2004, the Fire Fighter’sPension Commission has seen a lot ofchange. My staff, Boards of Trusteesand I have tried to provide as many ofyou information about the changes atthe Commission as possible, but Iknow there are still many of you whohave not heard from us. So, with thisarticle I would like to highlight theaccomplishments we have made in thisagency to make it much more efficientand effective for the firefighters we serveand for the taxpayers of this state.In the recent legislative session, weworked with Senator Ken Armbristerand Representative Craig Eiland andthe Leadership to pass Senate Bill 522that completely overhauled the Texasor if it were necessary tomaintain actuarial soundness;• an administrative fee to be chargedto governing bodies for administeringbenefits to persons who weretransferred from another pensionsystem; and• changes to meet Internal RevenueService requirements.Other provisions of the bill would:• provide a five-year period afterthe date of an election to participatefor a department to revoke participation.No revocation could occurfor a department joining afterSeptember 1, 2005;• broaden the definition of “qualifiedservice” to include other kinds oftraining besides drills;Emergency Services Personnel • prevent two administrativeRetirement Fund, now known as theTexas Emergency Services RetirementSystem (TESRS). This new law allowsthe Board of Trustees to address the plandesigns changes needed to reduce theunfunded actuarial liabilities of thefund. Currently in rulemaking, theseplan design changes will create a morestabilized funding and benefit schemefor participating members today and inthe future.The bill provisions would allow theState Board of Trustees to, by rule,establish the following:• periods for full and partial vestingof benefits;• a minimum contribution level;• a multiplier or formula to be usedin computing benefits;• the method for providing an increasein benefits for service in excessof the vesting period;• an increase in local contributions forthe purpose of funding the plan’sunfunded actuarial accrued liabilityhearings on the same issue and toprevent appeal of a board decisionto a district court; and• continue the requirement for thestate obligation, by statute, of upto one-third of the aggregatedepartmental contributions if theplan becomes actuarially unsound.Another challenge this agency facedwas the funding of the administrativefunctions of the agency. Workingwith Senate Finance and HouseAppropriations Committees, we wereable to stabilize the fragile pension fundby no longer taking administrative costsout of the pension fund. Reducing thesecosts coming from the fund willdecrease the long-term actuarialfunding needs that ultimately comefrom the state at a much higher cost andproves the Legislatures’ support of thisagency specifically dedicated to theretirement benefits of firefighters andtheir beneficiaries statewide .continued on page 45OCTOBER 2005 TEXAS FIREMEN 11