Correctional Officer Fairness Act of 2014

Bill: 113-s-2257
Sponsor: full_name: Sen. Toomey, Patrick [R-PA]
Introduced: 2014-04-28
Policy area: Taxation
Subjects: Correctional facilities and imprisonment

Department of Justice

Employee benefits and pensions

Government employee pay, benefits, personnel management

Income tax exclusion

Law enforcement officers

Sales and excise taxes
Latest action: action_date: 2014-04-28
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2014-04-28
action_desc: Introduced in Senate
text: <p>Correctional Officer Fairness Act of 2014 - Amends the Internal Revenue Code to exempt from the 10%&nbsp;additional tax&nbsp;on early distributions from tax-exempt retirement plans distributions from a thrift savings fund&nbsp;to a qualified federal correctional officer who has reached age 50 or has completed 25 years of credible service, whichever is earlier. Defines "qualified federal correctional officer" as an individual who is employed by the Bureau of Prisons as a correctional officer and has completed 20 years of creditable service. </p>

tv_txt: II 113th CONGRESS 2d Session S. 2257 IN THE SENATE OF THE UNITED STATES April 28, 2014 Mr. Toomey introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide an exemption from the tax on early distributions for certain Bureau of Prisons correctional officers who retire before age 55, and for other purposes.

1. Short title This Act may be cited as the Correctional Officer Fairness Act of 2014 . 2. Exemption from tax on early distributions (a) In general Subsection (t) of section 72 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (11) Distributions to qualified Federal correctional officers from the Thrift Savings Fund (A) In general In the case of a distribution to a qualified Federal correctional officer from the Thrift Savings Fund established under section 8437 of title 5, United States Code, paragraph (2)(A)(v) of this subsection shall be applied by substituting age 50 (or, if earlier, the age at which the employee has completed 25 years of creditable service) for age 55 . (B) Qualified Federal correctional officer For purposes of this paragraph, the term qualified Federal correctional officer means an individual— (i) who is employed by the Bureau of Prisons as a correctional officer, and (ii) who has completed 20 years of creditable service. (C) Creditable service For purposes of this paragraph, the term creditable service means creditable service under section 8331 or 8411 of title 5, United States Code. . (b) Effective date The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.