LOSAP Made Easy

 Volunteers may receive LOSAP awards that maintain their volunteer status.  These programs are widely used to help municipalities recruit, retain, and recognize long‑term volunteers by providing a tax‑advantaged benefit, as a way to say "Thank You" for their valuable service to the community.

The Length of Service Award Program (LOSAP), established under Iowa Code, recognizes and rewards the dedicated service of volunteer firefighters, emergency medical service providers, and reserve peace officers. Municipalities that choose to establish a LOSAP can provide tax-deferred financial benefits or grants to participants, with the State of Iowa matching funds up to $500 per participant, to encourage volunteer participation and honor their commitment to community safety.

To learn more about this program, visit Opportunity Iowa.

• Establish your LOSAP with a resolution.  A sample resolution is available here.  An editable version is available here.
• Register with the State of Iowa for Matching Funds.  See Information Needed for the State of Iowa Application process (below).
• Establish your LOSAP group with the investment provider.   To use the Lincoln Financial Group Heroes Plus program:
  • Complete this form to establishes the organization profile
  • Complete the yellow columns in this spreadsheet with your volunteers' information
  • Return both to Knox Financial Services, via email to losap@knoxfin.com or upload at to our file share

Name of Company managing LOS Fund: Lincoln Financial 

Account Representative Name: Alliance Account Management Team Approach

Account representative address: 1301 S. Harrison Street

Account representative address: Fort Wayne

Account representative address: IN

Account representative address: 46802

Account Representative Phone Number: (800) 554-4026

Account Representative Email: allianceteamapproach@lfg.com 

A copy of the Lincoln Financial Group W-9 form is available here: Lincoln National W9.

 LOSAP plans are highly specialized, with a select number of investment providers offering dedicated solutions. We have chosen Lincoln Financial Group’s HeroPlus product as our investment vehicle for LOSAP programs. With decades of experience in this space, Lincoln Financial Group has a reliable track record in delivering investment products designed specifically for these unique plans.

LFG's HeroPlus Brochure is available here.  The Lincoln Financial Hero Plus fund lineup is available here.  

Jason Knox brings more than 28 years of experience working with 457(b) and other tax-qualified plans.  The entire team at Knox Financial Services is proud to support the volunteer organizations that selflessly serve our communities.   We look forward to helping these organizations implement this benefit available that is now available in Iowa.

We look forward to helping you establish this benefit. 

Our LOSAP services include assisting with establishing the plan and individual accounts for each participant.  Each participant may choose their own risk level.  Our Team will assist in selecting suitable investments that align with your time horizon, risk tolerance, and investment experience.   

What is a LOSAP?
A Length of Service Award Program (LOSAP) is a benefit program designed to help recruit, retain, and reward volunteer firefighters and EMS personnel by providing tax-deferred or financial benefits based on years of active service.

Who is eligible to participate?
Eligibility varies by each jurisdiction, but LOSAPs generally apply to active volunteer members of emergency service organizations, such as volunteer fire departments or first aid squads.  Participation usually requires earning a minimum number of annual points through activities such as training, drills, calls, administrative duties, and meetings.

How does a volunteer earn points?
Volunteers accumulate points by participating in approved activities, which may include: responding to calls, attending training and drills, holding elected or appointed positions, station standbys, meeting attendance, military leave, or other requirements.  These requirements differ by municipality or district.

Who creates and administers a LOSAP?
A LOSAP must be created by the governing body that oversees the volunteer organization—typically a municipality (via ordinance) or a fire district board (via resolution).  

Are LOSAPs required by law?
No.  LOSAPs are optional programs that municipalities or fire districts may choose to adopt to support volunteer recruitment and retention. 

When may funds be withdrawn?
Upon reaching the program’s entitlement or “retirement” age, separation from volunteer service, disability, or upon death.

May I take my LOSAP with me to another organization? 
Yes, if your new volunteer organization offers such a program and accepts such transfers.  LOSAP plans may NOT be rolled over to an IRA.

How are LOSAP benefits funded?
LOSAP contributions are made solely by the local governing body—not by the volunteers themselves.  Contributions are placed into tax-deferred accounts, that are paid upon qualifying events, including reaching the entitlement or "retirement" age, separation from volunteer service, disability, or upon death.  

May I contribute to my LOSAP plan?
Contributions are only permitted by the sponsor entity, municipality, or government.  Individual contributions are not permitted.  LOSAP benefits are tax-deferred, meaning volunteers are not taxed until they receive distributions. 

What are the tax benefits and consequences?
LOSAP contributions do not affect other pension benefits, social security contributions, or IRA contribution eligibility.  
Contributions are considered pre-tax. 
Accounts accumulate tax-deferred until withdrawn.  
Withdrawals are considered taxable income in the year received, which will impact your taxable income, with potential impact on social security benefits and health insurance premiums.  Consult your attorney, accountant, or tax advisor prior to distributing funds from a LOSAP plan.
LOSAP plans cannot be rolled over into an IRA.

What is the maximum LOSAP contribution?
Federal law sets maximum annual LOSAP accrual amounts.  The limit has been periodically increased, most recently rising to $8,000 per year for 2026, per IRS Notice 2025-67.   The limit is periodically raised with cost‑of‑living adjustments occurring in $500 increments.  

Are these similar to governmental 457(b) retirement plans?
LOSAP plans are authorized under 457(e)11, which applies to state and local government entities.   457(b) plans are for paid employees of a state or local government.   Volunteers do not receive compensation, while employees do.  These plans have some similar characteristics of being government-sponsored, are both under IRC 457, both have tax-deferral and withdrawal restrictions, but otherwise vary substantially, given the compensation rules of 457(b) plans for paid employees and non-paid volunteer status of 457(e)11 plans.

What types of LOSAP plans exist?
There are two primary LOSAP structures:
Defined Benefit LOSAP: Provides a fixed monthly benefit at retirement age based on years of service.
Defined Contribution LOSAP: Provides a set annual contribution to an account, paid as a lump sum at retirement.

What are the benefits of implementing a LOSAP?
LOSAPs offer advantages to: 

• Communities: Lower costs compared to staffing full‑time firefighters.
• Emergency Service Organizations: Encourages consistent volunteer participation and training.
• Volunteers: Provides meaningful long-term recognition and financial benefits.