What pensions can be subtracted from New York income?

Pensions of New York State and local governments and the federal government

If the pension or distribution amount was included in your federal AGI, enter any pension you received, or distributions made to you from a pension plan which represents a return of contributions in a year prior to retirement, as an officer, employee, or beneficiary of an officer or employee of:
  • NYS, including State and City University of New York and NYS Education Department employees who belong to the Optional Retirement Program. Optional Retirement Program members may only subtract that portion attributable to employment with the State or City University of New York or the NYS Education Department.

  • Certain public authorities, including:
    • Metropolitan Transit Authority (MTA) Police 20-Year Retirement Program
    • Manhattan and Bronx Surface Transit Operating Authority (MABSTOA)
    • Long Island Railroad Company.

  • Local governments within the state, including:
    • NYS Teachers' Retirement System
    • NYC Teachers' Retirement System
    • NYC Teachers' Retirement IRC 403(b) plan
    • International Union of Operating Engineers Local 891 Annuity Fund (Department of Education of the NYC School District)
    • NYC Superior Officers' Council Annuity Trust Fund
    • NYC Correction Captains' Association Annuity Fund
    • NYC Detectives' Endowment Association Annuity Fund
    • City University of New York Civil Service Forum Annuity Fund
    • NYC variable supplemental funds (VSF), including:
      • Transit Police Officers' VSF
      • Transit Police Superior Officers' VSF
      • Housing Police Officers' VSF
      • Housing Police Superior Officers' VSF
      • Police Officers' VSF
      • Police Superior Officers' VSF
      • Firefighters' VSF
      • Fire Officers' VSF
      • Corrections Officers' VSF
      • Corrections Captain and Above VSF

  • The United States, its territories, possessions (or political subdivisions thereof), or any agency or instrumentality of the United States (including the military) or the District of Columbia.
Also include distributions received from a New York state or local pension plan, or from a federal government pension plan as a nonemployee spouse in accordance with a court-issued qualified domestic relations order (QDRO) that meets the criteria of IRC section 414(p)(1)(A) or in accordance with a domestic relations order (DRO) issued by a New York court. For additional information, see Publication 36, General Information for Senior Citizens and Retired Persons.

You may not subtract the following:
  • Pension payments or return of contributions that were attributable to your employment by an employer other than a New York public employer, such as a private university, and any portion attributable to contributions you made to a supplemental annuity plan which was funded through a salary reduction program.
  • Periodic distributions from government (IRC section 457) deferred compensation plans. However, these payments and distributions may qualify for the pension and annuity income exclusion described in the instructions for line 29 below.

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