Kansas Insurance Department

1. Kansas Insurance Department 2014 Firefighter Relief Act Seminar

2. Agenda • Contact Information/Background/Training Schedule • Important dates • Qualification • Redetermination • Updates • FRA Program Totals • Receipts • Expenditures • Assets • FRA Program Basics • Relief • Insurance • Annuities/Pensions • Best Practices • Governing Body • Board of Directors • Operational Protocols • IRS Tax Exempt Status

3. My Contact Information Steve Lehwald slehwald@ksinsurance.org FRA Administrator Phone # (785) 296-7831 Kansas Insurance Department FAX # (785) 291-3673 420 SW 9th St Topeka, Ks 66612 Website: www.ksinsurance.org

4. Background • Born and raised in Sabetha, KS • College (2005): Kansas State University (Finance) • Law School (2008): University of Pittsburgh • Police Officer: Lawrence Police Dept. (3 years) • Summer 2013: Passed the Kansas Bar Exam • Fall 2013: Hired by KID

5. FRA Training Schedule for CY2015 July 11, 2015 Hiawatha KSFFA Fire School April 23-25, 2015 KSFFA Conference Junction City December 5, 2015 Goodland KSFFA Fire School Jan 17, 2015 FRA Annual Seminar Salina March 18-22, 2015 SCAFFA Topeka May 2, 2015 Meade KSFFA Fire School October 3, 2015 Mt. Hope KSFFA Fire School May 28-30, 2015 Labette County- Parsons KSFFA Fire School

6. KID Website

8. Online Program page

9. What is the Firefighter Relief Act? • Establishes a Firefighters Relief Fund for firefighters injured or killed in the line of duty. • 2 states have a firefighter relief act: • Kansas • 570 FRAs • $12 Million fund • 2 Employees to manage & administer the fund • Pennsylvania: • 2,000 FRAs • $70 Million fund • 45 Employees to manage & administer the fund

10. Where do we get the money to fund the Firefighter Relief Act? • From all Fire and Lightning Insurance written in the state for the previous year. • 2% tax on premiums of fire and lightning insurance written in the state. • This 2% tax funds the Kansas Firefighter Relief Act

11. How are the Funds Distributed? • The funds are distributed to each FRA based on the population and valuation of the geographical area served by the fire department. • 50% of the distribution is based on the population • 50% of the distribution is based on the assessed tangible property valuation

12. Two Important FRA Dates • April 1: Financial Statements • October 1: Redetermination Requests

13. Late/Incorrect submissionsand qualification issues Due by April 1 of every year {K.S.A. 40-1706(a)} • Failure to submit by that time automatically renders the FRA “not qualified” to receive funds under the Act • 1 month late: Notification letter to FRA treasurer • 3 months: Notification letter to Fire Chief • 6 months: Notification letter to governing body • 1 year: Notification letter to county attorney • 2 years: FRA is Deactivated • County attorney directed to remit all funds from FRA and return them to KID {K.S.A. 40-1706(d)}

14. Redetermination • Submit request (online) from January 1 to September 31 {K.S.A. 40-1706(d)(6)} • Can NOT request from October 1 to December 31 • “Changed circumstances” • Population/Valuation • Hearing (before December 1) • Shall be heard and may present information • Attendance is not required • May apply for redetermination once every 3 years

15. Updates to the online program • Financial Statement comparison • Helps to compare current year to what you have done in previous years • Annuity/Pension e-file • Similar to TurboTax • Fire District Information Screen

16. New Feature Provided in FRA Online Program

18. Financial Statement Screen

19. Annuity/Pension Screen Selection

20. Annuity/Pension Screen The data that you enter on this screen will automatically populate the appropriate blocks in the Receipts, Expenditures and Assets

21. Fire District Information Screen This is automatically populated from the previous year’s financial report, if different just edit the appropriate blocks

22. CY2013 Financial Statement Submission Results

23. CY2013 Financial Statement Submission • Almost 500 FRAs submitted their statements on time • For those of you who have not submitted them yet, please do so immediately • Should only take you 10 minutes maximum to complete

