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State fiscal problems threaten higher taxes on federal pensions


Federal retirees depend on their federal civil service annuity for much of their retirement income, but states facing financial problems may be looking to public sector pensions as a source of new revenue. A state-by-state income tax analysis issued by the National Active and Retired Federal Employees Association shows that currently nine states have no income tax and nine more exempt the total amount of civil service annuities from their state income tax, but this equation may be changing. more

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