Service Award Program

• Author: Raymond S. DiRaddo
• Pages: 293-328

Chapter 5B

Service Award Program

§5B:10 New York Fire District Officers’ Guide 5B-2

§5B:10 INTRODUCTION

§5B:10.1 AUTHORITY

Article 11-A of the New York State General Municipal Law controls service awards programs. The board of

fire commissioners has the authority to appropriate the money needed annually to fund the service award pro-

grams. The payment required annually to fund service awards is exempt from the spending limit of the fire dis-

trict, to the extent that such funding has been authorized in the mandatory referendum establishing the program.

A village may create a service awards program for the volunteer firefighters of the village fire department

(General Municipal Law §§214 et seq. Opinions of State Comptroller 94-32, 90-57, 2000-18), and a joint fire

district may create a service awards program for the volunteer firefighters of the fire departments servicing the

joint fire district so long as the village and fire district follow the statutory requirements for the creation of the

service awards program. General Municipal Law §§214 et seq. Opinion of State Comptroller 94-32, 90-57,

2000-18.

Since the powers of the board of fire commissioners (Town Law §176) are similarly applicable to the opera-

tion of a joint fire district (Town Law §189-a-(2)(d), Village Law §§22-2212, Opinion of State Comptroller

2000-18), once service awards programs are in place, the political subdivision must fund the program and admin-

ister the program. Town Law Sections 219-a(2)(a) and 219-a(2)(b). This means that a village cannot transfer

its responsibilities in connection with a service award program to an independent fire company (Opinions of

State Comptroller 2000-18, 94-32), nor may a joint fire district assume the responsibilities in connection with

the service award program. Opinion of State Comptroller 2000-18. Therefore, the village lacks the authority to

transfer its administrative responsibilities to the joint fire district.

§5B:10.2 PUBLIC POLICY BEHIND

THE SERVICE AWARD PROGRAMS

Only political subdivisions can establish service award programs, and fire districts are political subdivisions.

The service award program does not cover any service benefit program established by the fire company or fire

department. The purpose of the service awards is the retention and recruitment of volunteers for the benefit of

the voters within the fire district.

Because of this public policy, former volunteer members are not allowed to participate in service awards

programs. Opinion of the State Comptroller 94-25. Active life retired members or life retired members are not

eligible to participate in a service award program. Membership is only open to active volunteer firefighters.

§5B:10.3 EFFECT OF SERVICE AWARDS ON THE V.F.B.L. AND OTHER STATE PENSION

PROGRAMS

Benefits received from the fire district, pursuant to a service award program, shall not be considered in deter-

mining the benefits to be paid under the volunteer firefighters’ benefit law to volunteer firefighters. Volunteer

Fireman’s Benefit Law §22 (2). In fact, if the voters’ district chooses and the voters approve, the benefit under

the service awards program can be used to augment disability and/or death benefits provided for by the New

York State Volunteer Fireman’s Benefits Law.

Receipt of a service award, however, shall not be considered as membership in any pension or retirement sys-

tem of the state or any political subdivision. General Municipal Law, Article 11 A. Service awards are intended to

provide benefits to volunteer firefighters of incorporated fire companies or those who are not otherwise provided

benefits by political subdivisions.

5B-3 Service Award Program §5B:10.4

§5B:10.4 FIRE PROTECTION DISTRICTS

The law governing service awards authorizes political subdivisions, which contract with incorporated

fire companies or departments for fire protection, to provide service award programs for those companies or

departments providing the protection with the political subdivision. General Municipal Law §216-a. If the fire

company or department services two municipalities, each political subdivision must seek the approval of their

voters to establish a service award program (General Municipal Law §216-a(2)) or the political subdivisions may

make an inter-municipal agreement (General Municipal Law §5-G) to jointly sponsor such a program. General

Municipal Law §216-a(3).

§5B:10.5 DEFINITIONS

Article 11-A of the General Municipal Law sets out a series of definitions that explain the service award

programs. These definitions (General Municipal Law §215) are crucial to the implementation, understanding and

explanation of the service awards programs.

§5B:10.5.1 ACTIVE VOLUNTEER FIREFIGHTER

An “active volunteer firefighter” is an active volunteer firefighter, who is actually and faithfully performing

service on behalf of a fire district, fire company or fire department, by protecting life and property from fire or

other emergency, accident or calamity.

An active volunteer firefighter must meet two tests to qualify for service awards:

(1) The volunteer must be subject to call for whatever duties are assigned, and

(2) The volunteer must perform firefighting functions. General Municipal Law §215(11), Opinion of the State

Comptroller 94-33.

A volunteer firefighter who serves as a paid employee of a political subdivision within New York State may

not earn credit under a service award program for responding to fire alarms during regularly assigned work

periods. Regularly assigned work periods are those times an individual ordinarily is scheduled to be at work.

Opinion of the State Comptroller 93-16.

A participant in a service award program convicted of arson in any degree, however, shall not be eligible to

receive benefits of a service award program, and shall forfeit his rights to the service award program. General

Municipal Law §217(c)(iv)(A), 1995.

§5B:10.5.2 DEFINED BENEFIT PLAN

A service award program that provides a “defined benefit plan” provides to eligible volunteer firefighters a

benefit that is definitely determinable under the program without reference to the amount contributed to the pro-

gram on the participant’s behalf. The amount contributed is without reference to any and all income, expenses,

gains, losses or forfeitures of other participants under the program. In a defined benefit plan the amount the

volunteer receives after his years of service is a pre-determined amount. The amount contributed by the district

annually may vary in order to meet the obligation of the pre-determined benefit amount.

§5B:10.5.3 DEFINED CONTRIBUTION PLAN

A service award program that provides a “defined contribution plan” provides to eligible volunteer firefight-

ers a benefit as the result of definite and determinable contributions under the program. The amount contributed

also is without reference to any and all income, expenses, gains, losses or forfeitures of other participants under