Could Hammond Rural Fire Department offer Louisiana's deferred compensation plan to its paid staff?

Plain-English summary

The Louisiana Deferred Compensation Plan administrator asked whether Hammond Rural Fire Department, a nonprofit volunteer department with paid staff, could offer the state plan to its workers. In 2006, the Attorney General concluded that it could. The department had two full-time and six part-time employees and contracted annually with Tangipahoa Parish Rural Fire Protection District No. 2, a political subdivision, to provide fire protection.

The AG quoted R.S. 42:1301(8), which included public employees and independent contractors with a current contract with the state or a political subdivision in the plan's definition of “Person.” It said the fire department's workers would be considered employees or independent contractors for plan purposes. The precise classification was a factual question the AG declined to decide, but it said the distinction did not affect its answer because both classifications were eligible under the plan provision it applied.

Currency note

This opinion was issued in 2006. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Could the nonprofit volunteer fire department offer the state plan to its workers?

The AG said yes for Hammond Rural Fire Department under the described contract with the public fire district. The opinion addressed paid full-time and part-time staff of that department.

Did the AG decide whether the workers were district employees or contractors?

No. It called that classification a factual question outside its determination. The AG said deciding between those two categories was unnecessary because it viewed both as eligible.

Why did the public fire district matter?

The opinion linked plan eligibility to public employment or a current contract with the state or one of its political subdivisions. It identified Tangipahoa Parish Rural Fire Protection District No. 2 as a political subdivision and described its annual firefighting agreement with Hammond Rural Fire Department.

Background and statutory framework

Hammond Rural Fire Department operated as a nonprofit corporation among ten volunteer fire departments contracting with the district. The district allocated tax, revenue-sharing, and fire-insurance-rebate money to the departments for firefighting and emergency response. The AG relied on the Louisiana Deferred Compensation Commission's enabling provisions, La. R.S. 42:1301-1308, and the plan's definition of an eligible “Person” in R.S. 42:1301(8). It concluded the described workers could participate without resolving their precise employment classification.

Citations

• La. R.S. 42:1301-1308 (deferred compensation commission provisions identified in the opinion).
• R.S. 42:1301(8) (definition of “Person” quoted by the AG).

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/05-0330

Original opinion text

April 20, 2006
OPINION NUMBER 05-0330

47-A-1 FIRE PROTECTION DISTRICTS
42:1301

Employees of the Hammond Rural Fire
Mr. Joseph A. Dionisi, Administrator
Department may participate in the Louisiana
Deferred Compensation Plan.
State of Louisiana Deferred Compensation Plan
2237 South Acadian Thruway, Suite 702
Baton Rouge, LA 70808

Dear Mr. Dionisi:

You requested an Attorney General’s opinion regarding the Louisiana Deferred Compensation Plan (the “Plan”). You note that the Plan was established for the purpose of providing supplemental retirement income to employees and independent contractors of a Louisiana public employer by permitting such individuals the opportunity to defer a portion of their compensation into the Plan. You question whether the Hammond Rural Fire Department may offer the Plan to its employees.

You stated that a question has been submitted by the Hammond Rural Fire Department (“Fire Department”) as to whether the Fire Department may offer the Plan to their employees. The Fire Department indicated that the Fire Department is a volunteer fire department operating as a nonprofit corporation. It has two full-time and six part-time employees. The Fire Department, along with nine other nonprofit volunteer fire departments, enters annually into an agreement with Tangipahoa Parish Rural Fire Protection District No. 2 (“District”) to provide firefighting services for the District. The District is a political subdivision of the state of Louisiana, which levies a 20 mils ad valorem tax for firefighting and emergency response needs. These taxes, state revenue sharing monies, and state fire insurance rebate funds are allocated to the ten nonprofit volunteer fire departments, based on population, to provide firefighting and emergency response services to rural taxpayers of Tangipahoa Parish.

The Plan is governed by the Louisiana Deferred Compensation Commission, which is established under La. R.S. 42:1301-1308. R.S. 42:1301(8), which defines “Person” for purposes of the Plan, provides:

“Person” means any officer or employee of the state of Louisiana or of any of its political subdivisions, or an independent contractor who has a current contract with the state or any of its political subdivisions. “Person” shall also mean any parish coroner.

Page 2

Mr. Joseph A. Dionisi
OPINION NUMBER 05-0330
Page 2

In order to be eligible for the Plan, Fire Department employees must employees of the District or independent contractors with a current contract with the District. For purposes of the Plan, Fire Department employees would be considered employees or independent contractors. The determination of which classification (employee or independent contractor) the employees fall under is a question of fact which this office is not in a position to determine. However, because both classifications are eligible for the Plan, such a determination is not necessary in this instance.

Therefore, it is the opinion of this office that Hammond Rural Fire Department may offer the Plan to its employees.

Trusting this adequately responds to your inquiry, we remain

Very truly yours,

CHARLES C. FOTI, JR.
ATTORNEY GENERAL

By: ____
KENNETH L. ROCHE, III
Assistant Attorney General

CCC, JR./KLR/jv

Page 3

OPINION NUMBER 05-0330

47-A-1
FIRE PROTECTION DISTRICTS
42:1301

Employees of the Hammond Rural Fire Department
may participate in the Louisiana Deferred
Compensation Plan.

Mr. Joseph A. Dionisi, Administrator
State of Louisiana Deferred Compensation Plan
2237 South Acadian Thruway, Suite 702
Baton Rouge, LA 70808

DATE RECEIVED:
DATE RELEASED: April 20, 2006

KENNETH L. ROCHE, III,
ASSISTANT ATTORNEY GENERAL