On Tuesday, July 23rd, Senators Susan Collins (ME) and Benjamin Cardin (MD) introduced S. 2214, the Volunteer Emergency Services Recruitment and Retention Act (VESRRA). The legislation simplifies how Length of Service Award Programs (LOSAPs) benefiting volunteer emergency personnel are taxed.
LOSAPs are important to the volunteer fire service, allowing fire departments to offer incentives, including retirement savings plans, to recruit and retain veteran volunteer firefighters. Approximately 20 percent of volunteer firefighters are enrolled in a LOSAP plan. Currently, the tax code specifies that a LOSAP is not an eligible deferred compensation plan. VESRRA would solve this problem by allowing LOSAPs to operate as traditional employer retirement plans, making contributions tax-deferred, guaranteed, and portable.
S. 2214 has been referred to the Senate Committee on Finance.
