§1045 Voluntary withholding of State income tax from retired or retainer pay

Summary

If a State asks, the appropriate Secretary must sign an agreement within 120 days to withhold State income tax from a member’s monthly retired or retainer pay when that person asks in writing. Money taken out in one calendar month will be held and sent to the State the next month. A member can change the State that gets the withholding or stop it. That change or stop takes effect on the first day of the month after the Secretary processes the request, but no later than the first day of the second month after the Secretary got it. Only one withholding request can be active at a time, and a person may not have more than two such requests in one calendar year. The United States won’t accept State laws that make the U.S. or its members worse off than other employers or impose penalties here. The Secretary cannot be paid by a State for doing the withholding. If money is wrongly sent to a State, the State must repay it under rules set by the Secretary. State — means any State, the District of Columbia, Puerto Rico, and U.S. territories or possessions. Secretary concerned — includes the Secretaries of Defense and Homeland departments, and also HHS for the Public Health Service corps and Commerce for the NOAA corps.