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CFSI National Advisory Committee Adopts NVFC-Backed Resolution Supporting LOSAP Bill
On April 2, the National Advisory Committee (NAC) for the Congressional Fire Services Institute (CFSI) adopted a resolution offered by the National Volunteer Fire Council (NVFC) supporting the Volunteer Emergency Services Recruitment and Retention Act (VESRRA). The NAC is made up of more than 40 organizations representing various interests within the fire and emergency services community. VESRRA (H.R. 2160/S. 1840) would simplify the taxation of length of service award programs (LOSAPs), pension-like plans for volunteer emergency responders, making it easier for departments to administer plans and for individuals to receive benefits.
“I am very pleased that the NAC has adopted the NVFC’s resolution supporting the Volunteer Emergency Services Recruitment and Retention Act,” said NVFC Chairman Philip C. Stittleburg. “This is an important piece of legislation that has broad support within the fire and emergency service community.”
VESRRA clarifies that LOSAPs may be considered ‘eligible deferred compensation’ plans, which means that they are taxed when an individual starts drawing funds rather than when the department contributes into the plan. The bill would also designate plans administered by not-for-profit, private volunteer departments as ‘governmental’ for the purposes of taxation, eliminating unnecessary reporting requirements and paperwork. Additionally, VESRRA increases the federal limit on annual contributions into a LOSAP from $3,000 to $5,000. Since the federal cap was imposed in 1996, several states have passed legislation authorizing higher annual contributions.
Passage of VESRRA is a top priority for the NVFC. Contact your elected officials in the United States House and Senate to ask them to cosponsor H.R. 2160 and S. 1840.
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Kimberly Ettinger
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David Finger
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