(November 22, 2014) Earlier this year, legislation was passed that exempts certain proceeds
paid from Length of Service Awards Programs (LOSAPs) from New York State
personal income tax. The exemption applies to periodic distributions
that are made from either defined benefit or defined contribution type
LOSAPs. In order to qualify for the tax exemption, members must be at
least 59 ½ years old. The exemption does not apply to lump sum payments made from a LOSAP.
It is extremely important that personal tax return forms be completed properly in order to take advantage of this exemption. As a result, we urge volunteers that are receiving periodic distributions from a LOSAP to discuss this new legislation with a professional tax advisor.