H. B. 3153


(By Delegates Givens, Ennis, Frazier,

Iaquinta, Azinger and Ferro)

[Introduced January 13, 2010; referred to the

Committee on Pensions and Retirement then Finance.]




A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-21-12i, relating to the personal income tax; specifying that federal civil service system retirement income derived from military retirement system pensions that have been converted to federal civil service system pensions is treated as military retirement income for purposes of the modifications to federal adjusted gross income set forth in article twenty-one, chapter eleven of this code.

Be it enacted by the Legislature of West Virginia:

That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §11-21-12i, to read as follows:

ARTICLE 21. PERSONAL INCOME TAX.

§11-21-12i. Income derived from military retirement system
pensions converted to federal civil service pensions.

For taxable years beginning after December 31, 2009, that portion of federal civil service income that is derived from conversion of a federal military retirement system pension to a federal civil service pension or annuity pursuant to a lawful conversion thereof as allowed under federal law, is treated as military retirement income for purposes of the modifications authorized under section twelve of this article. For purposes of this section the term "federal military retirement system" means any retirement pension system designed for payment of any form of military retirement income, including retirement income paid to regular Armed Forces, Reserves and National Guard, and including any survivorship annuities derived therefrom.


NOTE: The purpose of this bill is to amend the West Virginia personal income tax to cause federal civil service system pension income derived from military retirement system pensions that have been converted into federal civil service system pensions to have the same decreasing modification treatment as military retirement system income.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.