Chocola Scores Two Major Legislative Victories as President Signs Pension Protection Act

Chocola Scores Two Major Legislative Victories as President Signs Pension Protection Act
Provisions introduced by Chocola benefit Public Safety Officers and Students

In every community in the United States, firefighters, paramedics, and law enforcement personnel regularly risk their health and their lives to protect the public. Firefighters, for example, are six times more likely to be injured on the job than the average private sector worker. One in three firefighters is injured in the line of duty every year.

"Those that put their lives in danger for our safety deserve our respect, our admiration, and our assistance with their retirement," commented Chocola.

Because of the physical demands and unique job hazards faced by public safety officers, they often retire earlier than other occupations and face significant healthcare needs. Unfortunately, many retirees lose their employer-provided health insurance and are years away from being Medicare-eligible, which forces them to spend their retirement money on health insurance premiums.

The Pension Protection Act of 2006 contains Chocola's "HELPS Retirees Act," which allows retired public safety officers to use up to $3,000 annually from their pension funds to pay for premiums on health and long-term care insurance tax-free.

In essence, the bill will make their healthcare more affordable, and protect retirees from having to spend in upwards of 80% of their pensions on healthcare premiums.

"Firefighters, Paramedics, and Law Enforcement Officers work in a hazardous environment every day," commented Chocola. "This legislation will make sure that when they retire they'll be able to afford the health insurance that their hazardous careers require."

In addition to the Helps Retirees Act, another provision, jointly introduced by Chocola and Congresswoman Melissa Hart, ensures that deposits into college savings plans, like Indiana's "College Choice Investment Plan", will remain tax-free. Without the change, deposits into these accounts, also called 529 accounts, would be subject to taxes as high as 35 percent after December 31, 2010 thus removing a critical incentive to save for future education costs.

"Education is the key to prosperity in today's world," commented Chocola. "With tuition costs rising, families need all the help they can get, and this provision will make sure that the government doesn't tax them for being responsible parents and saving for their children's future."

http://chocola.house.gov/News/DocumentSingle.aspx?DocumentID=48983