Contributions

The required member contribution is $30, $60 or $90 per quarter, an amount set by the VOLSAP Board. Additional member contributions in excess of the required amount are not permitted. Departments, squads and/or local governments or other sources collect and submit the required contributions from the members and may make additional contributions to the fund to be credited to members' accounts. If specifically appropriated, general fund contributions may be made to the fund and credited to members' accounts.

Contribution Requirement

Quarterly contributions are required from VOLSAP members. If a member becomes six months delinquent in submitting quarterly payments, then he or she will lose participation eligibility and can only be reinstated through written request to the VOLSAP Board. If a member plans to terminate contributions, he or she must file Notice of Contribution Suspension (To Resume at a Future Date) (VOLSAP-5) .

Matching Contributions

Matching contributions are not mandatory and are dependent upon funding. A local department, local government, or the General Assembly may appropriate funds to match a portion of member contributions. The authority to provide matching contributions, however, does not rest with VOLSAP. Local departments, local governing bodies and the General Assembly must appropriate funds to provide for matching contributions.

Investment of Contributions

Contributions are invested within five business days of the close of the quarter. Members do not select investment options. Though tracked separately, contributions are pooled with VRS funds for investment purposes, which keeps member costs at a minimum. All VOLSAP funds are managed by VRS investment professionals. The VRS Board of Trustees monitors the investment of VRS funds. Quarterly Investment Reports are available online. Please note that investment returns for a specific account may vary from the quarterly returns reported on the website due to the timing of deposits and withdrawals.

Members’ Statements

At the close of the fund year, June 30, the VOLSAP Plan Administrator mails annual statements to members' departments or squads.

Service Credit

Individual departments or squads validate service credit for members when they enroll by checking the appropriate block on the enrollment application, thus certifying eligibility. Thereafter, on a form provided by the VOLSAP Plan Administrator, eligibility will be certified on the list of members' names, which accompanies the contribution check from the various departments or squads.

Participants with eligible service credit before their effective date of membership may purchase prior service upon certification of the department or squad. A participant may purchase up to 10 years of prior service, but may only purchase service credit at a rate of one year for every two years of prior volunteer service. The current cost to purchase one year of prior service is $120. Service credit is not affected by transferring between departments or squads, provided that the participant gives notice to the board or its designee.

Default

A member who ceases to maintain eligibility and becomes six months delinquent in submitting quarterly payments to his/her account forfeits membership. Once membership is forfeited, members must submit a written request to the board, or its designee, seeking reinstatement. A $25 fee will be deducted from the member's account upon reinstatement. Additional charges and/or other fees may apply.

A member in good standing who notifies the board or its designee, on the VOLSAP-5 form, of his/her intention to cease contributions and resume at a later date, can reapply and will be reinstated without paying the $25 fee.

Forfeitures

Forfeitures occur when a member withdraws his/her member account contributions before meeting the age-60-plus-five-years-of-service threshold for distribution of the department account, and/or between five and 10 years of service for distribution of the general fund account. To date, there have been no general fund contributions to VOLSAP.

A member who has fewer than five years of service upon attaining age 60 is entitled to withdraw his/her own contributions plus any earnings or losses, but is not entitled to any contributions made on his/her behalf by his/her department or squad, any local government, or from the general fund.

Tax Considerations

Members pay contributions with after-tax dollars. Members' contributions are tax-free when withdrawn from the fund. Any other contributions and all earnings will be subject to state and federal income taxes upon distribution. Taxable payments exceeding $600 will be reported to the Internal Revenue Service on IRS Form 1099.