Use this form to elect to have your and/or your spouse’s and/or your dependent’s eligible insurance premiums paid directly to an eligible insurance carrier from your City of Aurora-Police MPPP account.
Background
The HELPS Retirees provision (Section 845) of the Pension Protection Act (PPA) of 2006 allows eligible retired Public Safety Officers (PSO) to use up to $3,000 per year from their qualified government retirement plan, on a pre-tax basis, to pay for health insurance or long-term care insurance premiums for the retired PSO, and/or their spouse, and/or their dependent(s). In order for you to get the pre-tax benefit, the money must be paid directly from your pension fund to a health or long-term care insurance company.
Eligibility
Eligible retired public safety officers include those who have separated from service with their Plan-covered employer due to disability or after reaching normal retirement age. A public safety officer who retires before reaching normal retirement age is not an eligible retired public safety officer, unless the public safety officer retires by reason of disability. In addition, survivors are not eligible to make this election.The aggregate amount that is permitted to be excluded, for any taxable year, from an eligible retired public safety officer’s gross income is limited to $3,000. For purposes of applying this $3,000 limitation, distributions with respect to an eligible retired public safety officer that are used to pay for qualified health insurance premiums from all Eligible Government Plans are cumulative.
Participants are strongly encouraged to thoroughly read the full Q&A and all disclaimers on the form linked above. Additionally, prior to submitting a form, participants should contact the Plan Administrator for further insight and guidance to ensure all eligibility requirements are met.