Voters Overwhelmingly Support LOSAP (Nov. 8, 2000)

Washington Township voters approved the LOSAP ballot question by a better than 3:1 margin. In an effort to encourage greater volunteer participation in the fire and first aid squads throughout the state, the legislature passed and Governor Whitman signed a bill creating a special compensation program for those volunteers, if the voters approved it. The program is known as the Length of Service Awards Program, or LOSAP.

Results:

The Washington Township Volunteer Emergency Services offer our heartfelt thanks to the voters for their support!

Background:

In August the Township Committee passed an ordinance to create the "Emergency Services Volunteer Length of Service Award Program" which would not take effect unless it was approved by the Washington Township voters, in a binding referendum at the general election on November 7th. Approved last year by Governor Whitman and the state legislature, this program recognizes the need to offer incentives to our volunteer firefighters and first aid squads. The approved LOSAP plan allows the Township to provide a fixed annual contribution to a deferred income account for each volunteer member as determined by a point system.

State statute defines a LOSAP as "a system established to provide tax-deferred income benefits to active volunteer members of an emergency service organization." An emergency service organization generally includes all forms of volunteer fire and first aid organizations.

The tax-deferred income benefits for emergency services volunteers come from contributions made solely by the governing body of the municipality, on behalf of those volunteers who meet the criteria of a plan created by that governing body. The contributions are deposited into a plan similar to the deferred compensation plans permitted for county and municipal employees (N.J.S.A. 43:15B-1 et seq.) These plans permit the governing body or the volunteer to direct the investment of funds in the different investment vehicles that may be permitted under the plan adopted by the governing body. The investment options may include different types of mutual funds or annuities.

The benefits are federally tax deferred to the volunteer until the volunteer withdraws them.

How Are LOSAPs Created?
The first step in creating a LOSAP is the adoption of the ordinance or resolution. However, the ordinance or resolution does not take effect until it is approved by the voters as a public question at a general election. Ordinances and resolutions creating a LOSAP must include the following items:

Our governing body has approved the ordinance or resolution. In addition, the law permits the Director to require other items in the enabling ordinance or resolution. At this time, the additional requirements are that:

Once approved by the voters, appropriations for a LOSAP program are included in the budget of the sponsoring agency as a separate line item. Municipal budget appropriations for LOSAPs may be treated as exceptions to the budget cap and require no other special treatment.

Several other important matters related to the program are:

LOSAP Benefits

There are two important definitions to consider when dealing with LOSAP benefits:

"Active volunteer member" means a person who has been so designated by the governing board of a duly created emergency service organization and who is faithfully and actually performing volunteer service in that organization.

"Year of active emergency service" means a 12-month period during which an active volunteer member participates in the fire or first aid service and satisfies the minimum requirements of participation established by the sponsoring agency on a consistent and uniform basis.

About the Monetary Benefits
LOSAP benefit levels are set in the law. If an active volunteer member meets the year of active service requirement, a LOSAP must provide a benefit between the minimum contribution of $100 and maximum contribution of $1,150 per year. While the maximum amount is set by statute, it is subject to periodic increases that are tied to the consumer price index (N.J.S.A. 40A:14-185f). The permitted maximum amount will be issued by the Division annually.

A volunteer in an emergency service organization is eligible to participate in a LOSAP immediately upon becoming an active volunteer member of the emergency service organization (section 6(a) of the law, N.J.S.A. 40A:14-188(a)). It also permits a volunteer to "vest" after five years.

How is Eligibility for a LOSAP Award Determined?
Each sponsoring agency is required to establish, in its ordinance, a point system that reflects the range of volunteer services that may be provided to the emergency service organization. The law does not prohibit the sponsoring agency from adopting a sliding scale of benefits that combines the use of points and years of service. One year of active emergency service is awarded for each calendar year in which an active volunteer accumulates the minimum number of points that are required by the sponsoring agency.

Remembering that LOSAPs are a reward for volunteer service, the Township Committee has considered the point system very carefully, as it will dictate policy on how much volunteer effort is needed for an award, and ultimately, the cost of the program to taxpayers. While the point system must be in the plan that is approved by the voters, minor amendments by ordinance/resolution that are required at a later date will be permitted without a subsequent referendum.

All Washington Township Volunteer Firefighters and First Aid Squad members are ready to answer the alarm, 24 hours a day, 7 days a week annually. We volunteer because lives depend on us. So, we offer our sincere thanks to our residents, that we faithfully serve, who came out on Election Day and supported us with their vote.