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Category: General

  • VESTING AT ENTITLEMENT AGE

    Section 217(b) of the General Municipal Law is where the vesting requirement for a NY State LOSAP is found. It states: A participant shall have a nonforfeitable right to a percentage of a service award that is not lessthan the percentage determined under the following table: ​Years of Nonforfeitable Firefighting Service: Less than 5, Percentage=…

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  • NEW NEW YORK STATE TRAINING STIPEND SHOULD NOT IMPACT LOSAP ELIGIBILITY

    When the 2023 State Fiscal Year Budget was adopted, the legislation included a new amendment to the General Municipal Law (GML) and Volunteer Firefighter Benefits Law (VFBL) to allow for the payment of training stipends. Chapter 55 of the Laws of 2023 accomplished two things: 1) Amend the GML to provide for the payment of…

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  • CAN EXTENDING THE MAXIMUM YEARS OF SERVICE CREDIT BE “RETROACTIVE”?

    Prior to 2021, the maximum monthly benefit that could be earned in a defined benefit LOSAP in New York State was essentially $1,200. The statute states, in essence, that the monthly payment cannot exceed an amount equal to $30 for each year of service credit up to a maximum of forty (40) years of service…

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  • 2022 LOSAP INFORMATION FOR INCOME TAX PREPARERS

    This post is not intended to be tax advice. Firefly Admin Inc. does not provide tax advice, and all participants and beneficiaries who receive a LOSAP benefit are strongly encouraged to consult with a qualified tax professional regarding the information provided in this post. The information contained herein is accurate as of the date of…

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  • IRS RAISES MAXIMUM LOSAP BENEFIT TO $7,000

    Towards the end of 2022, the IRS released Notice 2022-55, which made cost-of-living adjustments for the benefit limitations provided in certain sections of the Internal Revenue Code. One of those limitations is the maximum benefit that can be accrued in a Length of Service Award Program. The maximum benefit was increased from $6,500 to $7,000…

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  • ROLLOVER ALTERNATIVES FOR LOSAP

    In a post from May 20, 2019, we discussed why a LOSAP benefit cannot be rolled over to a qualified plan. You can read that article HERE. Additionally, since a LOSAP benefit is not earned income (for Firefly clients, the income is reported on a 1099-MISC in Box 3), it cannot be deposited into an IRA. …

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  • CAN A LOSAP BE TERMINATED IN NY STATE?

    In our June 2022 post, we reviewed that Section 216 of the New York State General Municipal Law (GML) allows a sponsor to “abolish” the program. You can read that post here. First, we must consider some background information. Section 216 of the GML is titled “Authorization to establish service award programs for volunteer firefighters of…

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  • IN NY STATE, A LOSAP CAN BE “ABOLISHED”

    In our last post we reviewed Section 215 of the New York State General Municipal Law (GML), which is entitled “Purpose”. We saw that this section of the statute states that a LOSAP is not guaranteed by the State constitution like the retirement system. The benefits provided by the retirement system are constitutionally guaranteed, which is why the tier…

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  • STATED PURPOSE OF LOSAP IN NYS LAW (IT IS NOT GUARANTEED)

    Volunteer firefighter LOSAPs in New York are governed by the General Municipal Law (GML). Article 11-A of the ​GML contain the relevant sections (214 through 219-a) that authorize volunteer firefighter LOSAPs. Most attention is paid to the sections that provide the detail on establishing a plan, the point system, and the benefits that can be…

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  • LOSAP PAYMENTS IN NEW YORK DO NOT QUALIFY FOR FEDERAL TAX EXEMPTON UNDER VRIPA

    It has just recently come to our attention that the National Volunteer Fire Council (NVFC) sought clarification from the Internal Revenue Service (IRS) about the application of the Volunteer Responder Incentive Protection Act (VRIPA) to LOSAP. Here is a link to the article on the NVFC website, which summarizes the response, as well as a…

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