Alert: Maximum Contribution to a DC LOSAP Increased to $1,200

On Friday evening (November 8), Governor Cuomo signed into law the bill amending Articles 11-A and 11-AA of the NYS General Municipal law increasing the maximimum annual contribution limit to Defined Contribution (DC) programs for both volunteer firefighters and volunteer ambulance workers from $700 per year to $1,200 per year. That means, for years beginning after 2019, the Defined Contribution Service Award Program account of a volunteer who earns a year of service credit under the point system may be credited with as much as $1,200.

This change is not a mandatory change.  Those fire districts, towns, villages and cities in NYS who sponsor Defined Contribution programs for their volunteers now have the option to increase the annual contribution they are now making to as much as $1,200.  To make the change (i.e. to increase the current contribution level), local voter approval must be obtained at an election.

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NYS LOSAP Audit Requirements 

Important facts you need to know about New York State LOSAP audit requirements can be found here.

Penflex - The LOSAP Experts for Over 25 Years:

Penflex specializes in administering length of service award programs (LOSAP) that are simple, pension-like plans used to recruit and retain volunteer firefighters and ambulance workers. 

In addition, Penflex is one of few firms experienced in the consolidation of one or more departments and their accompanying LOSAP programs. Penflex can ensure a smooth transition with personalized advice and actuarial expertise to those volunteer departments that are merging one or more departments into a single house with one well maintained and properly funded LOSAP.

Penflex offers consulting, actuarial and administrative services. The firm, located in Latham, NY, currently provides these services for more than 450 nationwide LOSAP plans used by emergency services organizations.

Actuary Ed Holohan is the President and founder of Penflex, Inc., and an Associate of the American Society of Actuaries (ASA). Ed has authored numerous articles on LOSAP law and has been working with volunteer emergency service providers for more than 20 years and with government officials for three decades. Ed has assisted state and federal legislators in drafting legislation, rules and regulations affecting service award programs.

To read about more about the steps involved in creating a successful LOSAP click here!

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