Houston, TX -U.S. Congressman Kevin Brady (R-The Woodlands) and Congressman Gene Green (D-Houston) joined Jimmie Gill, chairman of the Houston Firefighters' Relief and Retirement Fund this week to highlight a new federal law that eliminates the tax penalty for firefighters who retire before the age of 55. 

 

"Due to bi-partisan teamwork in Congress, Uncle Sam will no longer penalize firefighters, police and emergency responders who retire when their bodies tell them its time to retire," said Brady, who as a member of the Ways and Means Committee inserted the provision in the recent pension reform bill signed by President Bush.

 

"I am proud to have worked with Congressman Green who has long been a champion for Houston firefighters, and leaders of the Houston Firefighters' Relief and Retirement Fund who advocated so persistently for this change. Working together we were able to make a real difference in the lives and families of Houston firefighters, police, and EMS," Congressmen Brady said.  "Now our public service employees will be able to keep more of their hard-earned retirement savings." 

 

Police, firefighters and EMS personnel have significantly shorter life-spans than other workers in America due to the stress and physical toils of their jobs, and often must retire earlier. 

 

"This is a win-win. We are able to keep experienced firefighters protecting our communities while making sure their families keep all their retirement savings," said Brady.

 

At the event, Congressmen Brady and Green presented a framed copy of the final legislation to Chairman Gill. 

 

"Congressman Kevin Brady is a true professional and cares about the lives of public safety employees throughout our nation," Mr. Gill said.  "He is receptive and responsive to the plight of people who risk their lives everyday in the name of public safety.  His responsiveness is illustrated in his inclusion of our provision in The Pension Protection Act of 2006 (section 828). 

 

"The City of Houston's firefighters acknowledge Brady's personal efforts in getting this important bill for public safety officers passed, for the State of Texas.  The tax relief we now enjoy would not have happened without Congressman Brady."

 

Background:   Under the old law, firefighters, police and EMS personnel retiring before age 55 were forced to pay a 10% penalty on money drawn from a certain kind of deferred retirement plan.  This type of plan was developed to provide firefighters with an option to retire after 30 years in service instead of 20 years, so they could continue to serve at the height of their careers.  But since most Texas firefighters begin their career at age 23, they typically retire at age 53 - and fall right into the tax penalty.

 

To correct this problem, the Houston Firefighters teamed up with Congressmen Brady and Green to write a new law to lower the "penalty age" from 55 to 50, providing much-needed relief to thousands of firefighters and other public service employees.  The reform was was included in the Pension Protection Act passed by Congress and signed into law by the President of the United States earlier this year.