IAFF LEGISLATIVE FACT SHEET

RETIREE HEALTH CARE

With the support of the IAFF, the HELPS Retirees Act was recently passed into law by the U.S. Congress.

BACKGROUND

The nation’s public safety officers (law enforcement officers, fire fighters and emergency medical personnel) face special health care challenges after retiring from the job. The men and women in these occupations generally retire earlier than their peers in other fields, either because of mandatory retirement ages or the structure of their pension system. Most emergency responders leave employment long before they are eligible for Medicare.

In addition, many public safety officers have significant health care needs resulting from years of working in dangerous, stressful environments.  Long-term exposures to smoke, toxic substances, biohazards, temperature extremes and persistent stress take their toll on the health of our nation's domestic defenders. 

With the soaring cost of health care, retired public safety officers are finding it more and more difficult to afford health insurance once they separate from service.  Currently, many fire fighter retirees use more than 80 percent of their pension checks to pay for health insurance.  In extreme cases, the cost of insurance exceeds their pension benefit.

To address the dire need for enhanced access to health insurance for retired fire fighters, legislation has been proposed to change the federal tax code to allow retired public safety officers to use a portion of their retirement funds for health insurance premiums on a pre-tax basis.


LEGISLATION

U.S. House:      H.R. 2177, the Healthcare Enhancement for Local Public Safety (HELPS) Retirees Act of 2005
                        Sponsors:           Representative Chris Chocola (R-IN)
                                                   Representative Richard Neal (D-MA)                        

Summary:        H.R. 2177 enables retired public safety officers to designate up to $5,000 per year from governmental pension or deferred compensation funds for health care premiums on a pre-tax basis.

CONGRESSIONAL ACTION

On May 5, 2005, H.R. 2177 was introduced and referred to the House Committee on Ways and Means.

On December 6, 2005, the House Committee on Ways and Means added the HELPS Retirees Act as an amendment to H.R. 2830, the Pension Protection Act.

On December 15, 2005, the U.S. House of Representatives approved H.R. 2830 by a vote of 294-132.

In March 2006, the House and Senate appointed a conference committee to work out the differences between their two pension bills:  H.R. 2830 and S. 1783.  The HELPS Retirees Act will be one of the items under consideration.

On July 28, 2006, H.R. 4, containing an amended version of the HELPS Retirees Act, was introduced and referred to the House Committee on Ways and Means as well as the House Committee on Education and the Workforce. 

On July 28, 2006, the U.S. House of Representatives approved H.R. 4 by a vote of 279-131.

On August 3, 2006, the U.S. Senate approved H.R. 4 by a vote of 93-5.

On August 17, 2006, H.R. 4 was signed into law by the President.