AFGE Won Huge Victory for LEOs, Firefighters on TSP Early Withdrawal Bill

AFGE law enforcement members have fought for this for the past several years, and today we're happy to report that the Senate on Thursday passed a bill that would eliminate a 10% early withdrawal penalty for federal law enforcement officers when they retire after age 50.This would never have happened if it wasn’t for our efforts. 

AFGE applauds Sen. Pat Toomey of Pennsylvania for taking the lead on the Senate bill. A similar bill, introduced by Rep. Dave Reichert of Washington, passed the House last month.  The House will now take up the Senate's amended version of the bill. 

AFGE Council of Prison Locals President Eric Young was quoted in a press release by Sen. Toomey’s office on the passage of the bill: “Correctional Workers are responsible for securing many of the most dangerous criminals in the country, and each day they put their lives on the line to protect their communities. Correctional Workers earned their retirement with blood and sacrifice, and it is simple fairness that they should be able to access their retirement accounts without an IRS penalty. AFGE’s Council of Prison Locals thanks Senator Toomey for his leadership and dedication in fighting for fairness for Correctional Workers everywhere.”

Federal law enforcement officers are working dangerous jobs, and because of that, they are eligible to retire after 20 years of service at age 50 to help agencies recruit and retain a young, physically fit workforce. But under the current law, they have to pay a 10% penalty if they withdraw their Thrift Savings Plan (TSP) before turning 55. It's simply unfair, especially because state and local law enforcement officers are also eligible to retire at age 50 but are exempt from the 10% penalty. 

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