Section 402(I), Internal Revenue Code, provides a tax exclusion of up to $3,000 for health insurance to eligible public safety officer only retirees. This tax exclusion is only applicable to premiums paid via 457 Plan Administrator (Lincoln Financial) or automatically deducted from your pension check by participating in the FRS Insurance Deduction Program.

• FRS Insurance Deduction Program Plan Participants – The amount paid (up to $3,000) is not included in the taxable pension income on FORM 1099R. Tax exclusion must be taken on IRS Form 1040, Line 16A and 16B.
• Lincoln Financial Participants– Complete application “Insurance Premium payment distribution for eligible public safety officers”. The retiree must contact Lincoln Customer Service (1-800-234-3500) to obtain the application. Lincoln Financial will process the application and mail a payment to WageWorks (up to $3,000 pre-tax). See 457 Deferred Compensation Tab for further details.