Washington State expands retirement savings options for volunteer firefighters

OLYMPIA — Governor Bob Ferguson signed House Bill 1156 into law, expanding retirement savings options for volunteer firefighters across Washington state by granting them access to the state's deferred compensation program.

The legislation, sponsored by Rep. Mike Steele, R-Chelan, passed with unanimous support in both the House and Senate and will take effect July 27.

"Volunteer firefighters step up to protect their neighbors — often with little or no compensation," said Steele. "This bill gives them access to a simple, secure way to save for retirement. It's one way we can show our appreciation for the time, energy, and risk they take to serve our communities."

The new law amends RCW 41.50.770 to include volunteer firefighters in the definition of "employee" eligible to participate in the Washington State Deferred Compensation Program, allowing them to set aside a portion of their pay for retirement through the state-managed investment options.

Among those witnessing the bill signing was Chelan County Fire District #5 Fire Chief Arnold Baker, who had advocated for the legislation before both the Ways and Means and House Appropriations committees.

"This change will be a real benefit to Washington's volunteer firefighters," said Baker. "Being a volunteer firefighter takes a huge commitment of time and energy. Helping volunteers grow a retirement nest egg through the Deferred Comp Program benefits both the individual and their department. Many fire departments in Washington provide only nominal compensation to volunteers. Allowing that compensation to be directed into Deferred Comp will help with retention by giving volunteers an added benefit for their service."

The legislation also ensures that volunteer firefighters' participation in the deferred compensation program will not affect their eligibility for other public pension systems.

According to Steele, the bill originated from discussions with fire service leaders in his district and across the state.

"This bill started with a simple question: how can we better support the volunteer firefighters who keep us safe?" Steele said. "Thanks to strong bipartisan support, we now have a practical answer—one that helps departments recruit and retain volunteers while giving those individuals a tool to plan for their future."

The bill was prefiled on January 3 and was cosponsored by Representatives Ormsby and Hill.