July 26, 1983

You inquire about the Massachusetts income tax treatment of a pension received by a retired employee from the retirement fund of the Tennessee Valley Authority ("TVA"). The employee contributed to the retirement fund.

Massachusetts General Laws Chapter 62, Section 2, defines Massachusetts gross income as federal gross income with certain modifications. In determining Massachusetts gross income amounts received from any contributory annuity, pension, endowment or retirement fund of the United States government to which the employee has contributed are deducted from federal gross income. (G.L. c. 62, § 2(a)(2)(E)). The TVA was created in 1933 and is an agency of the federal government. Tennessee Valley Authority v. Kinzer, 142 F.2d 833, 837 (1944).

Based on the foregoing it is ruled that a pension received by a retired employee of the TVA, to which he contributed, is not subject to Massachusetts income taxation.

Very truly yours,

/s/Ira A. Jackson

Ira A. Jackson
Commissioner of Revenue

IAJ:MTD:mf

LR 83-60