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S.F. No. 3548 - Subtraction for civilian pensions with military service credit (as proposed to be amended by the A-1 amendment)
Author: Senator Gregory D. Clausen
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
Date: March 26, 2018


Under current law, military pension income is exempt from Minnesota income tax. This bill expands the subtraction for military pension income to include half the amount of pension income received through the Federal Employee Retirement System (FERS) or the Civil Service Retirement System (CSRS) if the civilian pension includes a credit for military service. Employees participating in FSRS or CSRS and who served in the military may receive service credit for their military service toward their civil service pension. These employees would be eligible for the subtraction under this bill. Effective retroactively to tax year 2016.

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