Pension "Source Ta
x"
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Date: Mon, 12 Feb 1996 08:49:57 -0400
To: "USGS Employees"<distribution>
Subject: Pension "Source Tax"
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     February 9, 1996
     
     
     (NOTE TO SUPERVISORS: Please ensure that all employees without E-mail 
     access receive a paper copy of this All-Employee distribution.)
     
     
     Memorandum
     
     To:                All  DOI Employees
     
     From:              Woodrow Hopper
                        Director of Personnel
     
     Subject:           Pension "Source Tax"
     
     Over the years there have been attempts on the part of some States to 
     impose an income tax on Federal pensions based on prior employment in 
     a taxing State even though an individual receiving retirement income 
     is no longer a resident of that State.  This has become known as a 
     pension "source tax."
     
     Public Law (PL) 104-95 provides that "No State may impose an income 
     tax on any retirement income of an individual who is not a resident or 
     domiciliary of such State . . . ."  Therefore, Congress has eliminated 
     the pension source tax.  The law applies only to retirement income 
     received by an individual after December 31, 1995.
     
     For more information on P. L. 104-95 and its provision, contact your 
     serving personnel office for Benefits Administrative Letter No. 
     96-101.