Insurance Premium Withholding

The Pension Protection Act of 2006 allows certain retired and disabled public safety officers to reduce taxable income by up to $3,000 annually to pay qualified insurance premiums.

If you enroll in this optional program, MSRS will deduct insurance premiums from your pension benefit and send directly to your insurance provider. Premiums for a spouse and dependent children are eligible for the tax exclusion; however, survivors do not maintain eligibility for this provision after the death of an eligible public safety officer or judge.
 

Qualified insurance premiums

Participation in the program is limited to the following retirees:

• Receive health and/or dental insurance through the State Employee Group Insurance Program (SEGIP); and
• Are under age 65; and
• Retired at full retirement age or are collecting a disability benefit.

MSRS must deduct the premium(s) from your retirement or disability benefit and pay them directly to Minnesota Management and Budget (MMB).

Full retirement age

To qualify for the premium withholding program,  you must retire at full retirement age or are collecting a disability. If you retire prior to full retirement age, you are not eligible for the tax exclusion.

To enroll

You can enroll at anytime. Contact MSRS to request an Authorization for Insurance Premium Deduction. Return the completed form and provide proof of insurance to MSRS. We must receive your form by the 15th of the month in order to deduct a premium payment from your next retirement benefit. 

For more information

See the Insurance Premium Withholding FAQ (pdf) or contact MSRS at 651-296-2761 or 1-800-657-5757.