Questions & Answers
How do I update my beneficiary?
Please contact any of the officers or trustees via email, explaining that you would like to change or update your beneficiary. We’ll take it from there!
Why can’t you take my RFBA dues out of my death benefit?
Your dues, active or retired, are needed for the “day to day” expenses the RFBA accrues. For example; Rent, Salary, Events, Bills (Wells Fargo, Alesco Advisors, Bonadio Group.)
Why aren’t you able to “gift” the benefit to my beneficiary?
The Trust under the Death Benefit Plan cannot pay benefits to the RFBA even assuming the RFBA will immediately gift those benefits to the designated beneficiary of a deceased participant in the Death Benefit Plan. Doing so would jeopardize the status of the Trust as a Voluntary Employee Benefits Association (VEBA) that is tax exempt under Internal Revenue Code Section 501(c)(9). Moreover, a “gift” of death benefits from RFBA to the designated beneficiary of a deceased RFBA member would likely not be a “gift” for federal income tax purposes and yet not be a payment of benefits under a life insurance contract either. Such a maneuver would increase rather than decrease the likelihood that such payments would be taxable. We consulted with our attorney. In 2011 we found that Wells Fargo does not need to withhold taxes, but that there is no clear ruling as to whether the benefit was taxable. The end result was that the benefit would not be taxed by us, and that individual members' families need to use a tax advisor to determine their own best course. Beneficiaries have a good case with the IRS that they do not need to pay tax on the benefit. We cannot gift the benefit, and if we did, it would make the monies more likely to be taxed.
What happens if I didn’t update my beneficiary?
By law, we must give you benefit to the most recent beneficiary. If that was your first wife/husband from 3 marriages ago or your old neighbor from when you first got on the job, they will receive your benefit. That is why it is VERY important to update your beneficiary!!
What happens if I don’t pay my dues?
According to the RFBA Constitution Section 9.3: Nonpayment of dues; Termination. Any member of this association whose dues, for any cause whatsoever, are in arrears one year or more shall be suspended from all benefits of the association. Thereafter, the board of trustees may, in its discretion, which shall be exercised in a uniform and nondiscriminatory manner, terminate the membership of such member if the board of trustees finds that (1) the member refused to pay all dues in arrears following the request of the board of trustees that member do so, and (2) the member’s failure to pay such dues in arrears is deliberate and not the result of the member’s inability to do so or the member’s incapacity. The board of trustees shall terminate the membership of such member by sending the member a written notice to that effect.
How do I run for a position as a trustee (active/retired) on the RFBA board?
According to the RFBA Constitution Section 7.5 Election of Trustees; Term of Office: Trustees shall be elected by a vote of members during the regular December meeting. Trustees shall be elected for staggered three-year terms.
Send a written letter of intent to run for the position to any of the RFBA officers before the December meeting. Positions include; Battalion Chiefs Rep, Captains Rep, Lieutenants Rep and Firefighters Rep.
Look to the monthly RFBA Bulletin to see if any position terms are approaching an end!