FAQ

To contact Penflex with questions about LOSAP programs click here. You can also call Penflex with LOSAP questions at: 1.800.742.1409.

What kind of service does Penflex, Inc. provide?

Penflex provides comprehensive consulting, actuarial and administration services for Length of Service Award Programs (LOSAPs).

What is a LOSAP?

It's a simple, pension-like plan intended to help state and local governments recruit and retain volunteers. The amount paid out is directly related to the number of years of service credit earned by the volunteer for performing specified emergency services activities.

What is the entitlement age?

The entitlement age is usually 55-67 years of age but it may be younger. Depending on what kinds of programs are available in your state you can, to an extent, custom design your LOSAP.

How much does it cost to have a LOSAP?

Program costs can range from $300 per year per volunteer to as much as $5,000 per year per volunteer depending on the programs sponsor.

How much does it cost to hire Penflex, Inc.?¸

Penflex Inc. is compensated strictly on a fee basis so that program sponsors can reap the maximum benefits from their investment. We receive no compensation from the investment of the LOSAP assets. Our annual administration fees range from un $1,000 for our smaller clients (under 15 volunteers) with the simplest programs, to $100,000 and up for our largest, statewide clients.

Does Penflex work with insurance companies?

Yes. Our primary goal is to help our clients design and establish programs which will reward volunteers for the services they provide their communities, the most cost-effective manner. Since the vast majority of our clients are local governments we, in effect, help them establish and maintain programs which benefit the volunteers and the local taxpayers. Since Penflex does not provide investment or insurance services we work together with whomever our clients select to provide the needed investment and insurance services for their LOSAP.

Does Penflex choose your investment firm?

No. Penflex is a third party administrator, meaning we do not dictate investment partners. We do, however, steer our clients to investment and insurance service providers who have experience managing LOSAP investments and who provide the required custodial, payment and/or trustee services.

In the event that the organization would like some direction on what investment company to choose, Penflex, Inc. has a list of reputable companies such as UBS Financial Services, Glens Falls National Bank, etc. Penflex is also happy to add other qualified firms to this list. Again, we receive no compensation from the investments of LOSAP assets.

What is the difference between a defined benefit and a defined

contribution plan?

A defined benefit (DB) plan is chosen when a program sponsorwants to pick to pay a specific benefit once a volunteer reaches the entitlement age. A defined contribution (DC) plan is chosen when a sponsor wants to contribute a specific amount.

While DB programs are favored by volunteers, program sponsors prefer DC progams because there is less volatility in the annual programs cost paid by the sponsor (i.e. the local taxpayer).

How much do LOSAP laws vary from state to state?

Some states such as New York, New Jersey and Wisconsin have enacted State legislation setting forth the allowable provisions, which may be included in a local municipal-funded Service Award Program. Other states (like Pennsylvania, Maryland, and Michigan) have no such legislation which means that in these states volunteer organizations and local municipalities have a lot of latitude when creating their program rules.

Please call Penflex, Inc. at (800) 742-1409, or click here, if you need more information on the rules in your state and if you are interested in finding out more about how LOSAPS can help you help recruit, retain and reward your volunteers.