House Bill to Increase Annual Cap on LOSAP Contributions Introduced
On March 24, Representatives Peter King (R-NY) and Bill Pascrell (D-NJ) introduced the Length of Service Award Program Cap Adjustment Priority (LOSAP CAP) Act (H.R. 1720). The bill would increase the federal cap on annual contributions into an individual’s LOSAP plan from $3,000 to $6,000. It would also establish a process whereby the cap can be adjusted over time based on inflation.
“I’d like to thank Representatives King and Pascrell for introducing this important legislation,” said National Volunteer Fire Council (NVFC) Chair Kevin D. Quinn. “Approximately 20 percent of volunteer firefighters in the United States have a LOSAP and this bill will ensure that sponsoring agencies and local governments are not hindered by a static and arbitrary cap on annual contributions.”
The current cap was established in 1996 and has not been adjusted since. Adjusted for inflation, $3,000 in 1996 dollars is worth more than $4,600 today. Additionally, as it becomes harder to recruit and retain younger volunteers, many older volunteers are continuing to serve later in life. This impacts the LOSAP cap because for certain plans the actuarial value of annual contributions rises incrementally with each year of service.
Use the NVFC’s Legislative Action Center to contact your U.S. Representative to ask them to co-sponsor H.R. 1720.
For more information please visit: www.nvfc.org