DOLA recently ruled that reimbursement for coverage required by CRS 29-5-302 must align with the state’s fiscal year, which begins annually on July 1. This differed from the Trust’s coverage term, so only a portion of the previously designated term would be subject to reimbursement in this year; the other piece would be reimbursable in the following fiscal year. This would create unnecessary budgetary and administrative wrangling for all involved.
To address this, the Trustees have approved changing the Coverage Plan Document to run congruent with the state’s fiscal year of July 1 to June 30 annually. This will initiate a six (6) month term of January 1, 2015 to June 30, 2015 for the initial period and allows us to send out this Memorandum of Coverage which is fully reimbursable. This will not change the pricing for the initial term since financing the eighty weeks of risk requires this level of capitalization regardless of the coverage period. Members will still be eligible to receive 100 percent reimbursement for their full-time firefighters for this initial period.
The Trust will review its financial position and pricing options in the spring ahead of the first annual renewal on July 1, 2015. Members will then be eligible for 100 percent reimbursement for coverage for their full-time firefighters from DOLA. Funds paid for Volunteer and Part-time Firefighters will be credited toward the July 1, 2015 renewal since this coverage is not eligible for reimbursement.
Getting the program on track with the state’s fiscal year allows members the best opportunity to take advantage of available state funding. Please do not hesitate to call or write us with any questions or concerns.
