Council hears presentation on Iowa LOAP program to help recruit volunteer firefighters

Representatives speaking on behalf of the Vinton volunteer fire department described the state of Iowa’s new Length of Service Awards Program (LOAP) and asked the council to consider a resolution to participate.

The presenters explained LOAP allows municipalities to place up to $500 per eligible volunteer per year into an IRS-qualified (457-type) tax-deferred account; the state will match contributions subject to legislative appropriations. Staff noted the state has allocated $1.5 million to the program this year and that the application window runs from Dec. 1 through Jan. 30. The department asked the council to adopt a municipal resolution as part of the grant application.

Speakers discussed practical details: staff recommended a five-year vesting period so contributions become the member’s after five years of service; if a volunteer leaves before vesting, the council heard that funds could be redistributed within the municipality’s pool. Council members asked whether a member could retain funds if they move to another volunteer department; staff said accounts under the 457 structure can remain invested but transferring balances between municipal LOAP plans is treated case by case. Councilmembers signaled support and asked staff to bring a draft resolution for December consideration.

"If the city were to fund it to the $500 a year and the state were to match it, that's $1,000 a year," a presenter said, describing how the match could aid recruitment and long-term retention.