Congress needs to pass an AFGE-backed bill recently introduced that would ensure retirement fairness for correctional officers who risk the lives every single day keeping the most dangerous felons behind bars. The bill, S. 380 – introduced by Sen. Pat Toomey of Pennsylvania and Sen. Michael Bennet of Colorado, would exempt correctional officers who retire before age 55 with 20 years of service from the federal tax law’s 10% additional tax penalty for early withdrawals from the Thrift Savings Plan (TSP).
Current law designates federal correctional officers as a "hazardous duty" occupation. As a result, correctional officers are able to retire at age 50 if they have completed 20 years of service. However, they have to wait until age 55 to withdraw from their TSP if they don’t want to incur the 10% early withdrawal tax penalty.
AFGE has been arguing for a waiver of penalty for years and is encouraged that Sen. Toomey and Sen. Bennet never give up the fight for fairness on behalf of these brave men and women who work day and night to help keep out communities safe.