§ 218. Requirements and benefits under a defined contribution plan
service award program. (a) An active volunteer firefighter's service
award program that is a defined contribution plan shall be subject to
minimum and maximum contribution requirements as set forth in
subdivision (b) of this section. In determining whether such minimum and
maximum contribution requirements have been satisfied, all benefits
provided under all service award programs instituted by a sponsor shall
be considered as one program.

(b) The sponsor of a defined contribution plan shall contribute to the
plan a fixed amount of money, as determined by the sponsor, on behalf of
each participant who is credited with a year of service. The minimum and
maximum contribution requirements for a defined contribution service
award program shall be as follows. The minimum contribution shall be one
hundred twenty dollars per year of service. The maximum contribution
shall be twelve hundred dollars per year of service. The maximum number
of years of service for which a participant may receive a contribution
shall be forty years. The sponsor shall appropriate annually an amount
sufficient to pay the contributions. The governing board of a political
subdivision may extend the maximum number of years of service for which
a participant may receive a contribution for up to an additional ten
years, to a maximum of fifty years, and such increases in the number of
years may be added in multiple increments or in a single action,
pursuant to the adoption of the required resolution or resolutions of
the governing board, receiving the affirmative vote of at least sixty
percent of the governing board of the political subdivision, and the
approval of any mandatory referendum or referenda authorizing the
extension of benefits under the program by eligible voters within such
political subdivision.

(c) The benefit payable to a participant in a defined contribution
plan shall be the resulting amount from a defined annual contribution
made by the sponsor less necessary administrative costs and shall
include interest and/or other earnings resulting from investment of the
annual contribution. The governing board of the sponsor may retain an
actuary to provide advice with respect to the investment of annual
contributions or any other aspect of the program and the cost thereof
shall constitute a necessary administrative cost of the program.
Benefits shall be available when the participating volunteer firefighter
reaches entitlement age or at the time permanent total disability is
established.

(d) In the event that any active volunteer firefighter becomes
disabled and in the event that the disability prevents the active
volunteer firefighter from pursuing such volunteer's normal occupation
and if the disability is total and of a permanent nature as certified by
the workers' compensation board or other competent authority approved by
the sponsor of the service award program, the volunteer firefighter is
entitled to receive the benefits described in this section, regardless
of age or length of service. Such benefits shall begin on the first day
of the first month following the establishment of such disability.

At the option of the sponsor of the service award program, the sponsor
may provide an additional disability benefit in the event that any
active volunteer firefighter becomes disabled during the course of
service as a volunteer while actively engaged in providing a line of
duty services, as defined in subdivision one of section five of the
volunteer firefighters' benefit law. The additional disability benefit
shall be an amount equal to an amount stated in the referendum under
which the program was established or amended and payable to the disabled
firefighter monthly for life. The plan sponsor shall provide the plan
annually with the additional funds necessary to accommodate this
additional disability benefit or the sponsor may purchase an annuity or
make other provisions to effectuate the additional disability benefit.

(e) A volunteer firefighter's retirement income plan shall provide
that, in the event of the death of an active volunteer firefighter who
has a right to a nonforfeitable percentage of retirement income pursuant
to subdivision (b) of this section, the designated beneficiaries of such
active volunteer firefighter (or his estate if no beneficiary is so
designated) shall be entitled to receive death benefits under the
service award plan. Such benefits shall be equal to the amount of
benefits earned by the volunteer firefighter under the plan at the date
of death.

At the option of the sponsor of the services award program, if the
active volunteer firefighter dies during the course of service as a
volunteer while actively engaged in providing line of duty services, as
defined in subdivision one of section five of the volunteer
firefighters' benefit law, additional death benefits may be provided by
the sponsor. The amount of such death benefit shall be stated in the
referendum under which the program was established or amended. In the
event of the death of an active volunteer firefighter during the course
of service as a volunteer while actively engaged in providing line of
duty services, as defined in subdivision one of section five of the
volunteer firefighters' benefit law, such death benefit amount shall be
paid by the sponsor to the plan for distribution to the beneficiary or
the estate if no beneficiary is designated.

(f) In the case of a state-administered service award program, a
service award shall be paid only after an application is made to the
program administrator and the administrator approves the application.