RED HOOK FIRE COMPANY

SERVICE AWARD PROGRAM

PLAN DOCUMENT

Prepared by Penflex Actuarial Services LLC Restated January 1, 2024

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RED HOOK FIRE COMPANY

SERVICE AWARD PROGRAM

PLAN DOCUMENT

TABLE OF CONTENTS

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RED HOOK FIRE COMPANY SERVICE AWARD PROGRAM

PLAN DOCUMENT

1. Purpose: In accordance with Article 11-A of the New York State General Municipal Law, the Village of Red Hook has adopted a volunteer firefighter "service award program" for active volunteer firefighter members of the Red Hook Fire Company. The provision of a service award program regarding firefighter participation, benefits earned and paid, and program operation must be formally stated in a written "plan document". This is the Red Hook Fire Company Service Award Program Plan Document (i.e. the "Plan Document"). When formally adopted by the Village Board of Trustees of the Village of Red Hook, it will retroactively replace any and all other documents previously adopted by the Village Board of Trustees, which could be considered to be written plan documents, and it will be the Plan Document.

2. Type of Program: Defined Contribution Plan.

3. Program Sponsor: Village of Red Hook.

4. Program Administrator: Village of Red Hook/Board of Trustees of the Village of Red Hook (i.e., the “Board”). In addition, under the Intermunicipal Agreement between the Village of Red Hook, the Town of Red Hook and the Village of Tivoli, a Service Award Program Joint Board (i.e., “LOSAP Joint Board”) shall be established. The LOSAP Joint Board shall consist of 6 members as directed under the Intermunicipal Agreement and shall assist the Board in the administration and operation of the Service Award Program as described under the Intermunicipal Agreement.

5. Effective Date of Program: January 1, 2007.

6. Program Year: The twelve (12) consecutive month period beginning each January 1 and ending each December 31.

7. Eligibility to Participate in the Service Award Program: Any person who is at least eighteen years old and is an active volunteer firefighter member of the Red Hook Fire Company (i.e. “Active Member” as that term is defined under the current by-laws of the Red Hook Fire Company) shall be eligible to become a Participant in the Service Award Program (called an “Eligible Firefighter”).

8. When an Eligible Firefighter Becomes a Participant: Unless participation is waived, an Eligible Firefighter shall become a Participant on the last day of the Program Year beginning

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after 2006 during which he or she first earns a year of Service Credit (see #13a).

In addition, an Eligible Firefighter who dies or sustains a Total and Permanent Disability (see #18a) in 2007 or 2008 shall be considered a program Participant on the date of his or her death or Total and Permanent Disablement if during calendar year 2007 or 2008 he or she was prevented by such death or Total and Permanent Disablement from earning a year of Service Credit (as determined by the Board).

9. Waiver of Participation in the Service Award Program: An Eligible Firefighter may voluntarily waive his or her right to be enrolled in the Red Hook Fire Company Service Award Program in writing to the Board. Once such waiver is received by the Board and noted for the record, such Eligible Firefighter shall permanently forfeit (see #17) any and all Service Credit (see #13) and Accrued Service Award (see #12) earned to the date of receipt of the waiver. At any time thereafter, such individual may withdraw the waiver in writing to the Board and may again earn Service Credit and Service Awards in accordance with the terms of this Plan Document from the date the written request is received by the Board.

10. Entitlement Age: The later of age 65 or the Eligible Firefighter’s age on date he or she becomes a Participant.

11. Service Award: The Service Award is $500 for each year of Service Credit earned by a Participant for each Program Year beginning on January 1[st] , 2007 through December 31[st] , 2023. Commencing January 1[st] , 2024 the Service award is $1,200 for each year of Service Credit earned by a participant.

12. Accrued Service Award: The value of a Participant’s accumulated Service Awards that represent a share of the Trust Fund (see #26) on any December 31 as adjusted for amounts due but not yet received or paid by that December 31. The Accrued Service Award reflects all Service Awards for a Participant, as well as all investment earnings, fees, distributions, and other necessary and appropriate transactions.

