S. 3189 — SROS Act

This section establishes a new exclusion from gross income for retirement income received by qualified retired members of the Armed Forces or law enforcement officers (as defined in 34 U.S.C. 10533) who are employed as school resource officers (SROs). (SROs are career law enforcement officers assigned by their agency to work in schools and community organizations to address crime, gangs, drugs, and related issues affecting students; prevent student victimization; and develop school policies on crime.) To qualify during employment as an SRO, the individual must have cleared a required background check and comply with the hiring, training, and certification standards of the employing state's peace officer standards and training agency; the exclusion applies only to retirement income (i.e., pensions, annuities, or plan distributions) attributable to the prior military or law enforcement service. After 10 years of such SRO employment, the exclusion extends for life to any subsequent retirement income. This section also requires the head of any employing law enforcement agency to report to the IRS the start and end dates of a qualified individual's SRO employment (with penalties for noncompliance under IRC §6724); directs the Treasury Secretary to issue implementing regulations within 180 days of enactment; and makes conforming clerical amendments. The provisions apply to taxable years beginning after enactment.