Bill Overview
Title: Protecting Public Safety Employees' Timely Retirement Act of 2022
Description: This bill modifies the eligible age (age 50) for the exemption from the retirement plan early withdrawal penalty for public safety officers. The bill establishes the age eligibility at age 50 or 25 years of service under the plan, whichever is earlier.
Sponsors: Sen. Toomey, Patrick [R-PA]
Target Audience
Population: Individuals working as public safety officers
Estimated Size: 1400000
- The bill impacts public safety officers, which generally include police officers, firefighters, and emergency medical services personnel.
- Public safety officers often have unique retirement plans due to the physically demanding and high-risk nature of their work.
- Early retirement or exemptions from penalties for early withdrawal are provisions that specifically recognize these conditions.
- According to the International Labour Organization and other demographic studies, the number of public safety officers worldwide is likely in the lower millions.
Reasoning
- The policy will primarily impact public safety officers, such as police officers, firefighters, and EMTs, who have relatively early retirement ages due to the nature of their work.
- Not all public safety officers will be impacted equally - the effect will depend on their age, years of service, and current retirement plan provisions.
- The financial scope of the policy is significant, but manageable within the indicated budget and timeline.
- It's likely a vast majority of public safety officers will remain unaffected in the initial years unless they are close to the age or service tenure that allows penalty-free withdrawals.
- The budget allocation suggests a focus on short-term results, but long-term impacts on the wellbeing of beneficiaries will be important too.
- Including simulated interviews with those not affected will provide a fuller picture of the general awareness and sentiment toward the policy among the broader public safety workforce.
Simulated Interviews
Police Officer (New York City, NY)
Age: 54 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- I've been planning my retirement carefully, and this policy allows me the freedom to take my pension without penalties right now.
- It's reassuring to see that the government recognizes our service and offers us this benefit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Firefighter (Austin, TX)
Age: 46 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I'm glad to hear about the policy as it gives me greater flexibility in planning retirement.
- Though I can't access it immediately, just knowing it's there is comforting.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
EMT (Chicago, IL)
Age: 39 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This policy is great because I'm planning ahead for retirement, though I'm not eligible yet.
- It's more about knowing I've got options when the time comes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Firefighter (Miami, FL)
Age: 31 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- I'm too young to think about retirement now, but it's nice to have such benefits acknowledged.
- Maybe it will affect me down the line.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Police Officer (Seattle, WA)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 5/20
Statement of Opinion:
- This could mean the difference between staying on the force or retiring early without financial penalty.
- It definitely sweetens the thought of retirement for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 4 |
Firefighter (Boston, MA)
Age: 52 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 1.5 years
Commonness: 2/20
Statement of Opinion:
- I've been counting the days until retirement, and this policy simply confirms my plans.
- It's a blessing to see official recognition for our hard work.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
Paramedic (San Francisco, CA)
Age: 48 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- It's not going to affect me anytime soon, but knowing it's there eases some long-term financial worries.
- Policies like this help in acknowledging our unique careers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 4 |
Police Officer (Denver, CO)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 3/20
Statement of Opinion:
- I've just become eligible, so the policy is perfectly timed for me to consider an early retirement option.
- It's a great relief knowing penalties won't affect my future withdrawals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 5 | 5 |
Firefighter (Houston, TX)
Age: 53 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- It's a very supportive move and realistically helpful for planning my future.
- I feel valued knowing the government is considering our specific needs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
EMT (Atlanta, GA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- I think it's important that policies address retirement ages for our line of work, even if it doesn't affect me currently.
- It's worth keeping this in mind for the long run.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $500000000 (Low: $350000000, High: $650000000)
Year 2: $525000000 (Low: $365000000, High: $682500000)
Year 3: $551250000 (Low: $383250000, High: $716625000)
Year 5: $605812500 (Low: $421575000, High: $787287500)
Year 10: $762915195 (Low: $531984979, High: $992789336)
Year 100: $3678684683 (Low: $2568279278, High: $4789090088)
Key Considerations
- This policy seeks to support the unique retirement needs of public safety officers but could alter the financial sustainability of certain retirement plans.
- Administering earlier withdrawals may require adjustments by retirement plan managers.
- The implications for long-term tax revenue need to be considered, as the shift in withdrawal timing affects taxation timelines and amounts.