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NYS VOLUNTEER FIREFIGHTER & AMBULANCE WORKER
Maximum Service Award Increased

By Edward Holohan, Actuary and Penflex President, 9/04

On September 14, 2004, Governor Pataki signed into law a bill which increases the maximum Service Awards able to be paid to volunteer firefighters and volunteer ambulance workers.

Under a defined benefit plan Service Award Program, for each year of service credit earned under the point system a volunteer can now be paid as much as $30 per month upon attainment of the Entitlement Age. The previous maximum was $20 per month.

Under a defined contribution plan, the Service Award Program account balance of a participating volunteer can now be credited with as much as $700 for each year the volunteer earns credit under the point system. The previous maximum was $480.

To increase the Service Awards under an existing Service Award Program up to these new maximums, the residents of the sponsoring political subdivision(s) served by the emergency services organization must approve a proposition authorizing the increase in the payments (i.e. mandatory referendum). The political subdivision’s governing body must adopt a resolution to seek voter approval of the proposed increase in the Service Awards with at least 60% of the governing board members approving the adoption of the resolution.

Under the new law, an increase in Service Award payments takes effect prospectively only as of the January 1 next following the date the residents of the political subdivision(s) approve the proposition to increase the Service Awards.

If you wish to amend your Service Award Program effective January 1, 2005 to increase Service Awards as authorized by this new law, contact us immediately by phone, fax or e-mail. We will then calculate an estimate of the cost of the amended program and prepare for review and approval by the sponsor’s legal counsel drafts of the key documents required for the election.

If you are interested in reading the actual text of the bill that became the law, you can find the link as soon as it becomes available by visiting our website at www.penflexinc.com.