24. Relief Fund Totals Trend

25. Kansas Firefighter Relief Act Distribution

26. The Distribution Must Funds • Each FRA receives a “base” distribution of $1,000 • The KSFFA receives 3% of the premium tax collected • $100,000 goes to the KSFFA for a statewide insurance policy

27. CY2014 Distribution

28. Kansas Firefighter Relief Act

29. 2013 FRA Receipts

30. CY2013 FRA Expenditures $14,574,890

31. CY2013 Assets/Investments $71,310,047

32. Asset Class Comparison

33. Kansas FRA Fund Summary

34. FRA Online Facelift • Your FRA Online Page has been updated for ease of use. • We are continually looking for ways to improve it and make it more user friendly. • If you have any suggestions for the page, please let me know.

35. FRA Home Page

36. Navigation and Home Page Home: Takes you to the KID-FRA Online home page. Financial Statement: Takes you to a page to view current and prior year financial statements. Redetermination: Takes you to a page to make and maintain a redetermination request. FRA/User Information: Takes you to the page to view your FRA information, as well as the ability to view and edit your online user information. FRA Documents: Takes you to a page to view scanned historical documents pertaining to the FRA. Contact KID: Provides contact information for the Kansas Insurance Department as well as a web form. Log out (right side of the page, next to the User name): Click to leave the KID-FRA Online system.

37. FRA Information Click this link to update your contact information

38. Treasurer Change Form

39. Checks and Balances

40. CY2013 Redetermination • We had 24 FRAs apply for Redetermination last year. • Several FRAs based their request for Redetermination on incorrect or inaccurate data received from their County Elected Officials. • Hearing is held in November • Actual order is not issued until spring

41. Request for Redetermination • The procedure for Redetermination has changed. • You now just apply for redetermination using your FRA Online Page. • You will not have to submit any documentation or go to the County Clerk unless I specifically require it. • There is no “withdrawal” provision in the Relief Act • The Commissioner of Insurance mayRedetermine applicants based on information that is presented and or otherwise made available and may make a finding of “Changed Circumstances.”

42. Redetermination • Requirements for Requesting a Redetermination: • You must have a “change in circumstances” in order to apply. • Apply to the Commissioner of Insurance prior to October 1 (of any year) but not more than once every 3 years. • Redetermination is now “Web” based and you can do the entire process online by going to the FRA Webpage. • The Redetermination Hearing will be conducted usually during the 3rd week of November, but in all cases it will be prior to December 1, in accordance with Statute. • You may be present during the redetermination hearing if you desire.

43. You must first log into your FRA page in the Online Program FRA Redetermination Page Click on this block for Redetermination

44. Online Redetermination Giveme a call and I will research your latest Population/Valuation and provide you with an estimated distribution. Your current FRA Redetermination data will be entered automatically Click the box Enter your FRA Number Your Name Phone Number Mailing Address Click Submit

45. Redetermination Continued I will contact you when I receive your Application and determine if I need more evidence or documentation

46. Fire Department Coverage Area • Your FRA distribution is based on the population and valuation of the geographic area serviced by the Fire Department. • It is highly recommended that you maintain the most recent legal description of your fire district in your FRA files. • You can check your legal description currently on file in the FRA Online Program. • You can submit your latest legal description to me and I will upload it into your document files.

47. Purpose of the Relief Act • For the “Relief” of any member that • is injured in the “Line of Duty” • For the payment of a death benefit • when a member is killed in the • “Line of Duty

48. What does “Relief” Mean? • How much $ is enough? • Who determines this? • What can we pay for? • How/when do we report it? • When does it stop?

49. Attorney General Opinion “Relief” • Removal in whole or in part of the financial burden, hardship or distress of a fireman, his widow or dependents, resulting from injury or physical disability to a fireman in the discharge of his duties.

50. Attorney General Opinion “FRA Discretionary Power” • Within reasonable limits, depending on the funds available and the circumstances of financial need resulting from such injury or physical disability to a fireman, the amount of financial assistance to be paid as relief to such fireman, his widow or dependents, falls within the discretionary power of the FRA to administer the fund.