FEES
1.
Determination of Administrative Fees
2.
Acceptable administrative expenses
3.
Charges when funds are returned
to a vested volunteer
GENERAL
4.
Municipal employees who qualify for LOSAP
5.
Junior or Explorer members’ eligibility
6.
Eligibility for volunteers who join an emergency service
organization after the start of a calendar year
7.
Eligibility for volunteers who earn fewer
than the required number of points
VESTING
8.
Volunteer vesting process
9.
Vesting and a leave of absence
10.
Non-vested volunteer terminates association
11.
Vested volunteer terminates association,
withdraws funds and volunteers a year later
12.
Vesting
and an exempt firefighter
13.
Vested volunteer relocates to a new municipality
14.
Vesting and withdrawal of funds without
terminating association
15.
Vesting and distribution of funds
FISCAL
ISSUES
16. Status
of funds returned to sponsoring agency when non-vested volunteer
terminates association with volunteer agency
17.
Returned funds and subsequent year’s appropriation
18.
LOSAP appropriation and the CAP
19.
Clothing allowance
20.
Increase in maximum contribution
21.
LOSAP and municipal contributions to
the fire company
22.
Vested volunteer receives funds from municipality as a
“ranking officer”
23.
Calculating the appropriation for LOSAP
LOSAP
PLAN AMENDMENTS
24.
Amending the point system, contribution award amount,
or other LOSAP elements
SPECIAL
CIRCUMSTANCES
25.
Death of a non-vested volunteer
26.
Non-vested volunteer becomes disabled
27.
Volunteers called to active duty
PROCEDURAL
ISSUES
28.
Municipality with both a fire district
and a fire company and implementation of LOSAP
29.
Challenge qualification of “Qualified Volunteer”
30.
Appeal from denial of past service credit
31.
Two fire districts cannot have a single LOSAP
32.
List of qualified volunteers
not certified within 30 days
POINT
SYSTEM
33.
Volunteering for two separate sponsoring agencies
34.
Volunteering for same organization with two separate point
systems
35.
Establishment and adoption of point system
36.
Sponsoring Agency with multiple fire
companies and point systems
FEES
1. How are administrative service
fees to be paid? Are they paid from the award appropriation or
from
a separate appropriation?
All administrative fees/service charges are paid from the original
appropriation approved by the public referendum. N.J.A.C.
5:30-14.50 prohibits the sponsoring agency from paying the
administrative fees on behalf of the volunteers. (Return to top)
2. What are acceptable administrative
expenses?
The contractor establishes administrative fees. The fees
are approved by the sponsoring agency through the execution of
the Length of Service Award Program Plan Document with the contractor.
In this manner, the sponsoring agency has the discretion to determine
what are acceptable administrative fees. (Return to top)
3. When invested funds are returned to a vested volunteer,
what are acceptable administrative fees?
Fees are taken from the individual’s account on a pro-rated
or individual account basis. This may not include any penalties
that may be assessed by the approved plan for early withdrawal
or state or federal taxes. (Return to top)
GENERAL
4. If a member responds while ‘on the clock/payroll’ for
the municipality, is the member entitled to
receive LOSAP credits?
P.L. 2001, chapter 72—approved December 26, 2001—amended the
Emergency Service Volunteer Length of Service Award program to
permit active volunteers who also serve as paid employees within
a local government unit of the State, to receive credit for activities
performed during the individual’s regularly assigned work periods.
(Return to top)
5. Are “Junior” or “Explorer” members of a volunteer
service organization eligible to participate in a
LOSAP?
Junior or explorer member eligibility is a local matter. It depends
on the emergency service organization’s definition of “active
volunteer member” and whether the junior members are able to acquire
the type and number of service points during a year to qualify
for the LOSAP award. (Return to top)
6. Can a new volunteer who joins an emergency a service organization
after the start of a calendar
year, but accumulates the annually required
number of points, still qualify for the LOSAP credit that year?
Yes, if a volunteer is able to satisfy the local plan’s qualification
requirements for a year of active emergency service in less than
the first 12 month period, the volunteer is entitled to the credit
and can be added to the certified list of qualifying volunteers.
