What is a LOSAP?

Length of Service Award Program – LOSAP – is designed specifically for emergency services volunteers, including volunteer firefighters and volunteer EMS workers. The program is designed to reward the emergency services volunteers for their service to the community as a supplemental retirement plan after they have attained an annual active service requirement. A LOSAP can also be called LOSA or HEROPLUS in states outside of New Jersey.

Purpose of Plan

• Reward the volunteer for service to the community
• Tax Deferred Income Benefits
• Supplemental Retirement Plan

Tax Benefits

• Pre-tax contribution through sponsoring agency
• Tax deferred earnings accumulate on a compound basis until withdrawn
• Certain taxes will be due upon withdrawal
• No effect on other Pension Benefits, Social Security, or IRA contributions

Contribution Limits

• Up to the maximum approved local limit
• Federal maximum annual contribution - $6,000

Eligible Participants

• Emergency services personnel who qualify under adopted LOSAP rules
• Attaining annual active service requirements

Funds may be withdrawn (without IRS penalty), as follows

• Separation from Volunteer Service
• Financial Hardship
• Disability
• Death

Vested funds may be transferred - to a similar plan with another LOSAP plan. Funds cannot be transferred to an IRA.