April 25, 2012 THE VILLADOM TIMES IV • Page 7 Mahwah LOSAP payments to increase by two percent by Frank J. McMahon The Mahwah Council has passed a resolution that increases the annual Length of Service Award Program payments to the township’s volunteers for emergency services provided in 2011 and payable in 2012. The payments will increase by two percent, which is below the consumer price index of 2.9 percent set by the U.S. Bureau of Labor Statistics in January. Brian Campion, the township administrator, advised that the township code does not provide for automatic increases, but the state statute does authorize a govern- ing body to provide an adjustment from time to time as long as the adjustment is equal to or less than the consumer price index increase since the last adjustment. The township council, therefore, considers an increase each year based on the index and the financial ability of the township to increase LOSAP payments. The township has participated in LOSAP since it was signed into law in 1998. Proponents say LOSAP can be used as a tool to ensure retention of existing volunteers and to provide incentives for recruiting new firefighters and rescue squad members. LOSAP provides tax-deferred income benefits to active volunteer members of an emergency service organization, which generally includes all forms of volunteer fire and first aid organizations, including volunteer first aid organizations that charge for their services. The tax-deferred income benefits for emergency services volunteers come from contributions made solely by the governing body of the municipality or fire district on behalf of those volunteers who meet the criteria of a plan created by that governing body. Contributions are deposited into a plan similar to the deferred compensation plans permitted for county and municipal employees. The governing body or the volunteer may direct the investment of funds in the different investment vehicles that may be permitted under the plan adopted by the governing body. Investment options may include different types of mutual funds or annuities. Participation in LOSAP is strictly voluntary. A volunteer in an emergency service organization is eligible to participate in LOSAP immediately upon becoming an active volunteer member of the emergency service organization. The program also permits a volunteer to vest, or obtain rights in the program, after five years. To qualify, a volunteer must meet certain criteria each year. Criteria include responses to fire calls, attendance at fire department drills, taking certified firematic training courses, holding elective office in the fire department, and attendance at fire company meetings. Each criterion carries a predetermined number of points. A volunteer must accumulate at least 100 points in a year to be eligible for the annual contribution. Kenneth Sesholtz, the township’s chief financial officer, advised that there are about 156 volunteers who currently qualify for the program. He said about $1,300 per volunteer is placed into the deferred income account each year.