(Return to top)
7.
Can a volunteer qualify for a LOSAP award in a year where he or
she earns fewer than the maximum annually required number of points?
Yes, if the local LOSAP Plan permits the pro-rating
of both the number of qualifying points and the amount of the
award earned. (Return
to top)
VESTING
8.
How does a volunteer firefighter or rescue squad member become
vested?
The volunteer must complete five (5) cumulative years as an
active member of any volunteer service organization in the
State of New Jersey. If a volunteer has already been an active
volunteer in the State for five or more years, then the volunteer
is vested as soon as funds have been deposited into his or her
account.
(Return to top)
9.
If a vested volunteer takes a leave of absence, do they need to
become vested again if they return to active duty?
No, as long as the organization grants the volunteer a leave
of absence, when they return they are still recognized as a vested
volunteer. (Return to top)
10. If a volunteer terminates service prior to vesting, are
the funds automatically returned to the sponsoring agency?
Yes. Unless the volunteer requests and receives approval from the
sponsoring agency for a leave of absence, the funds are automatically
returned to the sponsoring agency. (Return to top)
11. If a vested volunteer ceases to be an active volunteer
terminating their association with the emergency service organizations
and withdraws funds awarded, but returns a year or more later
and once again becomes an active volunteer of the emergency service
organization, may the individual participate in the organization’s
LOSAP?
Yes, however the individual would commence
a new vesting track with no credit for prior years service.
(Return to top)
12. If an exempt member of a volunteer fire company
has maintained the required certifications, but not actively participated
for several years and returns to full active membership could
the “non-participation” time be considered for vesting purposes?
Yes, the “non-participation” time could be considered for vesting
purposes. However, because the member is exempt, the member
had already served as an active volunteer in the State of New
Jersey for the minimum five years. This means that an exempt
member will be vested as soon as they become active, qualify for
a LOSAP award and have funds deposited into his or her account.
(Return to top)
13. If a volunteer is vested in Town
A and relocates to Town B, can the volunteer still be considered
vested?
Yes. The volunteer is considered to be vested in Town B’s LOSAP
upon commencement of performance as active emergency volunteer
in Town B. The volunteer may transfer funds to Towns B’s LOSAP
from his/her LOSAP account in Town A’s LOSAP subject to any administrative
fees imposed by either contractor. (N.J.S.A. 40A:14-188(6)(a).
(Return
to top)
14. If a vested member decides after 15 years to withdraw
funds, must the member resign from the company altogether
or just from the LOSAP program?
No. The LOSAP rules and regulations do not require a member
to resign from the company in order to receive a distribution
of funds. However, if a vested member receives a distribution
of funds prior to attaining the age requirements set forth in
the plan, that member must begin a new vesting track. The
member can not receive prior service credit when beginning a new
vesting track.
(Return to top)
15. When can a volunteer receive a
distribution of funds and are there any penalties involved?
A volunteer is eligible to receive a distribution of funds
upon completing the 5-year vesting period. The member must also
satisfy any specifications set forth in the Plan such as age requirements.
Distributions are subject to state and federal taxes as well
as any penalties imposed by the provider. Individuals should
consult with their providers about penalties and distribution
requirements that may exist when funds are distributed. (Return to top)
FISCAL
ISSUES
16. If a volunteer does not vest, what happens to the funds that are returned
to the sponsoring agency?
The funds are returned to the sponsoring
agency’s surplus (fund balance). (Return to top)
17. May returned funds be used to offset
next year’s appropriation?
The
funds must be returned as general revenue to surplus. At the
discretion of the governing body, surplus may be used to offset
next year’s appropriation. However, money returned to the surplus
cannot be dedicated for a specific use or purpose. (Return to top)
18. Are the municipal appropriations
for LOSAP excluded from the municipal budget cap?
Yes, municipal appropriations for LOSAP are exceptions to
the municipal cap. (Return
to top)
19.
If a volunteer receives a clothing allowance or stipend as a driver,
is the volunteer prohibited from participating in a LOSAP?
