Senator Boxer: Tax Savings for Retirees
Wednesday, September 30, 2009
I want to tell you about an important bill that would provide tax savings for federal and military retirees. S.491, the Federal and Military Retiree Health Care Equity Act, would allow federal and military retirees to use pre-tax dollars to pay their premiums under the Federal Employee Health Benefit Program (FEHBP) or TRICARE.
Since 2000, active federal employees have been able to use pre-tax dollars to pay their premiums under the FEHBP. This benefit, known as “premium conversion,” is also available to many private-sector employees and state and local government employees. S.491 would extend this benefit to federal and military retirees.
For me, this is a simple matter of fairness and equity. I believe that federal retirees should have access to the same affordable, high-quality health care they earned as employees. By allowing them to pay their premiums with pre-tax dollars, S.491 would help federal and military retirees keep pace with the rising costs of health insurance.
I am proud to co-sponsor the Federal and Military Retiree Health Care Equity Act, and I will work with my colleagues to enact it.
U.S. Senator Barbara Boxer