IRS Regulations to Affect Employee Pensions Put on Hold

Earlier last year the IRS issued final regulations that would change the way public employee pensions were to be taxed here in Nevada.  Taking away the decision from the state, the IRS was going to demand that Nevada require a certain age requirement for retirement.  Instead of going with a “years of service” determination which is in current law, the IRS was regulating that no matter how many years a public employee put in, they would be heavily penalized for choosing to retire before the age of 62.  This disturbed the NEA and the NSEA greatly as we looked to reach out and change this regulation before it began to take effect in 2009.

To this point, the NEA was invited to a round table discussion with several key members of Congress, IRS officials, and the Treasury Department to discuss the important change to public employee retirement.  In what proved to be an invaluable discussion, the IRS agreed that any movement to further hurt public retiree pensions was to be placed on hold in order for more discussion to take place.  The NEA should be congratulated on successful representation of this issue for all of its members and its continued fight for funding and fairness of public employee benefits.

If you would like more detailed information on this issue and NEA actions on the subject, please click here.