Federal Employees News Digest
Public safety employees could tap TSP earlier
- By FEND Staff
- May 18, 2015
The House passed a bill last week would let federal public safety employees make penalty-free withdrawals from the Thrift Savings Plan after age 50.
The House overwhelmingly approved the bill May 12 on a vote of 407-5.
Employees typically must wait until they reach age 59½ before taking money out of the TSP or face a 10 percent IRS early-withdrawal penalty. Public safety employees, because of the demands of their occupations, are covered by rules that let them retire earlier, and face mandatory retirement.
The Defending Public Safety Employees' Retirement Act (H.R. 2146), sponsored by Rep. David Reichert (R-Wash.), would cover federal law enforcement officers, firefighters and air traffic controllers.
National Treasury Employees Union President Colleen Kelley, whose organization represents Customs and Border Protection officers, called the amendment to the tax code "a welcome development for these front-line federal workers."