All persons who are carried on the membership roll of a participating fire department and who perform fire fighting and prevention services as a bona fide volunteer, are eligible to participate in the plan upon completing one (1) Year of Service with the fire department, as determined by the plan administrator on a uniform and consistent basis.

For purposes of this plan, a bona fide volunteer means any individual whose compensation received from the participating fire department is in the form of reimbursements for expenses and reasonable benefits and nominal fees in connection with the provision of fire fighting and prevention services. Any bona fide volunteer firefighter on the roster of the department for one year of service, as defined as a consecutive 12 month period ending on December 31, shall meet eligibility requirements.

The participant will enter the plan as of the first day of the plan year coinciding with or next following the completion of a year of service which eligibility was met.

Vested Balance: The participant’s balance that is non-forfeitable and is owned by the participant as calculated per the vesting schedule. Also, normal retirement, disability or death will result in the participant being 100% vested.

Vesting Schedule: A schedule chosen by the department which assigns a vested percentage to each year of service with the fire department. Although not entirely clear in the IRS Code, the attorney takes a conservative approach and highly recommends that no department adopts a schedule longer than 6 years.

Department Contributions: Can be deposited into the fund any time during the plan year. However, they must be allocated in the same plan year in which they are deposited. So, deposits received after December 31 will be allocated in the new plan year.

Allocation of Contributions: All eligible participants of the department shall receive an equal allocation and must be employed as of September 30 of the plan year during which such contributions are paid to the plan.

Termination of a Firefighter: Upon termination, the distribution of the termination benefit shall be postponed until the earliest of the following occurrence: the attainment of Normal Retirement Age, Disability or Death. Upon the occurrence, a taxable distribution will be distributed.

Normal retirement age is between age 55 and 62 as chosen by the department or 20 years of service, whichever is earlier.

The person listed on the beneficiary designation will receive the death benefit of a deceased firefighter. Unless the spouse waives their right to the benefit, the spouse must be the beneficiary. A new beneficiary form must be completed upon divorce, marriage or death of the beneficiary or death of the spouse. If you do not designate a beneficiary or if the beneficiary you have named dies before you do, your benefits will be paid to your estate.

The vested benefits can be paid in a single lump sum taxable distribution or installment payments upon termination of the fire department and meeting one (1) eligibility requirement of Normal Retirement Age, 20 years of service, Disability or Death (Benefits payable to Beneficiary).

The process is governed by two entities. Primarily, the choice of the Retirement Board of Trustees in the design of the plan and the desire to manage the expenses of that plan; and secondly the IRS regulations governing LOSAPs and Qualified Government Plans. Therefore, when asked who does this or how, participants are referred to the plan document and its amendments or to IRS rules.

The valuation dates are decided upon by the Retirement Board of Trustees and are set due to cost controls for all participants and the need to allow for time to process the roster changes. This process has never been differentiated between the LOSAP and the Qualified plan. All participants are managed the same. The Association and its Retirement System Administrator would welcome questions that you may have to further clarify this process.

The department must have established upon joining the retirement program a vestment schedule that dictates from that point forward the number of years required to participate and become fully vested to retain earnings and contributions. This varies from department to department. Ask your local trustees for the vestment schedule for your department.

An individual must be a member of the local fire department for one year from the date of hire before being eligible to participate in the retirement system.

An individual, after that one full year of employment, is then added to the next roster, annually generated by the department, which will be forwarded to the retirement systems’ administrator from that department. Typically, this roster is completed in the last three months of the calendar year.

The roster is utilized by the system administrator on the following January 1 and contributions that were made by the department are allocated to the members listed on that most recent of rosters.