Kildee Introduces Legislation to Cut Taxes for Retiring Michigan Correctional Workers

FLINT—Congressman Dan Kildee, Chief Deputy Whip of the House Democratic Caucus and member of the House Ways and Means Committee, today introduced bipartisan legislation with Representative Lloyd Smucker (PA-11) to ensure state and local correctional officers in Michigan aren't unfairly taxed when they enter retirement.

Kildee's bill, the State and Local Corrections Officer Retirement Fairness Act, would exempt state and local corrections officers from paying a 10% federal tax on withdrawals from their retirement accounts made before age 59 and a half. Due to the physically challenging nature of their profession, many corrections officers retire prior before age 60.

While federal corrections officers are not penalized for withdrawing their retirements early, state and local corrections officers are. Kildee's legislation would ensure the 6,500 state and local correctional officers in Michigan are not unfairly penalized by the tax code.

"Correctional officers play an important role in our criminal justice system, and, like all public safety and frontline workers, they deserve to retire with dignity," said Congressman Kildee. "My bipartisan bill, supported by Republicans and Democrats, would ensure Michigan's corrections officers are treated fairly and remove tax penalties for these public safety officers."

"We thank Representatives Dan Kildee and Lloyd Smucker for their bipartisan effort in introducing this significant legislation, removing the 10% retirement withdrawal penalty, and bringing State Correctional Officers and Forensic Security employees in line with the benefit other law enforcement and federal correctional officers currently receive. The unfortunate reality of our profession is that the mortality rate for corrections officers is between 59 – 61 years of age. Allowing them to draw from their retirement accounts without penalty before age 59 and a half is the right thing to do for these men and women who work in one the most dangerous jobs and sacrifice so much of themselves," said Ray Sholtz, Vice President and Chief of Staff, Michigan Corrections Organization.

"This legislation is a huge step forward for state and local corrections officers, and represents a monumental shift in the way we view and support the financial futures of the men and women providing critical services in our prisons and jails across the country. We commend Representatives Dan Kildee and Lloyd Smucker for their leadership on this important legislation and stand committed to seeing it become a reality," said Jeremy Tripp, Policy Director, One Voice United.

"Corrections officers and forensic security employees work in some of the most dangerous and stressful work conditions anywhere. This legislation ensures that they properly receive the retirement benefits they deserve for their dedicated public service. We applaud Rep. Dan Kildee for his advocacy and support in sponsoring this legislation. We also want to thank Rep. Lloyd Smucker for co-sponsoring this bill, which would bring peace of mind to our members," said John Eckenrode, President, Pennsylvania State Corrections Officers Association.

As a member of the House Ways and Means Committee, which has jurisdiction over taxes and Social Security, Congressman Kildee has been working to make sure all Michigan workers can afford to retire with dignity. This Congress, he introduced and passed the Susan Muffley Act to restore retirement benefits to over 20,000 Delphi Salaried Retirees. Kildee also worked to pass the Securing a Strong Retirement Actor SECURE 2.0 Act in the House in 2022.