No, clothing allowances, reimbursements and stipends do not prohibit
a volunteer from participating in a LOSAP. (Return to top)
20. The law says the maximum contribution
is $1,150. Does the amount ever increase and if so, how?
Pursuant to N.J.A.C. 5:30-14.9, the
maximum contribution may be increased by a percentage annually
determined by the Director of the Division of Local Government Services
based on the Consumer Price Index of Trenton/Philadelphia. Increases
to a plan’s award are optional, at the discretion of the
sponsoring agency. If the original adopting resolution or ordinance
included language allowing for CPI adjustments, then the local
unit may adjust the maximum allowance by resolution since the
public has already approved the increase. If the original resolution
or ordinance did not include language allowing for CPI adjustments,
the sponsoring agency must amend the original documents to provide
for the increase. If a sponsoring agency wants to increase the
maximum contribution and by doing so its LOSAP budget does not
exceed the amount previously approved by public question, the
CPI index factor may be used and is not subject to a public hearing.
If, however, the approved budget amount will increase by using
the calculated CPI increase, the sponsoring agency must pass an
amending ordinance or resolution that is subject to public hearing.
See Local Finance Notice – LFN 2004-8 for a full discussion of
using the CPI adjustment. http://www.state.nj.us/dca/lgs/lfns/04lfns/2004_8.doc.
(Return to top)
21. N.J.S.A. 40A:14-34
or 40:5-2 limits the annual contribution a municipality
may make to a volunteer fire company or first aid organization. Does the amount the municipality
contributes toward the LOSAP plan count as a portion of the allowable
annual contribution?
No, LOSAP is not considered a contribution as defined in N.J.S.A.
40A:14-34 or 40:5-2. (Return to top)
22.
Is a vested volunteer who receives money as a ranking officer
in the volunteer fire company or volunteer first aid squad prohibited
from participating in LOSAP?
No, as long as the volunteer is not considered
an employee. (Return
to top)
23. How is the appropriation determined?
The sponsoring agency may determine the amount of the appropriation
by multiplying the amount of the award by either the total number
of volunteers or by an estimated number of volunteers expected
to qualify. Be sure to take into account those volunteers who
may be both firefighters and emergency medial services volunteers.
The sponsoring agency may not budget a fixed amount to be
divided among the qualifying volunteers. This would result in
the amount of the award varying from year to year depending upon
the number of volunteers that qualified. The LOSAP ordinance
is required to identify the maximum annual contribution for an
active volunteer member. (N.J.S.A. 40A:14-185(3)(d)(3).
(Return to top)
LOSAP
PLAN AMENDMENTS
24. Can the point system or award contribution amount
be amended? If so, how is it done?
Yes, amending the enabling ordinance or resolution is the proper
method to change award amounts, point schedules, change the LOSAP to include either automatic or periodic CPI increases, and other LOSAP elements. As required for
a municipal ordinance amendment, fire district resolutions of
this nature must be subject to a public hearing on the change.
Increases to base award contribution amounts that exceed cumulative CPI adjustments,
or point schedule adjustments that increase the number of eligible
recipients over the amount projected when the referendum passed,
are considered major amendments. They require a referendum to
implement them because the such actions go beyond the policy originally
approved by the voters.
.
(Return to top)
SPECIAL
CIRCUMSTANCES
25.
What happens to funds awarded to a volunteer who dies prior to
vesting? Does it make a difference if the volunteer dies in the
line duty?
There is no distinction between a volunteer who dies in the
line of duty or elsewhere. At the discretion of the sponsoring
agency, the funds may be awarded to the estate of the deceased
volunteer. (Return
to top)
26.
What happens to funds awarded to a volunteer who becomes disabled
before vesting? Does it make a difference if the v
There is no distinction between a volunteer who becomes disabled
in the line of duty or elsewhere. However, depending on the disability,
as long as the volunteer is active they are still eligible to
become vested. There are various tasks a disabled volunteer can
perform within a volunteer organization to maintain active volunteer
status. (Return to top)
27.
Are there any regulations in order to hold the benefits of volunteer
members who are called to active duty? Can their qualifying percentages
be held so that they will not lose the award benefit for the upcoming
year?
