LOSAP Investment Management
To learn more about FCE - LOSAP Investment Management Contact Us.
What is a LOSAP?
A LOSAP, or Length of Service Awards Program, is a program similar to a defined benefit retirement plan that is intended to assist municipalities in recruiting, retaining and rewarding volunteer firefighters and other emergency personnel. LOSAPs are typically overseen by a board of trustees that it typically comprised of fire commissioners and political officials, and supported by administrative personnel employed by the municipality.
LOSAP benefits are typically determined through a point structure, with points awarded to each firefighter for each fire alarm they respond to. LOSAPs typically provide for benefits to be paid upon retirement at a pre-defined age, or disability or death.
Services for LOSAPs
LOSAP funding is determined by an actuary, whose function it is to calculate the amount that would be required to pay the expected benefits to the current firefighters, depending on their respective ages and the amount of LOSAP points that have been awarded to them. A long term return expectation is a very important factor in determining the required contribution, and this should be determined through a careful analysis of long term returns for various asset classes, including stocks, bonds and cash, and by setting a reasonable expectation for inflation.
An independent investment manager plays an important role, by working hand in hand with the actuary and with the trustees to understand the goals and risk constraints of the LOSAP, and by directing the investment of the portfolio in a way that is intended to maximize the probability of the LOSAP being able to meet its benefit obligations over time.
Investment Advice for LOSAPs
FCE Group serves as the investment manager for LOSAPS in several New York-area municipalities. We have forged successful relationships with our LOSAP clientele by identifying several critical areas in which their current asset managers are not up to par: the need for consistent performance with controlled risk, low expenses, independent and unbiased advice, and a solid service infrastructure. Because of our multi-year experience with LOSAPs, we have created an efficient service infrastructure that ensures seamless coordination between all parties involved in LOSAP management: plan trustees, plan actuaries, banking institutions, independent accountants, and the LOSAP's own professional staff. We provide coordination of payments and contributions, quarterly review of investments, drafting and monitoring of investment policy guidelines, and coordination with other parties on fulfilling other LOSAP requirements.
We have developed a customized investment and service model for our LOSAP clientele, which has been specifically tailored to meet the needs of these programs, including:
- A customized LOSAP Investment Policy Statement (IPS) which outlines the risk and return preferences for each plan that specifies the roles and responsibilities of the parties, and that sets forth the return expectations, risk and liquidity constraints, diversification parameters, any investment restrictions, and any unique circumstances that apply.
- Statistical modeling to determine the recommended asset allocation for the LOSAP portfolio, which is refreshed each year based on the annual updated actuarial report.
- A specially designed LOSAP quarterly reporting package that concisely and straightforwardly shows the portfolio holdings, portfolio performance, and that demonstrates the portfolio's compliance with investment policy guidelines, clearly noting any exceptions.
FCE Group is well prepared to meet the needs of your LOSAP's actuaries, village trustees, board of trustees, and fire commissioners. Please get in touch with us to learn how we can assist you in making your LOSAP plan successful.
About FCE Group
FCE Group is an independent registered investment advisory firm, in operation since 1981. We provide independent, objective advice to our clientele, with a business and service model that provides for an alignment of interests between us and our clients. We are recognized as one of the top independent advisors in Long Island and New York by Barron's and Financial Advisor Magazine. In March 2018 Barron's ranked FCE Group as #2 in Long Island and #17 in New York State among independent advisors. Contact Us.