Pension Protection Act of 2006
Pension Plan Distributions for Health Insurance Premiums

The federal Pension Protection Act enacted August 17, 2006 (PPA) law allows eligible public safety officers to make an election to direct FPPA to make pension plan distributions directly to a health insurance provider or group insurance provider to pay the cost of qualified health insurance premiums on behalf of the Member, his or her spouse, or dependent(s).  Up to $3000 of such distributions from the Member’s pension plan are then excludable from federal taxable gross income annually.  Beneficiaries receiving distributions under these plans are not eligible for this exclusion. 

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