‘Freezing’ the benefits of active volunteer members who are
called to active duty is a matter of local choice and is left
to the discretion of the local government unit. A valuable resource
that may prove helpful in determining how to handle such situations
however, is the New Jersey Department of Military and Veteran
Affairs (DMAVA) website: http://www.njesgr.org.
The site contains a Frequently Asked Questions Section that addresses
leaves of absence for public employees while performing military
duty. (Return to top)
PROCEDURAL
ISSUES
28. If a municipality has a fire district that covers part
of the municipality and volunteer fire company for the remainder,
can the volunteer fire company participate in a LOSAP?
Yes, the municipality would have to sponsor the LOSAP by a
referendum. (Return to top)
29. Does the governing body or a member of the public have
the right to challenge the qualification of a “qualified volunteer
member?”
Yes, the list of LOSAP recipients must be posted for the general
public. Anyone who wishes to challenge the list or a portion
of the list must do so in compliance with N.J.A.C. 5:30-14.11.
* Appeals must be mailed to the
Municipal Clerk or Fire Commission Secretary no later than 30
days from the time the list was posted.
* Within 10 days, the sponsoring agency
must forward the appeal to the volunteer organization.
* If no action is taken by the volunteer
organization within 30 days, the sponsoring agency shall investigate
and submit a non-binding recommendation to the volunteer organization.
* The emergency service organization
shall accept, modify, or deny the recommendation and decide the
matter.
* Final decisions are subject to judicial review. (Return
to top)
30. What is the appeal process for denial of past service credit?
The appeal process for denial of past service credit is the
same as the challenge of qualifications. It is highly recommended
that past service credit be addressed in the enabling referendum.
(Return
to top)
31. Can two fire districts have a single
LOSAP?
No, each fire district must have their own LOSAP because a
fire district is a separate governing body that provides a service
to a specific portion of the community. While each sponsoring
agency creates its own LOSAP through the referendum process, there
is nothing to stop fire districts from jointly administering the
LOSAP through an Interlocal Service Agreement. (Return to top)
32. What occurs when the list of qualified volunteers
is not certified within 30 days as required by N.J.S.A. 40A:14-191
and N.J.A.C. 5:30-14.10?
The list can be certified and the review and appeal process can commence
as described in the enabling statute and implementing Rules.
The only party harmed by the delay in certification is the volunteer
because no funds may be transferred for investment until the review
process has been completed. Nonetheless, volunteer organizations
should meet the statutory requirements to comply with the spirit
and letter of the law. (Return to top)
POINT
SYSTEM
33.
Can a person receive more than one LOSAP award if they are an
active volunteer firefighter and/or emergency medical service
volunteer for more than one sponsoring agency?
Yes, as long as the individual meets the criteria for each
of the LOSAP programs. (Return
to top)
34. If
a person is both a volunteer firefighter and an emergency medical
service volunteer under the same sponsoring agency, is the individual
eligible to receive two separate LOSAP awards?
Yes, as long as the individual is active and qualifies for
credit under two separate point systems. The volunteer, however,
must respond to each emergency call as either a volunteer
firefighter or an emergency medical service volunteer.
The volunteer cannot receive LOSAP credit for both point systems
for the same emergency call. The volunteer only needs one account
with the Plan Administrator. Regardless of where the award comes
from, the money for the volunteer is deposited into a single account.
Pursuant to N.J.S.A. 40A:14-189(a), a volunteer in this situation
cannot receive more than the statutory LOSAP award amount of $1,150
from a single sponsoring agency. (Return to top)
35. Who adopts the point system used
to determine eligibility of participating in a LOSAP?
The point system is adopted by the sponsoring agency in the
ordinance or resolution establishing the LOSAP. (Return to top)
36. If there is one sponsoring agency with multiple volunteer
fire companies or first aid squads, can the individual fire companies
or first aid squads establish their own point system for vesting?
Yes, however, the Division strongly recommends that the sponsoring
agency create the point system to ensure equity and harmony among
the different fire companies or first aid squads. (Return to top) |