13. Service Credit: An Eligible Firefighter earns Service Award Program points under the Red Hook Fire Company Service Award Program Point System (i.e. the "Point System"), which is explained in a separate document. The Point System may be amended from time to time by the Board. In addition, points can be awarded for Military Leave (see #13c). Service Credit must be certified, posted, and approved in accordance with the Article 11-A of the New York

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State General Municipal Law.

• a. Service Credit After Effective Date: To earn a year of Service Credit during a Program Year beginning on or after the Effective Date of the Program, an Eligible Firefighter must earn 50 or more points during the Program Year.

• b. Service Credit Prior to Effective Date: To qualify to earn Service Credit for active volunteer firefighter service with the Red Hook Fire Company prior to the Effective Date, an individual must at least one year of Service Credit under the Point System during 2007 or 2008. However, this requirement shall not apply to an Eligible Firefighter who dies or sustains a Total and Permanent Disability during 2007 or 2008 which prevents such Eligible Firefighter from earning at least one year of Service Credit in 2007 or 2008, as determined by the Board.

For each Program Year beginning prior to 2007 but after 1996, a year of Service Credit shall be earned for each such Program Year during which the Participant was at least 18 years old and, based on review of the available Fire Company records, would have earned 50 points under the Service Award Program Point System, up to a maximum of five (5) years of Service Credit (called “Prior Service” credit).

• c. Service Credit for Military Leave: A Participant whose volunteer fire service is interrupted by full-time extended obligatory military service or by a single voluntary enlistment not to exceed four years in the armed forces of the United States is considered to be on military leave. During such period of military leave, the Participant shall be credited with a year of Service Credit (50 points) under the Point System for each full year on military leave. For periods of military leave of less than a year, the Participant is awarded pro-rated points under the Point System. Provided, however, such Participant on military leave must again become an Eligible Firefighter of the Red Hook Fire Company (see #7) within one year after his military leave expires before any Service Credit is granted for military leave. Military leave Service Credit shall be automatically granted to any Participant on military leave from the Red Hook Fire Company who dies or is totally and permanently disabled while in active military duty.

14. Service Credit Earned After Entitlement Age: Eligible Firefighters who have attained the Entitlement Age can earn Service Credit during the Program Year of attaining the Entitlement Age and all Program Years thereafter.

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15. Maximum Years of Service Credit: Service Credit can be earned by a Participant for up to forty (40) years of Service Credit rendered as an Eligible Firefighter.

16. Vesting of Accrued Service Award: A Participant's Accrued Service Award is 100% vested (i.e. he or she earns a nonforfeitable right to 100% of his or her Accrued Service Award) after he or she meets one of the following criteria:

• a. Earns and does not forfeit five years of Service Credit; or,

• b. Attains the Entitlement Age while an Eligible Firefighter; or,

• c. Is awarded a finding of Total and Permanent Disability by the Board; or, d. Dies while an Eligible Firefighter.

17. Forfeiture: Forfeiture shall occur after one of the following conditions is met:

• a. The earned Service Credit and Accrued Service Award of a non-vested Participant shall be forfeited as of December 31 of the Program Year the non-vested Participant ceases being an Eligible Firefighter (i.e. is no longer an Active Member of the Red Hook Fire Company). However, if such former non-vested Participant again becomes an Eligible Firefighter within five years of the effective date of the forfeiture and subsequently earns at least one year of Service Credit under the Service Award Program Point System during a Program Year after having again become an Eligible Firefighter, the former non-vested Participant’s forfeited Service Credit and Accrued Service Award shall be restored effective the December 31 of the Program Year the additional Service Credit is earned.

• b. A Participant who is convicted of the crime of arson in any degree as defined in the penal law is not eligible to receive benefits from a service award program and must forfeit any and all rights, he or she may have had to past or future benefits pursuant to a Service Award Program.

• c. An Eligible Firefighter waives his or her right to be enrolled in the Red Hook Fire Company Service Award Program (see #9).

