Public safety officers' tax savings on health insurance premiums

If you’re a retired public safety officer, the federal Pension Protection Act of 2006 (PPA) permits you to exclude up to $3,000 of your qualified health, accident and long-term care insurance premiums from your gross taxable income each year, as long as the premiums are deducted from your retirement benefit.

NOTE: Submitting the attached Election form only notifies us of your decision to participate in this tax savings program. It does not guarantee eligibility for retiree insurance, or begin the process for deducting health insurance premiums from your monthly benefit. See the question and answer section about insurance qualifications to learn how to set up deductions through your insurance company.

Answer three questions to find out if you meet the qualifications

To qualify, you must answer “yes” to all three questions below. You may then choose to participate by completing the attached Election form.

Are you a retired public safety officer?
Yes No
You can answer “yes” if you retired from one of the following Washington state retirement systems:
- State Patrol
- Public Safety Employees’
- Law Enforcement Officers’ & Fire Fighters’
If the system you retired from isn’t listed above, you may still qualify if you meet the federal definition of a public safety officer, which says that you must have retired from a public agency while serving in one of the following official capacities:

As a law enforcement officer involved in crime and juvenile delinquency control or reduction, or enforcement of criminal laws (including juvenile delinquency) also including, but not limited to, the work of police, corrections, probation, parole and judicial officers; or as a firefighters; or as a chaplain of a police or fire department; or as a member of a rescue squad or ambulance crew.
Did you retire at the normal retirement age?
Yes No
To be eligible you must have retired under the normal retirement age provisions for your retirement plan or through a disability. Normal retirement age is the age you’re entitled to receive a full retirement benefit. If you retired early, you don’t qualify.
Do your health insurance premiums qualify?
Yes No
For your health insurance premiums to qualify, they must meet all of the following criteria:
- Cover health, accident or long-term care insurance, and
- Provide coverage for you, your spouse or your dependents, and
- Be automatically deducted from your monthly retirement benefit and sent directly to your insurance provider by DRS.