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Published on Friday, June 2, 2017

Fire Insurance Premium Tax distributions

One of the issues that remains part of the budget negotiations is a change to the distribution formula for Fire Insurance Premium Tax distributions in the Senate-proposed budget. The changes could have the effect of eliminating this distribution for the cities’ pre-LEOFF firefighter pension funds and LEOFF 1 medical costs.

The changes also do not take into account the significant LEOFF 1 medical cost liability these and other cities face. In a 2015 report, the State Actuary estimated the accrued liability for LEOFF 1 medical benefits is $3 billion for approximately 6,300 retirees. Nearly 40 percent of these retirees were city firefighters.

If your city is a recipient of these distributions, remind your Senators how eliminating these distributions would impact your ability to meet these obligations.

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