Pre-tax treatment of retirees' FEHBP premiums

**Sunnyskies** · 03-24-2007, 03:23 AM

From NTEU President Colleen Kelly to chapters, dated 3/22/07. Sure hope it passes.

RE: Retiree Pre-Tax Health Premium Legislation

SUMMARY: S. 773 has been introduced in the 110th Congress to allow the pre-tax treatment of retirees’ FEHBP health care premiums costs.

On March 6, 2007, Senator John Warner of Virginia introduced S. 773, legislation to allow federal civilian and military retirees to pay health insurance premiums on a pre-tax basis. The bill, known as the premium conversion bill, was introduced with bipartisan support and is pending in the Finance Committee. It is similar to legislation introduced earlier in the House of Representatives.

S. 773 would allow federal and military retirees to use pre-tax dollars to pay for their health insurance premiums. Active federal workers have been eligible for this treatment since October 2000 when the Office of Personnel Management ruled that federal employees can be eligible for pre-tax treatment. However, in order for federal and military retirees to be treated in the same vein, legislation is needed.

NTEU strongly supports this premium conversion bill which could save participants an average of $820 per year. During the past six years, cost of living adjustments have ranged from 1.3 to 3.5 percent, yet health care premiums have risen most years by double digit amounts. Since 2001, FEHBP premiums have risen by more than 50 percent.

For more information on this issue and to find out how you can help, you can visit www.capwiz.com/nteu.

**2moryrs** · 06-29-2007, 10:43 PM

One way to be sure this gets wider congressional attention is to join NARFE (National Association of Active/Retired Federal Employees). This is the only group that is looking out for the welfare of the Federal Employee and the Retiree (Federal). I joined, I'm still working. When I retire, I will become involved in the legislative side of things.

oregon

**nnuut** · 06-29-2007, 11:06 PM

Let's hope it does pass and not end up like the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP) they have been trying to vote these out for years. They now have new bills that water it down hoping to get something for the Government Employees that are being cheated out of their Social Security, but it looks like they will never pass that one either. SAD!!

How does it feel, I can take it I've been having SEX with the Government for years!