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Council amends volunteer firefighters’ benefits plan, lowers retirement age and spreads large payouts
Summary
Finance Director Jeff Gilchrist told the council the LOSAP restatement lowers the plan’s normal retirement age to 55, adds federal contribution limits, and requires payments of $10,000 or more to be distributed over four annual installments; the council voted to amend and reinstate the plan.
The East Hampton Town Council voted to amend and reinstate the town’s Volunteer Firefighters Length of Service Awards Program (LOSAP) after a presentation from Finance Director Jeff Gilchrist.
Gilchrist said the plan had not been reviewed since the late 1980s or early 1990s and that the town’s pension attorney recommended updates for IRS changes and to clarify taxation of distributions. Key changes presented include an effective date of July 1, 2026; a reduction in the normal retirement age from 60 to 55; revisions to provisions governing town contributions; the addition of federal contribution limits; and a change to benefit-payment timing so that any distribution of $10,000 or more will be paid in four annual installments rather than as a single lump sum. Smaller payments (under $10,000) would remain as a lump sum.
Gilchrist said the chief and fire commissioners had approved the proposed changes before the item reached the council. After discussion a motion to amend and reinstate the plan was made, seconded, and approved by the council on a voice vote.
The change is intended to reduce the immediate tax burden for recipients of larger benefit amounts and to modernize language consistent with federal rules; the plan’s effective date on the transcript was read as July 1, 2026.
Next steps include administrative implementation by the finance office and notification to affected volunteers and the fire commissioners.
