BOP TSP Victory
June 25, 2015
Thanks to years of hard work by AFGE activists, the Senate and the House this week passed a bill that would eliminate a 10% early withdrawal penalty for federal law enforcement officers when they retire after age 50. The bill, which applies to those retiring after Dec. 31, 2015, will now go to President Obama for his signature.
AFGE applauds Sen. Pat Toomey of Pennsylvania for taking the lead on the Senate bill and Rep. Dave Reichert of Washington on the House bill.
This legislative action is long overdue. AFGE has been working with Congress for years to lift the penalty. 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. State and local law enforcement officers, on the other hand, are eligible to retire at age 50 but are exempt from the 10% penalty.
