HB 1191 Summary

• Increases the civil service annuity income tax deduction from $2,000 to $5,000 for taxable years beginning after 2010 until the "surplus date" is reached.

• Establishes a three-year phase-in to increase the deduction to $8,000, $11,000, and finally $13,000 beginning the calendar year after the surplus date.

• Defines "surplus date" as the first state fiscal year ending after 2011 when the year-end general revenue fund balance exceeds 10% of general revenue fund appropriations.

• Extends the deduction eligibility to surviving spouses of civil service annuitants, with age 62 requirement waived for surviving spouses.

• Repeals the previous civil service annuity income tax deduction provision and makes changes effective January 1, 2011 (retroactively).