(The Center Square) – In North Carolina, there’s a trend of firefighters who are trained at non-municipal nonprofit departments leaving for municipal departments that participate in local government pension plans.
The issue stems from an Internal Revenue Service code that blocks professional firefighters at the nonprofit stations from participating, giving a recruitment advantage to municipal departments with better benefits.
It’s a problem particularly around urban centers near Charlotte and Raleigh, but impacts roughly 5,000 career firefighters at nonprofit departments that cover about 70% of the state, said Tim Bradley, executive director for the North Carolina Firefighters’ Association.
“They’re being drawn away from these departments once they are trained because of the pension systems,” he said. “They’re going to want to move to a department with a retirement system.”
While many large nonprofit stations offer 401(k) plans, and can already participate in health benefit plans, the lure has continued to fuel the trend since the IRS implemented the code in 2000.
The situation prompted the Bradley’s organization to push for legislation in Congress to change the situation, an effort that has been ongoing since the first legislation was introduced in 2003. All seven Republicans from North Carolina in the House of Representatives are renewing that effort in the 118th Congress with House Resolution 3874, recently introduced by Rep. Patrick McHenry, who represents the state’s 10th Congressional District northwest of Charlotte. Others in support include Reps. Greg Murphy, Virginia Foxx, Richard Hudson, David Rouzer, Dan Bishop and Chuck Edwards.
“I am proud to continue my support for this legislation that provides fire and EMS personnel serving at nonprofit departments the same benefits as their state-employed counterparts,” McHenry said. “These brave men and women work tirelessly to keep our communities safe and they deserve our support.”
If approved, the resolution would remove the IRS code to allow career firefighters and emergency medical services personnel at the nonprofit departments to participate in local retirement systems, which are managed by a board under the state treasurer.
“We estimate that out of the 5,000 or so eligible, probably 2,500 to 3,000 would make use of it,” Bradley said. “It’s sort of expensive for the department, for the employer.”
The expense, he said, would be countered by retaining employees who go through the training, helping to address what’s been a significant issue plaguing nonprofit fire departments for decades.
“It doesn’t really cost anybody anything except the departments that join,” Bradley said, adding there’s no known organized opposition to the change. “Since it doesn’t really impact anyone except those eligible, I don’t know why anyone would have a problem with it.”
Bradley said the firefighters association is “cautiously optimistic” the change could finally happen after decades of advocacy, but acknowledged it hasn’t been a top priority in Washington, in part because North Carolina is one of a few states with nonprofit departments.
“One concern is it’s not on the big hit list in Washington,” he said. “We always seem to run out of time.”
HR3874 is also supported by International Association of Fire Chiefs and other groups, which have highlighted the fact that nonprofit firefighters receive the same training and conduct the same function as their municipal counterparts.
“I thank Representatives Murphy, McHenry, Foxx, Hudson, Rouzer, Bishop, and Edwards for introducing this legislation,” said Donna Black, president of the International Association of Fire Chiefs. “This legislation will ensure that our members of the North Carolina fire and emergency service are recognized for their commitment to their communities.”
