Howe bill would exempt public safety pensions from income taxes

Senator Jeff Howe (R-Rockville) yesterday presented legislation in the Senate Tax Committee that would provide a tax subtraction for pension income received by public safety officers and firefighters, given that the individual serves until the retirement age of 55 and has a minimum of 20 years of service. This aims to assist public safety retention and recruitment numbers by incentivizing those employed to stay in their department, and by adding benefits that can be used to recruit candidates.

The Minnesota Board of Peace Officer Standards and Training (POST) Licensure Data has shown a steady decline in law enforcement interest. While State Trooper application numbers rose is 2020, there was a significant drop in 2021. In 2021, there were 453 applicants, compared to 799 in 2019. Of those applicants, only 9% were eligible for hiring. Combined with record retirements and a decline of interest in the profession, these issues have compounded and left a significant void in law enforcement agency employment numbers. There are currently far more openings than there are people to fill them.

“This bill is a step in the right direction as we work to retain and recruit people into public safety professions,” said Sen. Howe. “Our state has already provided a tax exemption for military pensions, and we are working on a social security income exemption—this language falls in line with those efforts. There’s been a massive decline in interest in law enforcement professions, and this bill incentivizes officers to stay with agencies until full retirement, allowing them to train the next class of recruits. These brave men and women put service before self to provide security for our communities, and this bill is one small way we can thank them for their years of service and bravery.”

This bill was heard in the Senate Tax committee and was laid over as amended for possible inclusion in the committee’s final omnibus bill.