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18. Pre-Entitlement Age Total and Permanent Disability:

• a. Definition of Total and Permanent Disability: Under the Red Hook Fire Company Service Award Program, a Pre-Entitlement Age Participant is to be awarded a "Total and Permanent Disability" by the Board only if he or she is considered to be Totally and Permanently disabled as certified by: the Social Security Administration, any entity which pays benefits under the Volunteer Firefighters' Benefit Law or from any other competent authority approved by the Board and only if the Participant was an Eligible Firefighter of the Red Hook Fire Company after the Effective Date of the Program and before such disability commenced. However, the Board, at its discretion, may consider a firefighter to be totally and permanently disabled if the firefighter is unable to earn a year of Service Credit due to a disability which first prevents such firefighter from earning a year of Service Credit after December 31, 2006 and before January 1, 2009.

• b. Pre-Entitlement Age Total and Permanent Disability Benefit: If a Participant is awarded a Total and Permanent Disability by the Board in accordance with 18(a) above, a benefit is to be paid to the Participant equal to the Participant's Accrued Service Award as of the last day of the Program Year preceding the date such Total and Permanent Disability is awarded and shall include the Service Award the Participant earned under the Point System during the calendar year the Board awarded the Total and Permanent Disability, if any.

  • A participant who is awarded a Total and Permanent Disability payment, who subsequently recovers from his or her disability and again becomes an Eligible Firefighter of the Red Hook Fire Company is to be considered a new member as of the day he or she again becomes an Eligible Firefighter and, except for vesting purposes, shall not again receive Service Credit for volunteer firefighter service prior to that date.

19. Pre-Entitlement Age Death: If a Participant dies before attaining the Entitlement Age, a benefit shall be paid to the Participant's designated beneficiary (or estate if no beneficiary is designated) equal to the Participant's Accrued Service Award as of the last day of the Program Year preceding death and shall include the Service Award the Participant earned under the Point System during the Program Year of death, if any.

20. Post-Entitlement Age Death: If a Participant dies after attaining the Entitlement Age, a benefit shall be paid to the Participant's designated beneficiary (or estate if no beneficiary is designated) equal to the unpaid portion of the Participant’s Accrued Service Award and shall

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include the Service Award the Participant earned under the Point System during the calendar year of death, if any.

21. Form of Payment of Accrued Service Award: Unless and until the Board approves by Board Resolution other forms of payment, all payments from the Service Award Program shall be made in the form of a lump sum.

22. Commencement of Accrued Service Award Payment:

• a. Attainment of the Entitlement Age : At Entitlement Age, a Participant is paid his or her Accrued Service Award determined as of the last day of the Program Year during which the Participant attained the Entitlement Age. Payment is made effective the next following January 1. However, upon application to the Board, a Participant who attains the Entitlement Age may be paid upon attainment of the Entitlement Age, with such payment including investment income earned to date of payment, provided however, the administration cost of processing such interim payment shall be deducted from the Accrued Service Award to be paid to such Participant.

• b. Pre-Entitlement Age Total and Permanent Disability : A Participant who is awarded payment of their Accrued Service Award in accordance with the Pre-Entitlement Age Total and Permanent Disability provision #18 shall be paid such benefit as soon as administratively feasible after all documentation required by the Board to verify and determine eligibility is submitted.

• c. Pre-Entitlement Age Death : A Participant’s beneficiary who is eligible for payment of the Participant’s Accrued Service Award in accordance with the Pre-Entitlement Age Death provision #19 shall be paid as soon as administratively feasible after all required documentation is submitted.

• d. Post-Entitlement Age Service Award Payments : The Service Award contribution earned by an Eligible Firefighter during a calendar year after the calendar year of attainment of the Entitlement Age is paid effective the January 1 next following the calendar year the Service Award contribution is earned.

• e. Post-Entitlement Age Death : A Participant’s beneficiary who is eligible for payment of the Participant’s Accrued Service Award under the Post-Entitlement Age Death provision (see #20) is to be paid such benefit as soon as administratively feasible after

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all required documentation is submitted.

23. Program Costs: The administration costs of operating the Red Hook Fire Company Service Award Program is paid from the Village of Red Hook’s general operating fund. The Village of Red Hook must contribute to the Red Hook Fire Company Service Award Program Trust Fund an amount equal to the amount calculated in accordance with provision #24 of this document as owed to the Trust Fund for each Program Year beginning on or after the Effective Date of the Program. The Town of Red Hook may pay a portion of the Program Costs per the provisions of the Intermunicipal Agreement.

