The Pension Protection Act (PPA) of 2006 made some of the most dramatic changes to America's pension laws in decades.

The sweeping legislation was vast in scope and as a result impacted many saving and investment opportunities for retirees. One of the components within the PPA was the Healthcare Enhancement for Local Public Safety (HELPS).

This page focuses on how this enhancement impacts FPPA Retirees and their healthcare choices.

Healthcare Enhancement for Local Public Safety (HELPS) Provision

This component of the PPA grants eligible retired public safety officers an annual federal income tax exclusion of up to $3000 for amounts paid to cover the cost of qualified health insurance premiums on behalf of the member, his or her spouse, or dependents. To qualify, premiums must be paid through payroll deduction directly from the member’s pension plan benefits. Beneficiaries receiving direct distributions from a member’s pension plan are not eligible for the exclusion. Each member may only take one $3000 exclusion annually, even if they are receiving more than one type of eligible pension. Moreover, the member’s monthly pension benefit must be equal to or greater than the amount of the member’s monthly insurance premium.

Information about member eligibility, how the tax exclusion is claimed, and options for direct payments are covered in the following publication. Federal Pension Protection Act of 2006 Q&A.