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Healthcare Enhancement
for Local Public Safety (HELPS) Retirees Act
On 17
August 2006, President George W. Bush signed H.R. 4, the “Pension
Protection Act,” into law. The FOP waged an intense lobbying campaign to
ensure that H.R. 4 also contained the text of H.R. 2177, the “Healthcare
Enhancement for Local Public Safety (HELPS) Retirees Act.”
This new
law provides a modest tax benefit to retired public safety officers to
pay for healthcare by allowing the use, on a pretax basis, of up to
$3,000 annually from their pension funds (including defined benefit
plans and defined contribution plans) to pay for premiums on healthcare
and long-term care insurance. This provision went into effect on 1
January 2007.
Public
safety officers who have separated from service as a public safety
officer and have attained normal retirement age or who are separated due
to a disability are eligible for the benefit. To take advantage of this
benefit, a retiree must be receiving his or her monthly pension.
Eligible public safety officers must then elect to have an amount
subtracted from his or her distributions from an eligible government
plan and that amount will then be used to pay qualified health care
premiums.
Use the
links to access additional FAQ’s on
H.E.L.P.S. and/or download the
IRS 1040 Income Tax form
with HELPS directions highlighted.
For
additional information or questions call or email
Jay Smith,
Director of Governmental Affairs
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