SPECIAL EDITION
July 9, 1997
The United States House of Representatives passed the Budget Reconciliation tax bill, H.R. 2014 on June 26, 1997. The United States Senate followed on June 27 with S. 949 adopting several floor amendments. NAPO was instrumental in the fight to includ
The House Ways and Means Committee will appoint its conferees soon after Congress returns from the July 4 recess. The Senate has already appointed its conferees including Finance Committee Chairman William Roth (R-DE) and Finance members Trent Lott (R
*Please read inside for a complete
breakdown of the issues affecting law enforcement
SURVIVOR BENEFITS FOR PUBLIC SAFETY OFFICERS KILLED IN THE LINE OF DUTY
On February 5, 1997, Washington, D.C. Police Officer Brian Gibson was fatally shot in the line of duty. Tragically, Officer Gibson left behind a wife and two small children who must make ends meet with the meager survi
This tragic scenario is replayed on an average of 150 times per year. Fortunately, in 1996, only 116 officers were killed in the line of duty. But, as we all can agree, even one line of duty death is too much.
Current federal tax law allows officers who retire on a disability to collect disability pension payments tax free. However, survivors of officers killed in the line of duty must pay federal taxes on the survivor’s benefit. This disparate tax
On March 4, 1997, Congresswoman Eleanor
Holmes Norton (D-D.C.) introduced H.R. 921, the Officer Brian Gibson Tax
Free Pension Equity Act of 1997. Language from this bill was adapted into
the House Budget Reconciliation tax bill, H.R. 2014.
NAPO, through a coalition with the International Association of Firefighters (IAFF) and the International Brotherhood of Police Officers (IBPO) fought hard and succeeded in having this language amended to include firefighters in the Senate Budget Recon
S. 949.
NAPO will continue to work to see that this language survives with the inclusion of firefighters as found in the Senate Budget Reconciliation tax bill through the final Conference Report.
NAPO would also like to thank Representatives Jim Ramstad (R-MN), Karen Thurman (D-FL), Senator Joseph R. Biden, Jr. (D-DE) and their staffs for all of their hard work and dedication to see that this language was included.
TREATMENT OF CERTAIN DISABILITY
BENEFITS RECEIVED BY FORMER POLICE OFFICERS OR FIREFIGHTERS
In 1971, the state of Connecticut passed a Workers Compensation Program for police officers and firefighters who develop hypertension or heart disease during the course of their employment. Because the heart and hypert
However, because of a technicality in Connecticut law, the Internal Revenue Service has deemed that these benefits are in fact taxable. The Connecticut Act does not require evidence of a direct relationship between a person’s capacity as a police offi
The IRS began proceedings against heart and hypertension pensioners, demanding that towns release pension records back to 1988.
Congresswoman Barbara Kennelly (D-CT) introduced H.R. 202 and Senator Chris Dodd (D-CT) sponsored S. 393 in the 105th Congress in an attempt to remedy the situation. Similar language was included in both the House (H.R. 2014) and the Senate (S. 949) B
NAPO believes that this language will also survive the final Conference Report.
NAPO would like to thank Congresswoman Barbara Kennelly (D-CT), Senator Chris Dodd (D-CT) and their staffs for their diligent efforts to correct this problem. A special thanks also goes to the Connecticut Coalition of Police and Correctional Officers
EXTENSION OF MORATORIUM ON APPLICATION OF CERTAIN NONDISCRIMINATION RULES TO STATE AND LOCAL GOVERNMENTS
Beginning with the Employee Retirement Income Security Act of 1974 and again with the Tax Reform Act of 1986, Congress has continued to set requirements for qualified retirement plans to meet strict nondiscrimination standards. The original intent
While this may be appropriate for the private sector, state and local government retirement systems have been specially designed to cover the unique public sector work force which includes police, teachers and firefighters.
Compliance with the nondiscrimination rules would require that jurisdictions lump all employees into one large group for testing purposes, diminishing current tax exempt status and radically redesigning the plans. Severe costs would be imposed to gath
The U.S. Department of Treasury has consistently delayed enforcement of these rules for almost 20 years, but the rules themselves have not been made permanently inapplicable to public sector plans. However, with the special concerns of state and local
On April 18, 1997, Senator Orrin G. Hatch (R-UT) and Senator Kent Conrad (D-ND) introduced S. 622 to make permanent the moratorium from nondiscrimination rules. On May 22, 1997, H.R. 1740 was introduced as companion House legislation by Representative
Similar language was included in both the House (H.R. 2014) and the Senate (S. 949) Budget Reconciliation tax bills. NAPO foresees that this language will survive the final Conference Report ending nearly two decades of uncertainty surrounding how, an
REMOVAL OF THE DOLLAR LIMITATION ON PAYMENT OF BENEFITS
Section 415 of the Internal Revenue Code (IRC) limits the annual amount of service retirement benefits that may be payable to certain police officers and firefighters.
Language found in the Senate bill only (S. 949) would amend the Internal Revenue Code of 1986 to remove the dollar limitation on payment of benefits from a defined benefit plan that is maintained by a State or local government for the benefit of employ
This language was originally introduced by Representative Benjamin Gilman (R-NY) with H.R. 1795. Senator Alfonse D’Amato (R-NY) championed the cause to have this included in the Senate Budget Reconciliation tax bill.
If signed into law, those who participate in a defined benefit pension system will no longer be limited on the dollar amount they receive from their pension system. If passed, this would effect those who retire on or after Jan. 1, 1997.
TRIPLE TRAILER
TRUCK ALERT
As many of you are aware, triple trailer trucks, also called LCVs or longer combination vehicles pose a real threat to our nation’s highway safety. They are dangerous and present many new problems to the highway including bridge damage, braking proble
Obviously, it is in the best interest of law enforcement - many times the first to arrive on the scene of an accident, to urge lawmakers not to allow these dangerous trucks on our nation’s highways. NAPO has been working with the Coalition Against Big
Please write to your member of Congress urging them to reauthorize "ISTEA" -- the Intermodal Surface Transportation Efficiency Act to contain the current freeze on increases of truck size and weight. It is critical that this issue plays on a
WELCOME TO NAPO!
We are pleased to announce the most recent new edition to our NAPO family. The Boston Police Patrolmen’s Association has affiliated with NAPO adding 1,550 new officers to our ranks. Their President is Thomas J. Nee, a
Welcome Aboard!
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