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Building a Stronger Fire Service in Maine: The Impact of LOSAP.

Maine LOSAP

The Maine Length of Service Award Program (LOSAP), established under LD 1154, aims to improve the recruitment and retention of volunteer Fire and EMS personnel in Maine. LOSAPs are annuity-based saving programs designed to reward volunteers who meet specific service requirements. 

Why Is It Important to Firefighters in Maine?

The LOSAP program is essential for Maine’s fire service as it addresses the challenge of retaining qualified personnel by providing a financial incentive for long-term service. It ensures that volunteers who dedicate years to serving their communities are rewarded, thereby enhancing their commitment and support for the fire service.

Maine currently offers two types of LOSAP programs, managed by Corebridge Financial:

Municipal Contribution: 

  • Funded by the fire department or the town that supports it. 
  • The state covers all administrative fees, including those for the plan administrator and other small costs. 

    State Contribution: 

    • Funded by the state. 
    • The state aims to see more departments enroll before increasing funding. The more participants, the more funding becomes available. 
    • A bill in the next legislative session aims to secure $5 million for the program, a top priority for legislators. 

        Here is how the state formula currently worksFirefighters earn 100 points per year.

        • Each point is worth $20. 
        • This means a maximum of $2,000 in contributions per firefighter per year (with potential for this cap to increase). 
        • Over 30 years, with a general market return rate of 6%, this could grow to $250,000, distributed tax-free. 

        LOSAP Management Challenges

        Managing a LOSAP Program poses significant challenges:

        • Accurate Record-Keeping: Ensuring all volunteer service hours and activities are accurately tracked and recorded.
        • Data Consistency: Maintaining consistent data entry across various departments to avoid discrepancies. 
        • Compliance: Meeting state and federal regulations for reporting financial contributions and payouts. 
        • Timely Updates: Keeping all records up to date, including training certifications and participation logs. 
        • Complex Financial Reporting: Managing the financial aspects of annual contributions, investment income, and payouts to ensure transparency and accuracy. 
        • System Integration: Integrating LOSAP data with other reporting systems to provide a comprehensive overview of volunteer activities and service awards. 
        • User Training: Ensuring that staff and volunteers are properly trained to use the reporting tools and understand the importance of accurate reporting. 
        • Audit Readiness: Being prepared for audits by maintaining thorough and organized records that can be easily accessed and reviewed. 

        Effective Communication and Timely Record Certification Key to LOSAP Success

        Effective communication between departments and timely certification of records by local Fire Chiefs are crucial to prevent discrepancies and ensure that volunteers receive their due rewards, making the overall management of LOSAP both resource-intensive and detail-oriented. For more information on how you can participate, click here and contact the Corebridge Financial professional designated for your county. 

        The good news is you do not have to be alone navigating this journey! With 30 years of experience in supporting LOSAP programs, Alpine Software is well-equipped to help manage and streamline the Maine LOSAP program with our RedNMX™ Fire Department Management System.  

        To learn more about how RedNMX™ can support your department and ensure the smooth implementation of the LOSAP program, GEAR UP and schedule a demo! Let us be your trusted partner in this important initiative. 

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