First Responders Retirement Parity Act

Bill Number: H.R. 2382
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Taxation
Status: Introduced
Latest Action: 2025-03-26: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Last Updated: 2026-03-19T08:07:14Z

AI-Generated Summary

Summary of H.R. 2382: First Responders Retirement Parity Act

Purpose

This bill aims to expand access to governmental pension plans for certain firefighters, emergency medical technicians (EMTs), and paramedics who work for public safety agencies under contract with state or local governments. It seeks to ensure these first responders can participate in tax-advantaged retirement plans typically reserved for direct government employees, promoting fairness in retirement benefits.

Key Provisions

Amendments to Tax and Retirement Laws:
Modifies Section 414(d) of the Internal Revenue Code (IRC) of 1986 to clarify that a pension plan qualifies as a "governmental plan" (which receives tax exemptions) even if it includes employees from a public safety agency (a tax-exempt nonprofit under IRC Section 501(c)). This applies only to emergency response providers—defined under the Homeland Security Act—who primarily perform firefighting or out-of-hospital emergency medical services for a state or local government under a contract.
Makes a parallel change to Section 3(32) of the Employee Retirement Income Security Act (ERISA) of 1974, which governs private-sector retirement plans, to align definitions and ensure consistent treatment.
Conforming Amendments:
Updates related sections in ERISA and the IRC to reference these new inclusions, ensuring they fit within existing rules for pension benefits, limits, and protections (e.g., adjusting how full-time employee status is determined for benefit calculations).
Effective Date: The changes apply to plan years starting after the bill's enactment.

Significant Changes to Existing Law

Previously, governmental pension plans were limited to those established by governments for their own employees, excluding workers from contracted nonprofit agencies even if they served public needs.
This bill broadens the definition of "governmental plan" to include plans covering these specific contracted first responders, allowing their pensions to qualify for federal tax exemptions and ERISA exemptions (which reduce regulatory burdens on government plans). It does not alter core eligibility rules but extends them to this group, potentially overriding prior restrictions on nonprofit participation.

Potential Impacts

On Government Agencies: State and local governments may see increased pension plan participation and costs if they extend coverage to contracted workers, but it could simplify administration by treating these plans uniformly. Federal tax implications may reduce overall costs through exemptions.
On Citizens: Firefighters, EMTs, and paramedics in eligible roles gain better access to stable, tax-advantaged retirement savings, improving long-term financial security for these essential workers and their families. No direct international relations impacts.
Broader Effects: Encourages more consistent retirement benefits across public safety roles, potentially aiding recruitment and retention in understaffed emergency services.

Main Stakeholders Affected

Primary Beneficiaries: Firefighters, EMTs, and paramedics employed by tax-exempt public safety agencies that contract with state or local governments.
Employers and Administrators: Nonprofit public safety agencies and governmental pension plan managers, who must adjust plans to include these workers.
Government Entities: State and local political subdivisions (e.g., cities, counties) that contract for emergency services, as they may influence or fund these pensions.
Federal Agencies: The IRS and Department of Labor, responsible for enforcing tax and retirement regulations, will need to implement the updated definitions.

Notable Legal, Constitutional, or Political Implications

Legal: Strengthens tax-exempt status for these pensions under the IRC and ERISA, reducing litigation risks over plan classifications. It aligns federal law with practical realities of outsourced public services without creating new entitlements.
Constitutional: No apparent challenges; the bill operates within Congress's authority to regulate taxation and interstate commerce, supporting equal treatment under the law for public servants.
Political: Bipartisan sponsorship (introduced by Rep. Murphy with cosponsors from both parties) highlights broad support for first responders. It could set a precedent for expanding benefits to other contracted public workers, influencing future labor and tax policy debates.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Murphy, Gregory F. [R-NC-3]

Cosponsors (8)

Rep. Foxx, Virginia [R-NC-5], Rep. Hudson, Richard [R-NC-9], Rep. Rouzer, David [R-NC-7], Rep. Edwards, Chuck [R-NC-11], Rep. Harrigan, Pat [R-NC-10], Rep. McDowell, Addison [R-NC-6], Rep. Moore, Tim [R-NC-14], Rep. Knott, Brad [R-NC-13]

Recent Actions

2025-03-26: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-03-26: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-03-26: Introduced in House
2025-03-26: Introduced in House

Bill Versions

First Responders Retirement Parity Act — issued 2025-03-26 — PDF (4 pages)