Program enacted to reward
borough’s active volunteers
Voters approved
retirement, life insurance plan in Nov. referendum
By vincent todaro
Staff Writer
SPOTSWOOD — The Borough Council has selected a company to administer retirement accounts for active volunteers serving with the borough’s fire department and first aid squad.
At its meeting Feb. 4, the council passed a resolution authorizing the Lincoln National Life Insurance Co. and Lincoln Financial Group to run the program, which has been described by Borough Business Administrator Wayne Hamilton as a "tax-deferred individual retirement account."
The program, known as the state Length of Service Award Program (LOSAP), was enacted by state legislation so that municipalities can offer the accounts as rewards for volunteers’ services with emergency squads.
Borough officials said they believe the program will provide an incentive both for people to become volunteers, and for current volunteers to stay active.
Spotswood voters approved the borough’s LOSAP program in a November referendum by a vote of 1,392 to 483.
Each year, the borough will allocate $550 into the account of each eligible member. As of last November, there were about 35 borough volunteers, and borough officials said the program would cost a total of about $19,000 per year if all volunteers participate.
"There are certain criteria for each person to qualify," Mayor Barry Zagnit said. "It’s all set up in the ordinance. If they complete the work in a given year, the money goes into the program."
Volunteers must have spent at least one year in active service to be eligible for the LOSAP program.
"We wanted to do it because we felt it was a ‘thank you’ to the volunteers who give so much to the community," he said. "It may help to maintain some of the current members a little longer. It’s a way to give a little back to the volunteers we rely so heavily on."
The borough’s fire and first aid services are completely volunteer.
Hamilton told Greater Media Newspapers last year that the program may raise the tax rate for municipal purposes by 1 cent per $100 of assessed valuation.
He said recruiting new volunteers was one reason for the program, but more importantly, it would "maintain existing volunteers for a long period of time."
Management fees, also called expense ratios, for the plan are included in the $550 contributions, and will not cost the town any additional money, he said.
Because of a shortage of volunteers, the borough has had to share dispatch services with Monroe. In fact, two years ago, the borough entered into a "simultaneous dispatch" agreement with Monroe whereby ambulance calls went to dispatchers in both towns. The idea was the result of concerns that ambulances were taking too long to respond.
Zagnit said the program is effective this calendar year.
In other news, the borough council swore in three police officers, who were promoted to higher ranks.
Family and friends of the officers, as well as borough employees, packed the council chambers for the ceremony.
Municipal Clerk Patricia DeStefano swore in Karl Martin as the new police chief; Michael Zarro as lieutenant; and Philip Corbisiero as sergeant. Martin was promoted from lieutenant to replace John Oliver, who retired as chief after 35 years in the borough’s police force. Zarro was promoted from the rank of sergeant, and Corbisiero from patrolman.