Yes and no. Superannuation (regular) Retirement and Ordinary Disability Retirement benefits are taxable income under the Federal IRS code, but are exempt from Massachusetts state income tax. If you reside in a state other than Massachusetts, the question of state income taxability is determined by the state in which you reside.
Only those granted Accidental Disability Retirement benefits are essentially exempt from both State and Federal taxes. Note: Under Federal taxes, pension portion is not taxable, but annuity portion may be taxable depending upon individual circumstances.
Appears in: Retired Members