CHAPTER 409

An Act excluding military pension payments and military survivor's benefit payments for certain persons from gross income subject to the gross income tax and supplementing Title 54A of the New Jersey Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

C.54A:6-26 Certain military pension, survivor's benefit payments excluded from gross income.

    1.    Gross income shall not include military pension payments or military survivor's benefit payments paid to individuals by the United States with respect to service in the Armed Forces of the United States by a person who is 62 years of age or older or who, by virtue of disability, is or would be eligible to receive payments under the Federal Social Security Act at any point during the taxable year for which the military pension payment or the military survivor's benefit payments would otherwise be included as income.

    2.    Notwithstanding any law to the contrary, pension payments otherwise excludable as income pursuant to this act shall be considered income for the purpose of determining income eligibility for any State benefit or program if the payments were considered income for such purposes prior to enactment.

    3.    This act shall take effect immediately and apply to taxable years commencing on or after January 1, 1998.

    Approved January 19, 1998.