Once first responders reach their eligible retirement age at 50 years, they would be able to access their retirement funds penalty free under a bipartisan bill introduced on July 7 by U.S. Rep. Mike Kelly (R-PA).
“This legislation ensures that our local heroes can retire after decades of service to their communities,” Rep. Kelly said on Tuesday.
The Protecting Public Safety Employees’ Timely Retirement Act of 2022, H.R. 8319, which is sponsored by U.S. Rep. Mike Thompson (D-CA), would modify the eligible age of 50 years for the exemption from the retirement plan early withdrawal penalty for public safety officers, and would establish the age eligibility at age 50 or 25 years of service under the plan, whichever is earlier, according to the congressional record bill summary.
The tax code currently allows eligible law enforcement and public safety officers to withdraw from their retirement funds if they retire at or after the age of 50, while federal officers are eligible for retirement prior to the age of 50 if they have completed 25 years of service, according to information provided by Rep. Kelly’s staff.
Additionally, current law dictates that when an officer retires prior to the age of 50 with 25 years of service, he or she is not allowed access to their retirement funds penalty free until the age of 59 ½, which is the average age Americans are able to withdraw from retirement accounts penalty free, the information says.
“The goal here is to fix a problem in the tax code and to ensure that the government is working for our police officers, border patrol agents, and other law enforcement officials,” said Rep. Kelly. “I want to thank Rep. Thompson for joining me in this important bipartisan effort.”
The National Prison Council and Cal Fire Local 2881 endorsed the measure, which has been referred for consideration to the U.S. House Ways and Means Committee.
“Over the last few years, firefighters in our communities have made incredible sacrifices combating the wildfires that we have experienced,” said Rep. Thompson. “Faced with this risk and increased stress, public safety employees deserve to be able to access their retirement savings the day they are eligible for retirement without penalty.”