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FLEOA Victory-TSP Access ‎For Additional Members

December 18, 2015

(Washington, DC) – As part of the massive year-end omnibus spending and tax legislation, Congress today gave final approval to ensure equitable application of the "Defending Public Safety Employees’ Retirement Act” to all federal law enforcement officers prior to adjourning their session for the year. The original law, a FLEOA-initiated bill sponsored by Rep. Dave Reichert (R-WA), enabled federal law enforcement officers to access their Thrift Savings Plan (TSP) at age 50 without incurring the standard 10% tax penalty on early withdrawals, a benefit previously provided only to state and local law enforcement officers.

 

"After FLEOA successfully had the tax code changed earlier this year to allow federal officers to access their TSP accounts penalty free at age 50, it was noted that due to different technicalities with the law, some federal officers may not have been covered,” said FLEOA National President Nate Catura. "FLEOA worked with Rep. Reichert to address this "technical" fix and began its campaign to see its passage. Today, we are proud to state that now all federal officers are covered and we greatly appreciate Rep. Reichert’s efforts to ensure that this provision was included in the omnibus and will now become law."

The TSP Tax Fix was included in a package of bills that cleared Congress and is expected to be signed by the President. The tax fix now explicitly includes United States Capitol Police Officers, Supreme Court Police Officers, and Special Agents with the Diplomatic Security Service. The provision extends the relief under current law, which provides an exception to the 10% penalty on withdrawals from retirement accounts before age 50 for public safety officers, to include Nuclear Materials Couriers, United States Capitol Police, Supreme Court Police, and Diplomatic Security Special Agents.

Once enacted, the provision will be effective for TSP distributions made after December 31, 2015.