§1045 Voluntary Withholding of State Income Tax From Retired or Retainer Pay

Summary

The Secretary must make a written agreement with a State within 120 days after the State’s proper official asks. Under that agreement, the Secretary will withhold State income tax from a member’s or former member’s monthly retired or retainer pay if that person asks in writing. Money taken out in one month is kept and sent to the State the next month. A member can change the State for withholding or stop withholding. Changes or revocations take effect on the first day of the month after the change is processed, but no later than the first day of the second month after the request is received. Only one withholding request can be active at a time, and no more than two requests are allowed in one calendar year. This does not let States impose harsher rules or penalties on the United States or its members than they do on other employers. The Secretary may not accept payment from a State for doing the withholding. If money is wrongly sent to a State, the State must repay it under rules the Secretary sets. State: any State, D.C., Puerto Rico, or U.S. territory or possession. Secretary concerned: includes the HHS Secretary for the Public Health Service corps and the Commerce Secretary for the NOAA corps.