IA SF627

Municipalities (cities, counties, townships, benefited fire districts) may establish Length of Service Award Programs (LOSAP) as tax-deferred retirement benefits under Internal Revenue Code Section 457(e)(11) for volunteer firefighters, volunteer emergency medical care providers, and reserve peace officers

Creates a LOSAP grant fund controlled by the Department of Revenue, with $1.5 million appropriated from the sports wagering receipts fund for FY 2025-2026, and annual transfers thereafter to maintain the $1.5 million balance

Grants provide up to a dollar-for-dollar match, capped at $300 per award recipient per year, to municipalities with established programs, requiring participants to personally contribute at least the matched amount

Participating municipalities must adopt guidelines establishing eligibility requirements, minimum three-year vesting requirements, and distribution requirements in consultation with fire and police department leadership

All provisions of the bill are repealed July 1, 2030