Self-insured health plan premium exclusion for retired public safety employees

January 17, 2007

On Dec. 4, 2007, the IRS issued Notice 2007-99 that confirm the change in interpretation by the IRS regarding the inclusion of self-insured health plans in the public safety officer $3,000 retirement medical exclusion enacted in PPA. In earlier guidance, the IRS had interpreted the statutory language to say that self-insured plans were not eligible for the exclusion. Since that time, Congress, through correspondence and the introduction of a Technical Corrections bill, clarified that they had intended for self-insured plans to be eligible. For more on this issue read ICMA-RC's Legislative Report