Pre-Tax Premium Payments for Retired Educational Employees

Level of Government: Federal

As a politically active member of the New York State United Teachers, I am writing to request your support for "Healthcare Enhancement for Local Public Servants Act of 2008" (H.R. 6961).

In 1996, the Healthcare Enhancement Act for Local Public Sector Retirees (HELPS) was enacted to enable certain public safety retirees to use up to $3,000 in federally tax-exempt monies for qualified health insurance premiums, including health, accident or long-term care insurance. Unfortunately, this law did not apply to retired public school teachers, other school-related professionals and public higher education faculty and support staff.

Currently, only in-service workers and certain public safety retirees are able to use federally tax-exempt monies to cover their health, accident or long-term care insurance premiums. In these difficult fiscal times, this benefit should be expanded to allow retired educational employees to use the same benefit. This benefit will provide much-needed relief to our retirees living on fixed incomes.

I strongly urge you to enact this legislation so that retired public school teachers, other school-related professionals and public higher education faculty and support staff are able to take advantage of the same tax benefits afforded to in-service workers and certain other public sector retirees.

Thank you for your consideration and support on this important issue.

Sincerely,

Your Name Here