Public Safety Officer Premium Withholding Program
The Pension Protection Act of 2006 allows certain retired and disabled public safety officers to reduce taxable income by up to $3,000 annually to pay qualified insurance premiums. Insurance premiums must be withheld from their monthly pension benefits and paid directly by MSRS or PERA to the insurance provider.
Public safety officers who participate in the premium withholding program cannot request reimbursement of insurance premiums withheld from their pension that qualify for the $3,000 tax exclusion limit. The HCSP account can be used for other eligible medical expenses, including:
insurance premiums in excess of the $3,000 exclusion;
insurance premiums not deducted from your monthly pension; and
all other eligible medical expenses.