HR 2382119th CongressIn Committee

First Responders Retirement Parity Act

Introduced: Mar 26, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The First Responders Retirement Parity Act would ensure that certain public safety employees—specifically firefighters, emergency medical technicians (EMTs), and paramedics who work for public safety agencies under contract with a state or local government subdivision—may participate in governmental pension plans without losing the plan’s status as a governmental, tax-qualified plan. The bill accomplishes this by adding a clarifying sentence to the Internal Revenue Code and to ERISA, stating that including these emergency response providers does not cause a government plan to fail to meet governmental-plan requirements. It also makes related conforming edits to ERISA and the Internal Revenue Code and applies beginning with plan years after enactment. The underlying goal is to provide retirement parity for these first responders, aligning their pension participation with other public safety employees.

Key Points

1Expands government-plan eligibility: A governmental pension plan may include participation by public safety agency employees who are emergency response providers (as defined by the Homeland Security Act of 2022) when their services are primarily firefighting or out-of-hospital EMS under contract with a state or local government subdivision.
2Federal tax and ERISA language clarified: The bill adds a new sentence to both IRC Section 414(d) and ERISA Section 3(32) clarifying that such participation does not cause the plan to lose its governmental status for tax or fiduciary purposes.
3Conforming amendments: The act amends related provisions in ERISA and the Internal Revenue Code (including sections 4021(b)(2) and 415) to reflect the inclusion of these public safety agency employees described above.
4Effective date: The changes apply to plan years beginning after enactment.
5Policy intent: The measure aims to achieve retirement parity for first responders by extending eligibility to participate in government pension plans without creating status or qualification issues.

Impact Areas

Primary group/area affected:- Public safety agencies (fire departments, EMS providers) and their emergency response personnel (firefighters, EMTs, paramedics) serving under contract with state or local governments.- Government pension plans (the plans themselves and their administrators) that cover these employees.Secondary group/area affected:- State and local governments and public safety agencies that contract emergency responders, potentially affecting plan design, funding, and administration.- Beneficiaries and future retirees among first responders who gain access to governmental pension-plan participation.Additional impacts:- Administrative and compliance considerations for pension plans as they incorporate these employees.- Potential changes in funding obligations or benefit designs to accommodate a broader participant pool.- Clarification of federal tax qualification and ERISA status for plans enrolling emergency responders under these public safety arrangements.

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