Does your agency employ public safety officers? A new federal law may provide tax savings for your current and future retired public safety officer employees. We are providing this information in case you are contacted by your employees or any former employees about their eligibility for this tax savings program.
Last August, President Bush signed the Pension Protection Act of 2006. One of the provisions allows retired public safety officers who fit the federal definition to exclude up to $3,000 of their annual retirement benefit from their gross taxable income if it is used to purchase health, accident or long-term care insurance premiums. The premiums must be withheld from the benefit payment and sent directly to the insurer from DRS.
Yesterday, DRS sent letters and a packet of information to retired public safety officers in LEOFF, WSPRS, JRS and PSERS to help them determine their eligibility in this tax savings program. All newly retiring members of these systems will also receive this packet with their retirement application. Additionally, retiring PERS members will receive an information sheet about the tax savings program at time of retirement.
On the DRS Web site, commonly asked questions are provided along with the packet entitled, Public safety officers' tax savings on health insurance premiums.
To participate, retirees are required to complete the election form in the packet after they:
A retired public safety officer is defined as someone who 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 firefighter; or as a chaplain of a police or fire department; or as a member of a rescue squad or ambulance crew.
*Judicial officers are defined as judges who have had jurisdiction in criminal law and/or juvenile delinquency, and individuals who have served as prosecuting attorneys.
Should you have questions call Employer Support Employer Support Services at (360) 664-7200, (option 2), or 1-800-547-6657, (option 6 then option 2).