[Congressional Record Volume 157, Number 177 (Friday, November 18, 2011)]
[Senate]
[Page S7834]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS:
  S. 1911. A bill to amend the Internal Revenue Code of 1986 to provide 
recruitment and retention incentives for volunteer emergency service 
workers; to the Committee on Finance.
  Ms. COLLINS. Mr. President, I rise today to introduce the Volunteer 
Emergency Services Recruitment and Retention Act of 2011. This bill 
fixes a long-standing problem with the tax code that harms the ability 
of volunteer fire departments to recruit and retain both firefighter 
and emergency service personnel.
  For years, local and state governments have provided their volunteer 
firefighters and EMS personnel with different forms of benefits 
including Length of Service Award Plans, commonly known as LOSAPs. 
These are pension-like benefits for volunteer emergency responders.
  Unfortunately, the way the tax code handles LOSAPs hinders 
departments' abilities to administer the plans and makes it more 
difficult for volunteer emergency personnel to receive the benefits.
  My bill would simplify the taxation of LOSAPs in two steps. First, it 
would allow LOSAPs to be elected as deferred compensation plans, and 
second, it would exempt them from the Employee Retirement Income 
Security Act of 1974. This bill makes these necessary changes, which 
will improve access to LOSAP benefits for volunteer emergency 
responders, without increasing federal spending.
  Today, an estimated 180,000 volunteer firefighters across 27 states 
participate in some form of LOSAP. Many states that do not offer these 
benefits would be more likely to do so if the federal tax code were 
simplified. This, in turn, would help volunteer fire departments to 
more easily recruit and retain personnel. These men and women our local 
first responders--are the foundation of our emergency response 
capabilities.
  These volunteers put their lives on the line to help protect our 
communities, and their spirit of selflessness and service should be 
rewarded. I am proud to introduce this legislation with Senators 
Schumer and Blumenthal, and I look forward to working with my 
colleagues to pass this bill through the Senate and into law.
  Mr. President, I would ask for unanimous consent that a letter of 
support be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                               Maine Fire Chiefs' Association,

                                  Augusta Maine, November 8, 2011.
     Re ``Volunteer Emergency Services Recruitment and Retention 
         Act of 2011.''

     Hon. Susan M. Collins,
     Dirksen Senate Office Building,
     Washington, DC.
       Dear Senator Collins The Maine Fire Chiefs' Association is 
     a 425 member organization that represents fire and EMS 
     services in every county in the State of Maine. The Maine 
     Fire Chiefs' Association is charged with regularly advising 
     the Legislature and the Governor and providing 
     recommendations regarding necessary changes to Maine's fire 
     service system. The Maine Fire Chiefs' Association represents 
     numerous fire and emergency service interests in Maine. 
     Members of the Maine Fire Chiefs' Association represent 
     fulltime, call and volunteer firefighters.
       The recruitment and retention of experienced emergency 
     responders is a priority of the Maine Fire Chiefs' 
     Association and Maine's fire service. The majority of Maine's 
     fire departments rely on call and/or volunteer firefighters 
     and the recruitment and retention of these crucial volunteers 
     is the number one issue facing the volunteer fire service 
     today. Length of Service Award Programs (LOSAPs)--pension-
     like programs for volunteer emergency responders--are 
     effective recruitment and retention tools and are quite 
     popular among the volunteer fire service.
       In 2009, the Maine Fire Chiefs' Association proposed the 
     following legislation--L.D. 1499 ``An Act To Establish the 
     Maine Fire Protection Services Commission Length of Service 
     Award Program''--offering a LOSAP to emergency responders in 
     Maine. Although there was support for the bill's concept 
     during the public hearing process, members of the Criminal 
     Justice and Public Safety Committee cited the potential 
     problems associated with the present federal tax laws--
     specifically that the Internal Revenue Code, Section 457, 
     does not include LOSAPs--and L.D. 1499 ultimately was not 
     passed. Federal legislation--H.R. 1792--was proposed in the 
     111th Congress but was not passed before adjournment. H.R. 
     376 ``Volunteer Emergency Services Recruitment and Retention 
     Act of 2011'' was submitted earlier this year in the House of 
     Representatives and sponsorship of similar legislation in the 
     Senate is anticipated.
       The Maine Fire Chiefs' Association respectfully requests 
     your sponsorship of this important legislation for emergency 
     responders. Length of service award programs are important 
     recruitment and retention tools for communities who primarily 
     rely on volunteers. By clarifying the tax treatment of 
     LOSAPs, local communities will find it easier to establish 
     and administer these programs. H.R. 376 would not create new 
     LOSAPS, place additional requirements on existing LOSAPs or 
     require communities to provide LOSAPs to their volunteer 
     emergency responders. LOSAPs would create incentives for 
     firefighters to remain in the fire service and encourage new 
     members to join the fire service. The Maine Fire Chiefs' 
     Association joins the Fire Commission, the Maine State 
     Federation of Firefighters, and many Maine fire departments 
     in thanking you for similar senate sponsorship.
       The Maine Fire Chiefs' Association thanks you for your 
     strong support of the fire service and consideration of this 
     important issue. We welcome the opportunity to discuss this 
     proposal and other fire service issues at your convenience,
           Respectfully,

                                        Chief Stephen Nichols,

                                                        President,
                                   Maine Fire Chiefs' Association.
                                 ______