BILL NUMBER: SJR 21	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Kehoe
   (Coauthor: Senator Vargas)
   (Coauthors: Assembly Members Block and Hueso)

                        MARCH 6, 2012

   Relative to federal tax exemptions.


	LEGISLATIVE COUNSEL'S DIGEST


   SJR 21, as introduced, Kehoe. Federal tax exemptions: retirement
funds.
    This measure would urge the Congress of the United States and the
President to amend the United States Internal Revenue Code to allow
all retirees who have contributed to a qualified retirement plan the
option to treat funds from those plans used to pay medical and
long-term care premiums as tax-free rollovers.
   This measure would also urge the Congress of the United States and
the President to create parity among all workers by presenting
qualified retirement plan participants with the same option given to
public safety members under the Pension Protection Act of 2006.
   Fiscal committee: no.



   WHEREAS, On August 17, 2006, the Pension Protection Act of 2006
was signed into law by President George W. Bush, granting eligible
public safety officers the ability to use a portion of their
qualified retirement plan to pay for medical and long-term care
premiums tax free; and
   WHEREAS, There is no option for nonpublic safety officers or
public safety officers who retire under full retirement age to use
their qualified retirement plan funds to pay for medical and
long-term care premiums tax free; and
   WHEREAS, The cost of health care has risen faster than the pace of
inflation for more than 20 years; and
   WHEREAS, The population continues to age and to live longer
necessitating adequate health care and long-term care and the funds
to pay for these services; and
   WHEREAS, Tax-free distributions for health care premiums allow the
benefit of reducing the burden of an essential expense to apply to
all public and private sector employees; and
   WHEREAS, This act could encourage people to save more now,
potentially reducing the burden on government health care resources
in the future; now, therefore, be it
   Resolved by the Senate and the Assembly of the State of
California, jointly, That the Legislature urges the Congress and the
President to amend the United States Internal Revenue Code to allow
all retirees who have contributed to a qualified retirement plan the
option to treat funds from those plans used to pay medical and
long-term care premiums as tax-free rollovers; and be it further
   Resolved, That the Legislature urges the Congress and the
President to create parity among all workers by presenting all
qualified retirement plan participants with the same option given to
public safety members under the Pension Protection Act of 2006; and
be it further
   Resolved, That the Secretary of the Senate transmit copies of this
resolution to the President and Vice President of the United States,
to each Senator and Representative from California in the Congress
of the United States, to the Commissioner of the Internal Revenue
Service, to the Secretary of the Department of Labor, and to the
author for appropriate distribution.