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Volunteer‑firefighter LOSAP: presenter urges actuarial review, beneficiary outreach and modest benefit increases
Summary
A Hometown Firefighter Services representative reviewed the village LOSAP 2025 valuation, reported a funded ratio near 58.5% and recommended an actuary review of alternatives including extending service years, modestly increasing the $20 monthly benefit and using annuities; he also urged use of a beneficiary portal.
A representative of Hometown Firefighter Services, speaking as an ex‑chief, 33‑year commissioner and state director, reviewed the village Length of Service Award Program (LOSAP) 2025 valuation and urged the board to consider changes to plan design and beneficiary outreach.
The presenter said the plan’s 2025 census showed about 84 total participants: 38 active, 26 inactive vested, and 20 entitled. He reported assets of roughly $580,000 and unfunded liabilities around $411,000, and described the plan’s funded ratio at about 58.5 percent. Contribution recommendations in the actuarial materials ranged from $90,000 to $130,000, with a mid‑range near $95,000–$100,000.
On benefit design, the presenter noted the current LOSAP benefit is $20 per month and said the plan could lawfully increase that to as much as $30 per month under IRS contribution rules he cited. He recommended the board ask the actuary to model alternatives, including raising the service threshold now set in practice at 40 years to 50 years or testing earlier eligibility ages (55–62) and the budget impacts of each option.
The presenter also recommended considering annuities for part of the plan’s assets if yield opportunities exceed the current flat crediting rate (he cited recent 4.55% crediting versus a baseline 4% assumption) and urged the village to upload the plan valuation to the actuary for prompt review.
On administration, he described a new beneficiary portal from the plan administrator, offered to assist the village with initial mailings and spreadsheet imports, and urged every participant to complete an updated beneficiary form to avoid misdirected death benefits.
The representative said he would forward the 2026 valuation to the actuary and follow up with the board after the lobby day meetings he planned in Albany. Board members asked for actuary scenarios and for the presenter to provide specific recommended contribution amounts once the 2026 report was processed.
Next steps: the presenter will deliver the 2026 valuation to staff and the actuary will be asked to model funding and design alternatives for the board to consider ahead of the upcoming budget process.
