Premium Conversion Bill Reintroduced

Legislation (HR-1110) has been reintroduced in Congress to allow federal retirees to pay their FEHB premiums with pre-tax money, the “premium conversion” arrangement that has been allowed for active employees since 2000. Similar measures moved through the House Oversight and Government Reform Committee in the past two Congresses, only to stall in the Ways and Means Committee, which has jurisdiction because of the tax implications. That committee never has shown interest in moving the measure out of concern about the potential loss of tax revenues and because of the potential precedent it would set for private sector retirees at a much higher cost in lost revenues.