24. Calculation of Annual Program Cost: The amount calculated as owed to the Trust Fund as of the last day of a Program Year is equal to:

• a. Service Award (see #11) multiplied by the number of years of Service Credit earned in accordance with provision #13 for such Program Year;

• b. plus the Prior Service amortization contribution calculated in accordance with provision #25;

• c. plus any unpaid amounts owed to the Trust Fund for previous Program Years;

• d. less the forfeitable portions of the Accrued Service Awards, as of the December 31 of such Program Year, of non-vested Participants whose participation ceased as of the end of the Program Year in accordance with provision #17;

• e. less any excess unallocated amounts paid to the Trust Fund for previous Program Year(s).

25. Interest Paid on Prior Service Contributions: The Village of Red Hook shall amortize the cost of the Prior Service contributions (see #13b) in ten consecutive annual payments. The first such payment shall be for the year ending December 31, 2007. The annual payment shall be calculated on a level payment amortization basis with interest paid at an annual effective rate of 6%. As a result, the unfunded portion of a Participant's Accrued Service Award shall be credited annually with interest paid by the Board.

26. Investment of Service Award Program Funds: The Service Award Program Trust Fund is established and maintained by the Village of Red Hook. The Board shall be the Service Award

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Program Trustees and shall invest the trust funds. A separate document called the Red Hook Fire Company "Service Award Program Trust Document" which sets forth all the rules, restrictions, etc. about the investment of the Service Award Program has been prepared and adopted by the Board. Copies of the Trust Document are available to all persons upon request to the Board.

27. Service Award Program Administration: The Red Hook Fire Company Service Award Program is administered by the Village of Red Hook in accordance with Article 11-A of the New York State General Municipal Law, the Plan Document and all other applicable statutes, rules and regulations.

28. Amendment of Service Award Program: Unless voter approval is required by Article 11A of the New York State General Municipal Law, amendments to this Service Award Program Plan Document will be adopted by resolution of the Board. Within one hundred eighty days after the date of adoption by the Board of a resolution amending the Service Award Program or, after the date of approval by voters of a required referendum amending the Red Hook Fire Company Service Award Program, a written notice and explanation of such amendment must be distributed to all persons who participate or are eligible to participate in the Red Hook Fire Company Service Award Program. Copies of such written notice and explanation will be available upon request to the Board to all other persons.

29. Termination of the Service Award Program: The Board may terminate the Red Hook Fire Company Service Award Program at any time in accordance with Article 11-A of the New York General Municipal Law, which requires approval by eligible voters residing in the Village of Red Hook. If the Program is terminated, all benefits will be paid in accordance with the resolution adopted by the Board and the proposition approved by such eligible voters of the Village of Red Hook.

30. Compliance With Laws: The Red Hook Fire Company Service Award Program must comply with Article 11-A of the New York State General Municipal Law and all applicable federal laws including but not limited to compliance with those provisions of the Internal Revenue Code that result in the payment of federal income tax by a Participant only after the Participant or his or her beneficiary is to be paid a Service Award. Any additional provision(s) of this Service Award Program required for such compliance not explicitly stated in this Plan Document is automatically included within these provisions. Any written program provision set forth in this Plan Document deemed to be prohibited by law, rule, or regulation, is

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ineffective to the extent of any such prohibition without invalidating the remaining program provisions set forth in the Plan Document.

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EXECUTION

By signatures affixed hereto, the Mayor of the Village of Red Hook does hereby, on behalf of said Village and pursuant to a resolution of the Village Board of Trustees authorizing the same, adopt this Service Award Program Plan Document.

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This document has been prepared by Penflex Actuarial Services LLC. for the exclusive use of the Village of Red Hook as well as Participants (and their beneficiaries) in the Red Hook Fire Company Service Award Program. Any reproduction for parties other than those for whom these documents have been prepared is expressly prohibited without prior consent by Penflex Actuarial Services LLC.

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