# Plain Language Summary: Public Safety Retirees Healthcare Protection Act of 2023

This bill gives retired police officers, firefighters, and other public safety workers a tax break on money they use to pay for health insurance and long-term care after they retire. Right now, when these retirees take money from their government pension plans to pay for health insurance, they can exclude up to $3,000 per year from their taxable income. This bill doubles that amount to $6,000 per year, starting in 2024.

Here's what that means in practical terms: if a retired firefighter uses $6,000 from their pension to pay for health insurance premiums, they won't have to pay federal income taxes on that $6,000. Previously, they could only shield $3,000 from taxes, meaning they'd owe taxes on the remaining $3,000. This change puts more money back in the pockets of public safety retirees by reducing their tax burden. The bill applies to distributions from government retirement plans specifically—the types of pensions that police departments, fire departments, and other public agencies offer their employees.

The main people affected are retired public safety officers who are already receiving pension payments and using that money to pay for health insurance or long-term care coverage. For someone in a higher tax bracket, this could save them several hundred dollars per year in federal taxes. It's a targeted benefit designed to help these retirees manage the often-significant costs of health insurance after they leave the workforce.

Public Safety Retirees Healthcare Protection Act of 2023

Spanberger, Abigail Davis

Public Safety Retirees Healthcare Protection Act of 2023 This bill amends the Internal Revenue Code to increase from $3,000 to $6,000 the amount excludible from the gross income of public safety officers for distributions from governmental retirement plans for health and long-term care insurance.