S T A T E   O F   N E W   Y O R K
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                                 3310--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 5, 2015
                               ___________

Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to  amend  the  tax  law,  in  relation to increasing a pension
  exemption

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph 3-a of subsection (c) of section 612 of the tax
law, as amended by section 3 of part I of chapter  59  of  the  laws  of
2015, is amended to read as follows:
  (3-a)  Pensions  and  annuities  received  by  an  individual  who has
attained the age of fifty-nine  and  one-half,  not  otherwise  excluded
pursuant to paragraph three of this subsection, to the extent includible
in  gross  income  for federal income tax purposes, but not in excess of
[twenty] SEVENTY-FIVE thousand  dollars,  which  are  periodic  payments
attributable  to personal services performed by such individual prior to
his retirement from employment, which arise (i) from an employer-employ-
ee relationship or (ii) from contributions to a  retirement  plan  which
are  deductible  for  federal  income  tax  purposes.  However, the term
"pensions and annuities" shall also include distributions received by an
individual who has attained the age of fifty-nine and one-half  from  an
individual  retirement  account  or an individual retirement annuity, as
defined in section four hundred eight of the internal revenue code,  and
distributions  received  by  an  individual  who has attained the age of
fifty-nine and one-half from self-employed individual and owner-employee
retirement plans which qualify under section four  hundred  one  of  the
internal  revenue  code,  whether  or  not  the payments are periodic in
nature. Nevertheless,  the  term  "pensions  and  annuities"  shall  not

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07669-02-6
              

S. 3310--A                          2

include  any  lump  sum  distribution, as defined in subparagraph (D) of
paragraph four of subsection (e) of section  four  hundred  two  of  the
internal  revenue code and taxed under section six hundred three of this
article. Where a husband and wife file a joint state personal income tax
return,  the  modification  provided  for  in  this  paragraph  shall be
computed as if they were  filing  separate  state  personal  income  tax
returns.  Where a payment would otherwise come within the meaning of the
term "pensions and annuities" as set forth  in  this  paragraph,  except
that  such  individual is deceased, such payment shall, nevertheless, be
treated as a pension or annuity for purposes of this paragraph  if  such
payment is received by such individual's beneficiary.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.