May 7, 1982

You inquire about the Massachusetts income taxation of a contributory pension paid by the United States government to a former employee of the Boston Navy Yard. The Boston Navy Yard was a United States Naval Shipyard and was part of the Department of the Navy.

General Laws Chapter 62, Section 2 defines Massachusetts gross income as federal gross income with certain modifications. Income received from a contributory pension of the United States government, the Commonwealth or any political subdivision thereof is not subject to taxation (G.L. c. 62, s. 2(a)(2)(E)).

Based on the foregoing, a pension paid by the United States government to a former employee of the Boston Navy Yard, who has contributed to the pension, is not included in the employee's Massachusetts gross income.

Very truly yours,

/s/L. Joyce Hampers

L. Joyce Hampers
Commissioner of Revenue

LJH:JD:mf

LR 82-44