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7. PENSION OBLIGATIONS—FIRE LOSAP Plan Description—The Town established a defined benefit Length of Service Awards Program (“LOSAP”) for the active volunteer firefighters of Boston Volunteer Fire Company, North Boston Volunteer Fire Company, and Patchin Volunteer Fire Company. The Program was established pursuant to Article 11-A of the NYS General Municipal Law effective January 1, 1992. The Program provides municipally funded pension-like benefits to facilitate the recruitment and retention of active volunteer firefighters. The Town is the sponsor of the program and the Program Administrator. Participation, Vesting and Service Credit—Active volunteer firefighters who have reached the age of eighteen and who have completed one year of firefighting service are eligible to participate in the program. A participant acquires a non-forfeitable right to be paid a benefit from the Program after earning five years of service credit, upon attaining the Entitlement Age, becoming totally and permanently disabled, or dying while an active volunteer. In general, an active volunteer firefighter earns service credit for each calendar year after the establishment of the Program in which he or she accumulates 50 points. Points are granted for attending various activities of the fire company in accordance with a Point System adopted by the Town in accordance with the General Municipal Law. Benefits—Participants become eligible to be paid a benefit at the Entitlement Age, which is age 60. The benefit payable is equal to $20 for each year of service credit earned, up to a maximum of $800 for 40 years of service credit (including any Prior Service Credit). This benefit is paid as a lifetime, monthly annuity, guaranteed for ten years. The monthly benefit of a participant who remains active after the entitlement age and earns additional service credit is increased by $20 beginning with the January 1 payment after the year in which the service credit was earned. The Program provides a pre-entitlement age death benefit of a lump sum equal to the actuarial present value of the accrued benefit. If the Participant is an active volunteer firefighter at the time of death and has earned a year of service credit in at least one of the last three program years, the minimum death benefit payable is $20,000. If a participant dies after the entitlement age, the beneficiary has the option to continue receiving the remaining guaranteed monthly payments, if any, or be paid a one- time lump sum equal to the actuarial present value of the remaining guaranteed payments. The Program provides a pre-entitlement age disability benefit of a lump sum equal to the actuarial present value of the accrued benefit. Contributions—New York State General Municipal Law § 219(d) requires the Town to engage an actuary to determine the annual amount required to be contributed to the Trust Fund. Trust Assets—Plan assets are held in trust for the exclusive purpose of providing plan benefits; however, the Trust is not legally protected from creditors of the Town. As such, the trust assets do not meet the criteria in paragraph 4 of GASB Statement No. 73. Participants Covered by the Benefit Terms—At the December 31, 2024 measurement date, the participants covered by the benefit terms were as follows: Participants currently receiving benefit payments 92 Inactive participants entitled to but not yet receiving benefit payments 38 Active participants 59 Total 189 - 98 -