My View: Lumberland’s golden parachute

By LEWIS POWELL

On January 18, the Town of Lumberland held a public hearing on the fire company’s request for a Length of Service Award Program (LOSAP). The vote will be held on Tuesday, February 5.

Call it what you want, it’s a pension plan for volunteers.

I will say and do agree that the fire company does a great job, but why the golden parachute now?

The fire company sent a letter explaining about the plan with little detail about it (including cost figures). I have been told by a lot of people in the town that they did not receive the letter. Why?

The plan that the fire company chose was a “defined benefit plan” that would pay a guaranteed $30 per month, per year of service to each member. Also, the plan calls for a pre-entitlement for a maximum of five years for past service. This means that one year after the plan starts, two thirds of the members will be fully vested with six years, and would receive $180 benefit each month starting at age 65 if they put in no more years of service. Four of the present members will receive a $180/month benefit after one year if the plan is passed. Following the initial six-year period, each member will receive an additional $30 for month for every additional year served. Thus, someone who served 40 years would receive a payment of $1,200 per month.

Funding the pension for past service in addition to ongoing service will cost an estimated $72,400 each year if the obligation is funded over 20 years or $93,000 each year if it is funded over 10 years. They claim that after that, the cost will go down, but nobody said how much.

The fire company has a contract with the town to provide emergency services for $160,000-plus a year, which is about eight percent of the total town budget. Lumberland is a “Fire Protection District,” not a “Fire District with a Fire Commissioner.” There is no accountability to the town as to how or where they spend the money. I have been told that the fire company refused to open its books to the town.

The LOSAP will increase taxes by three to seven percent, depending on whose numbers you chose to use, and currently there is no money in the approved 2008 town budget for this plan, which the fire company wants to start as of March, 2008.

A number of questions have gone unanswered.

The state law authorizing such plans became law in 1989. Why implement one now in Lumberland? It could have started five, 10 or 19 years ago.

Why fund for past service? If they had started years ago, two thirds of the members would be fully vested by now.

Why the maximum $30 plan? They could have chosen plans from $5 to $30.

Why a “defined benefit?” Why not a “defined contribution?”

Why don’t they charge for ambulance calls? Most people have health insurance that would cover it. Give the free ride only to those who don’t have insurance.

Why don’t they have more fundraisers to raise their own money for the award program?

One member said at the meeting, “Frankly, we deserve it.” The last time I checked the definition of volunteer I did not see the word “compensation.”

Vote on February 5—because you know the fire company members will.

(Lewis Powell is a resident and taxpayer in Lumberland, NY.)