Commonwealth of Massachusetts | Public Employee Retirement Administration
Five Middlesex Avenue, Suite 304, Somerville, MA 02145
Ph 617 666 4446 | Fax 617 628 4002 | TTY 617 591 8917 | www.mass.gov/perac
Domenic J. F. Russo, Chairman | A. Joseph DeNucci, Vice Chairman
Mary Ann Bradley | Paul V. Doane | James M. Machado | Donald R. Marquis | Robert B. McCarthy
Joseph E. Connarton, Executive Director
M E M O R A N D U M
TO: All Retirement Boards
FROM: Joseph E. Connarton, Executive Director
Exclusion from Gross Income of Payments for Health Insurance Premiums
DATE: February 9, 2009
PERAC Memos # 37/2007 and # 43/2007 discussed the Pension Protection Act of 2006 (“PPA”), highlighting several sections of special interest to public retirement plans. Of most interest, was the provision of the PPA that allows retired public safety officers to exclude from their gross income an amount up to $3,000 that is deducted from a taxable retirement allowance for health insurance premiums or long term care insurance contracts.
There have been no changes in these federal provisions, so the instructions in the earlier PERAC Memos remain in place.
If you have questions, please contact PERAC’s General Counsel, Barbara Phillips, (617) 666-4446 Extension 902.
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