Categories: Fedweek

Premium Break Proposal for Retirees Gains Strength

A House bill (HR-2125) to make federal retirees eligible for the “premium conversion” arrangement that allows active employees to pay their FEHB premiums with pre-tax money is gathering strength, with almost half the chamber, 217 members, now signed up as co-sponsors. The tax break is worth an average of about $400 a year, although exact savings depend on an individual’s taxable income and the premiums of the FEHB plan in which the person is enrolled. A similar Senate bill (S-1022) has 19 backers.

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