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LOSAP Investment Policy

September 29, 2023

One of the essential documents we require for our role as third-party administrator is a plan document. Each LOSAP should have a detailed plan document that outlines the benefits a participating volunteer firefighter can earn for their service. It is a vitally important document. Without it, confusion and misinformation can quickly set in regarding benefits…

LOSAP II EXPLAINED (DB PLANS)

August 30, 2023

When LOSAP was first adopted in New York State, generally it was administered like a pension plan, where once a participating volunteer reached the entitlement age and collected a benefit, the volunteer was no longer able to earn benefits. In a traditional pension plan, a person generally is not “retired” and “working” at the same…

VESTING AT ENTITLEMENT AGE

July 31, 2023

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=…

NEW NEW YORK STATE TRAINING STIPEND SHOULD NOT IMPACT LOSAP ELIGIBILITY

June 30, 2023

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…

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

May 31, 2023

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…

THE 80% FUNDING MYTH

April 30, 2023

We recently had a sponsor that inquired about amending their program to improve benefits. The program was exactly 80% funded as of January 1, 2023. One of the questions that came up during the discussion was if the plan was funded well enough to consider an amendment. Normally, it would be preferred for a program…

MISCELLANEOUS ACTIVITIES CATEGORY

March 31, 2023

One of the point system categories is Miscellaneous Activities. The state law provides: (vii)Miscellaneous activities—maximum fifteen points. Participation in inspections and otheractivities covered by the volunteer firefighters’ benefit law and not otherwise listed—one point peractivity. The three main criteria for an event to be a miscellaneous activity is: 1) It must be an activity. For…

2022 LOSAP INFORMATION FOR INCOME TAX PREPARERS

February 27, 2023

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…

IRS RAISES MAXIMUM LOSAP BENEFIT TO $7,000

January 1, 2023

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…

POINTS FOR ONLINE TRAINING

December 30, 2022

In this post, we will provide some insight on awarding points for self-directed, online training. In other words, training that is not interactive with an instructor or moderator, but an e-learning course that can be taken at the pace of the individual. The online course may include intermittent quizzes to ensure the individual is learning…

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