Senate Bill 427 Summary

• Provides a phased-in income tax deduction for federal civil service annuity income beginning in 2012, reaching 100% deduction by 2016.

• Deduction phases in at 20% (2012), 40% (2013), 60% (2014), and 80% (2015) before reaching full 100% in 2016 and beyond.

• Removes the age 62 requirement for eligibility and expands the deduction to include an individual's surviving spouse.

• Deduction amount is calculated by subtracting Social Security benefits and railroad retirement benefits from the federal civil service annuity received.

• Effective date is July 1, 2011, and amends Indiana Code IC 6-3-2.