Check the IRS Guidance

By: fedweek

Said the OPM letter, “Retired public safety officers are deemed to have made a premium conversion election for this purpose. As a result, retired public safety officers whose CSRS or FERS annuity payments include a direct premium payment to a health insurance carrier or long term care insurance carrier may self-identify eligibility for, and self-report, the tax exclusion” to the IRS in their tax filings. “Since this is an IRS law, OPM cannot determine whether an individual meets this definition,” OPM said in guidance on the letter. OPM said potentially affected individuals should check IRS Publication 721, Tax Guide to U.S. Civil Service Retirement Benefits. That publication states that “the CSRS and FERS are considered eligible retirement plans.”