The Office of Commissioner of Insurance and Safety Fire (OCI) has issued Bulletin 26-EX-3 which explains the implementation of Senate Bill 285. Under the new law, 1.5% of insurance premium tax distributions to cities must be remitted to the Peace Officers’ Annuity and Benefit Fund (POAB). OCI intends to automatically withhold the 1.5% from the annual city distributions set for payment by October 15, and remit the withholding directly to POAB.
Cities may opt out of the automatic withholding by notifying OCI no later than October 5, 2026. However, a city that opts out will still be responsible for remitting the required 1.5% directly to POAB by October 30.
Because the 1.5% must be remitted to POAB regardless and within two weeks of receipt, GMA encourages cities to allow OCI to make the withholding rather than opting out. This will simplify administration and ensure compliance with the new requirement.