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
10a. Test
line
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
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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
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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
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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
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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
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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
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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
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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
a volunteer organization.
(Return
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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
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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
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10a.
Test line #2
Test
line #2 (Return
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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
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12. If
an exempt member 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
as continuous service for vesting purposes?
Yes, the "non-participation" time
could be considered as continuous service for vesting purposes.
(Return
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13. If
a volunteer is vested in Town A and relocates to Town B, can the
volunteer still be considered vested?
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
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14. If
a vested member after 15 years decides he wants to withdraw his
funds, must he 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.
(Return
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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
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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
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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
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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
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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
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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.nj.gov/dca/lgs/lfns/04lfns/2004_8.doc.
(Return
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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
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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
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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, 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. Referendums
are only required to create or abolish a LOSAP. (Return
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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
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26. What
happens to funds awarded to a volunteer who becomes disabled before
vesting? Does it make a difference if the volunteer becomes
disabled in the line of duty?
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 their
maintain active volunteer status. (Return
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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