One such state is North Carolina, which currently taxes Mass pensions. Naturally that fact does not sit well for our members, living there, particularly Charles Peckham.

When Charlie thought about retiring to North Carolina, he was told that his pension would not be taxed there. But unfortunately circumstances changed before he retired from Blackstone Valley Regional Voc and moved south. By then North Carolina no longer provided a total exclusion on public pensions but only a $4,000 exemption, with the balance of the pension being subject to state tax.

"Needless to say, I wasn't happy about the tax change," states Peckham. "And when North Carolina public retirees went to court and won back the right to have their pensions totally excluded, I decided it was time to act."

During the 1999 session of the North Carolina legislature, which just recently adjourned, there was legislation pending (House Bill 1325) that would restore the total exclusion of pensions for public retirees from other states, like Mass. Our Association has about 155 members, including Peckham, living in North Carolina.

Peckham has taken it upon himself to contact his fellow members in hopes of organizing a grass roots network in support of tax relief legislation, like H B 1325, in the next legislative session in year 2000. In addition, he hopes to coordinate strategy with public retirees from other states, and has spoken with officials of the Retired Public Employees Association (of New York) about working with their members now living in North Carolina.

According to Peckham, H B 1325's sponsor (Rep. Don Davis) intends to reintroduce the bill in the legislature's 2000 session. "If we hope to be successful in the next millennium, then a great deal of advance work must be done between now and then," says Peckham.

"I must thank the Association for its help and support of my efforts here so far." And we wish Charlie and our other members in North Carolina the best of luck.

Hold Off On Moving To New Jersey For Now

As Charlie Peckham's story demonstrates, one must be careful when selecting a retirement state that doesn't tax Mass pensions. If you're planning a similar move to New Jersey, thinking your pension would not be subject to the state's income tax, then perhaps you should hold off for now.

In the May Voice, we reported New Jersey was among the 14 states that have reciprocity with Massachusetts on taxing public pensions. (They don't tax Mass pensions and we don't tax theirs.) About 65 members live in New Jersey.

"Well, it turns out that the listing we had from the Mass. Dept. of Revenue should not have included New Jersey," according to Association General Counsel Bill Rehrey. "One of our 65 members, living there, contacted us to set the record straight and we should also."

Under New Jersey's state income tax, Mass pensions are not exempted. Since Jersey taxes our pensions, Mass residents, receiving retirement from that state, must report it here as taxable income.

According to Betty Lau of H&R Block in New Jersey who prepares tax returns for some of our members there, persons, 62 or over, are given a $7,500 pension exclusion ($10,000 for a couple). There is no special recognition for out-of-state public pensions, except military pensions of those 62 or over which are totally excluded.