Public Law 114-26

Submitted by Reese Skinner on Tue, 2017-03-07 20:58

Hello, Can anyone definitively “in writing” determine that National Guard technicians are defined as “defending Public Safety Employees”?



Submitted by Alan - IRA critic on Wed, 2017-03-08 22:15

I cannot locate any evidence that an exception was made to include the technicians as PSOs based on their mostly full time work. Various analysis of the law provide a list of eligible PSOs, but the Nationa Guard is not included in any such lists.

Submitted by Reese Skinner on Sat, 2017-03-11 01:17

Update: Information for Federal Public Safety Employees – (November 23, 2015) The Defending Public Safety Employees’ Retirement Act (P.L. 114-26) amended the Internal Revenue Code to allow specified federal law enforcement officers, customs and border protection officers, federal firefighters, and air traffic controllers who separate from service in or after the year they turn age 50 to make a withdrawal from the TSP without incurring a 10% early withdrawal penalty. The law applies to TSP withdrawals paid after December 31, 2015. We will rely on employing agencies and services to inform us if a separating (or already separated) employee was a public safety employee as defined by the law. Employees with this designation who were at least 50 during the year of separation and who are paid withdrawals after December 31, 2015, will be issued a Form 1099-R-in January of the year following the withdrawals-indicating they are exempt from the IRS 10% early withdrawal penalty. Other employees will continue to be exempt only if they separate in the year they turn 55 or older or have reached the age of 59½.this on Tsp’s website…. if my department reports me as a defending public safety employee are they wrong or will I be responsible for penalty tax?

Submitted by Alan - IRA critic on Sat, 2017-03-11 03:11

If the 1099R reporting the distribution includes Code 2 in Box 7, the IRS is highly unlikely to question the penalty waiver. Here is the Tax code definition of PSOs with reference to several US Code sections as a reference that the employer should use to code the 1099R:

(B) Qualified public safety employeeFor purposes of this paragraph, the term “qualified public safety employee” means—(i)any employee of a State or political subdivision of a State who provides police protection, firefighting services, or emergency medical services for any area within the jurisdiction of such State or political subdivision, or(ii)any Federal law enforcement officer described in section 8331(20) or 8401(17) of title 5, United States Code, any Federal customs and border protection officer described in section 8331(31) or 8401(36) of such title, any Federal firefighter described in section 8331(21) or 8401(14) of such title, any air traffic controller described in 8331(30) or 8401(35) of such title, any nuclear materials courier described in section 8331(27) or 8401(33) of such title, any member of the United States Capitol Police, any member of the Supreme Court Police, or any diplomatic security special agent of the Department of State.

Submitted by Reese Skinner on Sat, 2017-03-11 19:57

Thanks for the insigh!!

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