Beginning with the 2007 tax year, certain retired public safety officers (as defined by the IRS) can elect to exclude up to $3,000 from income distributions made from SDCERA directly to an insurance provider to pay premiums for accident, health, or long-term care insurance. Members who pay their own premiums (for example, because they participate in a plan not sponsored by SDCERA) are currently ineligible for the income exclusion.
For more information, refer to the 1040 instruction booklet or IRS publication 575, which are both available at www.irs.gov/formspubs. SDCERA cannot give tax advice; members should discuss this new exclusion with a tax professional.
News
Orange County Board of Supervisors challenges benefit enhancements
4/24/2008
In 2001, the Orange County Board of Supervisors approved retirement benefit enhancements (the 3% at age 50 benefit formula) for deputy sheriffs. The enhanced benefits applied to eligible members’ total years of service credit, including service credit earned prior to the adoption of the enhanced benefits. On February 1, 2008, the current Orange County Board of Supervisor... (Read more)
Retiree's Cost of Living Allowance in April Payments
The cost of living allowance (COLA) for retired members is based on the Consumer Price Index (CPI) for San Diego, rounded to the nearest half percent. This year, the COLA is 2.5%. Because of the COLA bank, members who retired before April 1, 2006, will receive a 3% COLA (2.5% from this year, and 0.5% from their COLA bank). All other retired members will receive 2.5% because their COLA bank is insufficient to bring them up to 3%. The COLA will be included in the April 30 payment.
