LOSAP FAQs

A: Offering a LOSAP would provide:

• Lump sum benefit - At entitlement (or termination of service).
• Death benefit - Accumulated funds paid to beneficiary.
• Disability benefit - Accumulated funds may be distributed.

A: 

• Defined Benefit - the sponsoring ESO predefines the monetary reward per year of the service that the volunteer will receive monthly at entitlement age.
  • Fluctuation in contribution is assumed by the sponsor to ensure adequate funds are accumulated to pay benefits.
  
  
  
• Defined Contribution - the sponsoring ESO predefines the monetary contribution to the volunteer's account per year of service. At entitlement age, the account balance is awarded to the volunteer as a lump sum.
  • Fluctuation in reward is assumed by the volunteer depending on investment results.

A:

• Community - Establishing a LOSAP can provide significant savings to municipalities that are otherwise associated with paying salaries and benefits for full-time firefighters.
  
  
• Emergency Service Organization - Establishing service requirements to qualify for benefits promotes a better trained and managed team of volunteers.
  
  
• Volunteers - Establishing a LOSAP offers rewards to volunteers for community service and encourages volunteer retention.

A: Implementing a LOSAP can provide significant savings to municipalities that are otherwise associated with paying salaries and benefits for full-time firefighters. LOSAPs offer financial rewards to volunteers for community service, which encourages volunteer retention.

A: A defined contribution plan allows the ESO to contribute a recurring amount to the eligible volunteer’s LOSAP account. A defined benefit provides a guaranteed benefit from which the annual premium may change based on actuarial tables.